MIPIM 2022 (21 MB)

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We continue to see strong momentum in the market and are therefore very confident going into the new
year. We were already able to successfully launch several notable transaction processes in the previous year,
which will be completed this year.
In addition to residential properties, which continue to be identified by investors as a safe haven, commercial
properties with strong, crisis-resistant anchor tenants are also highly attractive. The investment spectrum
in the hotel segment is broadening. Vacation hotels are now also included in the purchase profiles of some
investors. However, against the backdrop of new framework conditions, it is essential to take a closer look
at all investments and identify reliable investment cases.
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Karl Derfler,
ADEQAT Investment Services
The topic of ESG has reached all institutional investors
and has become an indispensable purchase criterion for
investments. Therefore, this topic is omnipresent for us
in every project assessment and transaction management.
We make recommendations for high-quality building certifications
to make investments placeable. Due to the EU
taxonomy regulation, this affects not only investors but
also financiers and developers. ESG compliance increases
the usability of the property. This is reflected in many areas
such as a higher market rent, a higher occupancy rate or
lower management costs. Sustainable real estate will have
a better risk-return profile in the future and will significantly
influence the capitalization rate and thus on prices.
ESG criteria will be an essential factor for companies in
terms of resilience, competitiveness and growth opportunities
in the future.
The Corona crisis and the economic consequences of the
pandemic have shifted priorities within the three ESG criteria.
For a long time, ecology and environment were the
dominant pillars due to climate change. Currently, however,
social issues are coming back into focus, as many people
have been affected in many ways by Corona lockdowns.
In real estate and portfolio valuation, risk diversification
plays an even more significant role given the Covid situation.
The utilization concepts of buildings and the sector
mix of tenants will have to be examined more closely and
adapted if necessary.
We don‘t see higher risk premiums in terms of risk surcharges. You could say
that in the environmental field, the need for building certification already makes
it an investment in sustainability. This may resemble a premium initially, but it
is amortized through lower management costs over the life cycle of a building.
Risks, the origins of which were first revealed by the COVID-19 pandemic, are
difficult to assess in the long term. The current trend of increased use of home
offices became a necessity, but its impact was managed well by the real estate
industry. Whether this trend will remain or whether user requirements will
change in the long term, cannot be answered with certainty at the moment.
Regarding interest rates, we expect Europe to follow the developments on the
American market and anticipate a moderate increase.
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The high level of competition and the increased pressure on institutional
investors to perform will counteract a low level of product selection. Influenced
by the pandemic, many institutional investors have become more risk-averse
again and are therefore focusing even more on core real estate, which is already
a scarce commodity.
Due to the still large amounts of cheap financing, more and more opportunistic
buyers are also entering the market. The question here is whether the
expectations of these buyers can be met.
Available space for project developers will become increasingly difficult to
find in the future. Post-densification options such as additions, expansions,
repurposing, reallocation, and replacement could facilitate the creation of
additional needed space without sealing more undeveloped land. Densification
can strengthen the sustainability aspect as well as the social aspect and resource
efficiency.
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As an investment broker for large-volume projects, we see transaction support in particular as an essential contribution to the favorable
completion of a project. For this reason, we want to continue to ensure a trustworthy, smooth and quality-assured transaction process this
year, which gives both customers and partners a lasting feeling of security and the highest level of satisfaction.
We are looking forward to further exciting projects and a cooperative partnership with our business associates this year.
MIPIM | 2022
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