Guy Barnard, co-head of Global Property Equities at Henderson, gives an update on real estate.
Guy Barnard, co-head of Global Property Equities at Henderson, explains that capital continues to seek out income-producing assets and real estate is a key beneficiary of this environment. He notes a report from DTZ (the property advisory firm) stating that there is US$354 billion of capital looking to invest in global real estate assets. He points to limited new supply of buildings providing support to valuations and to rental growth, with income and income growth expected to be a strong contributor to total returns from property equities.