A changing investment environment
Whilst the Global Financial Crisis helped in some part to accelerate the new appetite for “alternative” real estate, the rise in technology, data usage, international travel and an ageing population have all been key contributing factors to the way in which investors now consider their portfolios.
In this way, student accommodation, nursing homes and healthcare assets have found their place within the real estate investment market, offering more resilient demand-supply fundamentals.
Economic, political and social factors have also influenced the way in which investors view different sectors. With the rise in e-commerce and a declining retail market, logistics has found a firm place in the market.
For offices, remote working which was already on the rise before the pandemic has been greatly accelerated and new ways of using office space are impacting how offices are viewed by investors.
Resilient and future-proof investment
With the world around us changing rapidly, influenced by such events as the Russia-Ukraine war and rising inflation, BNP Paribas REIM now advocates for highly resilient, sustainable investment options. Options that are able to stand the test of time for what the future may have to hold. This is why housing for various generations from students to the elderly is now of growing importance and the importance of supporting healthcare sectors for an ageing population is something that our society is becoming more and more dependent on.
In this new edition of Living Thoughts by BNP Paribas REIM, we take a look at the fundamentals of the investment market and the positive impact that environmental and sustainable investment can have for our world.
With the growth of niche property types combined with existing asset types, the interaction between the two is of ever-increasing importance. How then to leverage the drivers behind the investment trends? Find out by requesting your copy of An Alternative View on Real Estate.