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PGIM Real Estate: Late-Cycle Growth Means a Balancing Act
Elevated global real estate pricing continues to be supported by low interest rates, and there are still reasons to be optimistic about the outlook for income growth, according to PGIM Real Estate’s 2019 Global Outlook.
“The challenge for investors in the current environment is striking the right balance between taking on risk to capitalize on late-cycle growth opportunities, and investing in strategies that offer greater downside protection against falling values,” said Dr. Peter Hayes, the firm’s global head of investment research.
The report sees global investment opportunities in the following categories:
• Late-cycle growth opportunities primarily linked to ongoing cyclical momentum and low supply growth
• Structural trends including demographic shifts that support demand in low-volatility sectors such as residential, and boost income growth potential in sectors such as senior housing
• Debt strategies that offer downside protection and benefit from a growing opportunity set, notably in Europe and the U.S.
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
- ◦Sale/Acquisition
