Investment Update 2024 Q3

As nature slowly enters winter dormancy with the falling leaves, the first signs of spring are emerging in the real estate market. Yet, the proverbial frost still holds firm in many areas.

These spring signals are most apparent in user markets and policy intentions. Demand remains strong for housing, prime retail locations, and healthcare facilities. With measures such as reversing the limitation on interest deductions and the announced reduction in transfer tax—though ideally, this should drop to 6%—the government shows its commitment to a favorable investment climate in the housing market. However, further steps are needed to tackle the major challenges around affordable housing for young people, movers, and seniors, as well as the sustainability of real estate.

Additionally, the improving interest rate environment gives investors more confidence in the long-term returns of real estate. Despite a gradual increase in investment interest and a slight decrease in initial yields for the most attractive real estate investments, investment volume in the third quarter remained only marginally higher than in 2023. Improvement is expected, though recovery is gradual, and market conditions remain volatile.

In this Investment Update, our "Focus" section takes a closer look at the retail investment market. We believe there is an attractive entry point for this segment right now. In our white paper, a webinar, and various interviews in real estate media, we delve further into the opportunities we see in this market.