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M&G’s 2023 Global Real Estate Outlook report highlights continuing opportunities despite fundamental shifts in economic backdrop
Research - NOVEMBER 29, 2022

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M&G’s 2023 Global Real Estate Outlook report highlights continuing opportunities despite fundamental shifts in economic backdrop

by Andrea Zander

Despite property yields under increasing pressure globally in the wake of rising interest rates and evident investor risk aversion, much of the real estate market is offering prospects for income and growth, according to M&G’s end-of-year Global Real Estate Outlook report.

Key takeaways include:

A need exists for awareness between the differences in pricing changes driven by factors such as rising rates versus those influenced by changes in projected rental income streams. Asset repricing will lead to greater variation in the performance of portfolios and is likely to accentuate the divide between prime and lower-quality assets. But it will also create new investment opportunities, particularly for investors willing to engage in heavier refurbishment to target attractive risk-adjusted returns post-recession. As traditional commercial sectors face structural and/or cyclical challenges, allocations to alternatives such as residential and stu
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