United Kingdom Your needs Industries Trends & Insights Properties Careers About us News People finder Contact Article Global real estate investment hits new high Investors are citing economic confidence for year-to-date volumes’ move beyond pre-pandemic levels November 12, 2021 Global real estate investment has breached pre-pandemic levels as economic conditions stabilize and investors realign their strategies, albeit unevenly across geographies. More on "Office" Where global investors are setting up new offices October 29, 2021 Real estate’s green agenda is turning to waste management October 28, 2021 Will California’s solar panel requirements pave the way for other states? October 19, 2021 With US$757 billion invested during the first three quarters of this year, global real estate investment is now at its highest ever for a nine month period, according to JLL. The total was four percent above the previous record set in 2019. “Globally, real estate capital markets are recovering quickly,” says Sean Coghlan, Global Director, Capital Markets Research, JLL. “Liquidity is now broadening into markets that had been lagging behind.” Last year real estate investment declined significantly, with operational challenges and caution regarding the broader economy pushing investors to hold back on decisions. But a rebound in sentiment earlier this year helped spur a recovery, one that continued to accelerate in the third quarter and towards the end of this year. A total US$292 billion was invested in global real estate during the third quarter, up 77 percent from the third quarter of 2020, according to JLL’s Global Real Estate Perspectives report. Subscribe Looking for more insights? Never miss an update. The latest news, insights and opportunities from global commercial real estate markets straight to your inbox. Subscribe “Vaccination rates and reduced governmental use of complete lockdowns – alongside heightened competition for assets in many sectors – has sustained the investment momentum we began to first see gather earlier in the year,” says Coghlan. Geographical differences The recovery, however, remains uneven, with investment activity strongest in the Americas region, which saw volumes leap 80 percent year-to-date. “It’s an uneven investment landscape,” Coghlan says. “Some regions are recovering at a faster speed than others.” European real estate activity was buoyed by robust transaction activity in the UK, with year-to-date volumes up 97%. Capital markets activity has been more moderate in Asia Pacific, in particular in Japan and South Korea which experienced more resilience in the early stages of the pandemic. During the depths of the pandemic, one area that saw a sharp decline was cross-border investment. This was in large part a function of the drop in international travel, which hampered deal making. But with international travel returning, cross-border investment is improving, too, up by 46 percent year-on-year to US$68 billion during the third quarter. Of note, cross-border investment remains significantly higher than the quarters following the Global Financial Crisis. Investment Opportunities Retail Glade Parks US - Euless , TX 559,457 sf Multi-housing / PRS University Gate Apartments US - Erie , PA 148,641 sf Office 5601 Lindero Canyon US - Westlake Village , CA 105,531 sf Land Creekside Village US - Buellton , CA Search for properties Sector preferences For now, competition among investors remains strongest for high-quality core and core-plus assets, but the appetite for risk is improving. “Conviction is building both for less core real estate – as well as for sectors which have lagged so far in the recovery, such as the retail and office sectors,” he says. Investment in retail and office is up 35 percent and 27 percent year-to-date, respectively. Capital is returning to offices, with high-quality assets and, particularly in Europe, large scale office assets trading. Within retail, there’s a wide variation of investor sentiment depending on the asset type, says Coghlan. “But capital is being deployed beyond necessity retail and lifestyle or entertainment-oriented assets, which have until now been considered the most resilient retail sub-sectors,” he says. While uncertainty lingers and some sectors continue to grapple with change, not least the office sector as new working and occupancy patterns emerge. “There are now firmer signs that optimism among investors is beginning to replace caution,” Coghlan concludes. Contact Sean Coghlan Global Director, Capital Markets Research Let's talk Looking for more insights? Never miss an update. The latest news, insights and opportunities from global commercial real estate markets straight to your inbox. Subscribe What’s your investment ambition? Uncover opportunities and capital sources all over the world and discover how we can help you achieve your investment goals. Find out more You may also like Global | Investor | November 24, 2021 | Investment Sales and Acquisitions | General interest Why real estate M&A is on the rise A hunt for scale and sector expertise is driving an uptick in deal volumes Global | Investor | October 07, 2021 | Hotels | Hotels & Hospitality Luxury hotels hold their appeal for real estate investors Investors are homing in on luxury hotels as resurgent international travel boosts the hospitality sector EMEA | Investor | October 01, 2021 | Investment Sales and Acquisitions | Office Why big ticket office deals are on the rise Large office deals in Europe have returned as debates around the office’s future subside Contact us Find & lease space Manage property & portfolio Design & deliver projects Invest in real estate Transform with technology Industries Trends & Insights Gender Pay Gap Ethnicity pay gap About JLL Modern Slavery Statement Careers Newsroom Our UK sustainability strategy Investor relations Contact us Opt-in Preference Centre Follow us Copyright 2021 Jones Lang LaSalle IP, Inc. Privacy statement Privacy commitment Cookie policy Accessibility Statement Terms of Service Site map