Publications

- April 1, 2021: Vol. 13, Number 4

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The best play: How can investors get the most out of traditional and niche sectors, going forward?

by Mard Naman

In dramatic fashion, the pandemic took the shine off traditional real estate sectors, such as hospitality, retail and, to a lesser extent, office. At the same time, it accelerated already-existing investor interest in logistics and data centres, which are expected to outperform in the medium to long term. Looking ahead, will any other traditional or niche real estate sectors be able to provide equally appealing risk-adjusted returns?

The answer seems to be a qualified “yes”. While investors may currently be enamoured with data centres, that doesn’t mean they should lose focus on other sectors.

“Structurally speaking, tech adoption that favours online retail, outlet malls and ecommerce — alongside demographic tailwinds driving multifamily, student housing, co-living, senior living, life sciences and self-storage — is expected to match up to risk-adjusted returns provided by logistics and data centres,” says Harry Tan, head of real estate research, Asia Pac

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