Bouwinvest focuses on global metropolitan areas. Because we invest around the globe, we see that the most successful of these urban markets are those able to respond well to expanding urbanisation, demographic developments and technological innovation, and are likely to offer the best investment opportunities in coming decades. These areas are successful at attracting talent and business activities and therefore outpace the growth of their home countries. Liveability is the most important factor defining successful global metropolitan areas, more so even than the size of the agglomeration, a Bouwinvest study shows.
Plenty of opportunities
Urbanisation trends offer opportunities for all real estate sectors. Ageing populations are stimulating the growth of small but high quality housing units sometimes in combination with care facilities, while the emergence of burgeoning middle classes around the world, but particularly in Asia, are driving the investment potential in the hotel market. The retail market is facing big challenges from the rise of ecommerce and this is prompting major restructuring in the sector. In the office market, the demand for flexible workspaces in the city continues to grow.
Liveability is essential
In addition to the many opportunities, metropolitan areas also come with challenges. Scale does not guarantee the success of cities, but a good balance between growth and liveability does.
This is confirmed by a study by the Urban Land Institute (ULI), which finds that cities with good density are associated with higher returns, capital values, and levels of investment flows for commercial real estate. What this report refers to as cities with good density may be more resilient, sustainable and prosperous. Because of this, cities with good density also are attractive for international capital flows. These cities offer the best opportunity to provide sustainable returns for investors, than cities without good density.
Bouwinvest aims to invest in exactly those areas. As a long term investor we benefit from creating affordable and inclusive cities where people want to live and work. Through investing in those areas, we can better guarantee the future value our investments in these areas.
"66% of the world’s population will live in cities in 2040. In the same year, a quarter of the world’s population will be 65 or older. These demographic trends will change real estate from a qualitative perspective" Marleen Bosma Head of Research & Strategic Advisory