Emerging trends in european real estate reveal that the pandemic has changed the real estate business in a "profound and potentially permanent way." According to the study 'Emerging Trends in Europe Real Estate 2022 – The Road to Recovery', prepared by PwC and the Urban Land Institute (ULI), to which Iberian Property had access, there is an increase in 'feeling', as European economies recover from 2020 and real estate leaders report better-than-expected results.

Success with work-from-home strategies, the growing digitization of the industry and confirmation of long-term investment theses have all contributed to a sense of relief.

Still, Covid-19's role as a trendsetter has toughened, the platform says. At the same time, its impact on supply chains and labor mobility has translated into an increase in construction costs.

Equity seems plentiful, but access is limited in some sectors

According to Iberian Property, debt and equity are estimated to be abundant, although there are differences between the segments that performed 'good' during the pandemic and those that suffered.

On this path, the demand for nuclear assets continues to grow, forcing prices to increase in some sectors, says Jorge Figueiredo, Real Estate Lead Partner at PwC Portugal. However, "maybe it is time to stop waiting for mature nuclear assets to invest and start looking, instead, to develop their income", he maintains.

At the same time, secure income continues to influence rising demand for new energy infrastructure, life sciences and 'data centers'. Still, investors believe that these segments may offer less yield risk, but come with more management complexity and less liquidity.

It also highlights the platform that industry leaders are also confident about the availability of financing from lenders, although not as optimistic as about equity. Only when it comes to the availability of debt for alternative sectors do most respondents believe that the availability will grow.

(RE)think offices and homes

The consultant's data also show that "the future of work is hybrid." This is because the results of a collection of surveys show that 63% of people want to be able to choose their place of work and 88% want to have flexible hours.

The same applies to houses. With a growing number of families and changing profiles, there is a need to (re)size houses, which can result in more difficulties in planning old parcels. In addition, demand is now greater for homes with adequate outdoor areas and workspaces.

Font: Notícias ao Minuto