M&G Real Estate’s mid-year global real estate outlook concludes that rental growth and the strongest prospects will come from the living sectors, best-in-class offices and urban logistics, all of which are – in most markets – suffering from structural undersupply and limited development. This income growth, coupled with yields which today are significantly higher than a year or two ago, will help to drive total returns for investors moving forward.
As asset values hit their lowest point in many markets this year, and the property market cycle shifts over the next 12 months, the next half of 2024 is likely to usher in recovery and growth in some real estate markets after the pandemic and a prolonged economic slowdown.
“While 2024 is likely to mark the bottom of the cycle and an end to significant capital value falls, investors still need to navigate downside risks; especially for assets with structural challenges and high leverage,” said Richard Gwilliam,
