Real estate consultants, managers and researchers expect the NCREIF Property index to decrease 5.3% in 2023 but rise 4.5% in 2024 and 6.4% in 2025, according to the The Pension Real Estate Association's first quarter Consensus Forecast Survey released Monday.
The expected 2023 return is down from -0.7% and an anticipated 7% in 2022, PREA's Dec. 31 consensus survey showed.
According to PREA's latest survey results, office is expected to be the worst performing asset class in 2023 with -9.1%, followed by industrial and apartments, both expected to be down to -5.1%. Retail is expected to be the best performing asset class in 2023 with -1.7%.
By comparison, in the Dec. 31 survey, respondents expected retail to produce a return of 1.3%, industrial 0.7%, apartments -0.3% and office -5%.
