In its latest newsletter, avobis writes that the property market has experienced turbulent years in the context of inflation and rising interest rates. In their analysis, they not only highlight the key developments in the residential yield property market over the past two years, but also draw well-founded conclusions for the market opportunities in the coming year 2024. The Avobis Outlook Residential Yield Property 2024 is aimed at all investors who want to delve deeper into understanding the current market conditions and gain a clear perspective for their investment strategies.

In brief, avobis sees the following key developments and future prospects:

Challenges in the property sector

The years 2022 and 2023 were characterised by challenges in the property market, influenced by high inflation and interest rate hikes, which led to value corrections and market changes.

Return to lower interest rates

Due to the decline in inflation, interest rates are expected to fall, which should lead to a harmonisation of yield expectations and an improvement in market liquidity.

Stable earnings from residential investment property

Residential investment properties are characterised by their crisis resilience and adaptability of income, which makes them an attractive asset class, particularly in the current macroeconomic environment.

Excess demand in the rental property market

The rental property market is characterised by high demand and a short supply, which leads to higher letting rates and better earnings prospects.

Real estate in the asset allocation

In an uncertain investment environment, property offers a more stable option and protection against inflation, recession and geopolitical risks compared to other asset classes.

Focus on sustainability

Institutional investors are increasingly demanding higher standards by firmly integrating sustainability criteria into their investment strategies. Although this increases complexity, sustainability and profitability can certainly be achieved together.

Positive outlook for residential yield property in 2024

A positive trend in the residential investment property sector is forecast for 2024, based on robust fundamentals and macroeconomic changes, which will lead to increased market liquidity and new investment options.

You can download the detailed analysis as a PDF here.