19 December 2023
According to Capital Economics’ latest report, the commercial real estate market faces further challenges in the coming year. Hindered by slow economic growth and high interest rates, property values in this sector are projected to drop an additional 10%, following this year’s 11% decrease. Deputy Chief Property Economist Kiran Raichura, who penned the outlook, highlights the significant scale of these declines. With the market valued at over $5 trillion by the end of 2022, this year’s 11% reduction translates to a substantial loss of approximately $590 billion, and next year’s anticipated 10% decrease is expected to result in a further $480 billion reduction in value.