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Global CRE Price Declines Decelerate in Q3
Global commercial real estate pricing posted an eighth consecutive quarter of annual declines in the third quarter in 2024, MSCI Real Assets reported. However, the rate of decline was slower than in Q2, supported by a turnaround in investment activity for the global cities.
MSCI Real Assets said the Global Cities Composite Index fell by 6.9% YOY in the third quarter, compared with 7.6% YOY in the second. This rate comprised shallower drops of 3.3% and 5.3% for the Americas and Asia Pacific, respectively, alongside a much steeper fall of 13.7% for the European cities. “The pace of decline slowed most significantly in the Americas, in contrast with Asia Pacific where pricing corrections continued to gather pace,” according to MSCI Real Assets.
At a city level, there were also divergences in pricing momentum, reported MSCI Real Assets. The rate of price decreases quickened for both Sydney and Melbourne in Q3, while cities like Boston, Chicago, Washington, DC and Tokyo experienced accelerating price declines in 2023 before slowing their descent in 2024.
