29-08-2024
Despite a 2.6% investment result in the second quarter and strong fundamentals in occupier markets, Achmea Real Estate remains cautious about the further recovery of the real estate market. Investment markets remain volatile, writes Casper Hesp, director of investment management in the new Investment Update.
‘Earlier this month, we saw significant downward adjustments in the stock market, partly due to disappointing employment figures from the United States. Additionally, the market is still awaiting interest rate cuts, which have largely been priced in. The economic data also presents a mixed picture. In the second quarter, the GDP in the Netherlands grew by 1% compared to the previous quarter. In Germany, the largest economy in Europe, there was a slight decline of 0.1%.
The Investment Update pays special attention to the housing shortage. The housing challenge is unprecedented, with a target of 900,000 homes, of which approximately 10% needs to be realized in the mid-rental segment. This implies that around 40 to 45 billion euros in investments from market parties is needed to achieve this goal.
Additionally, the Netherlands faces a significant sustainability challenge. Here too, we estimate that more than 22 billion euros is required from market parties to make mid-segment rental housing more sustainable. Casper Hesp: ‘Both challenges underscore the crucial role of institutional capital in realising these major objectives.’