Renewed COVID restrictions stemming from the spread of the Delta variant impeded the recovery in some parts of the world during the third quarter, but in most countries the economy continued to rebound. Uncertainty remains an ongoing theme; however, many real estate sectors are now starting to see signs of a demand recovery.
In the office market net absorption turned positive for the first time since the onset of the pandemic, while demand for logistics space has continued unabated. The recovery in retail and hotels is very market and sub-sector specific but some promising signs are emerging. Overall, sentiment and forward-looking indicators all point towards the recovery in economic and occupier activity being sustained and expanding through the next year.
