The macro-economic fundamentals underpinning real estate performance are looking more positive today than at any other time since the collapse of Lehman Brothers. The U.S. has shrugged off the Sequester and is proceeding along its housing-led recovery. Japan is enjoying a rebound in confidence as “Abenomics” convinces consumers and businesses that deflation will finally be quashed. In China, the leadership handover has been safely traversed, and the move to lower but better balanced growth entrenched. And while Europe is still in the throes of a painful deleveraging, in general, the tail risks of “Grexit” have diminished. We take some comfort from the fact that even the latest crisis in Cyprus has not caused deposit withdrawal or capital flight in Spain and Italy.
Source : CBRE Global Investors