T
he US real estate market contracted by 1% in 2024, falling to $4.9 trillion from $5 trillion the previous year. Despite this decline, the US share of the global market grew to 39.1%, as other markets dropped more sharply, according to MSCI data. The office sector remained the largest professionally managed asset class, accounting for 27.3% of the market, down from 28.9% in 2023.

    Residential property was the second-largest sector at 22.7%, followed by industrial properties at 18.9% and retail at 18.3%. Hotels and healthcare assets together made up 8.2% of the market, with hotels contributing 5.4% and healthcare 2.8%.

    In the Americas, residential property led the market, driven by a large supply of professionally managed apartments in the US. Residential real estate accounted for 29% of the US market in 2024.

    The office sector stood out for its geographic diversity, with no single country accounting for more than 28.1% of global total assets under management. In contrast, residential properties were heavily concentrated in the US, which represented 53.1% of global residential assets.

    Deal activity showed signs of recovery in 2024, with transaction volume climbing 18% after a 48% drop the previous year. MSCI attributed this turnaround to greater stability in interest rates during the second half of the year, which helped restore investor confidence and fuel dealmaking.