UBS is telling investors to keep a close eye on tangible investments such as raw materials, infrastructure and commercial property in 2027. The main driver behind this change is the huge wave of artificial intelligence. AI is using electricity at an unprecedented pace, accelerating the construction of massive data centers, local power plants, and transmission lines.
Real assets are physical items you can see and touch. According to a recent strategy report from the Chief Investment Office of UBS, their value comes directly from how useful they are in the physical world.
This broad group includes physical real estate, critical networks such as power grids and fiber setups, and underlying commodities ranging from crude oil and natural gas to copper, zinc and grain crops.
UBS says power grid updates, national energy security and companies moving their factories closer to home are driving large amounts of capital into industrial systems. That steady cash flow provides long-term price support for industrial metals and essential utility setups.
Asset supply remains tight as technology expands
In the real estate market, builders have stepped back sharply in many areas. Since fewer new projects are being started, supply will remain tight in the future. UBS believes this setup directly benefits specialty data facilities, senior living centers, multi-family apartments and modern office spaces. With very few new buildings opening their doors, landlords have the power to maintain property values and push rents higher.
UBS notes that gold serves an entirely different purpose in a portfolio. When governments fall into debt, wars erupt, or inflation rises, investors naturally flock to physical gold bars and coins to protect their purchasing power.
How can different economic paths be pursued
In the base scenario outlined by UBS, ongoing capital expenditure on AI infrastructure, electric power generation, national defense and secure supply lines will maintain high demand for raw materials and utility networks.
If AI brings a huge wave of business productivity, industrial goods and manufacturing assets could soar even higher. However, if global tensions ease and traders abandon their defensive hedges, gold may lag behind.
On the other hand, if big tech companies suddenly cut their AI budgets, energy and development-sensitive commodities could suffer. Meanwhile, if central banks respond by cutting interest rates, gold will remain stable or even rise.
UBS also points out that if inflation remains stable in the coming years, hard assets such as crude oil, base metals, physical infrastructure and gold will be among the strongest places to put money.
Risks: Rates, Delays and Loan Costs
There are still obvious risks in these markets. High borrowing costs and tight bank loans can drive down real estate values and make it expensive to repay existing loans.
The broader economic slowdown could also reduce demand for basic construction metals. If tech spending disappoints, parts of the commodity complex could decline sharply. Furthermore, large infrastructure works are often hit by bottlenecks, blocked electrical grids, parts shortages and budget failure.
Because of these differences, UBS cautions against treating real assets as a single, safe bet. They perform completely differently depending on the economy. Their best feature is true portfolio diversification: Commodities rarely trade in lockstep with common stocks, and private infrastructure provides a stable counterweight to the standard stock-and-bond setup.
What should you really buy right now?
Picking winning investments is always based on hard facts rather than hype. Following pure intuition may seem exciting, but trading on raw emotion usually leads to costly mistakes. The smartest approach blends reliable market data with practical insights so you can make informed decisions without the need for a degree. Sticking to solid fundamentals can help you consistently identify real opportunities in 2026 and 2027.
Key Takeaways for Real Asset and Commodity Investors
- Electricity needs drive commodity demand:Huge power demand from data centers and AI computing is creating direct, long-term support for copper, power equipment and energy systems.
- The asset supply constraint is:Low construction activity is restricting supply in apartments, senior homes and data facilities, which is keeping rents well supported.
- Gold remains the ultimate safe haven:Gold is shining as a hedge against rising government debt burden, rising inflation and geopolitical risks.
- See the fissures and red tape:High lending rates and delays in construction permits remain the biggest threats to large infrastructure and property projects.