PRIO identifies development opportunities which have long-term potential success that we believe in. Far away from short-term trends, tactics or opportunism, we focus on success factors that remain relevant over decades. We examine profitability systematically and think about processes based on objectives.
The real estate sector is embedded in a macroeconomic environment experiencing constant change. This change takes place in economic cycles as well as through exogenous shocks. Temporary recessionary and even crisis-like developments are unavoidable. Purchase and rental markets in all asset classes are subject to their effects continuously. However, PRIO – a player with a long-term focus – is not driven by tactical considerations. As a creative entity, we look for opportunities with substance in every market phase. Applying a long-term perspective, we translate these opportunities into value-retaining engagements together with our partners.
MSCI World stock index, 1970–2022
The planning, approval and construction stages of a property can occasionally take multiple years. This makes property supply largely inelastic in all asset classes and means that the supply side can only react to changes in demand after time has passed. This latency results in periodic oversupply phases with low prices as well as excess demand with higher prices. PRIO, knowing of this industry-intrinsic cyclical nature, is dedicated to fundamental analysis in particular. We are not driven by market timing, but rather by a belief that projects with a high-quality location, suitable usage concepts and impressive aesthetics stay relevant in every market phase.
Market with little supply elasticity
Development projects are time-intensive and plans take multiple years to come to fruition. Deadline risks must be kept in check and managed actively. Risk, especially when it comes to addressing the costs in the right way at the right time, is a key factor in success. PRIO gauges its resources realistically, relies on professionally savvy and experienced project partners, does extensive, analytical project preparation, starts project marketing at the right time and shares risk with strategic partners where appropriate and decided in consensus.
Cost controllability and cost trend in a project
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