T
he commercial real estate market is entering a period of significant change, according to the Association of Foreign Investors in Real Estate's (AFIRE) latest survey. The report found that investors are exercising caution and diversifying their portfolios due to concerns over inflation, global conflicts, and trade tensions. The survey, which polled over 180 institutional investors with combined assets under management of approximately $3 trillion, revealed that 67% of respondents believe the US election outcome will negatively impact cross-border investment activity.

    The survey also highlighted the importance of multi-family development in addressing housing affordability and availability, with 82% of investors prioritizing this area. Despite a slight easing of interest rates, transaction volumes have not returned to pre-pandemic levels, according to AFIRE CEO Gunnar Branson. He noted that the industry is still recovering from the COVID-19 era's volatility and faces uncertainty surrounding the new administration.

    The survey suggested that respondents were more comfortable with a second term for President Joe Biden than a first term for Vice President Kamala Harris. When asked about potential legislative outcomes, respondents indicated that a Harris presidency would be most beneficial overall, while a Trump presidency with a Republican-controlled Congress and Senate would be the most damaging outcome.