(Bloomberg) -- The worst of the real estate market’s downturn has likely passed with the beginning of central banks’ monetary-easing cycle, according to Paul Kelly, global head of alternative assets at DWS Group.
Deal volumes have been picking up lately and overall sentiment continues to improve, he said in a quarterly letter to investors seen by Bloomberg News.
Kelly also highlighted “increasingly positive” discussions around funding for real estate projects and fewer redemption requests from investors. He said he expects returns from property investments to “normalize” and drive future growth in assets DWS manages. His comments echo a tentative return of investor interest at the onset of rate cuts and bottomed-out valuations.
DWS, the asset-management unit of Deutsche Bank AG, last month hired four people from JPMorgan Chase & Co.’s asset-management arm to help expand the firm’s US real estate credit business and private credit platform.
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