For property investors, cognitive shortcuts are necessary tools. They enable us to process the infinite complexity that comes with assessing the differences among investments. However, we need to be aware of their limitations.
For more than 20 years, Institutional Real Estate, Inc, in conjunction with Kingsley Associates, has surveyed institutional investors to learn their future plans for real estate investment. The results of the most recent annual investor survey were presented to IREI’s sponsoring firms in February and have been published in a special report available to subscribers of Institutional Real Estate Americas.
When it comes to German real estate, the majority of investors see no end in sight for rising asset prices.
Much of the current narrative around urban logistics fails to grasp what the term actually means. Is it just distribution space within urban areas? Is it urban if it is situated outside towns, but delivers into them? In reality, it is all these things.
Europe has attracted the largest slice of capital that was raised in 2018 to invest into real estate.
Corestate Capital Holding has closed its latest German high street retail fund, Highstreet VIII.
Historically, there has been very little take-up of residential property by UK pension fund investors in their home market. This is in stark contrast to pension fund investors in other parts of Europe and North America, where the practice is, generally speaking, the norm.
Share prices continue to decline resulting in the large discounts over the past year, despite the recent uptick. In some sectors (eg UK majors, continental retail and London office), stocks are trading at double-digit discounts to Green Street spot NAVs. This implies a wide disconnect between valuers and public market opinion. Observed discounts in the public market have historically been reliable predictors of future changes in private market prices.
Commerical property construction costs are rising fast in key European cities, while the London market has seen a dip in cost escalation.
Global prime office yields have fallen to record lows and are unlikely to rise in the near future, even if interest rates rise across the globe.
Cushman & Wakefield has reported that Germany’s microapartment sector was subject to €1.5 billion of transactions in 2018 — an 85 percent increase on 2017’s figure.
If you just look at the numbers, then the UK’s real estate market looks to be in robust health. Figures produced by Savills show that commercial property investment in London rose to £3.2 billion (€3.7 billion) in the first quarter of 2019, a 28 percent increase on the £2.5 billion (€2.9 billion) that was invested during the same period in 2018.