The 2024 could be a year of recovery, according to economic analysts. Among the investment themes of the year, brick in particular remains among the “top picks” according to Savills forecasts. The residential sector in particular is holding up, which is characterized by a lack of supply with very high demand, a situation that will keep yields high and interesting for investors. So here are the Savills property forecasts for 2024.
Income from real estate in 2024 is growing
ANDreal estate investors are confident about 2024 with a recovery forecast in key parts of the global property market, Savills reports. The outlook points to increased activity due to more attractive yields as prime rents rise and buyer and seller expectations recalibrate.
However, this broader vision includes significant regional and sectoral differences. Overall, investment activity in most real estate sectors is expected to increase slightly or remain unchanged Europe and the Middle East next year. Only a small minority of experts predict a decline in activity, so it seems the worst of the contraction caused by rising interest rates is behind us.
Which real estate sectors to invest in in 2024
There is greater optimism regarding activity in residential markets, especially in the multi-family sector, where demand outstrips supply in many areas. Backed by solid foundations, too logistics real estate market It looks like it will do well in 2024.
The outlook is mixed for officesespecially outside the main sector, where 16% of respondents expect a decline in investment activity next year.
Overall, 5% to 10% of respondents expect a sharp increase in investment activity, driven mainly by quality purchases along with opportunistic investments in distressed assets that they expect in the market.
Offices
In particular, experts consulted by Savills expect that yields vsoffice manager quality is increasing in many major world cities, incl New York, Sydney, Shanghai, Mumbai, Paris, Frankfurt and Dubai. However, with interest rates now peaking and a more positive outlook for investment activity, yields should gradually stabilize following these adjustments.
Logistics and production
Pressure on revenue growth is also expected across all markets logistics and production centers in the United States, Asia and Europe, with the exception of Dubai, Singapore and Tokyo, which continue to offer investors solid returns. After several years of stagnation, the recovery appears to be a gradual process, with momentum picking up in the second half of 2024. The consensus is that a recovery in global investment will occur in Third quarterdriven by several key markets including the US and the UK.
An Italian residence among the best
The quality hotel and retail sectors in tourist destinations in Southern Europe, Singapore and Australia present significant opportunities, as well as residential sectors in cities in Japan, Singapore, Germany, Spain, Italy and the United Kingdomwhere the offer does not satisfy growing demand for rental housing.
A key topic for value-added strategies conversion of office or business premises into residential premises, gain higher rental income. Those looking for more opportunistic investments may want to consider properties with potential for development and redevelopment. This could include converting offices into residential and hotel facilities or reformulating old shopping centers.