Oxford Economics has introduced its Commercial Real Estate (CRE) Megatrend Resilience Index, a comprehensive tool designed to assess the resilience of CRE markets globally. This index evaluates how various regions and sectors respond to four major megatrends: demographics, technology, geopolitics, and climate.
The index is a significant development for CRE professionals who need to understand long-term investment strategies amidst the forces that are shaping the global economy. Megatrends—driving technological innovation, societal transformation, and evolving investment landscapes—are essential in crafting forward-looking CRE strategies. The Commercial Real Estate Megatrend Resilience Index covers 25 key locations, representing 97% of the global CRE investible universe. By analysing each location’s market resilience against these four critical megatrends, the index provides a robust framework for investors and stakeholders to gauge future performance.
Each location’s resilience is scored from 0 (least favourable) to 100 (most favourable), based on how well it adapts to and benefits from the projected impacts of these megatrends through 2050. This scoring is detailed at the property level and further dissected at the sector level, taking into account specific indicators relevant to each megatrend. This index serves as a vital resource for investors looking to navigate the complexities of global CRE markets. By offering insights into how different locations and sectors are likely to fare under these megatrends, Oxford Economics provides a valuable tool for strategic planning and investment decision-making.
