UBS-AM Real Estate & Private Markets’ Real Estate Outlook – Edition 2, 2020, focuses on the impact that COVID-19 is having on different sectors of the global real estate markets.
The paper outlines how recession will likely hit occupier demand, with the retail sector being worst affected and logistics most resilient. Central bank easing and liquidity should support real estate values, though the research team still expects some declines this year. Ultimately, recovery will depend upon how quickly the health crisis is brought under control, with a vaccine likely needed for a full exit.In addition to providing a global macroeconomic overview, the paper also gives a deeper analysis of various regional real estate markets, including those in Europe, for which 2020 will be a challenging year as lockdowns and travel restrictions weigh on activity.
The eruption of the COVID-19 pandemic at the end of 2019 has brought about an unprecedented disruption to daily activities. The virus began in China but quickly moved to Europe and, at the time of writing, all major European countries are under lockdown – leading to an unprecedented restriction on activities and a demonstration of the powers wielded by governments. From a market and economic perspective, this has effectively suspended most business and commercial activities, meaning 2020 will make for grim reading. The only relevant question now is how soon can we bounce back?
Source : Company