Folkestone Real Estate Outlook 2016- Positive Returns Expected

16th March 2016

Folkestone is pleased to release its Real Estate Outlook 2016 entitled Navigating the Road Ahead . The paper provides an in-depth look at the three real estate sectors – residential, non-residential and A-REITs.

As we enter 2016, investors are now asking the question “which road should I take” – real estate markets have, or are close to, peaking … or is there more upside in this cycle?

Mr Adrian Harrington, Head of Funds Management, Folkestone said “Since the lows of the GFC, non-residential real estate and listed A-REITs have delivered positive risk-adjusted returns. In fact, A-REITs have been the standout performer over the past five years – taking the title as the best performer in 4 of the past 5 years.”

Over the five years to 31 December 2015, A-REITs have delivered a total return of 15.3 per cent per annum, more than double the 6.7 per cent per annum from equities and 6.6 per cent per annum from bonds and higher than the 10.7 per cent for non-residential property.

In 2015, both listed and direct real estate performed strongly relative to other asset classes. A-REITs delivered a 14.4 per cent total return in 2015, outperforming non-residential property (14.0 per cent), equities (2.8 per cent) and bonds (2.6 per cent).

To download the full article, please click on the link below.