As expected, NCREIF all-property total returns dropped back significantly in Q3, to just 0.6% q/q, as investor demand pared back in response to higher alternative asset yields and the poor outlook for economic growth. Looking ahead, while capital values nudged 0.4% lower on the quarter, driven by office and retail, we expect larger falls in Q4. What’s more, we anticipate capital value declines in all four major sectors in at least the next couple of quarters.
Real Estate Drop-In (1st November): What will a US recession mean for real estate returns? Join our 20-minute online briefing to find out how the changing macroeconomic environment will affect US market performance in 2023 and beyond. Register here.
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