Although inflation has yet to relent to a level where central banks are comfortable enough to normalise policy interest rates, the global economy has remained remarkably resilient thanks to strong hiring and consumer spending, notes Principal Real Estate’s 2024 Mid-Year Real Estate Outlook, released in July. At this point, the balance can be viewed as tenuous and a push in either direction can be the difference between sticking the landing to a sustained expansion or ending up in a recession.

Policy missteps are not the only points of concern this year, states the report. Geopolitical risks remain as elevated as ever in shaping the global economic outlook. The war in Ukraine, renewed tension and conflict in the Middle East, a full slate of global elections, and advances in artificial intelligence all have far-reaching effects that can make their way into supply chains, the health of the consumer, and by extension, commercial real estate markets.

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