The economy held up better than expected in the first quarter of 2019, while some major central banks have turned dovish. Delayed policy tightening is supportive of real estate and investment activity was weaker across all regions with cap rates levelling off. We think occupier and investor markets look more resilient to any shock from the economy than they were prior to the global financial crisis.
The complementary video discusses some of these trends in more detail including the strength of real estate demand in spite of market volatility. In the case of the US, the increase of cross-border capital has reversed the rising interest rate environment and we can expect returns to be predominantly income driven.
For more insights, read the latest Real Estate Summary – Edition 2, 2019