Avobis sees positive trend in residential yield property for 2024

Avobis is forecasting a favourable market environment for residential investment properties in the coming year. Due to falling inflation, the property service provider expects lower interest rates and therefore more market liquidity in its Outlook 2024.

In its Outlook 2024, real estate service provider Avobisanticipatesa favourable trend for residential yield properties. The forecast for 2024 is consistently positive, according to a press release. According to the forecast, the attractiveness of residential investment property is likely to increase again in anticipation of lower interest rates and due to positive fundamental factors, and buyers are likely to show greater interest. This is expected to lead to a revitalisation of liquidity on the transaction market.

Despite a revitalised market dynamic, general price increases are not foreseeable in the near future. Institutional investors, who have supported the buyer side in recent years, could increasingly act as sellers. This is also due to the increased sustainability requirements. According to Avobis, environmentally conscious reorganisation of portfolios is leading to properties being sold and more sustainable properties being acquired instead.

This could also be accompanied by a certain degree of volatility. Such market conditions would create opportunities that could be of interest to attentive investors. In the current market environment, residential property reportedly offers a wide range of attractive investment opportunities, from simple buy-to-rent models to construction and promotion through to the realisation of profitable usage concepts.