Global REIT prices will continue to grow during the first half of 2024 on the expectation that a soft landing will sustain income growth and underlying asset values will find a floor, according to Oxford Economics. REITs continue to look attractive based on the REIT-implied yield to NOI yield spread, large discounts to net asset values, and healthy balance sheets.
U.S. REITs are estimated to outperform the euro zone and the United Kingdom in the first half of 2024. This is a change from the firm’s June 2023 view, when it called for euro zone REITs to outperform in the second half of 2023. The euro zone did outpace the United Kingdom and United States but was much stronger than anticipated.
Three factors support Oxford Economics’ updated view: (1) Its U.S. macro team significantly upgraded its forecast at the start of the year, now seeing the U.S. economy grow by 2.3 percent in 2024, much higher than the forecast for the euro zone and United Kingdom; (2) given the s
