According to a report by MSCI Real Assets, global commercial real estate prices have continued to decline for the eighth consecutive quarter in 2024. However, the rate of decline was slower compared to the previous quarter due to an increase in investment activity in major cities worldwide.
The Global Cities Composite Index fell by 6.9% year-over-year (YOY) during Q3, which is a slight improvement from the 7.6% YOY drop seen in Q2. The Americas and Asia Pacific regions experienced smaller price declines of 3.3% and 5.3%, respectively, while European cities saw a steeper decrease of 13.7%. MSCI Real Assets noted that pricing corrections were still ongoing at a faster pace in Asia Pacific but slowed down significantly in the Americas.
At an individual city level, there were also variations observed in pricing trends as reported by MSCI Real Assets. While Sydney and Melbourne saw accelerated price decreases during Q3, other major cities such as Boston, Chicago,
Washington DC and Tokyo had previously experienced sharper declines before showing signs of slowing down their descent towards recovery.
Overall,the latest data suggests that global CRE prices are starting to stabilize after several quarters of continuous drops across different regions and markets around world.
