A nascent and uneven recovery is under way after 2024, when the correction in valuations bottomed out and some liquidity returned to lift transaction volumes, according to a MSCI blog post.
Some sectors remain challenged beyond cyclical factors because of long-term structural drivers. The office and retail sectors are unlikely to return to their long-term aggregate deal volumes, reports MSCI.
Institutional investors will be focusing on:
Emerging property types, notably data centers (record transactions for the sector in 2024) and new energy infrastructure
Active asset management strategies to reposition properties
The living and industrial sectors are most favored
Debt is the favored route to commercial real estate exposure over equity, reflecting opportunities in private credit markets as banks retrea
