MIPIM 2022 (21 MB)

1
After an outstanding investment year in 2021, we
are extremely confident about 2022. Due to the high
number of transactions in the process, which we expect
to finalize in the first half of 2022, we also anticipate
solid transaction activity and volume in the coming year.
Residential and logistics properties will be highly in
demand, with enormous demand far exceeding supply
in the logistics sector in particular.
2
The leading causes of high real estate prices, namely low interest rates, poorly
performing alternative investments and rising inflation will remain with
us in the coming year. The pandemic is a challenge for the entire economy.
However, except for a few segments, such as city hotels and supra-regional
shopping centers, the real estate sector was comparatively minimally affected
by the impact. In some cases, it was even able to benefit from the development
in the areas that promise long-term secure cash flows or the „last-mile logistics“
sector, which serve the changed consumer habits. The EU taxonomy or the even
stronger focus on ESG will make top properties even more in demand. This will
also lead to older, non-sustainable properties being increasingly upgraded or
retrofitted to meet ESG requirements and thus create an increase in their value.
3
Franz Pöltl,
EHL Investment Consulting
Primarily, we expect that those properties built to be ESG compliant
will increase in value compared to non-sustainable properties.
Factoring in the cost of bringing existing properties into ESGcompliant
condition will likely become standard in valuations over
time. We see no sign of any rate hikes at the moment, so that yields
will remain under pressure.
4
We expect that efforts to overcome the pandemic, the general establishment of
ESG standards, and the price dynamics of land and construction costs will be
the key challenges for the real estate industry.
In terms of overcoming the pandemic, the real estate industry will have to rely
mainly on government action. In terms of moving toward a sustainable real
estate industry, the path is at least mapped out. In the coming year, the search
for land at prices that still allow affordable housing will remain a real challenge.
Faster reclassification of land and construction procedures would certainly be
helpful here. Construction costs are also trending in a direction that does not
yet indicate a weakening of the price momentum for real estate prices.
5
After having had a very good year in 2021 and being able
to start the new year with a well-filled project pipeline,
we want to continue last year‘s good performance
seamlessly and expand EHL Investment Consulting‘s
leading position in the investment market in 2022. In
doing so, our focus is not on a specific asset class, but
rather we want to be the predestined contact partner for
our customers in all areas, starting with the acquisition
of the property through to the sale of the finished
investment product.
MIPIM | 2022
83