In PGIM Real Estate’s latest Investment Research paper, “ Global Outlook: Looking Beyond the Cycle ,” we look beyond the cycle to assess values we are seeing today in a long-term context. Our analysis of the global property risk premium suggests that pricing looks sensible in a long-term context and offers decent protection against a moderate increase in interest rates. Looking ahead, one of the challenges likely facing investors is finding attractive income streams and sources of growth that can deliver target returns. To a greater degree than in recent years, investment performance is reflecting the idiosyncrasies of local markets and global investors stand to benefit from effective portfolio diversification strategies.
