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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:
Office for 1 815 000 euro in Limassol, Cyprus
1 815 000 €
Office in Limassol, Cyprus
310 sq.m
The modern business center is located in a new building designed by the company of architects and designers "Armeftis & Associates architects & designers" taking into account the latest achievements in the field of high technology. The project is located in the center of Limassol, on one of the main streets of the city — Arch Avenue....
NF Group
Shop for 3 000 000 euro in Barcelona, Spain
3 000 000 €
Shop in Barcelona, Spain
779 sq.m
The restaurant is located in the heart of Barcelona, in the Eixample district.The area of the premises is 779.23 sq. m. This area includes two rooms (each room with an area of about 400 sq. m.).One room is for sale with a restaurant, the second room is rented for a period of 10 years, the rental price is €7,000/month (including VAT).The...
NF Group
Commercial property for 91 089 euro in Phuket, Thailand
91 089 €
Commercial property in Phuket, Thailand
29 sq.m
Thailand o-v Phuket Apartments in the hotel 5***** A unique offer for investors! Apartments in a modern resort complex under the management of the hotel 5***** Wyndham networks. The first line from the sea, one of the most beautiful beaches in Phuket - Nai Ton. The land area of the resort is almost 10 hectares!...
INDOM
Commercial property for 12 000 000 euro in Greece
12 000 000 €
Commercial property in Greece
Greece O. Crete Bakery production +shops A very profitable successful business on the island of Crete: a factory for the production of bakery, confectionery and ice cream in a large assortment (SA Commercial and industrial company). Land area: 2200m2 Number of production buildings: 4 Building No. 1 - bakery: year of...
INDOM
Investment project for 35 000 euro in Pattaya, Thailand
35 000 €
Investment project in Pattaya, Thailand
35 sq.m
Thailand , Chonburi, 55 km fromPattaya and 110 km from Bangkok Apartments with an income of 8% per annum Investment object Apartments in a residential complex next to a well-known, thriving industrial park on the territory of the special economic zone of Thailand "Eastern Economic Corridor" (EEC). In 2021 alone, the EEC...
INDOM
Hotel for 7 700 000 euro in Prague, Czech Republic
7 700 000 €
Hotel in Prague, Czech Republic
1067 sq.m
Czech city of Prague Hotel 4**** in Prague-1 Luxury hotel 4**** in the historical center of Prague, in the Prague-1 district, near the metro station "Malostranska". The hotel is located on a romantic street next to Prague Castle, St. Vitus Cathedral and Charles Bridge. Number of beds: 36 10 double rooms, 3 triple...
INDOM
Commercial property for 800 000 euro on Costa Brava, Spain
800 000 €
Commercial property on Costa Brava, Spain
460 sq.m
A building for a hotel in the center of Lloret de Mar on the Costa Brava. It is located in the second line of the sea, an area with high traffic. The total area of the building is 460 sq.m. Currently, the entire building is occupied by a restaurant. It is built on 4 floors: a basement, the first floor with a breakfast bar and a kitchen, the...
ESTATE BARCELONA
Shop for 2 150 000 euro in Germany
2 150 000 €
Shop in Germany
4087 sq.m
The new supermarket is located in Eschweiler. Commissioning: September 2020 Land area: 4,087 sq. m Rental area: 870 sq. m Year of construction: 2020 Lease agreement until 2030 without the right of termination Rental income: €120,000/year Yield: 5.58
NF Group
Shop for 30 990 euro in Nesebar, Bulgaria
30 990 €
Shop in Nesebar, Bulgaria
30 sq.m
ID27304072 Office-Rakovsky 31, Nessebar (New Town), Bulgaria Price: 30,990 euros Total area: 29.83 sq. m Floor: ground floor / 6 Service fee: No Construction stage: Act 16 An office in the New city of Nessebar in rough finishing is offered for sale. The office has a separate entrance from the building, and the building is located...
OAZIS REALTY
Commercial property for 78 000 euro in Bar, Montenegro
78 000 €
Commercial property in Bar, Montenegro
30 sq.m
The object code is 9.25.730.10987 Studio for sale 30m2 in a club house in the village of Dobra Voda (Barskaya Riviera). The studio is fully furnished. It is located in close proximity to the sea. 78,000 euros
DOO TradeGoria
Commercial property for 1 250 000 euro in Athens, Greece
1 250 000 €
Commercial property in Athens, Greece
695 sq.m
For sale business of 695rs in Attica. There is a fireplace, air conditioning and heating. The owners will be leaving the furniture with the sale. Building has a lift. There is an alarm system installed. Extras included with the property: parking space, garage. The property boasts a swimming pool of private use. The building is located in Varkiza...
