Industrial property has been a clear winner over the past five years, with double-digit annual rental growth far outpacing expectations. However, as we predicted early on, supply has been responsive and, combined with a normalisation in demand, those strong gains have been quickly snuffed out. That said, we expect rental growth of around 3% p.a. over the next five years in the US and Europe to outpace the all-property average, as further rises in online spending mean demand settles near pre-pandemic levels and new supply adjusts.
This continues our series of pieces that revisit our pandemic-era forecasts about the future of global real estate markets and cities and explore how they will evolve in the coming years. This dedicated page highlights key analysis from our earlier work on this issue and is where you’ll find new work as it is published in the weeks ahead.
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