Hines: investors are focusing on resilient assets

From a high-yield hunting ground to a ‘comfort zone’ for stable returns. This is how the landscape of the property sector has changed. Against an international backdrop marked by geopolitical tensions, inflation and structural market volatility, global real estate is undergoing a profound transformation. Outlining the new landscape is Steve Luthman, global head of real estate at Hines, who emphasises how volatility has become the new normal. “Over the past two years, the world has changed radically: first geopolitical tensions, then war, the energy crisis and inflation have altered the global macroeconomic landscape. Investors have accepted this as the new environment in which we must operate.” According to Luthman, despite international instability, the property sector has shown surprising resilience. “We have not seen any significant destruction of value. Investors are returning to property assets because they offer resilience, stable income streams and long-term protection.”

Hines, with $92 billion in assets under management globally, spread across the Americas (45%), Europe (33%) and Asia-Pacific (22%), boasts a portfolio that is a strategic mix of acquisitions (69%), development (26%) and debt (5%). The total pipeline stands at $113.7 billion in 2026. Capital raised also rose in 2025, up 48% on the previous year and 130% on 2023.

“Following the global financial crisis, we experienced a decade dominated by cheap capital and rising asset values. All it took was to allocate capital wisely to achieve significant returns,” he explains. “Since 2022, investors have been seeking real, stable and predictable income. They are looking for operators capable of creating value on the ground.” This transformation is influencing the consolidation of the sector: “We are seeing more and more mergers and acquisitions between operational platforms and financial investors.”

When it comes to the most promising sectors globally, the manager has no doubts: “The most resilient asset class today is residential property, in all its forms: student housing, senior housing, build-to-rent, social housing and urban residential property.” The reason is simple: demand structurally outstrips supply almost everywhere in the world. “There is a global housing shortage. In the United States alone, there is a shortfall of millions of homes.”

The Italian case is particularly interesting, especially in the student housing sector. “Italia is one of the most attractive markets in Europe. It is an extraordinary international destination for students (Luthman himself studied in Florence, Ed.), but supply is still far from sufficient. Coverage levels are much lower than in the UK and other European countries.” International investors’ attention is focused primarily on Northern Italia. “When we analyse Italia, we don’t view it as a single market. We look at individual regions and cities,” he explains. “Lombardy, Veneto and Piedmont exhibit some of the strongest economic and demographic trends in Europe.”