The alternative assets sector is becoming increasingly professionalised and offers interesting opportunities. It is a resilient and attractive market for investors because of the changing habits and demographics we have experienced in the wake of the pandemic. These factors point to a broad development of alternative assets as a sector with great potential and scope. For example, new housing models, which include the entire life cycle of the individual, are becoming much more professionalised and designed to meet the needs of the occupants. The occupant experience is coming to the fore and is at the heart of the product.
In this way, alternative assets provide attractive risk-adjusted returns driven the demographically led supply-demand imbalance present in these markets.
In addition, alternative assets provide exposure to structural secular trends which provide countercyclical exposure to economic cycles. This is the reason why alternative assets trend to outperform over the long term as they are not exposed to the volatility of traditional asset classes. A very important factor to consider given the context of volatility in which we find ourselves and which makes alternative assets a sector of focus for investors.
In addition, they offer an attractive yield and dividend profile at times where asset pricing valuation are stretched. Undoubtedly, Spain has solid supply and demand fundamentals, which make the alternative asset market a very attractive option at present. Among other sectors, the flexible accommodation segment will continue to gain traction in a context of changing habits and demographics.