Global CRE to outperform other assets

Although a forecast global real estate return of sub-6% p.a. over the next decade appears disappointing, compared to other assets it stacks up well. We expect sub-4% total returns for both global government bonds and equities over the next 10 years. What’s more, low risk-free rates in Asia-Pacific, as well as relatively strong performance prospects in some cities and sectors in other regions, point to opportunities for significant outperformance in a global portfolio.