Sector-Specific Strategies:
- Logistics
Approximately 95% of logistics markets are underpriced. Logistics is rebounding quicker, with expected rental growth and yield compression in 2025.
- Retail
A retail renaissance is underway, fueled by improved consumer confidence and demand. Many retail markets are underpriced, presenting opportunities for growth.
- Office
While the office sector remains cautious, signs of recovery are emerging. Investors are concentrating on sustainable, well-located assets, which show promise for long-term appreciation through refurbishment.
- Residential & Hospitality
These sectors are currently in the "sweet spot" for investment, driven by robust fundamentals that bolster demand.
Evolving Debt Landscape
Decreasing base rates and enhanced lending conditions have cultivated a healthier debt landscape with attractive financing options. Lenders are actively providing capital for the office, retail, and logistics sectors, offering investors opportunities to secure favorable financing terms.
Strategic Realignment for Long-Term Growth
Investors are encouraged to refine their strategies in response to market shifts driven by behavioral, technological, and cultural changes. Emphasising ESG compliance, decarbonisation, and the increasing demand for affordable space will be crucial in shaping future investment decisions.
Prime Investment Geographies
The UK, Germany, and Poland are identified as top markets for real estate opportunities, driven by yield compression, rental growth, and refinancing needs. Other markets, such as Spain and France, also present strong liquidity and recovery prospects.
Commitment to Sustainable Growth
Investors should prioritise assets that comply with ESG standards, implement brown-to-green strategies, and repurpose existing properties to adapt to evolving market demands, ensuring long-term value. By concentrating on underpriced markets, leveraging favorable debt conditions, and aligning strategies with overarching market trends, investors can position themselves for substantial returns in the future.
TIME SCORE
The TIME score offers a streamlined method for illustrating key changes in several crucial indicators, providing investors with valuable tools for assessing and predicting market dynamics.
FAIR VALUE INDEX
The Fair Value Index, a forward-looking tool providing insights into the attractiveness of pricing in Europe's prime office, retail, and logistic property markets.
DEBT & STRATEGY
Equity, Debt & Structured Finance
Over the past 24 months, the debt landscape has significantly improved, driven by falling base rates and a year-over-year decline in 5-year EURIBOR and SONIA swaps. Explore how these trends can benefit your investment strategies and overall financial performance.
Investment Strategy
As market drivers and opportunities shift, investors must recalibrate their strategies for European investments. The real estate sector is at a pivotal point, needing to adapt to ongoing behavioural, cultural, and technological changes. This dynamic environment presents multiple commercial real estate opportunities across various risk profiles, allowing investors to balance income security with operational gains. Explore how these changes can shape your investment approach and drive success.