Commercial real estate market will get better for investors

Commercial real estate has cratered after the pandemic despite a shift to hybrid work that has brought some people back to the office.

Financial services giant PwC, however, said in a report it’s “optimistic” about where commercial real estate is headed in 2024 and believes “the worst of inflation is behind us,” which will lead the Federal Reserve to pause or reverse its interest rate hikes. The Fed on Wednesday largely confirmed that plan by extending its four-month pause on interest rate hikes and signaling three quarter-point cuts to its benchmark interest rate next year.

With lower interest rates, PwC forecasts that there will be more commercial mortgage-backed securities (CMBS) available and increased investor appetite for acquiring new properties—particularly in affordable housing, digital infrastructure (think data centers), and other residential properties. 

Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.

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