According to a recent report by Nuveen, global returns on real estate have finally turned positive in the second quarter of 2024 after two years of decline. In his analysis, Donald Hall, the global head of real estate research at Nuveen, noted that this is a promising sign for the asset class and suggests a potential recovery.
Hall pointed to evidence showing improvements in both valuations and total returns as well as stabilization in commercial real estate fundamentals. He also highlighted how decreased construction activity across various sectors could benefit property fundamentals in the medium term.
In light of these developments, Hall recommended that investors consider increasing their allocations to private real estate markets up to strategic levels. While there may still be some challenges ahead, he believes that there are currently excellent investment opportunities available for savvy investors who are willing to take advantage of them.
