Although solutions are needed for the short-term challenges imposed by such things as inflation and the humanitarian crisis resulting from the geopolitical uncertainties, EMEA head of business development valuation and transaction advisory at JLL, Honoré Achille Simo, says that it is important to keep the long term in view.
“Real estate business is a long-term play, meaning it’s not just about the current challenges it’s about the long-term drivers,” he said when we caught up with him during the recent ULI Europe conference staged in Brussels.
The long-term drivers and challenges which existed before the pandemic and the Ukraine crisis are still there, he added.
The weight of capital wanting to find a way to the real estate sectors is one such driver. “When you look at institutional investors globally, they need to deploy €920 billion in order to meet their target allocation to the real estate sector of somewhere around 11%, meaning this is a big topic.”
“Even a portion of this dry powder finding a way to the real estate business will still have an impact,” he added.
Click on the video to watch the full interview or listen to the podcast below.