The truth is out there – but will local and international players compromise on risk?
Over 500 senior real estate lenders, developers and investors gathered ( on Sept 11-12) in Paris for the 19th Europe GRI last week, the numbers of which were not seen since the pre market rash. Could it be that the black cloud over Europe’s current cycle has lifted?
The atmosphere was buzzing as participants discussed asset performances and shared business strategies within 37 different discussions.
Italy’s real estate market featured prominently in the discussions.
Pan-European Advisory Board Meeting
Before the official start of the event, over 40 Advisory Board Members gathered to share thoughts on where the best risk adjusted returns for property markets were to be found in the short term. Co-working and co-living phenomenon was also deeply debated along with the latest innovation trends in real estate. There were no major concerns from most of the attendees that these factors will radically change the market for good. However it remains to be seen by when, how and where investors can create sustainable investment opportunities on these new trends.
How Italy is perceived by international and local players?
Italy is seen as a key market of interest for many participants and this was reflected in the high attendance at the Italy-centric discussions. Some provocative discussion explored where the opportunities lie for investors and developers, as well as the macro trends that are driving investment decisions.
It was agreed that Italian Resi has seen a strong increase in value with Milan being a particular hotspot. An opportunity hotspot is hospitality and logistics but a good relationship with local authorities is essential for both. A number of participants commented on tax law and banking issues contributing to a perception of Italian RE not being considered as Core.
The vast majority of investors in Italy still remain international, many wait for more local institutional players to enter the game; conversion and redevelopment offers better opportunities than greenfield.
Source : GRI