Global Market Perspective
February 2020

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Global Market Perspective is JLL's regular view on the impact of economic forces on property markets worldwide. It is a unique combination of updates from professionals on the ground and the insights of our leading research organization.

5 key themes


 

1. Investor and occupier markets moving at different speeds

Easing economic growth is feeding through to real estate market activity, with investment and occupier markets now moving at different speeds. Momentum in global leasing has moderated from the peak levels in 2018, while investment volumes have registered new records.
Watch our video podcast (December 2019) - we answer some of our clients' most frequently asked questions and share our perspectives on the key global real estate market trends and outlook for 2020.


 

   

   

2. Loose monetary policy supports low yield outlook

Interest rate cuts and asset purchases by major central banks have contributed to further declines in government bond yields. Monetary policy is expected to remain accommodative in 2020 and real estate continues to offer a healthy premium to most other asset classes despite yields being at record lows. The volume of capital raised by funds targeting real estate has reached all-time highs and investor conviction in the sector remains strong.
 

   

3. 2020 to mark global office construction peak

Office construction activity is expected to peak this year at close to 20 million square metres globally. While a lack of available space has been constraining occupier activity, the increase in new stock will gradually push up vacancy rates over the year and contribute to moderating rental growth.
 

    

4. Online retail shifts demand to urban logistics

Global logistics markets continue to see robust demand fuelled by further e-commerce growth and efforts by traditional retailers to shift towards omni-channel distribution models. Much of this new demand is concentrated on urban and last-mile delivery as companies race to get closer to the consumer. This is resulting in a greater focus on densification through the renovation of brownfield sites and construction of new types of facilities, such as multi-storey warehouses.
 


 

5. Retail moves towards a mixed-use future

Retail’s ongoing structural transformation is leading landlords to focus on repositioning retail centres from shopping-only properties to hybrid centres that also provide experiences and services. While this includes pure entertainment offerings such as restaurants, movie theatres and gyms, it also increasingly encapsulates the provision of working and living space.
 

Explore Sector Trends

Investment

Global commercial real estate markets defy expectations to set new record


 

Corporate Occupier

Demand for flexible space transforming office markets


 

Office

Global office demand slows amid uncertainty


 

Retail

Retail moves towards a mixed-use future


 

Logistics

Growth in online retail shifts demand to urban logistics


 

Hotels

Strong demand fundamentals for hotel sector


 

Residential

U.S. multi-housing market remains robust


 

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Global Market Perspective, February 2020
JLL's regular view on the impact of economic forces on property markets worldwide. It is a unique combination of updates from professionals on the ground and the insights of our leading research organization.


 

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