In the global landscape of residential real estate, one puzzle looms large: rent regulations. Nations grapple with the delicate balance between tenant protection and investor incentives, with none seemingly finding a solution to appease both sides. That is why the jury is still out on the overall effect of residential rent controls on development, investment and, ultimately, tenant affordability.
From academia, to major accounting firms, to prestige consultancies of all types, the studies delivered on artificial intelligence (AI) are fashioned in the most sober tones possible — and yet they invariably sound like science fiction. And when the experts address AI and institutional commercial property, the same abyss between gimlet-eyed analysis and everyday believability is encountered. Nevertheless, despite its exact role in real estate not yet having been defined, the power of artificial intelligence cannot be underestimated.
Europe is suffering from an affordable housing crisis, with the United Kingdom witnessing a more acute shortage of affordable housing for middle- to lower-income households than most other developed nations. As a result, a holistic exposure to the UK’s private and regulated affordable housing sectors can deliver great benefits for investors and residents alike.
In a recent study, UBS Asset Management, Real Estate & Private Markets’ (REPM) green premium research focuses on the two largest financial centres in the world, New York City and London. The research examines 1,453 office building transactions in New York City and London between 2010 and 2022. The research confirms the existence of a green premium in green-certified office buildings in New York City and London.
While many managers employ the same few national valuation management companies to manage their appraisal processes, there is little consistency of approach between different investment managers’ valuation stances. This is frustrating for investors, who seek a consistency of approach that always seems to elude them.
Specialised residential or alternative housing business models, which can operate somewhat differently from conventional housing concepts — and may therefore also have different risk-return profiles — are increasingly being scrutinised.
There could be €42.5 billion of European real estate loan defaults, resulting in €14.5 billion of commercial real estate loan losses for lenders over the next three years, according to analysis from AEW.
A stabilisation in property values is nearly complete in Europe, bringing to an end the pricing declines experienced throughout 2022 and 2023. In a new research paper, Justin Curlow, global head of research and strategy, real assets, at AXA IM Alts, says Europe should see an end to price volatility from mid-2024 onwards.
The majority of European property investors are planning to modernise their portfolios over the next two years, in an effort to increase the resilience of their property portfolios.
Investment in European retail fell 40 percent in 2023 compared with 2022, to €26.2 billion, yet investor interest in retail assets is slowly gaining more traction
Demand for tech talent is beginning to outstrip supply in some European markets, spurring tech employers to expand their hiring into relatively untapped locations.
The opportunities and benefits of investing in real estate continue to be compelling and should minimise any capital movement out of the asset class. More than a decade of incredibly low bond yields has left a legacy that will encourage investors to stay with real estate. The sector is now more accessible with more products and routes to market than ever before.