Monthly Insights Into Private Markets

Global commercial real estate investment volumes in 2Q23 fell to ca. USD 75 billion, a level not seen since the years preceding the global financial crisis. The all-in cost of debt remains well above property income yields in most markets, significantly reducing the buyer pool. This is particularly true in larger size bands. Although real estate yields continue to edge out, the spreads between corporate and government bonds are narrow on a historical basis. This limits the attractiveness of real estate to multi-asset investors.