UBS Asset Management has released its Global Real Estate Summary, which states that the global economy held up better than expected in the first quarter of 2019, while some major central banks have turned dovish.

The report states: “Delayed policy tightening is supportive of real estate, and investment activity was weaker across all regions with cap rates levelling off. We think occupier and investor markets look more resilient to any shock from the economy than they were prior to the global financial crisis.”

UBS added: “For some time, our house view has been that real estate returns will slow gradually and become driven mainly by income. MSCI data for 2018 corroborates this. Global all property returns slowed to 7.4% from 7.9% in 2017, with an income return of 4.5% and capital value growth of 2.8%. This compares to peak value growth of 5.4% in 2015.”