Global | The real estate bounce will extend into 2022
After bouncing back from the pandemic in 2021, global real estate will likely have another strong year in 2022 – we expect returns of 8%. Despite disruptions in product and labour markets and isolated covid outbreaks, economic activity and employment growth will continue at a pace, driving global real estate returns.
What you will learn:
- The long-run shift to online sales and a still-high share of spending on goods mean that the industrial sector – particularly distribution, warehousing, and urban logistics – should continue to offer superior returns.
- The residential sector and, to a lesser extent, the office sector should benefit from easing Covid restrictions, returning 8.6% and 6.6% respectively.
- The uneven nature of the global economic recovery will also play out in real estate markets. We expect North American property to return more than 9% in 2022, while returns in Asia will lag at 6.9%.
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