Despite a slower-than-expected pace of interest rate cuts, sentiment has remained upbeat, according to CBRE’s regional investor intentions survey, which polled 1,421 CRE investors in the United States, Europe and Asia-Pacific.
Investors and lenders will face several headwinds over the coming year, including the 10-year Treasury yield likely remaining above 4% as markets react to a persistently large budget deficit, stimulative fiscal policy and the potential for higher inflation. Nevertheless, strong economic growth driving positive fundamentals will support the recovery in investment activity, with investment volume forecast to increase by 8% in 2025, according to CBRE.
Seventy percent of U.S. investors indicated they plan to buy more this year, and nearly 30% said their offensive strategy would remain the same. Investors cited favorable pricing as their top reason for targeting more buying opportunities this year. CBRE noted investors have turned slightly more cautious in the three months since the survey was conducted on expectations that interest rates may remain higher than previously expected.
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