DWS remains constructive on U.S. real estate

DWS Group has released its U.S. Real Estate Strategic Outlook for 2019. The report examines various factors creating headwinds and tailwinds across sectors.

In the report, DWS notes that continued economic growth and a moderate pipeline of new supply will be key drivers of the market in the short term. Rising interest rates and a flattening yield curve make the medium-term outlook more uncertain.   

“The underlying fundamentals of the real estate market remain healthy. Therefore, our view is it is too early to batten down the hatches, shunning growth-oriented sectors, markets, and assets that can thrive amid strong fundamentals,” said Todd Henderson, head of real estate for the Americas at DWS. “However, we acknowledge we are late in the economic cycle and are managing risk across the portfolio accordingly.”

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