Despite the monetary headwinds and continued economic uncertainty around the world, there is a strong belief that the global real estate industry is at a ‘pivot point’, with good prospects ahead for renewed investment activity, according to the latest Emerging Trends in Real Estate Global Outlook 2024 from PwC and the Urban Land Institute (ULI).
The report amalgamates three regional reports, which canvassed senior industry players across Europe, the United States and Asia Pacific, and is a key indicator of sentiment towards the global real estate investment and development outlook across the world.
However, real estate leaders across all three regions acknowledge that investment activity is subject to varying degrees of uncertainty. The geopolitical backdrop may yet override the recent stability on inflation and interest rates. The wars in Ukraine and Gaza as well as the 60-plus elections due to be held around the world in 2024 are all weighing on sentiment.
This is already a period of daunting challenges for the industry, not least with the colossal amount of real estate debt that needs to be refinanced this year and next – $1.2 trillion in the US alone. The deployment of so-called “rescue capital” will be a big part of the global real estate narrative in 2024.
This report also explores how the real estate sector is undergoing a “great reset”, which goes beyond the industry adapting to the new era of higher-for-longer interest rates. It is the opportunity for a radical re-think of what will make real estate fit for purpose in the long term.
Thomas Veith, PwC Global Real Estate Leader, comments, “With an increasingly assessable risk-return profile compared to other asset classes, and a broadening of asset classes towards real assets, the sector will see an adjusted but positive development. However, we must address the need for sustainable adjustments.”
Emerging Trends in Real Estate is one of the most highly regarded annual industry outlooks for the real estate and land use industry, published jointly by PwC and the Urban Land Institute. By incorporating interviews and survey responses from several hundred industry professionals, the report provides an in-depth outlook by region on real estate investment, development trends, and capital markets.
