What’s driving demand in global real estate?
“The $2 trillion global real estate market is really a local business,” says Jon Cheigh, head of global real estate at Cohen & Steers in New York. His firm, which manages the Renaissance Global Real Estate Fund, focuses on supply-and-demand fundamentals in individual markets and identifies where there are attractive mispricing and valuations.
Investors should look to three sectors in the U.S., Cheigh said: “Data centres, industrial and residential. Data centres and industrial benefit from secular technology trends, he said. As e-commerce continues to grow, products need to move through warehouses, creating demand for industrial real estate. The apartment rental space also offers opportunities,” Cheigh said. More than a decade after the U.S. housing bubble burst, real estate builders continue to be cautious.