A stabilisation in property values is nearly complete in Europe, bringing to an end the pricing declines experienced throughout 2022 and 2023.

In a new research paper, Justin Curlow, global head of research and strategy, real assets, at AXA IM Alts, says Europe should see an end to price volatility from mid-2024 onwards. He points to encouraging signs of positive leverage returning to parts of Europe, which “support pricing equilibrium being reached”.

Curlow’s optimism is based on anticipated interest rate cuts in Europe and the United States. He points out how financial markets have responded aggressively to intimations from central banks that interest rate peaks have been reached — for the foreseeable future at least.

“This comes amidst a macro backdrop of slowing inflation and softening economies,” explains Curlow. “While the timing and quantum of rate cuts vary between the two, consensus has been reached that rate cuts are forthcoming with fina