CBRE - UK Real Estate Market Outlook 2024
CBRE's forecast for the UK market is a thorough, sestor by sector look at this important European CRE market.
Summary: 2023 has been a challenging year for real estate due to persistent inflation and a 15-year high in interest rates, both of which negatively impacted economic growth. This led to plummeting volumes of commercial real estate (CRE) investment, which hit a decade low, as investors grappled with declining asset values and increased borrowing costs. Yet while 2024 will likely start the same way, there is more to be optimistic about. The inflation rate significantly fell towards the end of 2023 and is expected to continue its downward trajectory. Although CBRE anticipates base rates to stay high for an extended period, there is the real prospect of rate reductions in the latter half of 2024, which would be advantageous for both occupiers and investors, and should stimulate increased activity. Key Findings:
- Nascent economic recovery expectedin the second half of 2024
- Commercial real estate more attractive in 2024
- Office investment to remain subdued; leasing will improve
- Pressures still loom for retail
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