Fuelled by QE and nimble government responses to the global financial crisis, Europe’s economies have mostly enjoyed growth since 2008. But serious questions are being asked now as to how long real estate investors can rely on the perhaps somewhat prematurely labelled “new normal” landscape of low interest rates and inflation.
Alternatives are fast becoming the new mainstream. That was the message from CBRE in its half-year Property Perspective report on niche real estate in the UK. Aptly sub-titled More Mainstream than Mainstream, the report highlighted that a squeeze on returns and a glut of traditional property assets have prompted some investors to skip the core market and head straight to alternatives.
Shops, offices and sheds: the three cornerstones of commercial property investment. From these bricks and mortar holdings an owner expects to receive long, predictable income streams and (hopefully) an appreciation in capital values.
Amid a backdrop of slowing euro zone growth and failing Brexit negotiations, Institutional Real Estate Europe’s editorial advisory board gathered in a somewhat unseasonably warm Amsterdam in late September to consider and dissect some of the most pressing issues that they face today.
Extremely high investment volumes, low yields, astronomically high average values, uncontrollable debt, and a clear supply-and-demand imbalance created by high levels of new developments. That’s what the real estate market looked like in 2008 before the crash.
We just closed the proceedings of our 2018 annual editorial advisory board meeting for Institutional Real Estate Europe. Held at the Pulitzer Hotel in Amsterdam, 41 investor, investment manager and consultant representatives, who collectively control or advise more than €7.9 trillion in assets and nearly €1 trillion in real estate holdings, came together over two days to engage in networking events and closed private facilitated discussion sessions.
GRESB has revealed that European real estate companies and funds continue to lead the world when it comes to environmental, social and governance (ESG) standards.
Partners Group has reached its €2 billion target for its third dedicated private real estate secondaries programme. The capital was rai
A key principle of investing in real estate is right-sizing the mix between private and public allocations. Plan sponsors, asset allocators, and investment managers must decide how to allocate to real estate given its different liquidity flavours, ranging from REITs with daily liquidity, to private core real estate strategies with quarterly liquidity, and where to allocate each within their overall portfolio.
The Netherlands and Spain have been picked by UBS Asset Management as the two markets set to deliver the strongest performances in Europe across all properties over the next three years.
Online sales are set to triple in Poland while store sales are set to grow by 30 percent over the next 5 years as e-commerce amplifies the country’s bricks and mortar retail success story.
The French office market has seen its best performance since 2008 in the first half of this year thanks in part to strong demand in the regions.