Rapid repricing in UK and Nordics brings opportunities, says Schroders
Schroders Capital has put investors on alert for immediate investment opportunities in the UK and Nordic markets.
In its latest investment outlook report, the asset manager said 2024 and 2025 would present greater opportunities for real estate investment.
The assessment comes as the property market has been experiencing value corrections, with varying degrees of adjustment across different regions, sectors and investment structures.
Schroders Capital has put investors on alert for immediate investment opportunities in the UK and Nordic markets.
In its latest investment outlook report, the asset manager said 2024 and 2025 would present greater opportunities for real estate investment.
The assessment comes as the property market has been experiencing value corrections, with varying degrees of adjustment across different regions, sectors and investment structures.
Nils Rode, chief investment officer at Schroders Capital, said: “The normalisation of fundraising and valuation adjustments for specific strategies have set the stage for promising investment opportunities.”
Geographically, Schroders suggested immediate opportunities were present in markets with rapid repricing, such as the UK and Nordic region, followed by the US and other continental European markets.
Sector-wise, Schroders bet on industrial and logistics assets, which have rebased to attractive price points in most submarkets, backed by strong fundamentals.
Rode said: “We favour operational properties with strong demand-side tailwinds and direct or indirect inflation-linked income potential.”
Occupational markets also remain robust, according to Schroders, with expected growth in most real estate sectors, particularly those with structural support. In addition, rental income levels are holding up well despite softer demand, thanks to tight supply conditions caused by increased construction and debt finance costs.
Looking ahead, Schroders predicted a lack of high-quality ESG-compliant spaces would continue to stimulate rental growth post-economic recovery.
Rode said: “The current environment reinforces our focus on operational excellence for long-term, sustainable income and investment outperformance. We believe all real estate has become operational, aligning the financial outcome of investments with the success of tenants’ businesses within these assets.”
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