Megatrends 360°

Real Estate to Support Growing Cities

Investment implications

  • Urbanization has been a driver of demand for a range of real estate, including affordable housing, e-commerce logistics and brick-and-mortar retail.
  • Affordable housing, including government-sponsored and privately-owned projects, offers significant near-term opportunities for investors.

    Impacted Asset Classes: Real Estate, Real Assets
    Impacted Regions: Developed Markets, North America, Europe, Asia-Pacific

  • We see significant opportunity to fund the development of e-commerce logistics as well as brick-and-mortar retail infrastructure to support the emerging urban middle class.

    Impacted Asset Classes: Real Estate, Real Assets 
    Impacted Regions: Emerging Markets, Asia-Pacific

  • Urban rebirth has created a need for conversion and repurposing of downtown real estate into mixed-use development.

    Impacted Asset Classes: Real Estate, Real Assets
    Impacted Regions: Developed Markets, North America, Europe, Asia-Pacific

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Note: Urban vs. rural defined according to the criteria used by each area or country. Source: UN Department of Economic and Social Affairs - Population Division
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Note: Urban vs. rural defined according to the criteria used by each area or country. Source: UN Department of Economic and Social Affairs - Population Division

PGIM Megatrends Series

Long-term views on the investment implications of global megatrends.

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The Wealth of Cities

Urban expansion creates a wealth of new opportunities for investors beyond real estate – from the urban millennial lifestyle in America and Europe to consumer goods and services growth in Asia to ramped-up agricultural supply chains.

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References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. 

The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.