Hines, investors focus on resilient assets

From a hunting ground for high returns to a 'comfort zone' for stable returns. This is how the picture of the real estate sector has changed. In an international context marked by geopolitical tensions, inflation and structural market volatility, global real estate is undergoing a profound transformation. Outlining the new scenario is Steve Luthman, global head of real estate at Hines, who points out that volatility has become the new normal. "In the last two years the world has changed dramatically: first geopolitical tensions, then war, the energy crisis and inflation have altered the global macroeconomic picture. Investors have accepted this as the new environment in which we have to operate'. According to Luthman, despite the international instability, the real estate sector has shown surprising resilience. "We have not seen significant value destruction. Investors are returning to real estate assets because they provide resilience, stable income streams and protection over the long term."

Hines, with $92bn in assets under management globally, split between the Americas (45%), Europe (33%) and Asia-Pacific (22%), has a portfolio that is a strategic mix of acquisitions (69%), development (26%) and credit (5%). The overall pipeline is USD 113.7 billion in 2026. Capital raising is also up in 2025, up 48% year-on-year and 130% by 2023.

"After the global financial crisis we lived through a decade dominated by cheap capital and rising values. It was enough to allocate capital well to achieve significant returns,' he explains. 'From 2022, investors are looking for real, stable, predictable income. They are looking for operators capable of creating value on the ground'. Transformation influencing industry consolidation: 'We see more and more mergers and acquisitions between operating platforms and financial investors.

Of the most attractive segments globally, the manager has no doubts: "The most resilient asset class today is living, in all its forms: student housing, senior housing, build-to-rent, social housing and urban residential. 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 shortage of millions of homes'.

The case of Italia 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 the offer is still largely insufficient. Levels of coverage are much lower than in the UK and other European countries'. The attention of international investors is mainly focused on Northern Italia. "When we analyse Italia we do not consider it as a single market. We look at individual regions and cities,' he explains. "Lombardy, Veneto and Piedmont show economic and demographic dynamics that are among the strongest in Europe."