Global Returns on Real Estate Turn Positive for First Time in Two Years

Article originally posted on HERE on October 31, 2024

Global returns on real estate turned positive in the second quarter of 2024 for the first time in two years, Nuveen said in a new report, as income returns mitigated value losses. This suggests “a budding recovery in the asset class,” wrote Donald Hall, global head of real estate research at Nuveen.

Hall cited evidence of a turnaround in valuations as well as total returns, along with stabilization in commercial real estate fundamentals. “A pullback in construction activity across sectors bodes well for
property fundamentals in the medium term,” he wrote.

Accordingly, he concluded, “Investors today may consider fresh allocations to the private real estate market to bring their allocations up to a strategic weighting … While there may yet be a bump or two in the road, we believe the market is starting to look up and there are excellent investment opportunities today for savvy investors.”