June 2024: the real estate, tourism and hotel press review

Last update : 1 July 2024

HoliProject presents its June press review. The aim is to identify and decipher the news that has dominated the property, investment and tourism markets in recent weeks. Among the news items of note is the emergence of new expectations on the part of tourists, with a growing attraction for destinations in the north, far from the intense Mediterranean heatwaves. This trend has also given rise to a concept that is gaining in popularity in Europe and Asia: coolcation.

Investment : diversified SCPIs inspire confidence

“Young funds in rapid collection and diversified SCPIs” are now the safest on the market. Franck Inghels, head of distribution at Inter Gestion REIM, confirms this. The latter benefit from a significant and lasting improvement in their performance when they intelligently vary geographical sectors, themes and tenant types. The benefits of this strategy are threefold: it reduces risk levels, increases returns for investors and maximises growth opportunities. (PierrePapier)

Real estate : local shops, a stable and attractive asset

In an interview with PierrePapier, Thomas Ducerf, Director of Urban Premium, highlights the stability of one type of asset: local retail real estate. Even in these times of economic instability, this segment is remarkably resilient. This is because it is directly linked to everyday household consumption. By definition, the establishments concerned enjoy a regular flow of customers and have a major advantage: an above-average rate of customer loyalty. In this way, “building up a diversified retail portfolio enables us to activate two performance drivers: building up an asset base and generating stable rents”, concludes the interested party. (PierrePapier)

Tourism: Switzerland a magnet for summer holidays

Switzerland is expecting record visitor numbers for the summer holidays, with a significant increase in the number of stays and 100,000 more visitors than over the same period last year. The KOF Swiss Economic Institute is forecasting a 0.4% increase in overnight stays, mainly thanks to the influx of American and Chinese tourists. The recent weakness of the Swiss franc also favours this trend, which is likely to continue in 2025. However, a 4% drop in European visitors is expected, although this will be more than offset (Swissinfo).

Commercial real estate : the luxury sector goes against the tide

Unlike the majority of companies in the Paris Region, the luxury sector is making a name for itself through its significant expansion of real estate. According to a study by Cushman & Wakefield, recently reported by Les Echos, they have decided to significantly increase their office space between 2021 and 2023. This dynamic underlines the resilience and continued growth of this sector, even in times of economic instability. Even so, manufacturers remain “the main purchasers of office space” in the region. (Journal de l’économie).

Commercial Real Estate: The Promising Future of PropTech

Management platforms, artificial intelligence, the Internet of Things: these terms have become familiar, and their impact on commercial real estate is undeniable. Clearly and significantly, PropTech is revolutionizing the sector, transforming approaches, and opening new opportunities for investors. By implementing innovative technologies, PropTech is sustainably transforming building supervision, monitoring, and maintenance methods to reduce operational costs, optimize profitability, and enhance tenant experience. (JPMorgan)

Tourism : Northern European Destinations Attract Visitors

In the face of significant inflation and record heatwaves in the Mediterranean, international tourists are now leaning towards cooler destinations for their summer vacations. As a result, major cities in northern and central Europe are becoming increasingly attractive. Among these are Munich and Brussels. Indicatively, and according to data from Chase Travel, the Belgian capital is experiencing a substantial annual growth, thanks to its temperate climate and affordable prices. As a consequence of this emerging trend: “our high season for places like Italy and Greece is now in September.” (Fortune)

Investment : SCPIs face a lasting crisis

Since the start of 2023, 28 Sociétés Civiles de Placement Immobilier (SCPI), which represent the equivalent of half the market’s capitalisation, have written down the value of their units. Six of these companies were forced to do this twice. This downturn in the real estate market mainly highlights the turbulence that these companies are facing, with significant falls in valuations and requests to buy back shares. While some are resisting, others are facing real difficulties, particularly in the commercial real estate segment. So the question is: who will survive the crisis and market turbulence? (Les Echos)

Commercial Real Estate: Chicago Converts Vacant Offices into Apartments

Chicago plans to allocate $150 million to real estate developers to convert numerous vacant offices into apartments. This initiative, responding to a significant paradigm shift, aims to revitalize the downtown area and address the growing demand for housing. With many office buildings left vacant, particularly due to the rise and widespread adoption of remote work, the municipality seeks to repurpose these spaces, attract new residents, and stimulate the local economy. (New York Post)

Tourism : holidaymakers opt for fresh air

Have you heard of coolcation? This trend has been gaining in popularity in recent months, particularly in Asia. It involves choosing destinations where the temperatures are cooler. Tourists, fed up with the stifling heat, are opting for places like Canada, Greenland or Norway to spend a pleasant holiday away from the heatwaves. According to Google Trends, searches for “cooler holidays” have doubled over the past year. Platforms such as Booking.com and Virtuoso are also noting an increase in bookings for these destinations, which is raising questions among the tourism industry. The problem is that this new trend could have a negative impact on certain fragile ecosystems. (Ouest-France)

Logistics real estate : investors’ new Eldorado?

Logistics real estate is proving to be a safe haven for investors. Driven by the rise of e-commerce, the sector is benefiting from growing demand for modern distribution infrastructure, with investment expected to increase by around 25% by 2023. According to Real Capital Analytics, this trend continued in the first half of the year, and the forecasts give cause for optimism. With attractive yields and resilience to economic shocks, the logistics sector promises sustainable growth prospects. (La Centrale des SCPI)

Commercial Real Estate : Investment Opportunities for Buyers

In the face of the commercial real estate crisis, opportunistic investors are taking advantage of significant discounts. The value of certain properties has drastically declined in recent months due to new business expectations, the rapid rise of remote work, and high vacancy rates. “Commercial buildings are being sold at extremely reduced prices due to the growing disinterest in traditional office spaces,” says David Almaraz, a commercial real estate attorney in Los Angeles. Overall, according to Moody’s, office values have decreased by 20% to 30% since their peak in 2021. (Fortune)

Investment : concerns about the liquidity of certain management companies

Since last year, SCPIs have come under increasing pressure, with significant falls in unit values. This trend is continuing in 2024, leading to a flight of investors and concerns about the liquidity of some management companies. As a direct result, net inflows to SCPIs have fallen to €5.7 billion in 2023, compared with €10.1 billion in 2022. However, there is a glimmer of hope in the shape of expectations that the European Central Bank will cut key interest rates. This could revitalise the real estate market and restore investor confidence between now and 2025. “The market should pick up again within 7 to 8 months,” says Philippe Cerversi, Chairman of SCPI Corum AM. (La Tribune)

Commercial Real Estate: An Increase in Defaulted Loans Expected in Europe

Defaulted commercial real estate loans in European banks are anticipated to rise significantly in the coming quarters, according to distressed debt investors. The recent increase in interest rates is making debt repayments unsustainable for many borrowers, creating widespread stress in the sector. The office market is particularly affected, with a significant reduction in demand. Investors are hoping for a decrease in interest rates to alleviate the pressure on repayments and asset valuations. In any case, banks must be prepared to manage this prolonged crisis. (S&P Global)

Tourism : the French remain faithful to their summer holidays

Almost 7 out of 10 French people will be going on holiday this summer, despite the tense economic and political climate, according to the annual barometer developed by Ipsos for Europ Assistance. In particular, the survey reveals that French enthusiasm for holidays remains high, even though the majority are keeping a close eye on their budgets. Inflation does have a significant influence on their plans. As a result, 42% of holidaymakers admit to making savings on accommodation, food and activities. Another trend worth noting: local tourism. Nearly half of French people prefer to spend their holidays in France (Ipsos).

Date de première publication : 1 July 2024

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