CIO views and cross-asset research from DWS.

DWS's June 2026 monitor reports that European private real estate delivered stable but moderate returns in early 2026, with performance driven primarily by rental income rather than capital appreciation. Sector dispersion is notable, with retail, residential, and industrial outperforming, while offices continue to lag; private real estate outperformed equities, bonds, and listed real estate in Q1 2026.

DWS analyzes the latest U.S. wage data, highlighting that leisure and hospitality sector wage growth has normalized back to pre-pandemic levels of ~3.75%, signaling that pandemic-driven wage pressures across the broader labor market have largely been absorbed. The piece argues that this normalization in a key low-wage, labor-intensive sector is a meaningful leading indicator that a primary driver of U.S. services inflation has lost significant momentum.

DWS's Real Estate Research team presents its mid-year 2026 outlook across U.S., European, and Asia Pacific commercial real estate markets, highlighting supply-side constraints, sector-level divergence, and the ongoing recovery phase across regions. Key themes include slowing development pipelines, structural demand drivers (e-commerce, urbanisation, AI), and differentiated performance across office, logistics, residential, and retail sectors.

DWS compares Eurozone non-energy consumer goods inflation with manufacturers' PMI output price expectations (shifted 12 months forward), finding that while factory-price expectations have risen sharply, consumer goods inflation remains relatively subdued. Senior Economist Ulrike Kastens argues that weak demand should limit cost pass-through unless supply-chain disruptions intensify, while central banks are expected to remain cautious given the shadow cast by their slow 2022 response.

DWS's quarterly monitor reports that U.S. private core real estate delivered a 4.9% trailing four-quarter total return through Q1 2026, driven primarily by income with capital values broadly flat. Retail and Residential led sector performance while Industrial moderated and Office continued a gradual recovery, with regional divergence favouring the Midwest and parts of the South over coastal Western markets.

DWS argues that the current decline in EU carbon allowance (EUA) prices represents a "buy low" opportunity for buy-and-hold investors with a 2–4+ year horizon, ahead of anticipated EU ETS policy reform proposals expected in July 2026. Statistical analysis by DWS finds that historically the largest returns from EUAs have come from buying before major ETS policy reforms are proposed and agreed.