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Main Trends in Global Real Estate Investment Markets

The worldwide capital markets have shown indisputable signs of recovery in 2021. The annual investment activity has surged by 54%. Read the latest highlights about the most perspective real estate segments and the most significant capital flows of investors.

In the end of last year global capital flows have reached their highest quarterly level. As a result, growing source of capital has peaked to all-time highs for the full year 2021.

Оperational performance and leasing activity mainly with housing, but also logistics and alternative assets remained growing and accounted for more than half of total investment volume during 2021.

The pandemic has mostly hit the office and retail sectors. Even though there are some signs of improvement, the activity in these two segments remains very low.

The return of international investors on global markets has provoked demand and competition for the products on the market, which has resulted in stable and elevated bidding intensity.

table 1
Source: JLL, February 2022

Office Sector

Global leasing volumes of office spaces jumped up almost twice in the end of last year. 2021 resulted with 21% higher overall level than in 2020, but in many locations leasing activity has not yet returned to pre-pandemic levels.

Asia Pacific turned out to be the only region, which managed to be back and even above 2019 volumes in the end of 2021 (+7%), while Europe (-12%) and the U.S. (-23%) remain below ‘normal’ levels.

It’s worth mentioning that the demand for wellbeing, quality and sustainability has supported the resilience of prices for premium office spaces.

There are still plenty of concessions, but in many markets they seem to have stabilized and are now starting to decline.

Eventually, the global vacancy rate for offices has stopped growing and stabilized at 14.6%.

Retail Sector

Many countries have noted a strong sales growth in the retail segment in November 2021. It was the result of an increase of consumers’ spending in physical stores in some of the world’s most mature retail markets.

The situation worsened at the end of the year after Omicron cases have increased and the restrictions were tightened again.  But despite this fact, leasing activity of the tenants remained well above 2020 levels. Prime locations in popular cities are still experiencing healthy retailer demand. Spaces in retail parks and local neighborhoods are likely to become more popular because some retailers believe that distant working model will more permanently shift demand closer to people’s homes.

Logistics Sector

In the last quarter 2021 all regions worldwide reported high levels of demand and short supply in logistics real estate sector. The United States had experienced the increase of rents at an annualized rate of around 10%. Rental rates in Europe grew by 8% annually.

At the same time the levels of vacancy were very low - about 4%.

There is a strong imbalance of demand and supply, which is fueled by lack of available land plots.

The markets long for additional supply in order to somehow hold back the growing demand.

Hotels & Hospitality Sector

Major leisure resort destinations experienced the recovery in demand, as desire for leisure has proved to be more resilient in the face of the pandemic.

Urban markets have also mentioned a slight upgrade in performance, as business and group demand has slightly increased.

Lodging demand in the US has improved in Q4, although a full recovery is still impossible because of the lacking business trips.

The hospitality sector in Europe is still far from total improvement as several countries implemented lockdowns and travel restrictions following a surge in COVID cases.

Оn the other hand, some countries of Asia Pacific region have started to announce relaxations of travel restrictions, so an improvement is expected in 2022.

