After a catastrophic year in 2022, we had to wait until the fall of 2023 to see a recovery in the prices of listed real estate investment companies (Siic).
Until now, they had suffered greatly from the sharp rise in interest rates which impacted the real estate market and increased the cost of credit, further penalizing the most indebted real estate companies.
Logically, their activity consists precisely of collecting funds to acquire and manage a real estate portfolio (purchase, rental, management, etc.), even if it means going into debt to benefit from the leverage effect of credit (part of the rents used to repay the deadlines).
They also faced strong competition from less risky investments such as savings accounts, bonds and euro funds for life insurance contracts.
Rebound expected in 2024
But the financial environment has changed.
The benchmark index for Siic established in Europe increased by 25% in three months, between November and the end of January 2024. And this should continue.
Investors…
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