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Commercial real estate set for recovery

 

 

The commercial real estate market in Australia is showing early signs of recovery, with investors optimistic about potential global interest rate cuts, according to Cushman & Wakefield.

 

The firm’s CRE Glidepath study revealed that investment activity is already gaining momentum, with Q2 2024 transactions reaching $10.1 billion, more than double the Q1 total of $4.9 billion.

 

While the Commercial Property Price Index (CPPI) is expected to drop by 8% from its peak before stabilising in early 2025, investor confidence is growing.

 

At the same time, the proportion of CRE professionals who believe the market is in a downturn has significantly declined, from 75% in late 2022 to 45% by mid-2024.

 

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