In times of economic and financial market distress, such as the one we are now living through, it is natural to expect high levels of risk aversion among investors.

At the same time, repricing opportunities dangle a metaphorical carrot that institutional capital can find hard to resist. This dilemma is now one that real estate investors are wrestling with. And at present, it looks as if it is the latter dynamic that is winning through among those searching for yield in Europe.

According to the 2022 INREV/ANREV/PREA Investor Intentions survey published in January, €67.5 billion of new capital was targeted for deployment in global real estate this year, with 41 percent focusing on Europe (€31.4 billion). Investors targeting Europe exhibited an increased preference for value-added strategies at 57 percent, the highest level since 2008. Fast- forward to the tail-end of the second quarter and this inclination shows no sign of going away any time soon.

“Despite