Mercury Group
Commercial property for 690 000 euro in Athens, Greece
690 000 €
Commercial property in Athens, Greece
130 sq.m
There is offered for sale a detached house of 130 sq.m in a plot of land 409 sq.m The property in located in the center of Athens 750 m far from metro station of PANORMOU Currently the house is leasedlike a nursing home and the rental amount is 13.200 e per year till 01.04.2023
Mercury Group
Investment project for 51 699 euro in Cairo, Egypt
51 699 €
Investment project in Cairo, Egypt
38 sq.m 15% per year
Remote Transaction
The sale of the new Business Tower HAVEN in Down Town New Capital Cairo from Egics Development has been opened. 3-6 floors - Administrative premises, Offices; Initial payment of 20%. Installment payment of up to 8 years, quarterly payment. The management company of the MRB building. It is possible to organize a one-day study tour....
Haya Property
Office for 250 000 euro in Daugavpils, Latvia
250 000 €
Office in Daugavpils, Latvia
2000 sq.m
The Daugavpils Shot Factory is the only ammunition production factory in the Baltic which is open for tourists and where you can see the oldest shot casting tower in Europe, which is functioning also entire production part is newly insulated, without height bridges. 30 cm of cotton wool on the roof, 10 cm on the walls above 50 cm silicatevery...
Habita International Estates Ltd
Office for 210 000 euro in Porec, Croatia
210 000 €
Office in Porec, Croatia
42 sq.m
The housing and business building is divided into three blocks: central, southern and northern volumes. There will be 78 apartments and 18 business units in total. The building has a swimming pool and an underground garage. Commercial premises are sold on a turnkey basis with a fully equipped bathroom (furniture and plumbing), floor coverings...
ALMA DOM
Hotel for 500 000 euro in Athens, Greece
500 000 €
Hotel in Athens, Greece
220 sq.m
For sale building of 220rs in Athens. The building has 2 ground floor consists of 2 bedrooms, living room, one kitchen, one bathroom, one storeroom. The first floor consists of 2 bedrooms, living room with kitchen, one bathroom, one WC, one storeroom. There is heating. The building is located in the area of Nikaia On a plot of 150 has the right...
Mercury Group
Commercial property for 260 000 euro in Kaş, Turkey
260 000 €
Commercial property in Kaş, Turkey
A plot of land for sale in the picturesque area of Kash with incredible potential: The plot area is 1.650 m2, providing many opportunities for a variety of projects. Located near Kaputash Beach, which makes it attractive for tourist and commercial activities. Amazing views of the sea and surrounding islands create an impressive atmosphere and...
İNEST HOMES
Hotel for 320 000 euro in Dobra Voda, Montenegro
320 000 €
Hotel in Dobra Voda, Montenegro
300 sq.m
DescriptionA four-story mini hotel for sale in the Bar Riviera, 300 meters from the beach. The mini hotel is located in Dobrye Vody, within walking distance from the beach. Total area 300 m2. Plot of land 150m2. The hotel has 9 apartments with 1 and 2 bedrooms. The apartments are fully furnished and the kitchens are equipped with a...
Tradegoria Global Estate
Hotel for 6 925 000 euro in Istanbul, Turkey
6 925 000 €
Hotel in Istanbul, Turkey
1650 sq.m
Online Viewing Remote Transaction
Boutique Hotel with Bosphorus View in İstanbul Beyoğlu The boutique hotel is situated in Beyoğlu Cihangir, one of the most visited areas in İstanbul. With its cafes, pubs, restaurants, and famous brands the area is preferred by tourists throughout the all season of the year. Hotel for sale in İstanbul Beyoğlu is 200 m to İstiklal Street, 250 m...
TEKCE
Office for 251 696 euro in Istanbul, Turkey
251 696 €
Office in Istanbul, Turkey
55 sq.m 5% per year
Citizenship Online Viewing Remote Transaction Cryptocurrency payment
PREMIER CAMPUS KAGITHANE is one of the most innovative projects developed by Fer Yapı. Suitable for Turkish citizenship. Location: Kagytkhane. Project type: furnished serviced apartments 5% annual return on investments in US dollars. The project offers serviced hotel apartments designed with a hotel system from real estate management,...
Aro Property

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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