REAX expert panel on “Real estate asset managers facing new challenges: Rising interest rates, inflation, geopolitics”.
Still far from panic mode – that was the unanimous conclusion of the REAX Expert Roundtable on June 15, where market players in residential, logistics and food retail real estate discussed the topic “Real estate asset managers facing new challenges: Rising Interest Rates, Inflation, Geopolitics” discussed.
The real estate and fund industry is currently facing major challenges. High inflation, significantly increased interest rates, high construction costs and the consequences of the Ukraine war have significantly changed the macroeconomic environment in recent years. In the midst of this is the logistics real estate market, which has just had a record year and continues to be driven by food retail and the strong growth in online retail. Oliver Soini, CEO of SOINI ASSET, describes how it will develop in the future and the impact of rising interest rates at the REAL EXCHANGE AG roundtable discussion in Hamburg.
The supply shortage in the with very high demand, the reorganization of supply chains as an important market trend as well as the increasing tendency in Europe to stockpile pre-products and raw materials again, let Oliver Soini think positively further.
“The logistics real estate market is driven by the strong growth of e-commerce trade. In the Anglo-Saxon region, e-commerce has already grown to 25 percent of retail. In Austria, on the other hand, its only eleven percent, so there’s still some catching up to do, Soini emphasized to the panel.
“Of course, interest rates also have an effect on calculations and returns in the logistics real estate sector. However, it will take some time for that to reach the last seller,” Soini notes, raising the question of whether the leverage effect still exists at all in light of high interest rates. He demands, “This discussion must be held quite openly with investors.”
The project developer sees no changes in the financing banks, but SOINI ASSET also works with comparatively high equity. This is also confirmed by his two colleagues from Nox Capital and Sierra Germany as representatives for their respective asset classes.
The video recording of this web conference can be found here: https://lnkd.in/ebjZwdghttps://lnkd.in/ebjZwdg