Growing challenges point to bleak economic outlook – Commercial Property Executive

RICS Economist Tarrant Parsons explains what worries property markets around the world.

Tarrant Parsons, Economist, RICS. Image courtesy of RICS

Sentiment in real estate markets around the world is fading, after steady improvements in recent quarters. Tighter monetary policy and rising inflation are weighing on the global economic outlook.

Results of Royal Institution of Chartered Surveyors‘ The latest Global Commercial Property Survey shows that nearly half of property professionals working in different parts of the world now believe the market is in a downturn in the property cycle. This marks a significant increase from just 25% in the first quarter of the year.

READ ALSO: CRE’s outlook for the 2nd half is slowing down

“I think there is a very real risk of a recession emerging next year in several economies, said RICS economist Tarrant Parsons. commercial real estate director Editor-in-Chief Laura Calugar in the series’ latest podcast. Parsons added that tighter monetary policies are often associated with economic recessions.

However, there are pockets of optimism. Data centers, prime industrial spaces and multi-family are expected to show the strongest returns over the next 12 months.

Here’s what else Parsons talked about in this podcast episode:

  • General ideas from the report (00:45)
  • Respondents’ perceptions of their local market’s position in the cycle (1:57)
  • Overall Occupant Demand by Sector (3:10)
  • Why Investment Activity Is Slowing (4:14)
  • Real Estate Appraisals (5:24)
  • Real Estate Sentiment in Specific Regions: APAC, Europe, Middle East & Africa, North America (6:38)
  • Economic outlook: Is a global recession approaching? (12:04)

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