Real estate Opportunity in real estate credit
Higher interest rates, reduced basis, and tighter bank regulations are potential positives for commercial real estate (CRE) credit and why we see opportunity.
In addition to the humanitarian catastrophe in the Ukraine, the conflict has created significant short-term uncertainty in financial markets and could potentially have a significant medium-term impact on the European and global economies.
While our strategic outlook continues to consider the shape of the economic recovery for each market and industry, as well as local inflation pressures, the fundamental market environment remains supportive for investment in yield assets which can offer inflation hedging.
Specialty sectors continue to attract strong investor interest. Buyers are concentrating on areas which are influenced by long-term secular trends.
Overall, we believe real estate returns will continue to exhibit increasing asset-specific divergence within markets and sectors. We focus on those real estate sectors where demand is supported by long-term secular growth drivers.
Higher interest rates, reduced basis, and tighter bank regulations are potential positives for commercial real estate (CRE) credit and why we see opportunity.
Our experts unpack the 2025 outlook on the evolving real estate market. We explore the implications of recent trends and ESG considerations on the market.
Kevin Grundy, Managing Director, Fund Management, Europe, Invesco Real Estate, discusses the broader market environments in the region and where he is finding the most compelling investment potential for value-add and opportunistic strategies.
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.
Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of the property is generally a matter of an independent valuer’s opinion.
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.