BNP Paribas REIM is a full service provider covering the entire life cycle of European property investments in all European countries and sectors. With 60 years of experience, we provide you with sensible, long-term investments in pan-European real estate generating income and creating value across a range of highly diversified investment vehicles and separate account solutions.

Our expertise covers the full spectrum of real estate investment management, including all elements of strategy and solutions, investment, development, asset management, structuring, risk management as well as proprietary research. Our real estate professionals blend local expertise with global practices and benefit from one of the best real estate networks throughout Europe.

Sector forecasts

INDUSTRIAL: The expected increase of online retail sales and the new trend regarding reshoring and near-shoring should drive demand for logistics space in the next 10 years. In most European countries, the vacancy rate is now below 5% and the risk of oversupply remains limited. The current economic and geo- political environment should maintain a low level of space availability with land shortages, rising construction costs and inflationary uncertainties in financing projects. This will continue to put upward pressures on rents beyond the crisis. Given tightening financing conditions, we believe that yields will rise, even if we see further solid rental growth going forward.

OFFICE: The prime segment is undoubtedly the winner of the past months and the market polarisation may increase. Companies are now focusing on prime locations with good connectivity, flexibility and amenities. As a result, vacancy in central location should remain low – implying strong rental growth – while secondary locations might suffer more. Moreover, investment has entered a period of price correction due to tightening financing conditions. There is no doubt that yields will recalibrate, but prime assets should remain attractive for investors, keeping some pressure on capital values.

RESIDENTIAL: Given its lower correlation with business cycles, the momentum for the residential sector is good. Unlike house prices, which are coming under pressure from increasing mortgage rates, we expect rental values to increase at a faster pace as demand shifts to renting from buying. This should bode well for build-to-rent investors in terms of both occupational demand and pricing. However, the sector faces regulatory challenges in most regions, which will only intensify on the back of the cost of living crisis.

RETAIL: The political upheaval in Europe will affect the different asset classes unevenly. High-street prime locations remain attractive, but still suffer from reduced tourist numbers, as well as lower consumption. Prime rental values, that had already fallen by 5% on average in Europe over 2020–21, could fall further amidst the cost-of-living crisis. Given relatively high yields and their resilience since the pandemic, retail parks should continue to attract investors. Overall, investors must accept that capital appreciation will be limited in the short term, making retail well suited to an income investor.

HEALTHCARE: Healthcare continues to be one of our favourite and top performing sectors in the current challenging environment. Investment appetite is still solid, with healthcare generating a healthy yield, along with stable, indexed rents based on long rental contracts. Fundamental drivers are very strong and the sector has the ability to further diversify portfolios, as it is fairly resilient to an economic downturn. Combining some additional yield compression with expected rental growth, healthcare assets are likely to generate the strongest returns in the medium to long term.

Investment principles & strategy

We consider a long-term sustainable approach focusing on yield, value creation and capital preservation, with transparent management and regular communication to our clients. Our dedicated research team enables us to have a precise market view allowing us to do scenario calculation at property and fund level. Our European investment activities focus on high-grade office buildings in economically strong locations as well as highly attractive logistics, healthcare and diversified properties, in core and value add strategies, where we integrate our ESG philosophy.

Strategic corporate development

BNP Paribas REIM is:

  • truly innovative and ESG driven
  • decisively European
  • a real estate investment manager, for both institutional and retail clients.

Performance verification

The performance of most of our funds and assets is compiled, calculated and verified by MSCI.