Patrizia: Real estate needs to work harder today to attract investors

Real estate companies today need to work harder than ever to attract the attention of global investors, according to Simon Redman, managing director and global head of products at PATRIZIA.

Simon Redman

Speaking to CRE Media Europe at EXPO in Munich, Redman said that the investment landscape had changed considerably since the low interest rate environment that followed the global financial crisis (GFC) in most major real estate markets. 
“The world has changed,” he said. “Back seven or eight years ago, it was pretty easy. Post-GFC, if you were a real estate investor, super cheap money created a rising tide. If you couldn't do well, you pretty much run pretty stupid. You couldn't go wrong. But that has changed.”
As a result, Redman added, real estate has to fight for attention. “There isn’t the same growth in terms of capital allocations as you saw then,” he said. “So, real estate has got to fight. 
“Real estate is still a great asset class because you can't do without it. You always need someone to live, to work, to shop. You can't do without that, but it always evolves to meet the needs of a particular environment.”

Adam Branson