The survey, conducted by Real Blue Kapitalverwaltungs-GmbH, the investment manager of the Drees & Sommer Group, shows that an overwhelming majority of respondents plan to invest in real estate this year. 69 percent have indicated that they will buy again this year, while a further 28 percent are planning investments but cannot give an exact date. These figures underscore investors' continued confidence in the real estate market despite the challenges of recent years.

The shift in the preferred types of use of real estate is also interesting. While residential real estate has traditionally remained popular, there is also an increase in investments in areas such as logistics, renewable energies, and corporate real estate. It is the increasing importance of diversified portfolios that are not limited to residential real estate that is coming to the fore.

Another notable finding from the survey concerns expectations regarding interest rate developments. Most respondents expect interest rates to fall over the course of the year, with only a minority expecting interest rates to rise. These forecasts could further increase the attractiveness of real estate investments, as lower interest rates could lower financing costs and improve return prospects.

Despite this positive outlook, it is important to note that the industry has faced some challenges in 2023. A decline in the placement volume of real assets for retail investors and increasing uncertainties due to factors such as rising interest rates and geopolitical tensions have created challenges for many companies. Nevertheless, the resilience of the real estate industry remains impressive, and many investors also see opportunities for long-term investment in these challenges.

An interesting aspect of the survey is the discrepancy between interest in infrastructure investment and actual engagement in this area. While 38 percent of respondents plan to increase their share of infrastructure, only 21 percent show interest in this sector. This discrepancy could indicate that some investors are looking to increase their infrastructure investments by selling real estate rather than making new investments.

Overall, the survey reflects the continued interest and momentum of the real estate industry, which is continuously adapting to new market conditions and seeking opportunities across sectors and geographies. As the industry evolves, real estate investing remains an integral part of many portfolios focused on long-term growth and stability.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes