Economic activity looks set to cool down in 2018 after last year’s strong, albeit unsustainable result, with increasing headwinds both from external and internal concerns (Eurozone politics, tightening bias from the major central banks, as well as elevated increased policy uncertainties, fiscal slippages risks).
That said, the favourable momentum for private consumption after years of hefty real income gains suggest that even in absence of new stimulus, it will still be a fairly good year for businesses, provided political noise remains at acceptable levels. This bodes well for real estate activity in general, with investment and industrial submarkets having the largest potential for fresh cyclical highs.
