Secondary cities and the logistics segment open up new investment opportunities

Secondary cities and the logistics segment open up new investment opportunities

 

Germany, for example, where the trend towards centralization is less pronounced than in countries such as France or the UK, offers a formula in order to circumvent the large metropolitan areas in favor of secondary cities. Another segment of the market that has been on the rise is storage and logistics, says Marcus Cieleback, director of Studies of the PATRIZIA Immobilien AG Group. "Due to the level of risk control and the greater benefits it brings, the logistics segment will remain one of the best investment options in 2018," he says.

For this fund, staying in constant movement is once again the norm in 2018. At a time when products are scarce, investors who would never risk the quality and location of their assets face the difficult challenge of finding a strategy.

The world population continues to grow: current projections set the annual figure at almost 1.1%. It is inevitable, therefore, that investment decisions are increasingly influenced by demographic factors. Over the next 13 years, the population is expected to grow by more than a billion people, mainly in urban areas. The demand for all types of residential real estate will continue to be a factor of stability for the sector. At the same time, the advance of urban development entails a problem, specifically, the omnipresent shortage of products, since construction projects in metropolitan areas fail to meet demand.

Therefore, Patrizia points out that it is likely that the demand for office buildings, retail and logistics will remain stable. Institutional investors tend to intensify their activity in the center of the cities and to move away from business parks and the urban neighborhoods of the periphery.

Iberian Property logoIberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!