【JLL】Global Real Estate Perspective (November 2020)

Early indications point to the third quarter as an inflection point in real estate capital markets. Following the sharpest drop-off in transaction volumes in recent history, direct transaction volume declines decelerated during the quarter, down 44% from Q3 2019. Markets of scale with access to capital in Asia Pacific and Western Europe are leading the recovery. Although the U.S. is lagging, it remains the most active market globally with high investor interest. Record low interest rates, government intervention and a diversification of lender profiles continue to support real estate debt markets globally.

Transaction pipelines are rebuilding globally and are offering a sense of optimism for the quarters ahead. Investors remain cautious with many preferring defensive, income-oriented assets. Opportunistic and high-net-worth investors are poised to capitalize on market fragmentation while institutions remain critical of pricing. Markets are firmly in price discovery, and value transparency is expected to rise as activity steadily increases.

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