For a long time, buyers and sellers in the real estate market have found it difficult to synchronise their very different price expectations. However, the consensus view of real estate investment experts at Private Markets Week is that this is now changing.

Felix Chemnitzer, Associate Director for Real Estate Debt and Structured Finance at Berenberg, is confident that transaction activity will pick up noticeably next year. „We are seeing the first signs,“ said Chemnitzer, pointing to the start of a new cycle.

Michiel te Paske, Head of Investor Relations and Capital Raising at Generali Real Estate, agreed with this assessment. He expressed his conviction that the market is in a more robust condition than in previous cycles. The supply of space is lower, and in many cases, operational performance is convincing.

Te Paske is particularly optimistic about the office real estate market – which is remarkable given that many investors are focusing on residential real estate in light of the ongoing housing shortage in major cities. The Generali expert argues that although working from home is here to stay, companies still have a great need for space because attractive office space is now an important factor in recruiting young professionals. Te Paske pointed to the very low vacancy rates in prime locations in cities such as Milan as evidence of this.

Two years after the crisis year of 2023, opportunities are now emerging again, particularly in the German market, said Frédéric Jariel, co-head of real estate at Tikehau Capital. The Frenchman commented that he is „bullish“ about the European real estate markets. Of course, it is important that the properties under consideration are of high quality.

The days of earning money in your sleep are long gone – today you have to work for it – te Paske from Generali agreed, noting that "real estate is very operational, not just a financial investment.“ Tenants' wishes are constantly changing, and you have to adapt to that – as well as to rapidly changing ESG requirements.