The rapid spread of coronavirus could force more investors to seek shelter in core assets.

Talk of most European markets entering latecycle territory has been in the air for at least two

years now, prompting a shift to core real estate that may now be accelerated by the emergence of the COVID-19 disease.

In a note on the implications of a coronavirus pandemic for real estate markets sent on 2 March, Barings’ research team has said that it expects a flight to high-quality, core properties in the near term, which could, in addition, be driven by events in Italy.

The note’s authors, Philip Conner head of US real estate research, and Paul Stewart, head of European real estate research, warn that Italy — the worst affected country in Europe so far by

COVID-19 — is also a “glarin