Global commercial property returns remained under pressure during the first six months of 2023 as the sector continued to face several economic and geopolitical headwinds.
The MSCI Global Quarterly Property Index recorded a bi-annual total return of -2.1%, well off the 9.3% recorded for H2 2021 when the industrial sector performed well on the back of unprecedented demand. Capital growth remained negative as at June 2023 as the sector faced numerous headwinds including slowing global growth.
The global economy experienced a slowdown in the first six months of 2023 with growth projections revised downward by major international organisations like the International Monetary Fund (IMF) and the World Bank. The IMG, in its World Economic Outlook (WEO), projected global growth to fall to 2.9% in 2023, down from 3.6% in 2022. The World Bank projected global growth to slow to 1.7% in 2023, down from 4.1% in 2022.
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