Why investors have to reckon with lower returns on real estate funds

Apartments

Real estate and real estate funds are often considered to be particularly robust.

(Photo: IMAGO/Jochen Eckel)

Frankfurt The current year also harbors greater risks for real estate and real estate funds – even if these investment areas are often considered to be particularly robust. “The fund returns will tend to be lower, averaging between two and two and a half percent,” predicts Sonja Knorr from Scope Fund Analysis in a study available to Handelsblatt.

For comparison: the annual results in the second half of the last decade were between 2.4 and 3.2 percent, in the last two years they were 2.6 percent. In this report, 27 open real estate funds for private investors with a capital of more than 120 billion euros were recorded.

Many uncertainties are responsible for the rather cautious forecast. Knorr cites a few examples: Interest rates have risen, inflation is high, there are hardly any transactions, users want more sustainable buildings and less office space.

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