With 2013 behind us, it is worth noting that Europe was the top performing global region within the FTSE EPRA/NAREIT Developed Index. Europe’s total return greatly exceeded those of Asia and North America, for dollar denominated investors, although Asia was the best performing region on a local currency basis.
Europe’s strong performance comes on the heels of a good 2012 when Europe’s total return of 30.6% in USD trailed Asia (+45.5%), but far exceeded returns in North America (+18.1%). While many challenges remain in Europe and growth remains anemic, opportunities still existed.
Global transactional volume for the first nine months of the year totaled $727 billion, 24% higher than the same period in 2012. Real estate investors are likely to continue to look globally in the year ahead.
As we look forward to 2014, investors often try to determine which region will provide the best annual returns. Will Europe continue its strong performance or will North America finally emerge from the bottom of the pack? Given the difficulty of making such predictions, investors may be better served to consider the merits of a diversified global portfolio.
 Per Real Capital Analytics, Inc.
The views expressed in this update are as of the date of this blog entry. These views and any portfolio holdings discussed in the update are subject to change at any time based on market or other conditions. The adviser disclaims any duty to update these views, which may not be relied upon as investment advice. In addition, references to specific companies’ securities should not be regarded as investment recommendations or indicative of the Adviser portfolios.