Raj Kotecha talks to Real Asset Live

April 10th, 2024

Raj Kotecha talks to Real Asset Live

Property market sentiment is starting to improve and 2024 could be the first year of the next real estate cycle.

Amro Chairman and CEO Raj Kotecha caught up with Real Asset Media in a video interview discussing the outlook for the living sector and why he believes 2024 is the beginning of the next real estate cycle for the asset class.

“We don’t expect it to be a very steep rising curve,” he said, “but we can see some positive trends coming along.”

Raj highlighted the impact of a more positive macroeconomic picture on investor decision-making, with interest rates having peaked and the debate now focused on when the first interest rate reduction will occur.

“Whether we look at multifamily or student housing, both sectors have proven themselves, from the occupancy and rental growth perspective, to be very defensive. I think that stands in contrast to what have been the core sectors of the past. We’re in conversations with investors and seeing a lot of appetite for reallocation from office in particular, to living and logistics. We think in this cycle we’re going to see that happening at quite significant levels.”

Investors have observed the evolution of student housing in the UK and the US, where it is now very mature. “Our expectation is that the continental European markets will go through the same evolution of the student housing sector,” added Raj.

You can watch the full interview on YouTube here.