Megatrends trump cycles in forming Nuveen sector view

Despite a range of newly emerged headwinds, Nuveen’s view on the relative merits of different real estate sectors has not changed appreciably according to the firm’s head of European property research Stefan Wundrak.

“Our view on the different sectors and their characteristics, advantage, disadvantages has not really changed because the tailwinds and headwinds are based on mega trends. As long-term trends they’re not affected by cycles and recessions,” he said.

Speaking after Real Asset Media’s recent European Real Estate: Outlook & Opportunities briefing, held at Nuveen’s headquarters in London, Wundrak said the living sector still has a lot of tailwind in its favour. “From demographics, from the changes we’ve seen the market, people renting more instead of buying their own house. That living sector is also getting broader.”

And he said there are now more sub-sectors to choose from.

The same is true for the logistics sector. “Online spending is not going in the other direction,” he added.

“This is a sector which might have some cyclical headwinds but the tailwinds in terms of the structural changes still definitely favour logistics.”

Click on the video to watch the full interview or listen to the podcast below.