Global real estate returns positive last four quarters
- Following a two-year reset, global private real estate values have ticked up for two consecutive quarters. Due to real estate’s stable income return component, total returns have now been positive for four consecutive quarters
- With equities still near all-time highs, many investors are now significantly below their 2021 real estate allocations and below their target weight
- Debt funds are set for an attractive vintage with good risk-adjusted returns. Interest rates remain elevated, demand from borrowers is recovering, assets have re-priced (reducing risk), and banks have repositioned as providers of back-leverage, unlocking higher returns
