Welcome back to The Chief Economist. My name is Ryan Severino, CFA and I've been eager to share my latest insights on the European economy and corresponding outlook for CRE. Let's dive right in!
2023 presented a challenging year for the European economy and commercial real estate (CRE) market. Economic growth slowed, property market fundamentals faced some associated headwinds, and the interest rate increase disrupted capital markets. Yet, in many ways, 2023 represented a year of stabilization, not implosion, as ongoing post-pandemic adjustments continued. With the major regional central banks poised to cut rates in 2024, the outlook for both the economy and the CRE market looks brighter. We remain cautiously optimistic about the outlook for 2024 and more so for 2025.