Global real estate prospects remain rocky

Moody’s Talks – Behind the Bonds

The outlook for the global real estate market remains negative with the bumpy economy, tight financing conditions and the surge in remote work. In the US, we expect rental income growth for offices to remain poor overall and apartment income growth to moderate this year with supply up, mostly in parts of the Sunbelt. Globally, Japan is a bright spot with supply-demand dynamics in the commercial market relatively stable. In Europe, the commercial market remains at risk of further deterioration, but the UK is likely to recover quicker as asset prices have fallen at a faster pace.

Guests: Lori Marks, Vice President - Senior Credit Officer, Global Corporate Finance Group and Ana Luz Silva, Vice President - Senior Analyst, Global Corporate Finance Group

Host: Tania Hall, Senior Vice President - Senior Research Writer, Moody’s Ratings

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Related Research:

• Real Estate – Global: Outlook remains negative as high funding costs persist and the economy slows
• Real Estate – US: CRE fortunes vary by lender and property type, with office facing multiple risks
• Housing and Housing Finance – US: Homeowners with low rates stay put, keeping housing in a holding pattern
• Real Estate – Europe: Credit quality still at risk despite improving sentiment; greater divergence likely
• Commercial Real Estate – UK: Recovery set for second half of 2024, but pockets of distress will persist