Diving into 2024: Avenue's outlook on the commercial real estate horizon
As a prominent player in Belgium's commercial real estate sector, Avenue foresees a year of potential transition and optimistic shifts. Stepping into 2024, we take a moment to examine the factors that might shape the landscape and how the company positions itself in this dynamic environment.
Transition and transformation: Anticipating the year ahead
2024 presents itself as a potential transitional phase, offering the prospect of stabilizing construction prices and diminishing financing costs—including interest rates—as inflation has settled down. Kenneth specifies that, “while this could lead to the market returning to full speed as early as the summer, we might also see slight lag in investor reactions, with transaction volumes returning to normal in 2025. Either way, improved margins for retailers, investors, and developers are on the horizon!"
Appetite for investment: A global perspective
While the Belgian market remained anchored by the steadfast presence of local private investors in 2023, the spotlight shifts to the interplay between international funds and private investors in 2024. While international funds showed activity earlier in the year, they have taken a more wait-and-see attitude due to the rising interest rates in the second half of the year. Stijn explains, “The evolution in activity of these international funds is deeply entwined with financial dynamics of interest rates on the one hand and the relative sector-bound ROI rates of office, logistic and retail spaces on the other.”
Objectives for Avenue: Charting a steady course
For Avenue, this outlook translates into a strategic decision to maintain a stable course and consolidate their offerings. The company, known for its commitment to a very personal and solution oriented approach, continues to invest in new systems and infrastructure. With a solid position in the market, Avenue seeks to fortify its foundations by making substantial investments in systems, data, and training. In 2024, the focus shifts towards stability over growth, with an emphasis on training initiatives surrounding the sustainability narrative and ensuring the correct implementation of systems. Avenue also extends its commitment beyond the realm of real estate by establishing partnerships for sports events and contributing to social causes.