However, since classic investments for opportunistic investors, such as developments or extensive restructuring, are currently not available or do not meet the economic expectations, this group is increasingly looking for core properties again. As well as the classic core investors too. Even if the price expectations between buyers and sellers do not always align which is evident in the comparatively low transaction volume. 

There are even relatively large mandates for actively managed real estate funds being observed – sometimes with volumes of up to EUR 1 billion. Diversified fund strategies are in demand, as well as the asset class office. The effects of home office on space demand have been overestimated. Despite what we consider to be an overly skeptical sentiment towards this asset class, some investors recognize the opportunities for a good entry point. 

Office remains in demand 

Price formation is largely completed, especially in the very stable logistics sector and in food-centered retail good prices can also be achieved for hotels. In the residential asset class expectations of buyers and sellers also match again. European residential real estate is particularly attractive for institutional investors. Many have already significantly expanded their German portfolios in this sector. In the metropolitan regions of Europe, we observe similar demographic and economic conditions for new constructions, while different regulatory and cultural characteristics offer significant diversification and risk management opportunities. Even large shopping centers have seen some transactions again. Demand is likely to increase further, as the asset class has become noticeably more resilient. Many shopping centers have strengthened themselves with grocery retailers, brought in new concepts, and increased their occupancy rates. Additionally, online retail has reached a sort of plateau, providing a manageable basis for space utilization.

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