Faced with compressed returns in traditional assets, institutional investors are expected to continue increasing allocations to real assets over the next 12 months, according to BlackRock’s 2020 outlook report.
In Europe, despite a slowdown in the economy driven largely by the global manufacturing slowdown and persistent external geopolitical uncertainty, expectations of moderate growth and a lower rate environment provide a supportive environment for real asset investors.
Key points from BlackRock’s report include:
Real estate: fundamentals remain healthy
An extended European real estate cycle is benefiting from recent monetary policy support. Occupier demand remains healthy despite the recent economic slowdown. In the office sector most new supply in key markets is being absorbed, much of it through pre-leasing activity. Demand from occupiers is expected to stay strong into 2020 and, with vacancy rate
