What are the investment prospects for 2024? This was asked to Robert-Jan Foortse, Head of European Real Estate APG, this week by React News (English online medium for the real estate sector). One of the answers from Robert-Jan and his team? “As APG, we take the opportunities that come our way.”
According to the expectations of APG's real estate specialists, the year 2024 offers different prospects. On the one hand, returns could be lower due to a potential recession and the debt-refinancing gap. But on the other hand, the possible lower interest rates will actually ensure 'stronger' returns on investments.
Growing demand for high-quality properties
When Robert-Jan and his team delve deeper into the expectations for 2024, they predict a revival of inflation and growth in the capital value of top offices. “While the dichotomy trend in this last market continues”, says Robert-Jan. He is referring to the growing demand for high-quality properties that are easily accessible by public transport and that excel in environmentally friendly performance and the increasing vacancy of properties that do not meet these requirements.
Although the latter may affect APG, given the European real estate portfolio, APG's real estate specialists also see numerous opportunities. “As APG we will take the opportunities that come our way. Personally, for example, I see opportunities emerging from the wave of upcoming refinancings.” Robert-Jan emphasizes that APG is not making any drastic changes to its real estate strategy. “We are a long-term investor and continue to invest along the lines of megatrends. Just as we have done for the past twenty years.”
The article can be read (behind a paywall) on the React News website.