Brexit is contributing to a more balanced view of international investors on the UK and continental Europe and will help to bridge the Anglo-Saxon and European way of investing, according to Barbara Knoflach, deputy CEO of BNP Paribas Real Estate.
What do you hope for most for your business in 2018?
A key milestone towards a new view on the cyclical nature of our sector. Including luck, insight and the courage for change – and last but not least, lots of young people (especially women) to create the future. Business prospects look bright.
What do you fear the most in the coming year?
Too little progress preparing for the future and too much reliance on old ways of working.
Will you be expanding or scaling down in 2018?
We are continuously expanding our business. As a European specialist for country and sector solutions we are thinking about adding innovative European core-plus funds with target return ambitions as well as European vehicles with more spicy value-added strategies. We have extended our management team globally and locally and recruited more than 10% new staff and will continue to do so.
What is set to have the biggest impact on your business?
Technology will affect our business most. Digitalisation is already having an impact on all aspects of an organisation and is likely to determine future competitiveness. Brexit is contributing to a more balanced view of international investors on the UK and continental Europe and will help to bridge the Anglo-Saxon and European way of investing. In the long run a potential game changer for the industry.
What will trigger the next downturn in the European real estate industry?
The prospects for the European economy have never been brighter over the last 10 years. Growth is picking up across the board, political risk is much lower than in the past and global growth is supportive. From a real estate point of view fundamentals are also solid. If anything, potential risks would come from a loss of trust caused by geopolitical turmoil, a hard landing in China or an overheating of the US economy.
