Invesco Real Estate – European Market Outlook H1-2021
European economies are on a steady recovery path over 2021-22, rebounding from the impact of COVID-19 in 2020. The pace and scale of the recovery from this impact varies, and from a real estate perspective we have to factor the shape of the economic recovery into our considerations for each market, both in terms of our thinking about strategic merit of current holdings, as well as where potential opportunities may lie going forward.
For European real estate markets, the investment considerations at present focus on the medium-term outlook for sectors, and the extent to which these may have changed as a result of COVID-19. We remain clear in our view that the current global pandemic caused a significant short-term disruption without directly changing any of the longer-term structural changes that were influencing real estate. However, for certain sectors, the reaction to COVID-19 accelerated structural changes which were already occurring, such as the increase in online retailing.
Overall, the fundamental outlook remains supportive for investment in yield assets, and with significant volumes of capital waiting to deploy across global real estate markets, the outlook remains supportive for the sector.
Investment risks
-
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Important information
-
This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.
