Mr. Rani Jarkas is a highly experienced and accomplished financial services executive, with over 23 years of international banking experience. Currently, Mr. Jarkas is the Chairman and CEO of Cedrus Group and its member companies worldwide. Here are his views about real estate investing in 2022.
2022 will be a turning point for retail, with repricing of recent years making the sector more competitive, at a time when retailers have better adapted to new ways of shopping. In much of Asia and in emerging markets, retail remains very much a core opportunity.
In the liquid and established office sector, the flight to quality will continue. Competition will be focused on assets that meet emerging environmental standards, while there is potential to redevelop or repurpose those that do not.
Ageing populations and an emphasis on health and wellbeing will support expansion in healthcare and senior housing, benefitting from long-term income potential.
Decarbonizing the real estate sector is an urgent and pressing need, a challenge that COP26 brought to attention. Consequently, Environmental, Social and Governance (ESG) considerations will increasingly define the investor agenda in 2022, and this year’s COP27, held in Egypt, will only focus further on the issue.
The looming challenge of bringing office stock up to new environmental standards is only one way we’ll see this play out. Driven by both investors and occupiers, there will be opportunity to redevelop, reconfigure and repurpose stock that doesn’t meet requirements.
The office sector is also grappling with changes to the way we live and work that were set in motion by the pandemic. Hybrid working is here to stay in some form, but its impact will vary across the world. Indeed, in much of Asia and the Middle East, the office is still very much the place both employees and employers want to be and where they can work most effectively.