For the second consecutive time, the Association of Luxembourg Fund Industry - ALFI organised, in collaboration with Luxreal and the Luxembourg Chamber of Commerce, an important gathering of the fund and real estate community in Munich in the context of Exporeal, the international trade fair for property and investment in Germany, that opened its doors on the same day.
With the numerous economic factors repeatedly impacting the business community, also the fund and real estate sectors have not been spared and operate in an extremely difficult environment. Next to geopolitical tensions in international trade and global economic unpredictability, persistent inflation and fluctuations in interest rates coupled with a reduced consumer confidence and purchasing power generate a decreased demand for properties and lower property values. For the mentioned industry, nowadays unstable economic context obviously fuels uncertainty and influences investment decisions and capital flow.
To navigate these multiple challenges and to meet the demands of a changing market, real estate players and fund experts must anticipate, adopt new methods and explore innovative business development strategies. Moreover, considering that climate change and environmental values become at present the new standard in business practices, they have to come up with more sustainable ways as well as more eco-friendly and energy-efficient construction methods, while engaging creative financing models and prioritising green investments at the forefront of their projects. If a decade ago, Corporate Social Responsibility was the most commonly used term to encompass an organisation’s efforts to maximise the positive impact both on society and environment, CSR has been superseded to a large extent by ESG, embracing a more holistic view.
Within this perspective, standing as pioneers at a crossroads for societal and economic transformation, the whole value chain of the real estate and fund industry plays an important role in the implementation of sustainable performance and significantly contributes to an inclusive and sustainable development of the future economy and society.
ALFI has seen a growing demand for alternative investments or private assets, as investors are increasingly looking for innovative solutions that keep pace with their expectations. Real estate is a strong pillar in the alternative investment funds sector and Luxembourg has a strong global reputation with real estate investment funds (REIF). For David Zackenfels, Senior Legal Adviser at ALFI and main organiser “industry events like this underline ALFI’s commitment and support to the real estate fund industry, helping to continue building a sustainable infrastructure and ecosystem for fund managers and investors alike”.
This Luxembourg evening reception represented an ideal platform for Luxembourg companies present in Munich to come together and to exchange their views and visions in this segment. “This important evening event was also a good occasion for the Luxembourg business community to meet with their international counterparts, an initiative to which the Luxembourg Chamber of Commerce was pleased to contribute and to offer its full support”, concludes Sabrina Sagramola, Manager International Affairs at the Luxembourg Chamber of Commerce.
