01/14/2021 | Press release | Distributed by Public on 01/14/2021 04:38
Share of total investment chart click here
In an update to its global research programme, Impacts, in the 12 months to November 2020, the international real estate advisor says that although global investment volumes into real estate were down by 28% compared to the same period in 2019, not all sectors felt this equally. The industrial and residential sectors saw more modest falls in volumes, gaining market share to capture 21% and 28% of total investment, respectively (see chart).
Source: Savills Research using RCA, data covers 12 months to November of stated year
Savills goes on to suggest that, in spite of the ongoing uncertainty brought about by Covid-19, the long term appeal of the real estate sector and the number of funds targeting it has continued to rise. Data from Preqin indicates that as of the beginning of Q4 2020, there were over 1,000 funds in market - more than double the number in January 2016. Funds are now targeting almost $300bn of investments, with investor momentum likely to continue into 2021.
Rasheed Hassan, Head of Savills cross-border investment team, commented: 'Our investment forecasts suggest that, despite the adverse knock-on effects from Covid-19 on real estate, there is still a lot of dry powder waiting to target real estate once the dust settles. While logistics and residential will continue to be top picks over the course of the next 12 months, alongside offices, we anticipate activity will return to most sectors of the market as the vaccine becomes rolled out widely across the globe.'
Savills sector themes for global real estate investment in 2021:
Sophie Chick, Director in the World Research team, added: 'With ESG so high on investors' agendas, the real estate industry has a real opportunity to lead the way and make a significant difference when it comes to creating a sustainable future. To support government commitments to meeting net zero carbon, new investment into green technology, energy and much more has been announced but also an increasing amount of regulation.'