Eggert noted that current market conditions are favourable for investors seeking to acquire high-quality assets, given the surplus of properties currently available. ‘This environment presents excellent opportunities for investors who are willing to be selective and identify the most promising properties,’ he said.

With real estate currently offering comparable risk premiums to shorter-term fixed-income investments, demand from institutional investors is growing, he observed.

However, he highlighted that the market is segmented, with significant differences between high-quality assets and those in less desirable locations, particularly in the office sector.

‘Prime locations with high-quality assets continue to experience strong tenant demand, with rental levels meeting or exceeding expectations. Relocating tenants are also actively seeking space in these prime locations. Secondary or tertiary locations often face challenges with tenant retention and relocation, while rental levels may be under pressure, and asset values may be declining.’

This bifurcation is making office investors selective in their acquisition strategies, which are focused on best-in-class assets in prime locations.

Turning to other sectors, Eggert said logistics ‘is being driven by a very good letting market’, while residential is seeing strong demand. ‘We anticipate transaction volumes exceeding €1 bn this year.’

Just before Expo, HIH announced that its new institutional investment fund, established in partnership with Vonovia, had committed €630 mln to a portfolio of 14 residential properties.

Eggert said the firm is taking an opportunity-driven approach to investment on behalf of its clients.  ‘Our ability to execute both transactions and effectively manage properties sets us apart in the current market,’ he noted, stressing that ‘it is a good time for asset managers’.