Global Real Estate Securities Market Review
Feb 9, 2024
Read on to find out where the key opportunities and risks in the U.S., Europe and Asia Pacific REIT markets are in the road ahead.
The macroeconomic backdrop for REITs was volatile in 2023, as investors struggled with uncertainty around interest rates, inflation and economic growth. In the U.S., the REIT market has demonstrated outperformance after the conclusion of past tightening cycles. Fundamentals are likely to remain resilient, even if economic growth softens, given today’s low supply risk and strong secular demand trends. In Europe, the exceptionally strong fourth quarter was enough to put Europe far ahead of other global regions for 2023, while in Asia Pacific, markets were no doubt helped in mid-December by a surprising pivot in the Fed outlook. This decision to cut rather than hike rates going forward has, in our view, become the single-most-important determinant of how APAC real estate equities will perform in 2024.
With the backdrop of a more conducive interest rate environment, market sentiment should shift towards being more constructive in sectors with strong real estate fundamentals. Read on to find out where the key opportunities and risks in the U.S., European and Asia Pacific REIT markets are in the road ahead, as the rate-hike cycle winds down.
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