Corporate real estate is resisting, according to Inovista

Despite the rise in material prices and the rise in interest rates which affect investments in construction, corporate real estate seems to be resisting the pressure quite well, according to Inovista, which presented its annual analysis of the Reunion market at the end of April. However, real estate developers are seeking to compensate for higher construction costs by increasing sales prices per square meter for new properties.. In just a few years, these have grown by 30% in corporate real estate.. This increase is reflected in rents which jumped 20% in 2022. Investors and local real estate players will be called upon to be more vigilant, because the market will not be able to absorb a strong and continuous increase, according to Inovista. Despite the tensions, the company believes that the sector could become a safe haven, with returns significantly higher than those of residential real estate. “Focusing too much on the danger, we are missing out on opportunities, believes its manager Vincent Le Baliner. If business real estate is less easy to access than before, it nonetheless remains a safe value as long as its management remains perfectly optimized. Implement sophisticated rental management and good asset management, rely on professionals for marketing, In the current economic context, market analysis and real estate planning are approaches that allow investors to secure their long-term investments.. »