Global values will hit a trough in the middle of 2024, according to PGIM Real Estate’s outlook report.
Using past downturns and recoveries as a guide, it is optimal for equity investors with longer-term strategies to deploy capital at or even just before the turning point, which reduces the probability of exiting investments in a future downturn. However, the expectation that capital growth will accelerate in an upswing means that strategies with shorter time horizons can expect to deliver their cyclically highest returns between 2025 and 2027. This period will be particularly attractive for value-added strategies focused on shorter-term asset repositioning, for example.
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