Good Places to Be: Real Estate Investors Know It
Asset markets had a turbulent 2011 and are heading into 2012 faced with uncertainty and fat tail risks. Despite this volatility, good-quality commercial real estate has provided attractive returns and solid income. Nevertheless, as the global economic outlook softens, expansion plans and business investment are being put on hold and occupational markets are deteriorating, albeit modestly. Given that Asia Pacific will remain the global growth leader in 2012, how should investors position themselves to take advantage of opportunities on both sides of the “great divide” — ie. both in the core and the opportunistic space?
This article will attempt to provide a broad framework to a large, diverse and complex region that provides abundant investment choices for real estate. The Asia Pacific region benefits from strong underlying fundamentals but is not immune to the uncertainty, equity market volatility and sovereign debt risks that are affecting