UBS-AM Real Estate & Private Markets’ Real Estate Outlook – Edition 4, 2020 focuses on the growth potential of different sectors across global real estate markets in a post-Covid-19 environment.
Rise in virus cases threatens recovery, while vaccine presents an exit route.
The paper outlines how, despite the widespread rise in virus cases, a vaccine on the horizon could present an exit route, and points to brighter prospects for 2021. Investment activity remains subdued and real estate capital value movements have varied by sector, showing small falls at the all property level in the third quarter. So far there is limited distress in the market, however the research team expects some investment opportunities to be generated.
In addition to providing a global macroeconomic overview, the paper also gives a deeper analysis of various regional real estate markets, including in Europe, where subdued fundamentals persist as the second wave breaks around the continent.
Europe remains in a somewhat gloomy situation despite strong 3Q GDP growth numbers. Occupier demand has been very subdued for all asset classes apart from logistics, while investment volumes have been down as investors struggle to visit assets and become more nervous about the market outlook. As a result, no strong momentum is expected when heading into 4Q, with the expectation that most countries will suffer a weak 2020 overall as a result.
Source : Company