Real asset demand predicted to continue

According to AMP Capital, global investor demand for real assets will continue to grow in 2016 driven by market conditions and socio-economic trends.

These trends include intense competition for trophy assets and high-quality property, the “lower for longer” yield environment and urbanisation and infrastructure spend. AMP Capital global head of infrastructure equity, Boe Pahari, said competition for assets in infrastructure would intensify, due to more fund launches and a trend towards direct investment from sovereign wealth and pension funds. Pahari said that increased competition could lead to more investors looking at Eastern Europe.

On property, AMP Capital global head of property, Carmel Hourigan, said that Australian property remained attractive compared to other markets, while AMP’s deputy head of global listed real estate, James Mayhew, said that he saw great opportunities within Europe in core German cities and the Spanish office sector. He added that urbanisation in global, gateway cities is a strong theme. “London’s West End, Mid/Downtown Manhattan and central wards of Tokyo are large beneficiaries of this momentum and can be accessed via retail, office and residential investments depending on the city or infrastructure project.”