Real estate investment in 2020: global outlook
Income returns will remain the overarching theme for real estate investment in 2020. Offices in core city markets will be a focus for investors, but with opportunities scarce and yields at record lows, many will be forced to look elsewhere. Alternatives, such as student housing, multifamily, co-living and data centres are increasingly becoming mainstream.
These trends are set against a muted global economic outlook and heightened political uncertainty. The IMF forecasts a modest pick-up in global growth to 3.4% in 2020, up from 3% in 2019. The US/China trade war remains a serious drag on the global economy. World trade volumes fell by 1.1% year on year to Q3 2019, the worst result since 2009. Indicators show that it will stabilise in 2020, but the environment remains fragile …