Colliers – Global Investor Outlook, 2024

The introduction to the Colliers - Global Investor Outlook, 2024 report highlights that despite a decline in investment volumes, real estate continues to be attractive to investors due to the portfolio diversification it offers. The pricing of real estate is expected to adjust to a more realistic equilibrium in the first half of 2024, before returning to inflation-adjusted real returns. As market conditions improve, it is anticipated that there will be an increase in transaction volumes in the second half of the year. The report also mentions that the limited availability and high cost of financing will drive sales activity as companies seek to free up capital through sale and leasebacks, and funds face redemption pressures. Higher interest rates will further increase the demand for capital as there will be a larger debt gap that needs to be filled. As the interest rate outlook becomes more certain, more investors are expected to enter the market. Large-scale institutional investors, who have been cautious in the recent market environment, have substantial capital that they can deploy selectively for opportunistic or value-add investments. There is also an increase in the availability of capital focused on debt. Overall, there is optimism that the available capital will match the opportunities created by market conditions, leading to a normalized level of transactions.