60 seconds with Duncan Owen on real estate's prospects in 2017
Duncan Owen looks at where the winning cities for real estate investors in Asia and Europe are likely to be.
The outlook for real estate investment in 2017 is probably the most fascinating one in the last 25 years.
We’ve had momentous economic and political events in 2016. Now, how the politics will work its way through to macroeconomics is vital for real estate investment. Then we can see what it will mean for the real economy and industry, and what the demand will be for real estate as a consequence.
As real estate investors, the principle choice for investment is really about winning cities. We’re not looking at particular countries or regions; we’re looking at winning cities that have higher economic activity.
For example, if you look at continental Europe, that winning city might be Berlin where the technology, media and telecom (TMT) sector has been really successful.
If you pick Asia, that winning city may still be Hong Kong as a financial centre for the region. What we want is to invest in the locations that have the highest levels of economic activity that will drive rental income, which is the principle reason people should still be investing in real estate.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.