Real estate leaders reflect on uncertainty, the outlook for offices and the effect of ESG on balancing profit with the future needs of a fast-changing society.

This report is a joint survey by PwC and the Urban Land Institute. Now in its 21st edition, the survey provides an outlook on real estate throughout Europe for 2024 and beyond. Industry leaders continue to weather the geopolitical storm, with the added burden of inflationary pressures.

While interest rates, inflation and European economic growth remain the chief worries for the industry over a five-year horizon, the survey respondents expect more clarity on these matters will facilitate greater transaction activity in 2024. However, there is unlikely to be a single timeline for this across Europe’s diverse markets. This year a third of the respondents expect business confidence and profitability to increase, providing room for cautious optimism.

Sectors to watch include those that offer the promise of recession-proof stability. The top six in our rankings table are again dominated by niche, operational asset classes that are acknowledged as being underpinned by global megatrends—decarbonisation and energy transition, information technology, demographics and urbanisation.

Elsewhere, an AI shakeup is well on its way and construction costs continue to blight the real estate sector. There is general agreement that occupiers (and therefore real estate investors) are prioritising quality space that helps companies adapt to the latest working practices as well as long-term sustainability.

Read more:

https://www.pwc.com/gx/en/industries/financial-services/real-estate/emerging-trends-real-estate/europe-2024.html

https://www.pwc.com/gx/en/asset-management/emerging-trends-real-estate/assets/emerging-trends-in-real-estate-europe-2024.pdf