Global Market Perspective – 2019

1. Real estate market momentum slowing

The world economy has moved into a synchronised slowdown and geopolitical issues still abound. This is now filtering through to real estate markets; however, fundamentals remain healthy with momentum only easing gradually.

2. In a low-yield environment real estate still offers value

Returns for private real estate have remained stable during 2019 while public real estate continues to outperform other major asset classes at the global level. Government bond yields have declined further throughout the year, and real estate continues to offer a premium to most other asset classes despite yields being at record lows in many markets. The volume of capital held by funds that is yet to be deployed is near all-time highs and investors, though cautious and selective, remain keen to access the sector.

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