Observations from the Front Lines: Global Investment Market Beginning to Recover

Global Capital Markets Viewpoint

01 Nov 2020

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This ViewPoint paints a detailed on-the-ground picture of real estate investment market appetite, activity, and trends globally, utilizing the insights and observations of CBRE’s senior capital markets leaders in the U.S., Europe, and Asia Pacific.

Key Takeaways:

  • Investor appetite for global real estate is gradually recovering as investors become accustomed to operating in the COVID-19 environment.
  • Global investment inquiries and transaction volumes are bouncing back from the lows recorded in Q2 2020. However, a persistent upsurge in COVID-19 infection rates threatens to hamper the incipient recovery.
  • Investors across all regions have a distinct preference for asset types that have been less affected by the pandemic, such as industrial and multifamily, and those that provide strong and durable income streams.

The low-yield investment environment makes real estate highly attractive on a relative basis and a significant amount of capital is waiting to be deployed into property.

Figure 1: Global Commercial Real Estate Investment (US$ Billions - Fixed FX)

Bar chart showing Global Commercial Real Estate Investment
Source: CBRE Research, Real Capital Analytics, Q3 2020.