Publications

- January 1, 2022: Vol. 16, Number 1

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Rethinking niche: Ignore alternative sectors at your own peril

by Axel Vespermann

The times are changing. The COVID-19 crisis has disrupted lives and economies, and it continues to impact investments, leading to shifting demand and changing priorities.

This is none more true than in the traditional alternative property sectors, which are now being increasingly viewed as mainstream asset classes.

These lessons can be found in Universal-Investment’s 2021 annual survey of large institutional investors. With total assets of around €65.1 billion and a real estate portfolio of some €14.8 billion, the survey’s participants have shown how much the pandemic has impacted different sectors in different ways.

More than two-thirds of the investors in the survey judge the impact of the pandemic on the real estate market to be mostly negative. In fact, a clear majority (68.7 percent) expect to see declining demand for space in certain sectors. Around 25 percent fear risks from the overall economic situation.

Does this mean that investors view

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