Investors are increasingly looking to expand their exposure to real estate markets around the world, it has been claimed. According to Anne Breen, head of real estate research and strategy at Standard Life Investments, many speculators are seeking new sources of income in low interest rate environments.
Speaking to the Financial Times, the expert suggested that property yields had become more attractive since the correction in global real estate prices between 2007 and 2009.
Ms Breen told the paper that commercial real estate
has become an increasingly global market. She explained that, while some markets are further into the recovery phase than others, the asset class still looks attractively priced.
"In less cyclical areas, yields on German and central European logistics properties can offer up to four per cent above the local ten-year government bond. Canadian real estate also looks appealing, while investors can capture true emerging market returns in Brazil
," she explained.
Meanwhile, Ms Breen suggests a cautious approach be taken by investors looking to some parts of Asia, particularly high-end housing in China
where "house prices have … got a little out of control".
- Wednesday 08 December 2010