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.

Register for our next Global Real Estate Perspective webinar
Thursday, 5 August 

Join us to hear JLL's Global Research team analyse market dynamics during the last quarter and share their thoughts on market prospects and opportunities for the rest of the year and beyond. The panel will cover all real estate sectors, CRE trends and global capital flows as well as the impact of sustainability agendas on the built environment.

Please register for a session using the links below:

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

The strength of the capital markets recovery varies by country, with larger and more liquid markets exhibiting greater resilience. Globally, transaction volumes totaled US$187 billion during Q1 2021, marking a 13% decline year-on-year. Domestic access to capital is playing a pronounced role in the markets, as cross-border capital flows remain stunted by challenging border restrictions. Despite near-term hindrances, longer-term tailwinds favor commercial real estate markets. Institutional allocations are forecast to climb further during 2021 and fundraising efforts are stabilizing, providing ample liquidity to the property market.
Appetite for core and core-plus product persists, but demand is increasing for opportunistic plays in stable segments of the market. Living and logistics are seeing renewed interest in higher-risk opportunities, while less-risky assets are critical to sectors most impacted by Covid – namely office, retail and hospitality. The expansion of risk appetites outside of logistics and living is allowing bid-ask spread convergence in more parts of the market, including core office and grocery-anchored retail.

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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