Is the real estate industry equipped to face the prevailing market and IT challenges?
Due to the market experiencing significant growth, asset managers’ workload has increased; they are now in need of ways to improve efficiency and limit expenses, resulting in outsourcing part of their activities.
Investment volumes are at their highest levels since 2008, with investors continuing to strengthen their capital allocation into the real estate sector. This has been caused by the current low interest rates that are generating a phase of increased liquidity throughout the market and make the returns on real estate more attractive. In addition to this, the real estate market has become progressively more mainstream, being now considered as a “standard” asset class. In such a maturing market, investors are more experienced now than ten years ago, leading to rises in their result expectations, and their requirements for more sophisticated reporting. Moreover, since the global recession of 2008, major directives and rules are redesigning the regulatory framework of the real estate industry, with the introduction of FATCA in the US, and AIFMD, EMIR, PRIIPS, and BEPS in Europe.
REflexions issue 4 - October 2016
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.