Late cycle strength
Transaction volumes reached €264bn in 2018 and are solid at the start of 2019. Real estate investment is likely to see out 2019 in better shape than the occupational market.
Economic slowdown worries are tilting investors back to bonds, where yields are under downward pressure. This is to real estate’s benefit and favours steady conditions over the forecast period.
2019 is seeing real estate performance metrics move into the single-digit phase of the cycle. Given the state of the asset universe, the relative performance of real estate looks positive. The best results continue to be driven by property with superior income return.