Surging interest rates have not been kind to commercial property investment activity, which recently slumped to a 10-year low. But there are some reasons to think transactions will see a decent, if not spectacular, recovery in 2024. Falling interest rates will be the main driver, which will improve property valuations and help to stabilise capital values. With evidence of investors and lenders waiting in the wings, we expect investment will rise by close to 20% y/y in both 2024 and 2025.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services