PGIM’s Greg Kane on the reasons for optimism in today’s institutional real estate market
Despite there being some concerns now, i.e., the Delta variant, supply side disruptions, etc., there are reasons to be optimistic in today's institutional real estate market.
“When we look a little bit further ahead to the next cycle, we have things such as low interest rates and sluggish productivity, and even aging populations, and all of these things point to lower global growth and that typically means lower real estate returns,” says Greg Kane, head of European investment research at PGIM Real Estate.
Kane explains that there are still reasons for optimism despite the reasons states above. He explains that to do that you have to start with the big picture, i.e., the properties of real assets and how they are an integral part of the economy.
“Building provide spaces for living and working, and also for business to produce and supply goods,” says Kane. “That means as long as there is economic demand, there will always be real estate demand. Because