EMEA Living Investor Survey 2024

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EMEA LIVING INVESTOR SURVEY

AS REGARDS THE IMPACT OF CENTRAL BANKS’ MONETARY TIGHTENING ON LIVING SECTOR ASSET PRICING, THE MAJORITY OF OUR SURVEY RESPONDENTS BELIEVED THAT IT HAD A RELATIVELY MODEST IMPACT. 53% of investors we surveyed believe that prime living yields rose by 50-100 basis points in response to the actions of the Bank of England and ECB although a further 29% pointed to repricing of 100 150 basis points. Entering 2024 the question of when commercial real estate capital values might stabilise is perhaps the one on most investors’ lips.

In our recent EMEA 2024 Outlook we outlined our house view that prime capital values may begin to stabilise in the first half of 2024 although clearly sector, location and asset quality characteristics mean that there could be some variation in timing around when precisely values bottom. When we asked investors for their views on when prime living markets were likely to bottom, we found them broadly in agreement with our thoughts on the stabilisation of the market with 56% of respondents indicating that capital values would stabilise by Q2 2024 and a further 29% seeing a bottom occur in Q3 2024.

PRIME LIVING CAPITAL VALUES TO BOTTOM IN Q2 2024 09

WHEN DO YOU EXPECT PRIME CAPITAL VALUES IN THE LIVING SECTOR TO BOTTOM?

12% Q4 2024

3% 2025

12% Q1 2024

44% Q2 2024

29% Q3 2024

Source: Cushman & Wakefield, February 2024