In this seventh edition, “The Lighthouse H2 2023 – European Property Market Outlook”, BNP Paribas REIM presents its outlook for the European real estate market using its in-house forecasts, analysis and the expertise of its local teams. Here BNP Paribas REIM defines its convictions and investment opportunities for the rest of 2023 and beyond.
Stagflation and weak investor sentiment affects the European real estate market
Investors still need to focus on diversification to reduce portfolio volatility. Residential and healthcare assets are good opportunities for this strategy as they have been more resilient during the current repricing phase and should be among the top performers over the next five years. The healthcare market especially, benefits from good long-term prospects for demand driven by macro trends that should not be affected by the current economic slowdown, such as an ageing population or increase of chronic diseases.In addition, logistics and hospitality represent high risk/return options or investors. A resurgence of discretionary spending on experiences should benefit hospitality and in particular hospitality focused of health and wellbeing such as yoga, meditation or spa resorts and nature-based tourism, including camping.
comments Laurent Ternisien, Chief Client Officer for BNP Paribas REIM.