A sharp repricing is underway as European real estate markets factor in higher interest rates, while occupier sentiment is turning as recession fears grow. Property yields need to rise further to make transactions look attractive.
Greg Kane
Head of European Investment Research, PGIM Real Estate
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The Asia Pacific region offers a diverse set of investment opportunities, ranging from cyclically attractive reentry prices to structurally resilient demand growth.
ASIA PACIFIC
The Asia Pacific real estate market outlook is softening. However, leasing fundamentals and capital market conditions will remain highly diverse across the region.
Cuong Nguyen
Head of Asia Pacific Investment Research, PGIM Real Estate
Although Australia's real estate debt stock is weighted to the short term, leverage is constrained by lenders' increased focus on debt serviceability. For lenders with appetite, opportunities to provide top up leverage emerge as some lenders retreat.
Henri Vuong
Head of Real Estate Debt Investment Research, PGIM Real Estate
A recessionary environment combined with elevated interest rates will cause property incomes to slip, with a drop in property values extending through most of this year.
Lee Menifee
Head of Americas Investment Research, PGIM Real Estate
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In the near term, opportunites will be driven by the repricing and a push toward ESG-compliant assets. The inital focus will be on securing attractive cashflow-driven returns in sectors with a resilient underlying demand story, notably in logistics, apartments and other living sectors.
EUROPE
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Debt returns are already attractive in today's market. As the year progresses, expect more opportunities to invest at lower prices and to develop in a less competitive construction environment.
UNITED STATES
Although Australia's real estate debt stock is weighted to the short term, leverage is constrained by lenders' increased focus on debt serviceability. For lenders with appetite, opportunities to provide top up leverage emerge as some lenders retreat.
Henri Vuong
Head of Real Estate Debt Investment Research, PGIM Real Estate
A recessionary environment combined with elevated interest rates will cause property incomes to slip, with a drop in property values extending through most of this year.
Lee Menifee
Head of Americas Investment Research, PGIM Real Estate
A sharp repricing is underway as European real estate markets factor in higher interest rates, while occupier sentiment is turning as recession fears grow. Property yields need to rise further to make transactions look attractive.
Greg Kane
Head of European Investment Research, PGIM Real Estate
The Asia Pacific real estate market outlook is softening. However, leasing fundamentals and capital market conditions will remain highly diverse across the region.
Cuong Nguyen
Head of Asia Pacific Investment Research, PGIM Real Estate
Download Charts
Watch
Debt returns are already attractive in today's market. As the year progresses, expect more opportunities to invest at lower prices and to develop in a less competitive construction environment.
UNITED STATES
Download Charts
Watch
In the near term, opportunites will be driven by the repricing and a push toward ESG-compliant assets. The inital focus will be on securing attractive cashflow-driven returns in sectors with a resilient underlying demand story, notably in logistics, apartments and other living sectors.
EUROPE
Download Charts
Watch
The Asia Pacific region offers a diverse set of investment opportunities, ranging from cyclically attractive reentry prices to structurally resilient demand growth.
ASIA PACIFIC
REGIONAL OUTLOOKS: A DEEP DIVE