The real estate investment environment has changed markedly over the last decade. It has transitioned from crisis, to recovery and growth, to an era of disruption in which historical real estate demand drivers have been upended. All of this has taken place against a backdrop of eventual tightened monetary policy and lower global growth, which is expected to stretch into the years ahead.
From the Current Issue
More people. More property. More storms. How can the real estate industry prepare its assets, through design or adaptation, for this new world of megacities and megastorms? How can property investors protect their portfolios in this new reality?
Are you more likely to drive or walk on a rainy day? Do you interact more with your neighbours if you live in an apartment or a stand-alone house? Both of these considerations are a testament to how our environment impacts our behaviour to such an extent that our choices are often not driven by our preferences or intentions, but by our surroundings.
Where are global investors likely to find attractive real estate opportunities? With economies in mid to late cycle, interest rates rising and properties priced to perfection, it’s a fair question. Global core returns have averaged just over 10.5 percent since late 2010. Valuations have been a significant driver of those returns, however, leaving much of the market fairly priced.
Pictet Alternative Advisors has launched a smart gateway cities fund.
Despite its moderate absolute returns, private real estate equity provides the best risk-adjusted results when compared to other real estate investment strategies, corporate bonds and equities.
Despite economic and political turbulence, European city destinations dominated the league table of the world’s cities for inward investment in 2018.
As far as most commentators are concerned, there’s about as much chance of demand for flexible office space in Europe slowing down as there is of Mrs. Merkel announcing that Germany is to hold a referendum on its membership of the European Union.