Speaking to PropertyEU on the second day of the fair, Grasser described the mood in Munich as ‘more positive’ with attendees feeling optimistic about market stabilisation.

While overall transaction activity in Europe has shown a slight improvement in Q2 and Q3 2024, it remains significantly below the average volumes over the past decade.

‘We're seeing increased competition for certain assets, particularly in the logistics and residential sectors, and more liquidity in these areas. There is also liquidity in offices, especially for prime assets and great locations,’ he said, adding: ‘While there's still some caution, we anticipate further market improvement in the second half of the year.’

While retail and office properties continue to face challenges, ‘we're observing a stabilisation in valuations and a gradual uptick in our activity,’ he noted.

AXA IM Alts' current investment focus is on sectors with strong secular trends, such as housing, student housing, residential, logistics, and data-related assets. ‘We're also actively exploring opportunities in life sciences through our Kadans platform,’ Grasser said.

Geographically, the alternative asset investment manager has been operating across major European markets, including France, Germany, the UK, Italy, Spain, and Switzerland.

While the German market is showing signs of improvement, Grasser says it is currently less dynamic than the UK and Spain. Recent activity in Germany has been focused on logistics and office assets, with some notable transactions involving family offices and German funds. ‘The sale by Signa of Upper West in Berlin, a unique asset, might not significantly impact the broader market, but it indicates a return of investor interest,’ he observed.

Grasser also highlighted the return of bank financing for quality assets, which, he said, ‘has created opportunities for creative financing solutions’.

‘Despite supply constraints in housing and logistics, we believe the market fundamentals remain strong for 2025,’ he concluded.