In the spring, we expected global growth to accelerate to 3.5% for 2017 vs. 3.1% in 2016, spurred by low interest rates, healthy household balance sheets and potential cuts in U.S. corporate tax rates. Given the momentum in Europe, combined with increasing trade flows supporting growth in Japan and Australia, global growth expectations have since been revised up to 3.6% for 2017. It is becoming more apparent that real estate markets are cycling in different ways and the correlations across markets appear to be reverting to more normal levels. At the same time, real estate income relative to the bond market remains at or above its long-term average in most markets we cover. While we acknowledge the concerns over pricing, the risk may be overstated and we believe real estate in most markets globally remains attractive for a number of key reasons.
Source : Deutsche Asset Management