Real estate market conditions in the United States remain favorable. Despite negative economic growth in the first quarter, employment growth was robust during the last six months and fueled greater net absorption. Total returns for private equity real estate continued to be strong, at 2.9% in second quarter and 11.2% for the year-ending second quarter 2014, as recently reported by NCREIF. Returns were above the historic annual-average of 9.2% and have been relatively stable during the past three years. Income returns for real estate also remained relatively high at 5.5%.
Source : Deutsche Asset & Wealth Management