Real estate is regaining investor interest as the sector stands poised to benefit from robust property fundamentals and declining capital costs. Property values reached their trough in late 2024, offering investors a rare opportunity to enter the market at below-replacement cost levels. Today, core real estate yields compare favourably with many fixed-income alternatives, allowing investors to pursue attractive, risk-adjusted return opportunities. With public equities trading at historically elevated valuations, private real estate distinguishes itself with a compelling risk-return profile.
PGIM’s Brandon Short highlights that the current environment presents a timely entry point for investors seeking stable income, reduced volatility, and enhanced portfolio diversification through private real estate investment. He also points to compelling opportunities in alternative sectors, such as student housing and senior living, which may offer attractive long-term potential.
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