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Real Estate Summary: Opportunity amidst converging returns and shrinking risk premia

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Real Estate Summary: Opportunity amidst converging returns and shrinking risk premia

In the early months of 2018, economic fundamentals are supportive of another solid year of real estate performance. But monetary conditions are tightening and our central preoccupation persists: how will this affect the risk premium for real estate? This year transaction volumes will remain near long-term averages, rental growth will remain healthy, particularly in the prime segment, and as yet we do not expect a meaningful move outwards in yields.

Source : UBS AG

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