Nuveen reports stabilization in global real estate markets

Nuveen, a $1.4 trillion asset manager, reports that global real estate values have stabilized following the 2022 interest rate hiking cycle. The firm’s real estate team notes that global private real estate has achieved eight consecutive quarters of positive total returns.

Transaction volumes have increased 24% year-over-year to $936 billion. While pricing remains below 2019 peaks, Nuveen suggests the current environment offers a compelling entry point for investors, noting that returns are presently driven by income rather than capital growth.

The report highlights that while the investment window remains open, selectivity is essential due to risks such as inflationary pressures stemming from conflicts in the Middle East. Nuveen advises focusing on essential real estate assets underpinned by structural demand to navigate potential risks of rising rates and sticky inflation.