UBS: APAC becoming main engine of growth in the coming few decades

The epicenter of global growth is shifting toward Asia Pacific (APAC), and with fundamentals taking over as the key driver of performance, Asia’s growth premium is likely to underpin the region’s outperformance in real estate, according to UBS Asset Management – Real Estate & Private Markets’ white paper entitled Asia Pacific core real estate discussion series part 1 – The big picture.

UBS Asset Management argues that not only will APAC be the main engine of growth in the coming few decades, it also offers diversification and downside protection for investors.

From 2007, APAC made up around 23 percent of the global GDP, lagging that of the United States and Europe (25 percent and 34 percent, respectively) but that has since risen to 33 percent in 2017. With growth rates forecast to outpace that of other regions, APAC’s share of the global economic pie is projected to continue to grow to 41 percent in another 10 years.

The combination o