Commercial real estate in different countries:
Commercial property for 340 000 euro in Riga, Latvia
340 000 €
Commercial property in Riga, Latvia
2240 sq.m
Latvia City of Riga Car service in the center of Riga Car service in the central part of Riga, in a place with a large flow of cars. Land area: 2240m2 Two-storey building 1720m2: 1st floor 860m2 + 2nd floor 860m2 The building is equipped with 5 gates (height 3.5m-4.4 m) for the entry of cars, ceiling height 7m The...
INDOM
Shop for 3 500 000 euro in Barcelona, Spain
3 500 000 €
Shop in Barcelona, Spain
1100 sq.m
The commercial premises are located in the center of Barcelona, next to Plaza Catalunya. The room area is 1100 m2, the facade area is 8 meters.The technical equipment of the room includes a hood.
NF Group
Commercial apartment building for 70 000 000 euro in Monaco, Monaco
70 000 000 €
Commercial apartment building in Monaco, Monaco
1600 sq.m
Monaco A rare offer for investors! Apartment house in Monaco Commercial building with excellent location - - in the very center of Monaco, just 2 min. from Casino Monte Carlo. The building is in excellent condition, only after restoration. 6 floors Building area: 1600m2 The area of each floor is 260m2 In the building:...
INDOM
Hotel for 1 300 000 euro in Ulcinj, Montenegro
1 300 000 €
Hotel in Ulcinj, Montenegro
1000 sq.m
DOO TradeGoria
Hotel for 2 486 514 euro in Ubud, Indonesia
2 486 514 €
Hotel in Ubud, Indonesia
2210 sq.m
This gorgeous boutique hotel & retreat centre is built on a prominent hillside spot in East Ubud and located on the edge of the sacred Petanu River Valley with stunning views overlooking a valley of tropical rain forests, and only a short distance from Ubud, the traditional, artistic and spiritual center of Bali. The property has been...
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Hotel for 1 159 999 euro in Ravda, Bulgaria
1 159 999 €
Hotel in Ravda, Bulgaria
780 sq.m
#27503932 We offer a beautiful hotel with a restaurant on the first line of the sea, in a beautiful, picturesque place on the Black Sea coast-S. Ravda, Burgas region, Bulgaria. Price: 1 159 999 euro Locality: . Ravda Rooms: 16 Total area: 780 sq. m. Floors: 3 No maintenance fee. The building was put into operation in 2010.- Act 16...
OAZIS REALTY
Hotel for 1 500 000 euro in Utjeha, Montenegro
1 500 000 €
Hotel in Utjeha, Montenegro
1500 sq.m
The object code is 1.25.17.4337 Apartments in a new residential complex LIMUNADA**** with a swimming pool, 200 meters from the sea, in the picturesque resort village of Solace, on the Bar Riviera. The whole complex is for sale: 4 apartments with 2 bedrooms, 8 apartments with 1 bedroom and 6 studios. In 3 apartments, all the finishing is done...
DOO TradeGoria
Cafe, restaurant for 189 000 euro in Budapest, Hungary
189 000 €
Cafe, restaurant in Budapest, Hungary
44 sq.m
A great investment opportunity in the central part of the 13th district of Budapest, a few steps from the large shopping center Westend City Commercial premises in a new residential building for rent in the first half of 2022 are for sale. Open your shop, pastry shop, bakery, boutique or sports studio and get dividends!A room with access to the...
WESTINVEST
Hotel for 250 000 euro in Danilovgrad, Montenegro
250 000 €
Hotel in Danilovgrad, Montenegro
400 sq.m
The object code is 5.27.17.10808 We offer for sale or rent a mini-hotel on the banks of the Zeta River, 20 km from Podgorica, 6 km from Danilovgrad. Ideal for a family business in a unique location with its own pond. In the immediate vicinity of the mini-hotel, a plot of 6,000 m2 is for sale, which can be used for the construction of an...
DOO TradeGoria
Hotel for 350 000 euro in Bar, Montenegro
350 000 €
Hotel in Bar, Montenegro
384 sq.m
The object code is 3.25.17.11099 A mini-hotel in a Bar is offered for sale, with a total area of 384 m2, has 3 floors, is located on a plot of 300 m2, 1 km to the center (market), 1.5 km to the sea. The hotel has city water, central sewerage, there is a well on the site, 15 m deep. The house is divided into 2 halves, both according to...
DOO TradeGoria
Commercial property for 800 000 euro in Thessaloniki, Greece
800 000 €
Commercial property in Thessaloniki, Greece
350 sq.m
For sale business of 350rs in Thessaloniki.
Mercury Group
Commercial property for 1 100 000 euro in Athens, Greece
1 100 000 €
Commercial property in Athens, Greece
460 sq.m
There is provided for sale amultistoried building in the Municipality of Kallithea. The totalliving space is 460 sq.m. On the first floor there is a shop of 75 sq.m. On the second floor - 75 sq.m. that is used as a office. On the third and fourth floor there are two appartments with floor area 65 sq.m. each of them. On the fifth and sixth floor...
Mercury Group
Hotel for 1 800 000 euro in Varna, Bulgaria
1 800 000 €
Hotel in Varna, Bulgaria
4083 sq.m
