Invesco Real Estate
Despite a year of heightened geopolitical
tension and unexpected political change in
2016, global real estate markets sailed on
serenely, notching up another year of strong
returns. With many developed economies
performing as well as at any time since the
global financial crisis, real estate market fundamentals appear generally sound and likely
to remain so.
What is the likely direction for real estate,
and what are the macro risks in 2017? The
rise of political populism around the world
has created considerable uncertainty. Using
a yachting analogy, I see several questions
arise on the macro outlook:
n Were the political events of 2016 just a
temporary patch of choppy water that will be
followed by smoother sailing again as fresh
sailors take the helm?
n Will the economic tailwind of the past few
years strengthen further, or might a wind
shift create a headwind, requiring investors
to do some nimble tacking?
n Was 2016 the harbinger of as-yet-unseen
gathering storm clouds that investors would
do well to prepare for?