The first half of 2023 has confirmed a shift in the global real estate market. Both national and international investors are waiting to understand how the current macroeconomic scenario will evolve. Inflation levels in Europe remain high but show a decreasing trend, while the Russo-Ukrainian conflict continues to loom, destined to persist.

The atypical previous scenario of zero interest rates lasting approximately ten years is now becoming a memory of the recent past. These are some of the main findings emerging from the Real Estate Market Overview 2023, conducted with the support of the PwC Research Office. The real estate industry, according to the research, will need to adapt to the current scenario of higher interest rates. The increase in debt costs, which heavily impact a capital-intensive asset class like real estate, where the majority of operational activity is financed with 50% leverage, will result in a shift in investor preferences towards higher risk-reward operations.

Investor interest in the global residential sector is rapidly increasing. The living segment has come into focus after the pandemic explosion, during which there has been an increased demand for housing spaces better suited to individual needs. The Italian residential market is experiencing a phase of natural slowing in the private market due to rising mortgage rates, but the growing interest from major institutional players places this asset class at the center of significant real estate operations.

The first half of 2023 certifies a slowdown in investments in all asset classes at the European level. In many European countries, there is a sharp decline, with logistics and offices maintaining a certain appeal to investors.