There are four major forces that have been driving real estate in recent years: demographic shifts, deficient supply, digital disruption and demand for yield. Despite the extraordinary times we find ourselves in, these trends remain as relevant as ever in Asian growth markets. As with any shock, investment opportunities remain in areas underpinned by long-term fundamentals. In Actis’s view, Asian real estate is one such opportunity. A build-to-core strategy in the region can enable investors to capitalise on the mismatch between demand and supply, both in terms of quality and affordability.

Through the pandemic it has become clear that working from home is here to stay, implying a drop in demand for office space overall. However, not all workplaces are equal and employees will want to return to an office that offers more than just a place to work from – a more comfortable environment with greater focus on inclusion, collaboration and customer service. Real estate managers that create amenities for their customers and convert obsolete spaces will have the upper hand.

While the COVID-19 pandemic has impacted economies and certain asset classes, infrastructure has continued to play an important role in asset allocation thanks to its strong resilience and key benefits for institutional investors. This session will discuss the state of the sector and innovative strategies that can take advantage of investment opportunities and accelerate the focus on ESG with tangible impacts on society.

The need for social infrastructure investments may be accelerating shifts in real estate allocations away from traditional retail and commercial properties and toward more impact-related allocations.

Interview with Raphael Mertens - Chief Risk Officer, Allianz Real Estate
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