Global Market Perspective
May 2020

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.

Hear our experts’ perspectives on current market dynamics and the impact of the COVID-19 pandemic on global real estate. Sean Coghlan, James Cook, Roddy Allan, Marie Puybaraud and Jeremy Kelly answer some of our clients’ most frequently asked questions covering: global investment markets, the impact of the pandemic on retail, lessons from China as the country is starting to reopen, corporate re-entry strategies and the longer-term trends relating to urbanization, sustainability and technology.

Lockdowns take toll, but signs of opening emerge


The COVID-19 pandemic is having a huge impact on the way people live and work and uncertainty is now becoming part of the ‘new normal’. The flow-through effects to the real estate market are undeniable and the full impact is yet to be reflected in quarterly performance data.
The retail and hospitality sectors were the most immediately hit with lockdowns and travel restrictions curtailing demand. Global office leasing activity was 23% down on Q1 2019, while demand for logistics space was also lower despite a spike in short-term requirements linked to the immediate impact of the pandemic. Businesses are now starting to prepare for market re-entry, and the safety and wellbeing of employees is a key focus.
 

Global Capital Flows


Volatility and uncertainty are impacting real estate investment. REITs were among the first to experience declines, and direct investment in global commercial real estate decreased by 5% year-on-year in the first quarter. Capital flows varied by region, broadly tracking the evolution of the pandemic, and favoured defensive sectors. Despite ample liquidity on the sidelines, the effects of the COVID-19 pandemic will be realized in the short term and will result in a drop-off in capital flows into the sector. However, the overall trend has been for higher allocations to real estate, and we see no reason for this trend to reverse given the portfolio diversification benefits of the sector.

COVID-19 : Global Real Estate Implications

We assess the potential impact of the pandemic on key real estate sectors, investors and occupiers.

Explore Sector Trends

Investment

Volatility and uncertainty impact real estate investment


 

Corporate Occupier

Operational resilience a key focus as companies adapt to a 'new normal'


 

Office

Unprecedented disruption to office markets


 

Retail

Retailers prepare for a gradual return of customers


 

Logistics

Huge and ongoing disruption to global supply chains


 

Hotels

Immediate pullback on personal and business travel


 

Residential

Defensive characteristics support multifamily sector


 

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Global Market Perspective and Global Capital Flows, May 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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