Real estate: our 4 investment convictions for 2017

Corporate Finance - 14/02/2017

In short
  • Invest in dynamic city centers
  • Invest in mixed-use buildings
  • Invest in low-energy buildings
  • Invest in builldings with very high speed broadband

Inès Reinmann-Toper, Associate Director at Edmond de Rothschild Corporate Finance, shares her 4 real estate investment convictions for 2017 in video.

1/ Invest in dynamic city centers

Aside from capital cities, some European cities are experiencing demographic growth and offer interesting investment opportunities.

For example, such dynamic city centers can be found in:  Toulouse, Lyon and Marseille in France ; Frankfurt, Munich, Hamburg and Berlin in Germany or Madrid and Barcelona in Spain. Because these citites are experiencing high demographic growth, the stability of rental flows is assured for a number of years.

2/ Invest in mixed-use buildings

Switching from domestic to office use on a regular basis, Haussmanian-type buildings stand as the most popular example of mixed-use building. Owners will be able to increase their rental cash flow over the next few years thanks to the rise of interactive players such as Airbnb and Zenpark. These platforms will enable them to increase their rental prices and to decrease their building vacancy rate.

3/ Invest in low-energy buildings

Controlling energy consumption has become a vital issue. A low-energy building can generate its own energy and sell some of it off. This criteria is becoming an essential part of the capital value of any property.

4/ Invest in buildings with very high speed broadband

This is a must. The dramatic increase in data transfers must be handled by the properties our clients will invest in. That is the case regardless of the type of building concerned (accommodation, business, retail, hotel, etc.).

 
WARNING
The commentaries and analyses featured in this presentation are for general information purposes only and constitutes neither a product of service recommendation. They shall not under any circumstances be construed as comprising any sort of undertaking or guarantee whatsoever on the part of the Edmond de Rothschild Group or of its subsidiaries, nor a customised investment advice or a general investment recommendation.
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