Invest
Low rates offer global real estate opportunities
The resilience of global economies and accommodative central banks around the world are tipped to spur on the housing market, according to economists.
Low rates offer global real estate opportunities
The resilience of global economies and accommodative central banks around the world are tipped to spur on the housing market, according to economists.
Dr Indraneel Karlekar, global head of research and strategy at Principal Real Estate Investors, believes combined economic factors are making commercial real estate attractive for investors.
“Slow growth and an accommodative global central banking policy regime should create a conducive environment for real estate investment strategies.”
“Since supply is expected to remain modest by historic standards, a not too hot, not too cold economic environment should allow owners to continue pushing rents above inflation,” Dr Karlekar explained.
The researcher said a volatile global market, including global tensions between the US and China, can have a positive impact on real estate investors.
Noting a 70 per cent probability of expanding over the next 12 months – but says there is a 30 per cent probability of global recession – Dr Karlekar said central banks will do whatever it takes to accommodate growth.
“Central banks are not likely to rush the removal of monetary accommodation and, thus, keep low interest rates in place, which support property valuations. When coupled with the ongoing demand for income, commercial real estate should remain an attractive choice within the suite of global options investors consider in 2020", Dr Karlekar said.
Finally, Dr Karlekar discussed how changing demographics will provide further opportunities for real estate investors.
“The way people live and work will evolve and offer real estate investors multidimensional opportunities to meet growing space needs.”
The market is tipped to be impacted by new policy as well as demand drivers such as mobility, affordability and advances in technology, according to Dr Karlekar.
“Investors that recognise the multiple layers and nuances of global demographic changes and adopt a flexible approach to meeting this changing need will find success in long-term strategies that harness one of the greatest structural shifts of the 21st century,” he concluded.
RELATED ARTICLES
About the author
About the author
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
