Despite mixed global economic signals, real estate remains a high-value investment destination for investors looking for defensive, income-generating investments. Global volatility makes allocating capital more challenging for investors, who are increasingly focused on low risk, stable long-term income returns through cycles. Despite a scarcity of core and strong income product, and challenges emerging, investment opportunities still exist.
Real estate has delivered consistently strong returns to investors during a cycle of record low-interest rates and rising investor allocations to the sector. With technology disruption now directly influencing the performance and valuation of the sector, higher economic growth, and a rising cost of capital, finding growth in a changing cycle will be critical to investment success.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.