Fewer lettings, higher vacancies, growing challenges: the European office property market is feeling the impact of the Covid-19 pandemic. Yet there are still attractive investment opportunities. Despite all the prophecies of doom, the office market is very much alive. By Christian Hunziker
Wände und Wege bieten Orientierung. Es sei denn, sie gehören zu einem Irrgarten oder Labyrinth, dann sind sie auf faszinierende Weise irreführend. Von Elke Hildebrandt
Mixed use is today’s magic formula for redeveloping empty department stores and poorly performing shopping centres. But every location has specific needs, and simplistic solutions will fail. By Petra Nickisch-Kohnke
The Covid-19 pandemic has accelerated the digitalisation of real estate processes, with established companies in the industry increasingly recognising the need for collaboration with proptechs to exploit data as the new gold. The alternative is to fall behind in the race as the pace of market evolution surges, challenging long-established practices and mindsets. By Judi Seebus
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Everybody’s darling is now everybody’s challenge. Since the start of the pandemic, hotel operators, their banks and lessors have been working together to lead the asset class out of the crisis. By Maria Pütz-Willems
Optimism has returned to the major European real estate markets. That is the key finding of the most recent real estate investment climate survey conducted by Union Investment in Germany, France and the UK. There are many indications that the property markets are at the beginning of a new cycle, despite the pandemic not yet being fully behind us.
Die nachhaltige Transformation des Immobilienbestands steht ganz oben auf der Agenda institutioneller Immobilien… https://t.co/sWsn8gjgDL
In the US, they’re already one of the hottest real estate investments, with Europe also seeing growing interest in life science facilities. However, investor demand exceeds supply, particularly in Germany. By Birgitt Wüst
The pandemic triggered a flight to safety, but value-add and manage-to-core strategies are now looking more attractive again. Investors appreciate the associated flexibility – not least in terms of adding green features. By Christine Mattauch
The coronavirus pandemic is testing the stability of open-ended real estate funds again. But while most asset classes have experienced a severe slump and then a strong recovery over recent months, open-ended real estate funds have delivered relatively stable performance. Average volatility has been under one percent. So on the one hand they passed the stress test, but open-ended real estate funds have not completely escaped the impact of the pandemic.
Investment in senior living properties is set to increase, particularly in the mid- to high-end segments. Aging populations, growing wealth and lack of supply are driving demand and investor appetite. By Paul Allen
A potent mix of favourable fundamentals is attracting a record number of investors to residential assets. With demand for build-to-rent properties continuing to outpace supply, astute investors are putting on their hard hats and teaming up with project developers to access new product. By Judi Seebus
Union Investment is aiming to make the next generation the driving force behind its growth strategy. The younger generation’s fresh mindset supplements the valuable experience of seasoned real estate colleagues. Words by Elke Hildebrandt, photos by Sebastian Vollmert
EU directives aimed at promoting sustainability are influencing asset allocation by pension funds. Residential property could be a beneficiary. By Steve Hays
Taxonomy, Sustainable Finance Disclosure Regulation, the German Federal Climate Change Act: policy makers are imposing a whole range of regulatory measures on real estate companies to improve sustainability. While that causes uncertainty, it also offers opportunities. By Christian Hunziker
Although the full impact of Brexit may not yet have completely played out in UK real estate markets, prime London offices look to remain a safe bet. By Isobel Lee
A location that is set to boom over the next few years and a property with character: the MediaWorks Munich ensemble has huge upside potential. Union Investment and Hines joined forces to seize the opportunity. By Christine Mattauch
Portfolio managers will need to aggressively decarbonise their European real estate investments this decade if they are to stay aligned with the EU’s ‘Green Deal’ carbon dioxide emission target cuts.
Even during the pandemic, there was a market for premium properties. In 2020, Union Investment secured “an exceptional property” at Neue Balan, a campus development in an up-and-coming area of Munich. By Christine Mattauch
Although the pandemic has scared off many investors from hotel real estate, with underwriting hospitality assets proving challenging in an uncertain world, some market participants see this as the perfect moment for an anticyclical play in the sector. By Isobel Lee
Hotels have been particularly hard hit by the various measures taken to counter the coronavirus pandemic. Even major property holders are feeling the effects. The prospects of a quick return to growth are good, however, provided the right steps are now taken with regard to tenant and property management. By Christian Hunziker
Around the world, subway stations provide access to rapid transport. But some go further and offer a richer urban experience. By Elke Hildebrandt
Soaring and dramatic, skyscrapers are landmark structures in major cities worldwide and allow vertical densification of urban areas. But in terms of urban mobility, high-rise buildings represent impractical cul-de-sacs, hence the appeal of skybridges. By Elke Hildebrandt
“Urban mining” can drastically reduce the carbon footprint of buildings and help conserve resources. Provided the materials used in buildings are documented, can be sorted into homogeneous categories and are recyclable, that is. By Birgitt Wüst