Expert Opinion: European property investment considered to be better than a fixed income
Expert Opinion: European property investment considered to be better than a fixed income
06.10.2020 | 14:06
Properties
The European property market will continue growing stable due to the interest rates that are going to remain low for a long period, according to Mahdi Mokrane who shared professional opinion and expertise in an interview for koreaninvestors.com. The expert added that the European housing market performs better than the US real estate market and the European housing assets should be part of diversified property portfolio.
Investments in properties in Europe has proven to be more sustainable than investments in real estate in USA when it comes to rent. The negative impact of COVID-19 on the labor market and the rental market in the United States is stronger than in Europe. The level of the European rent income is 10-15% higher.
The company's analysis show that the constant development and expansion of the cities along with the population ageing will increase the need of budget-friendly accommodation and retirement properties in major European capitals and cities. In addition to that, the demand for university education will result in increased search for student lodging.
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Mahdi Mokrane, Head of Investment Strategies and Research at Patrizia AG: “The net income generated per square meter of living space in Europe has remained extremely stable compared to office and commercial spaces. Our company is focused on housing for tenants with middle-income. The rental collection between 02.2020 and 05.2020 exceeds 97%, but there is a decrease in the number of people due to the measures for social isolation”. |
Investments in properties in Europe has proven to be more sustainable than investments in real estate in USA when it comes to rent. The negative impact of COVID-19 on the labor market and the rental market in the United States is stronger than in Europe. The level of the European rent income is 10-15% higher.
The company's analysis show that the constant development and expansion of the cities along with the population ageing will increase the need of budget-friendly accommodation and retirement properties in major European capitals and cities. In addition to that, the demand for university education will result in increased search for student lodging.
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