European Real Estate: Why Now?
The European real estate market appears to have passed its cyclical trough—and potentially compelling core and value-add opportunities are emerging across logistics, living, and select areas of the office sector.
“Time to re-enter the market”
During a real estate correction of this magnitude, a rational response may be to place immediate acquisition plans on hold. However, we believe there comes a point in the cycle where waiting for the absolute minimum capital value is only of a marginal benefit. In our view, now is the right time to re-enter the market, otherwise the current pricing opportunity could likely be missed.
Figure 1: European CRE Total Returns Start to Recover (% P.A.)
Source: MSCI. As of September 29, 2023.