Real Estate Trends for 2024: Insights from Financial Advisors and International Professionals

2023-12-26 07:35:32

Published on Dec 26, 2023

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Written by Elodie Fuentes

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Which choices should you turn to in 2024 for your financial investments? The American asset manager Principal Asset Management surveyed 400 advisors to find out the trend among professionals in the sector internationally. Real estate once once more seems to stand out from the crowd.

Real estate remains a priority for 49% of investors

It is almost time to take stock of this somewhat anxiety-inducing year 2023 and to turn the page to look forward to new horizons. Like the good resolutions we make every year, 400 wealth management advisors, accompanied by banking advisors and private advisors, were surveyed on their investment intentions for 2024. This study, conducted by the group of American asset managers “Principal Asset Management” tested the temperature with international professionals from Germany, Switzerland, the United Kingdom and France.

The majority of them consider that real estate investment remains a sure value. The CGPs interviewed for this study wish to keep this category of investments for next year for 49% of them. 20% even plan to increase their presence on the stone market and only 31% of respondents plan to slow down on the stone market.

Same answers for foreign advisors. In Germany for example, 77% of them consider that walk real estate national will still be buoyant in 2024. As for the French, 88% according to this study favor real estate investment in their own territory. 35% of people questioned across all nationalities still cite France as the most interesting geographical sector.

An expected rate of return on the rise

In 2024, the European real estate market predicts a yield of the order of 9.2% per year by 2028, according to real estate consultancy AEW, a real estate asset management company (source LesEchos). In the United Kingdom alone, it is expected to reach 11%, the highest rate on the European continent. Proof that the real estate sector is not ready to weaken and remains the format ofprivileged investment of professionals once more next year. Faced with the risk of recession, which 67% of respondents fear in 2024 and 65% globally, real estate investments would be the answer for protect yourself from financial risks in the unstable geopolitical ecosystem.

Asset classes still as attractive

This study reveals that the majority of French CGPs wish to maintain their current assets. They say they want to take advantage of high yield credit et increase their exposure for almost 28% of them. On the other hand, 45% of those questioned say they want reduce their exposure to bond debt investment grade. But among neighbors, opinions differ on the projection of economic risks in 2024. As for German advisors, it is the job market that worries 76% of respondents. In Great Britain, confidence in the central bank is being questioned and is lacking among advisors. 68% fear economic repercussions linked to the monetary strategy of the ECB. The Swiss, for their part, fear a phenomenon of deflation, followed by a drop in wages and hiring. Investor behavior is therefore likely to diverge from one state to another in 2024.

In summary

  • Investments in national real estate will be favored according to a study carried out on 400 international financial advisors;
  • Forecasts for real estate yields, according to real estate consultancy AEW, are of the order of 9.2% from 2024 to 2028 in Europe;
  • The wealth management advisors surveyed say they want to maintain the majority of their exposure in current asset classes.

Also read regarding tips for investing your money

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Elodie Fuentes

Web editor, specialized in economics, finance and wealth management

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