Research Briefing | Nov 26, 2021

Global | The real estate bounce will extend into 2022

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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