The real estate market appears to have the worst behind it

In our view, the Eurozone is on the way to an almost full recovery. However, the Delta variant may lead to a reintroduction of certain restrictions over the winter.

The real estate market continues to benefit from the ECB’s monetary policy. We do not expect the ECB to raise interest rates any time soon, but instead to keep them low and continue with large-scale asset purchases for some time to come.

We believe that in addition to the mid-sized industrial and logistics segment, where liquidity is high and obsolescence risk low, assets located in urban areas where land supply is constrained provide attractive investment opportunities for investors looking grow income streams.

Liability matching investors can find secure, long-term income streams with grocery retailers. We maintain our view that supermarkets and food anchored retail formats such as retail parks offer resilient investment income streams.

In future, offices will have to be more than just four walls and a roof. A high degree of flexibility will be required and densely populated offices are going out of fashion. However, we still believe that the physical office will remain the hub of company operations.