Institutional investors kick-off the 2nd semester recovery

Institutional investors kick-off the 2nd semester recovery

Real estate investment will grow once again during this year’s second semester, before the occupancy recovery, within a scenario of high liquidity and unsatisfied latent demand.

The prediction is from the latest international study «The Signal», from Cushman & Wakefield, according to which large amounts of capital, attractive returns when compared to other types of investment, a strong latent demand and an optimistic prospect concerning the recovery, will contribute for the sector’s recovery this year. C&W predicts global real estate investment volume to grow in 2021, closing the year 15% below 2019’s level.

According to the consultant, interest on office assets should recover during the second half of the year, as well as interest in the hotel and retail segments, but at a slower pace, and «at much lower prices». The demand for quality is higher, especially concerning tenants and leasing contracts.

The logistic segment should also stand out and its occupancy rate should remain strong this year. The housing rental and healthcare segments, which came out of the pandemic on top, are attracting «a growing interest from investors all across Europe».

Nevertheless, real estate occupants may face new obstacles, especially increase in bankruptcies and unemployment, caused by the pandemic, which will extend until 2022.

Cushman & Wakefield considers «the impact remote working will have on the office market will crystallise in 2021. There are no doubts most companies will have a more flexible posture and its impact will be felt on the real estate sector. But occupants should also resume, in 2021, the occupancy strategies suspended during the pandemic, with a recovery in demand expected during the second half of the year».

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