22 December, Il Sole 24 Ore
“The property market will grow significantly also in 2018”, Barbara Knoflach, the global head for investment management of Bnp Paribas Real Estate, is smiley but determined. The group has in Italy assets under management for 5 billion euro. “Real estate has fought for years to become an actual asset class to invest in. Now, thanks to the high liquidity of the markets and the low interest rates, it’s also one of the most important asset classes”, says Knoflach. Plus, there is no sign that interest rates will rise again in the near future.
In 2017, the transaction volumes of Bnp Paribas Reim Italy have been around 900 million euro. Of these, 500 million concern investments in offices and retail, while 400 million are in properties sold by managed funds.
“The good news for the Italian real estate market is the return of core investors – explains – We want to grow further in Italy by creating new core and core plus funds in all the sectors. Besides, we’re also pursuing a value-added strategy through the renovation of properties in interesting locations”. The focus for 2018 is on the office segment, while retail will get less attention by the market in favour of logistics. High street will be an exception since the shopping streets are full of trophy assets, making believe that the investments will hold and increase in value with the time.
“Milan is a dynamic city capable of competing with the big European cities – declares -. Real estate is the sign of the growth of a city when not only investments are present but also development, and this is what is happening in Milan”. Even though the market has still to absorb some development projects launched during the old positive cycle.
The attention towards the residential segment is also a new trend, as the investors have started considering it an asset class just like the others. The weight of the residential segment on the total assets managed by Bnp Italia is approximately 30%. This segment will be more attractive to international investors. The trend will not concern only in Milan and Rome, but it will rather extend to other cities”, concludes.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi