This time of great tension that the real estate industry is going through will present opportunities for those investors who know it well.

Although 2023 may be challenging for all investors due to the turbulent global market context, the manager Savills Investment Management, in its global outlook report, sees safe opportunities in asset classes with solid long-term fundamentals, such as the industrial and logistics, affordable housing and essential retail.

The report details that affordable housing has a long-term growth story, with strong demand, predictable returns, and compelling social impact.

Check here: CDMX developers interested in continuing to build last-mile spaces

But 2023 could bring reforms that would free up the affordable housing sector to better use state subsidies and private capital. One thing is clear: the public sector cannot afford to meet the demand for social housing on its own and the private sector is increasingly interested in helping finance new developments and upgrading existing stock, working together with housing associations and authorities. local for the long term.

He added that the strong structural trends associated with urbanization benefit both convenience retail and last-mile logistics: We see compelling reasons for these types of asset classes and see an opportunity to build exposure during a brief period of market weakness. prices.

While the most notable threats that the international real estate investment manager identified for the short-term macro outlook are rising inflation, interest rates and recession risks that affect the investment and employment markets.

Regarding interest rates, he indicated that they will affect those markets with high levels of debt, with £60bn of outstanding loans to be refinanced in the UK within the next 2 years, for example

Occupant markets are also likely to experience instability, as reduced growth and the threat of recession add to occupant distress.

However, investors who prepare will be well positioned to benefit when the next recovery arrives; assets with strong income streams and strong ESG credentials are especially attractive to investors.

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“2023 will be a challenging year, but unlike previous global recessions, real estate lending has generally been more in check, the oversupply of new properties has been severely limited, and we are entering a recession with strong employment levels.

"Real estate will benefit from revenue growth, but increased costs to the occupant and investor in the form of energy, labor and higher interest payments will offset prices"

Kiran Patel said they believe this period will be short-lived and therefore concentrating buying efforts on sectors/assets with long-term structural fundamentals, when prices have adjusted, will provide an excellent entry point into the next cycle. 

In Solili you can consult industrial warehouses available in  Mexico City and Monterrey

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