Winning Assets in an Inflationary Market

Investing in real estate is changing. πŸ’Ό

Today, I want to share in pills what’s happening and what is expected to perform well in this new environment.

The rising cost of debt and new EU regulations are prompting early asset sales. πŸ”„

Future real estate deals require motivated, prepared, and patient investors. πŸŒπŸ” Focus on income in this inflationary environment as yields become challenging to increase while keeping prices affordable. πŸ“ˆπŸ’°

Resilient rental income is (and will be) key for major real estate investors. πŸ’ͺπŸ’Ό

To give an example,Β PATRIZIA, a listed Global Real Asset Investment Management Company from Germany, with €58B AUM, said to Sole24Ore that aims to double its Italian AUM to €1B within two years.

πŸ¬πŸŒπŸ“ˆ They invest in logistics (35%), offices (45%), and other sectors, including student housing (10%). 🏒

Challenges lie ahead as refinancing needs to increase and decarbonization requires capital. Some investors are selling assets, providing discounted opportunities in the market. πŸ’ΌπŸ’Έ

Despite challenges, real estate offers strong asset classes for those with patience and a belief in the market.

Diversification and stable returns remain key. πŸ“ŠπŸ¦πŸ“ˆ

Focus on counter-cyclical assets like residential properties, student housing, and logistics for inflation protection, especially in Europe. πŸ˜οΈπŸ“‰

In the US, remote work trends have accelerated, impacting office spaces. Europe shows a different picture, with varying declines in values. πŸ‡ΊπŸ‡ΈπŸ’πŸ“‰

Stay informed, adapt to changes, and identify the right real estate opportunities.

We will keep sharing what we learn along the way. πŸ“°πŸ”πŸ’Ό

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