Global commercial property prices sustained their fall in the third quarter of 2023, as investment activity continued to contract across most commercial markets, MSCI Real Assets said Thursday. However, the pace of price declines has slowed significantly in recent months.
The Global Cities Composite Index fell 4.5% from a year earlier in Q3. That represented a significant improvement over the decline in Q2, because the annualized decrease over the latest quarterly period stood at only 1.5%. “For the moment at least, the fall in commercial property prices appears to be decelerating,” MSCI Real Assets said.
The slowdown in price declines was consistent across both North America and Europe. Conversely, in Asia Pacific, where prices began falling much later, the regional composite was the only one of the three regions in which the decline gathered momentum in Q3.
Hong Kong posted the worst quarterly decline of the global cities, at 3.8%. On the other side of the globe, Toronto was the only global city in which prices continued to soar, according to MSCI Real Assets’ report.