2024 is a year ripe with change and opportunity. Anticipated rate cuts are poised to set off a series of events in the commercial real estate (CRE) sector, bridging the disparity between buyer and seller expectations, and re-attracting inactive participants to the market, leading to a resurgence of transaction activities. In light of the altered terrain, particular markets and sectors are currently offering appealing entry points for investors.
As growth remains tepid and cost pressures are easing, business confidence is set to improve.
CRE is currently in a transition phase as macroeconomic conditions improve. Investment volumes are expected to increase.
The industrial sector remains the most coveted asset class. With the pace of new completions slowing, low vacancy rates are expected to persist, leading to continued increases in prime rents.
ome affordability has deteriorated in the last decade leading to a fall in home ownership rates, boosting near-term demand for private and affordable housing.
An interest in value-add opportunities is rising. Upward pressure on rents to remain in the short-term, reflecting reduced re-development costs but this trend is likely to moderate as the availability of Grade A stock increases.
Investor interest is rekindling across retail asset types. As footfall improves the most sought-after location are becoming more constrained; vacancy rates coming down places upward pressure on prime rental levels.
The only real estate sector in Europe that recorded an increase in transaction activity during Q1 2024 as healty operating performance boosts investors interest.
Given the supply and demand imbalance across the data centres and the life sciences sector, investors are increasingly exploring development prospects to take advantage of robust demand.
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The commercial property sector (CRE) has continued to contend with higher borrowing costs and slow economic growth in H1 2023. As Central Banks are at the end of their rate-hiking cycles, the CRE market is posed at a pivotal juncture as property values near the bottom.
The 2024 European Outlook by Cushman & Wakefield is tailored for investors and property owners, our insights offer a clear path through the complexities of today's market in 6 sectors focused reports.
As the market recalibrates, stay informed on pivotal movements - from valuation trends to investment hotspots. Anticipate changes in property values and prepare for the market rebound. Our reports provide a strategic vantage point, revealing how to harness yeild expansion and navigate rate adjustments.
European Forecast & Fair Value Index
The Opening Gambit for Central Banks: Unravelling the 'Who Cuts First?'
