Real Estate Newsletter - January 2025

Real Estate in Focus: 2025 Trends to Watch 

The commercial real estate market is showing signs of recovery, with interest rates falling and transactional activity stabilizing in the second half of 2024. However, the recovery is uneven, with some segments of the market advancing while others lag due to structural factors and price declines.  

Discover five key trends that could shape your investing in 2025. 

Read the report  

News Highlights

Sales and Distress 

Sales of U.S. commercial properties rose in 2024, rebounding from two years of contraction. Momentum gathered pace in the fourth quarter, with sales up by around a third compared to a year earlier. For 2024 overall, sales rose 9%. On property market distress, the level of trouble rose again in the fourth quarter though at a slowing rate. Total distress was about one half that seen during the peak of the global financial crisis. 

Download the Capital Trends reports (client access only) 

Contact us for access 

US Commercial Property Price Indexes 

U.S. commercial property prices stabilized in 2024, ending the year down just 0.7%. The retail market rebounded, registering the biggest annual improvement in prices, ahead of the industrial market where price growth has moderated. Office and apartment prices continued to lose ground in 2024, though at less severe rates than seen in 2023.   

View the results here

Private Capital In Focus 

What should investors across private markets be on the lookout for this year? Investors enter 2025 with USD 2 trillion in dry powder, according to MSCI Private Capital Manager Universe data, but also challenges such as historically low distribution rates. In the blog post, MSCI Research highlights four trends across asset classes that deserve attention. 

Read more here

Upcoming virtual events 

• 11th February - Real Estate in Focus: Europe webinar - Register now  
• 12th February - MSCI / PREA U.S. Quarterly Property Fund Index, Q3 2024 - Register now 
• 13th February - Real Estate in Focus: US webinar - Register now 
• 18th February - Real Estate in Focus: APAC webinar - Register now

Contact Us  

We hope that you found this edition of the MSCI Real Estate newsletter engaging and informative. We're passionate about bringing the latest insights and actionable solutions to enable you to power better investment decisions.