Global

In 2017, the picture is very different with most markets reporting higher total returns compared to the prior year. The positive momentum has been most pronounced in European markets like the UK, Hungary, the Czech Republic and Germany.

Country-wide, industrial total return in 2017 was 12.1 percent and has benefited from strong demand for last mile logistics assets.

The “retail apocalypse” reflects fears that consumers are abandoning bricks-and-mortar stores in favor of online shopping, potentially spelling disaster for retail malls and shopping centers.

Retailer bankruptcies, department store struggles and empty malls have dominated recent headlines.

Over the 10 years to December 2016, global gateways were not standout performers but generally offered lower income returns in exchange for higher capital growth.

Using MSCI global real estate dataset, we find evidence that higher-value assets have been more likely to outperform other assets in the same country and sector than lower-priced assets.

Over the seven year period, most APAC cities have outperformed the global index.

The Asia Pacific region has some of the most diverse real estate markets in the world. Alongside more established markets like Australia and Japan, there are a number of more nascent markets with lower transparency, higher barriers to entry and at various stages of development.

In 2016, direct private real estate returned 7.4 percent but across major metropolitan markets there was considerable variation due to differences in local market conditions.