When asked what the 2013 outlook for real estate looks like, it sounds like the easy option to say very much the same as 2012. But the reality is that it is difficult to see how this year will be significantly different from the last. The market is likely to continue to be characterised by risk aversion, the hunt for income and wealth preservation. We believe that caution is the right way to approach real estate investment in 2013, with no imminent improvement in the economic environment anticipated.

However, we still support the case for real estate as a tangible asset. The comparatively solid income that it offers, combined with some upside potential from asset management, means that the sector continues to attract growing investor interest. It should be noted, though, that elevated interest does not necessarily translate into increased investment activity. Transaction volumes remain muted and very much concentrated on core, liquid markets.

The continued focus on cor