2023 and 2024 to be vintage real estate investment years
Both 2023 and 2024 are likely to be “very good vintage years” to invest in real estate, as lower valuations in the European market create new investment opportunities.
In its November 2022 Global Real Estate Outlook report, M&G Real Estate has said a general pricing reset across most sectors will lead to greater variation portfolio performance, and is likely to accentuate the divide between prime and lower quality assets. It will also, however, create new investment openings, particularly for investors who are willing to engage in heavier refurbishment in order to target attractive risk-adjusted returns, as European economies climb out of recession.
“With repricing comes opportunity,” said Jose Pellicer, head of investment strategy and research at M&G Real Estate, during a webinar on 29 November to present the report’s findings. “2023 [and] 2024, are likely to be very good vintage years to invest in real estate. So, watch this space because