With interest rates having increased considerably, real estate prices in Europe are up to 50% lower than they were two years ago. This is creating compelling opportunities for experienced managers to invest in high quality real estate at bargain prices – particularly in the “value-add” space.
In this 12-minute podcast, Simon Redman and Kevin Grundy address some of the key questions on investors’ minds.
Key topics covered:
Opportunity or caution? The outlook for European and Asian real estate
The Invesco Real Estate team discusses disruption and volatility in European and Asian real estate markets, which are creating unique investment opportunities.
How global demographics drive global real estate opportunities
Global demographic shifts, like a declining, growing, or an aging population, in tandem with macroeconomic factors tend to generate real estate investment opportunities.
Why we expect a price recovery in commercial real estate
Lower interest rates could start a chain reaction in commercial real estate (CRE) as lower borrowing costs reduce cap rates, which would drive higher prices for new investments.
The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them.
Generally, real estate assets are illiquid in nature. Although certain kinds of investments are expected to generate current income, the return of capital and the realization of gains, if any, from an investment will often occur upon the partial or complete disposition of such investment.
Investing in real estate typically involves a moderate to high degree of risk. The possibility of partial or total loss of capital will exist.
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