The past few years have presented challenges for forecasters, including the pandemic and resulting recession, high inflation prompting action from the Federal Reserve, and fears of a recession that has yet to materialize. Looking ahead to 2024, JLL’s Global Real Estate Outlook offers five key takeaways.
1. Mixed Macroeconomic Picture
JLL analysts predict an uneven year for real estate markets due to ongoing struggles with inflation and recession risks in some global markets. However, progress in stemming inflation towards the end of 2023 has led to a sentiment that interest rates may have peaked.
2. Normalization and Predictability
As inflation falls, there is potential for better predictability regarding consumer prices and construction costs. Policy rates are expected to remain stable until mid-to-late 2024 when a cutting cycle may begin.
3.Strategic Investing
With consensus that interest rates have peaked but still facing volatility in market rates, CRE investors will need balance financial challenges within their portfolios while taking advantage of opportunities over the next couple of years.
4.Flight To Quality Continues
Office tenants will prioritize new ways of working with emphasis on location design amenities as well as sustainability efforts.
5.Continued Flight To Quality
Office tenants will continue seeking new ways of working by prioritizing location design amenities while also focusing on sustainability efforts.
