Real Estate Capital Flows - Global Deck Q4 2018
- 2018 beat 2015 as the best year of the current cycle for global commercial real estate (CRE) investment, driven by a robust U.S. market.
- Cross-regional capital flows between North America and Europe grew significantly from last year. London topped the list of cross-border investment destinations.
- The gap between global all-property yield and bond yield widened in Q4 2018 due to a contraction of the latter, mainly triggered by rising volatility of the stock market.
- Prime yields remained relatively high in the U.S. while yield spreads appeared more attractive in EMEA markets.
- Income growth is expected to drive total returns in 2019, as late-cycle capital appreciation decelerates.