J.P. Morgan Asset Management has forecast annualized returns of 8.1 percent for U.S. core real estate during the next 10 to 15 years, a slight decrease from the previous forecast amid higher interest rates, according to its “2027 Long-Term Capital Market Assumptions.”
European core real estate is expected to generate annualized returns of 7.1 percent, up from 6.9 percent in the previous forecast.
The outlook also projects annualized returns of 7.1 percent for global core infrastructure, up from 6.5 percent in the previous forecast. The increase reflects expectations that manufacturing reshoring and changes in global supply chains will support industrial production and transportation assets.
Global timberland returns are projected at 6.2 percent, slightly below the previous forecast of 6.3 percent.
The report highlights the role of real assets
