The UBS-AM Real Estate & Private Markets’ Real Estate Outlook – Edition 3, 2020, outlines the extent to which the real estate landscape has been permanently changed by the pandemic, and focuses on how investors in different markets should best position themselves for a post-Covid-19 world. Economies have seen the sharpest contractions on record while massive central bank and government intervention has supported asset prices. In real estate, the crisis has turbo-charged trends already emerging prior to the crisis, boosting logistics and hurting retail. We are now in the social-distancing phase, but investors need to think long-term and position themselves for once the pandemic has passed.
In addition to providing a global macroeconomic overview, the paper also gives a deeper analysis of various regional real estate markets, including the European market. The first estimate of GDP data confirmed that Europe has been plunged into a deep recession as a result of the COVID-19 virus. While occupier markets have remained somewhat resilient, investment activity has been impacted, particularly in less sought after sectors. Overall, the research team expects negative performance in 2020, but foresees a brighter outlook in the coming year, with a recovery from 2021 onwards – although this is likely to vary by sector and geography.
Source : Company