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Global CRE Pricing Growth Stalls After 52 Quarters
Price growth of global commercial property came to a halt in the fourth quarter of 2022, as deal volume plummeted worldwide, according to MSCI Real Capital Analytics. The Global Cities Composite Index fell 0.5% compared to Q3 2022 and gained 3.7% year-over-year, ending a 52-quarter run of positive quarterly growth.
The 61% Y-O-Y plunge in investment activity across the 18 global cities tracked in the composite index put an end to the streak of price gains and stemmed from multiple interest rate hikes in many of the major markets worldwide.
RCA said Asia Pacific was the only one of the three major regions where prices didn’t fall during the year’s last quarter. For Europe and the Americas, prices peaked in Q3 and began their descent more markedly in the fourth. The San Francisco metro posted the biggest decline, with prices tumbling by 7.8% in the second half of 2022.
