Real estate market at a crossroads after mixed 2020 results
March 25, 2021
After displaying remarkable resilience early in the year, global real estate fundraising fell sharply in the second half of 2020. Investors closed fewer funds than in any year during the global financial crisis, and the amount of capital raised was the lowest since 2013.
As the world transitions out of the pandemic, the real estate sector must recover from short-term disruptions and adjust to long-term structural changes. Our inaugural Global Real Estate Report breaks down major trends by sub-strategy for a macro overview of real estate activity worldwide. Key takeaways include:
As the world transitions out of the pandemic, the real estate sector must recover from short-term disruptions and adjust to long-term structural changes. Our inaugural Global Real Estate Report breaks down major trends by sub-strategy for a macro overview of real estate activity worldwide. Key takeaways include:
- Real estate tech has grown rapidly over the past decade, with flexible office space and warehouse utilization among the sectors to watch in the wake of COVID-19.
- Industrial property was one of only two property types to record positive returns in 2020, capping a five-year run in which it far outperformed all other categories.
- Dry powder levels remained relatively flat in H1, sitting at about $362 billion, with approximately half that amount in distressed or opportunistic funds.