ATLANTA BG offers the hotel, which is located in the city of Varna 46 rooms 9 apartments a conference hall - 175 sq.m. Swimming pool Jacuzzi Gym/Fitness Children's playground fountain pool bar restaurant, day bar kitchen unit with corresponding storage rooms official offices...
ATLANTA BG
Commercial property for 540 000 euro in Larnaca, Cyprus
540 000 €
Commercial property in Larnaca, Cyprus
560 sq.m
The property is a two-storey multifunctional building with a total area of 560 sq.m., located on the outskirts of the village of Agia Anna in Larnaca. The first floor was used as a nursery and consists of an entrance hall, three rooms, office space, kitchen, pantry and three bathrooms. The external territory consists of an area previously used...
BLUE SKY HOUSES
Hotel for 5 000 000 euro in Budva, Montenegro
5 000 000 €
Hotel in Budva, Montenegro
A hotel in Budva consisting of 8 rooms is offered for sale. This hotel is located just a 10-minute walk from the beach and is just 800 meters from the Old Town. The hotel has a beautiful garden surrounded by palm trees, lemon trees, kiwi and jasmine trees. The hotel is located in a very calm and green area. Parking is also available. Each room...
Mercury Group
Commercial property for 4 200 000 euro on Costa Blanca, Spain
4 200 000 €
Commercial property on Costa Blanca, Spain
4257 sq.m
4 star HOTEL location: GUARDAMAR DEL SEGURA, ALICANTE province year of construction - 1998. It was reformed in February 2013, and in 2020 the hotel rooms were redecorated. Total area: 4,256.74 sq. m. - 2nd floor – underground Parking for 17 Parking spaces (it is possible to increase parking spaces by dismantling temporary storage facilities),...
ESTATE BARCELONA
Commercial property for 395 624 euro in Istanbul, Turkey
395 624 €
Commercial property in Istanbul, Turkey
81 sq.m
Citizenship Online Viewing Remote Transaction Cryptocurrency payment
We are happy to present to your attention an ultra-modern luxury project with the concept of a 7-star hotel. The complex will be located in the prestigious Sariyer district, Tarabya microdistrict, which is located in the European part of Istanbul. This area is known for its beautiful nature, favorable atmosphere and high standard of living....
Alanya Brand Group
Commercial apartment building for 2 700 000 euro in Paphos, Cyprus
2 700 000 €
Commercial apartment building in Paphos, Cyprus
580 sq.m
Residence Remote Transaction
The apartment building is located in the Universal district, in an excellent location, close to the main attractions of the city, close to the harbor, shopping center and the sea. The boutique building offers eight luxury apartments with one, two or three bedrooms. Enjoy the serene and quiet atmosphere while being in the heart of Paphos....
ABC CYPRUS HOMES
Investment project for 175 000 euro in Alanya, Turkey
175 000 €
Investment project in Alanya, Turkey
55 sq.m
Location: Mahmutlar, Alanya Distance to the beach: 700 m Number of blocks: 2 Number of floors: 10 Number of apartments: 77 Number of office spaces: 11 Commercial premises: 9 Types of apartments: 1+1 apartments: 53.45-55.05 m2 2+1 apartments: 96.70 m2 2+1 penthouses: 105.10-121.20 m2 3+1 penthouses: 182.35 m2 CONSTRUCTION...
Property in Alanya
Hotel for 495 000 euro in Chalkidiki, Greece
495 000 €
Hotel in Chalkidiki, Greece
Online Viewing Remote Transaction
For sale is a very well-maintained resort complex located in a quiet picturesque area of Afytos, one of the most beautiful towns on the Halkidiki/Kassandra peninsula. The fully fenced area of ​​almost five thousand square meters is adorned with palm, olive, and fruit trees. The complex consists of the main building with a large apartment on...
GREECE INVEST

Housing Sector

The investor demand for housing facilities remains strong worldwide. This segment proved to be the most resilient. The volume of total housing investments in Q4 has reached $163 billion. The quarter on quarter increase in the US was 80%. EMEA showed a modest growth of 16%. On the contrary, there was a strong decline in Asia Pacific (-48%).

Multifamily residential housing has proved to be the most liquid asset type worldwide.

Urban markets continued to recover while rental gains in suburban markets continued to grow. For example, the US national effective rents rose by 13.8% in the last quarter of 2021.

Institutional investors keep an eye on the residential sector in Asia Pacific as well, mostly focusing on Japan and Australia.

Also read: Cities With the Fastest Growth in Residential Real Estate Prices

Conclusion

The interest of investors in housing segment is growing around the world, this is a global trend. The residential sector has proved to be the most resilient during the pandemic and remains one of the most sought-after assets. The logistics sector has also benefited from changes in consumer habits.

On the other hand, the position of office segment has slumped significantly. And the hospitality industry is on the long way to full recovery.

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