Overall, with a number of European countries having introduced stricter environmental building standards in recent years, another investment opportunity is the renovation of buildings to meet higher green standards.

Opportunistic investors may be able to repurpose secondary offices into residential assets, and purchase distressed hospitality assets in tourist destinations this year, according to the international real estate advisor. One of Savills top picks for alternatives in 2021 is science parks in core European university clusters in Denmark, France, Germany, Sweden and Switzerland. Others are healthcare, senior housing and care homes in countries with an ageing population and available product, such as Belgium, Finland, France, Germany, Sweden and the Netherlands. Furthermore, data centres in markets with strong fundamentals and infrastructure, such as Amsterdam, Frankfurt, Paris, London and the Nordics are likely to remain attractive this year.

Marek Paczuski, Deputy Head of Investment, Savills Poland, says: “Strong tenants’ demand fuels high development activity in logistic and industrial properties in Poland. The firm interest in the sector shall continue also this year, while the investments through JV and forward funding structures shall enable to generate decent returns. These are also PRS and PBSA that are our picks since the market is still at an early stage and lacks institutional product. The market entry is possible through forward transactions. We also positively think about food anchored and convenience retail, which proved to be defensive during pandemic. Investors may selectively consider office opportunities, especially highest quality core assets in central Warsaw with long term income profiles, as they seem to be attractively priced on a relative basis as compared to main West European markets. Perhaps some distressed options will be available in hospitality”.