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.
European economies are on a steady recovery path, rebounding from the impact of COVID-19 in 2020 and early 2021. Despite the rise of the Delta variant, European countries continue to reduce remaining COVID restrictions, driving the rebound in economic activity and the uncertainty over the global recovery has subsided.
However, due to the fragile global outlook clear opportunities for outperformance still need to be balanced with portfolio risk diversification. Real estate performance is seeing asset-specific divergence within markets and sectors as well.
By focusing on sectors supported by secular tailwinds, we aim to ensure that stock selection and asset management are expected to drive relative returns over the shorter term.
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.