In 1999’s dystopian classic The Matrix, Neo is presented with a choice. Taking the blue pill offers a path to blissful ignorance, whereas with the red pill Neo can choose to see the truth.

LaSalle published the global chapter of the ISA Outlook 2024 on Nov. 14, 2023, just before euphoria about a potential V-shaped property market turnaround emerged. Interest rates fell quickly as financial markets priced in several U.S. Federal Reserve (Fed) rate cuts in 2024. For a time, it looked as though LaSalle’s prediction that real estate markets would take some time to digest higher rates would be wide off the mark.

However, now the outlook has an uncanny resemblance to that of six months ago. This is not because nothing has changed, but because the mood has gone full circle. The landscape remains characterized by interest rate volatility, soft fundamentals in some markets and gaping quality divides, but also by pockets of considerable strength. Other fact