Which assets will real estate investors bet on in 2024?
The final stretch of 2023 has begun with a clear idea in the field of real estate investment: residential and student residences will be the two bets of capital in the coming months, as was made clear at the fair 'The District' in the last quarter of 23.
Generally speaking, the big funds interpret that we are seeing the end of interest rate hikes and the beginning of price adjustments, hence the expected push from the living sector, where ESG issues will play a significant part in the decision making process, as a demand from investors that is here to stay, investors who are still betting on double digit returns.
In these new times, one of the great challenges is the presence of Artificial Intelligence in the financial world and in real estate; in the latter sense, real estate experts agree that the technological revolution, in the times we live in, will help in an impressive way to a better analysis of locations based on much more objective data.
In this commitment to 'living' assets in the short term, the sector is stressing the problem that the lack of land supply in Spain continues to pose: more land needs to be produced more quickly.
Guillermo Díaz, from DEXTER's Business Development Department, maintains that "while it is true that the pressure of demand for alternative financing with private capital is very notable in all sectors, the real estate-residential sector is the one that is pushing the hardest, where we are having more credit applications, both as support to complete the acquisition of land, as a developer loan for construction, and in various bridging loans always with mortgage guarantee," concludes Díaz.
Which assets will real estate investors bet on in 2024?
The final stretch of 2023 has begun with a clear idea in the field of real estate investment: residential and student residences will be the two bets of capital in the coming months, as was made clear at the fair 'The District' in the last quarter of 23.
In general terms, the big funds interpret that we are seeing the end of interest rate hikes and the beginning of price adjustments, hence the expected boost in the living sector, in which everything related to ESG will play a significant part in the decision-making process, as a demand from investors that is here to stay, investors who continue to bet on double-digit returns.
In these new times, one of the great challenges is the presence of Artificial Intelligence in the financial world and in real estate; in the latter sense, real estate experts agree that the technological revolution, in the times we live in, will help in an impressive way to a better analysis of locations based on much more objective data.
As part of this commitment to 'living' assets in the short term, the sector is also aware of the problem that the lack of land supply in Spain continues to pose: more land needs to be produced more quickly.
Guillermo Díaz, from DEXTER's Business Development Department, maintains that "while it is true that the pressure of demand for alternative financing with private capital is very notable in all sectors, residential real estate is the sector that is pushing the hardest, where we are having more credit applications, both as support to finish acquiring land, as a developer loan for construction, and in various bridging loans, always with mortgage guarantee", concludes Díaz.
