LaSalle’s ISA Outlook 2023: Resilience in the face of severe macro headwinds

Despite global macroeconomic headwinds impacting Europe more severely than other global regions, the continent’s real estate market fundamentals remain sufficiently strong that attractive opportunities remain on offer next year for the right investment strategies, markets and asset types. Those are the findings of the Insights, Strategy and Analysis (ISA) Outlook 2023 report published by LaSalle Investment Management.

Following a difficult year for the global economy, with central banks fighting inflation through tighter monetary policies, the economic outlook is most precarious in Europe, owing to an acute inflationary environment and rising energy prices driven by the geopolitical shock of war in Ukraine. Higher borrowing costs have already exerted significant downward pressure on asset valuations, with European property assets undergoing a significant repricing with the lowest-yielding sectors most acutely affected. This rebasing in European property valuations, obscured