Infographic | May 29, 2024

Infographic: Relative Return Index signals improving real estate attractiveness

What you will learn:

  • Our latest global relative return index (RRI) signals that risk-adjusted investment opportunities in commercial real estate (CRE) should start to emerge this year before becoming more widespread in 2025.
  • We estimate 65% of global real estate markets meet or exceed required return in 2024, with 5-year all property total returns expected to be 5.8%.
  • Global sector rankings remain consistent with 2023, with hotels and industrial leading, both are classified as neutral. Industrial is projected to transition to the excess return classification by 2025.
  • Asia-Pacific emerges as the most attractive region, led by Japan. North America’s RRI classification stays subpar, while Europe improves, particularly in the industrial and retail sectors.

About Oxford Economics Global Commercial Real Estate Relative Return Index
Oxford Economics’ Global Relative Return Index (RRI), compares our commercial real estate (CRE) baseline forecasts or expected returns over the next five years to a required return based on the traditional valuation approach, which involves adding risk premia to the risk-free rate.

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