Global Real Estate
Perspective
May 2021

Global Real Estate Perspective: Investor and Corporate 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.

A mixed start to the year

With vaccination programs at differing stages around the world some countries are now moving into recovery territory while others remain in the midst of the pandemic. Expectations are for a stronger second half to the year as pent-up demand starts to filter through the economy.
Momentum in global office markets remains subdued, with Q1 leasing volumes down 31% on Q1 2020. However, there are now tentative signs of an improving outlook with leasing activity in some countries including China back above pre-pandemic levels. Retail and hospitality, the two sectors most directly impacted by social restrictions, are continuing to face challenges. The logistics sector, the standout performer throughout the pandemic, maintained its robust growth in Q1.

Global Real Estate Health Monitor

Resilient, yet uneven, market conditions

Early indications point to the third quarter as an inflection point in real estate capital markets. Following the sharpest drop-off in transaction volumes in recent history, direct transaction volume declines decelerated during the quarter, down 44% from Q3 2019. Markets of scale with access to capital in Asia Pacific and Western Europe are leading the recovery. Although the U.S. is lagging, it remains the most active market globally with high investor interest. Record low interest rates, government intervention and a diversification of lender profiles continue to support real estate debt markets globally.
Transaction pipelines are rebuilding globally and are offering a sense of optimism for the quarters ahead. Investors remain cautious with many preferring defensive, income-oriented assets. Opportunistic and high-net-worth investors are poised to capitalize on market fragmentation while institutions remain critical of pricing. Markets are firmly in price discovery, and value transparency is expected to rise as activity steadily increases. More on investment.

Explore Sector Trends

Investment

Resilient, yet uneven, market conditions


 

Corporate Occupier

Corporates navigate uncertainty


 

Office

Leasing market remains subdued


 

Retail

First signs of improving leasing activity


 

Logistics

Ongoing robust demand for logistics space


 

Hotels

Renewed optimism for lodging sector’s recovery


 

Residential

Secular demand drives Living sector activity


 

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Global Real Estate Perspective: Investor and Corporate, May 2021

JLL’s latest Global Real Estate Perspective looks at market dynamics during the last quarter and the outlook for 2021 and beyond.


 

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