There are still relatively low-risk property types that are experiencing dynamic growth. These include residences for senior citizens in countries such as Germany. Senior living is not, of course, completely immune to negative macroeconomic factors. Higher energy costs, staff shortages and rising labour costs are all issues that investors must grapple with. The great advantage of senior living properties, however, is that tenant demand is largely independent of fluctuations in the economy

Stricter lending criteria coincide with $1.9 trillion (€1.79 trillion) of commercial real estate loans due to mature between 2023 and 2025, of which $983 billion (€929 billion) are bank loans. Borrowers who obtained loans when interest rates were low will face much higher financing costs, and will no doubt exercise every feasible option to extend existing loans. Some borrowers, however, will struggle to secure the needed financing. This scenario will lead to a gap in the lending market, offering non-bank lenders a chance to step in and meet the underserved loan demand

There is a clear indications of momentum pointing towards a potential shift that would mean SFDR better reflects some of the nuances associated with real estate investment. Signals from policymakers certainly sound optimistic. They offer a perceptible hope that Article 9 could become more focused on transparency first and foremost, rather than prescribing market participants’ approaches to sustainable investment. There is plenty still to do, but it does feel as if the industry may have reached a potential turning point. If achieved, this would have a significantly positive impact on the industry’s capability to meet its net-zero obligations

Although the hotel industry continues to face challenges, the market still offers great potential for property investment. Despite a shortage of skilled workers, increased labour costs, the energy crises and inflation, the sector has proved to be more resilient than other types of use

While industries such as finance and healthcare have embraced digital technologies to streamline processes and improve customer experience, the real estate industry has been slow on the uptake. Why? Several reasons are likely

It will take an average annual capex figure of €8 per square metre, at a current climate-related risk premium of 19 basis points, to ensure prime assets keep in line with the current 2050 sustainability deadline set by the Paris Agreement

Recent European valuations data from MSCI for the second quarter has confirmed that capital values are still falling across all sectors, but at a slower pace than they were last winter. This has raised the question as to whether real estate has reached a turning point in this downturn. Oxford Economics, however, says a quick bounce back for values looks unlikely next year and has given five key reasons why valuations will not recover strongly in the near term in a recent white paper

Purchase prices for German multifamily properties have dropped an average of 17 percent, moving back to valuation levels last recorded in 2018. In its Residential investment 2023/24: An overview of residential/commercial-mix properties report, Colliers has said that it does not expect prices to fall further, although slight corrections are still possible in some residential sub-segments in Germany. As a result, the advisory firm believes price levels for both residential and residential within mixed-use properties have found a “new equilibrium”

Two former Cushman & Wakefield executives, along with a former finance officer from luxury hospitality group Habitas, have launched what they call the “first truly white label” flexible workspace operator in the United Kingdom. Covalt, which will offers owners, landlords and investors a “start-to-finish” management service for flexible workspaces, has already signed agreements to manage 100,000 square feet (9,290 square metres) of office and amenity space.