Watch/Listen

60 seconds with Tom Walker on the importance of GDP growth in real estate investing

Global cities with strong economic growth represent attractive investment opportunities.

03/06/2016

Tom Walker

Tom Walker

Co-Head of Global Real Estate Securities

Whether you are running a global real estate fund, a UK real estate or even a European real estate fund, the one key ingredient you have got to find is GDP growth.

Without economic growth you are not going to be able to charge your tenant a higher rent, whether they are an office company, or a shop, or an industrial unit.

So that’s the key thing that we look for – effectively we’re all GDP junkies in the real estate world.

We believe that there are certain cities around the world – and we refer to these as global cities, such as Los Angeles, New York and London – that are detaching away from the countries and regions they are in.

These very powerful global cities will continue to perform very well by virtue of their high quality infrastructure, very diversified economies, and talented workforces.

That is why we try and gain as much exposure as we can to these global cities.

Important information: The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This article is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.