The long-term resilience of real estate – The Property Chronicle
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The long-term resilience of real estate

The Fund Manager

Monopoly houses balanced on one pound coins

Beware of hasty and alarmist predictions. This crisis does not call into question the sector’s fundamentals and key trends. The current period is however a good opportunity for a strategic deepening of landlord-tenant relations.

In such unprecedented circumstances, it is still difficult to accurately predict the impact of COVID-19 on real estate. Nonetheless, we do not consider this crisis a threat to the sector’s resilience and its underlying long-term trends: growth of large metropolitan areas, the appeal of city centres and transport hubs where demand exceeds supply, urban densification with taller buildings to curb urban sprawl and promote sustainable development.

Urban exodus?

Despite new health concerns, the widely predicted urban exodus, with people shunning big-city apartment blocks in favour of country homes with a garden, is somewhat perplexing. Over the past few decades people have increasingly turned their back on rural areas for far-reaching sociological and economic reasons. In addition, there are very often personal and family obstacles preventing such relocation.

The limits of teleworking

Teleworking, which it is claimed will affect office space, also clearly has its limits, including its incompatibility with family life over the long term. In any event, working from home will not exceed one to two days a week. While this crisis will cause us to reflect on the best way to use space, we remain “social animals”, attached to our workplace. We like sharing, and appreciate impromptu meetings, where we sometimes have our best ideas.

The Fund Manager

About Pierre Jacquot

Pierre Jacquot

Pierre Jacquot is CEO of Edmond de Rothschild Real Estate Investment Management with over 25 years of experience in real estate. He also supervises directly Fund Management activity in Switzerland. After founding Orox Asset Management in Switzerland in 2007, Pierre Jacquot actively participated in the launch and the development of the Edmond de Rothschild Real Estate Swiss SICAV fund. In recent years, he has contributed to the integration of the investment and asset management entities in Germany, the United Kingdom, Benelux and France. Since September 2018, he has been a member of the Executive Committee of Edmond de Rothschild Asset Management.

Articles by Pierre Jacquot

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