Global Real Estate Outlook 2024: Negotiating higher rates & other new paradigms - ERP Spain.com - España y América Latina

‘Higher for longer’ interest rates, layered with other cyclical and structural trends, mean global real estate markets are undergoing paradigm shifts as we look to 2024. Property yields have risen globally, but not to the same degree as rates, prompting some to suggest further repricing is needed in order to restore spreads. But is real estate dependent on a wide spread over bonds to deliver performance? Or can other return drivers compensate? With ongoing inflationary pressures and other headwinds buffeting the global economy, we assess the growth prospects for rents and how they differ across regions and sectors given varied structural and cyclical trends. Investors may be drawn to growth, but are there also attractive income yields to be found? In M&G’s 2024 Global Real Estate Outlook, we explore the stand-out opportunities and potential traps that need to be considered. Gain insight on parts of the market that could offer attractive income yields; potential opportunities emerging from real estate debt; pockets of strength in the challenged office sector; and the repercussions of China’s economic slowdown on global real estate markets.