Signs of Life – Two real estate investment signals worth watching
Transaction volume and bank lending standards improving in some markets
What’s the Point?
Despite ongoing economic and interest rate uncertainty, there are some signs of a nascent recovery in global real estate markets. Hines Research has studied decades of data and believes there are currently two indicators beginning to signal a turnaround.
Signal #1 – Higher transaction volumes in some sectors and markets
Increasing activity is one of the early signs that sellers have begun to accept lower valuations. Published transaction data showed certain volumes increasing in the second quarter.
Signal #2 – Changes in bank lending standards
Hines Research has found a relationship between changes in bank lending standards and real estate performance. Interestingly, European and the U.S. bank standards seem to be heading in different directions.
Learn more about which sectors may be on the mend and where liquidity is improving by reading our September Investment Outlook.
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