Real estate rents declined by five percent in 2024 due to normalizing market conditions, according to Prologis’ 2024: Market rents reset after years of outperformance. Increasing new supply and positive demand boosted vacancy rates in most markets across the globe, says the report. By combining market insights with data, the Prologis Rent Index analyzes net effective rental growth trends in North America, Europe, Asia, and Latin America.
Leasing activity slowed in 2024 due to cautious decision-making and economic uncertainties. Global net absorption fell 14 percent below pre-pandemic levels, with the United States seeing a decline of 30 percent and Europe seeing a decline of 20 percent. Delayed decisions, consolidation efforts, limited capital access, and ongoing supply chain uncertainties suppressed absorption rates, says the report. Leasing activity is expected to improve in 2025, due to demand lingering from 2024 and structural supply chain needs.
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