Opportunity in real estate credit
With recent shifts in central bank policies to reduce interest rates and continued evolution of bank lending, now's a good time to revisit our outlook for private CRE credit.
Tapping into the potential of Real Estate starts with gaining access to it. It’s a world of opportunity – and we have the expertise and the network you need to unlock it.
Navigating the risks and opportunities of a diverse and nuanced asset class requires deep and varied experience. Invesco Real Estate (IRE) has a decades-long track record of building global real estate investment programs and funds for many of the world’s leading institutional investors³.
real estate assets managed globally, as of Dec 31, 2023
Professionals across 21 global offices
years of investing experience
Connect with us for a tailored conversation on real estate.
By providing your details here you consent to receiving marketing materials which includes our newsletters and information from Invesco globally that we think maybe of interest to you (including direct marketing). You can withdraw your consent at any time by selecting the unsubscribe option in the communication you receive or by contacting your regional sales representative. For further information on how we store and use data, please refer to our Privacy Policy.
With recent shifts in central bank policies to reduce interest rates and continued evolution of bank lending, now's a good time to revisit our outlook for private CRE credit.
We expect growth to continue to slow in the near term, followed by a reacceleration through 2025, which should foster a favorable environment for risk assets globally.
In this quarterly outlook we cover the opportunities in the alternatives space, focusing on the five areas of private credit, private equity, real assets, hedge funds and commodities.
Uncovering the potential of Private Credit starts with gaining access to them. It’s a world of opportunity – and we have the expertise and the network you need to unlock it.
Max Swango, Global Head of Client Portfolio Management, shares his thoughts on how demand in the real estate industry has evolved in recent years and the drivers of performance going forward, particularly as it relates to the APAC region.
The Invesco Real Estate team discusses disruption and volatility in European and Asian real estate markets, which are creating unique investment opportunities.
Source: Invesco Real Estate with data sourced from Bloomberg L.P. and Morningstar from October 2002 to September 30, 2022. Correlation is a statistical measure of how two assets move in relation to each other. The higher the coefficient (1.00 is the maximum and would indicate perfect correlation), the greater the correlation between the two assets. US private real estate is represented by NCREIF Property Index. US fixed income is represented by Bloomberg US Aggregate Bond Index. US equity is represented by the Russell 3000 Index. There is no guarantee that private real estate will provide diversification. Diversification does not guarantee a profit or eliminate the risk of loss.
Source: Green Street Advisors, Bureau of Labor Statistics as of September 30, 2022. Real Estate Income is represented by net operating income (NOI) growth, which is the average NOI growth by year across the major property sectors in North America: apartment, industrial, mall, office, and strip retail. Inflation is represented by the Consumer Price Index (CPI), which is a measure of the average change over time in the prices paid by urban consumers for a representative basket of goods and services. NOI growth equals all revenue from a property minus all reasonably necessary operating expenses. NOI growth may not be correlated to or continue to keep pace with inflation. As of September 30, 2022.
As of Dec. 31, 2023