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Luxury: the outlook for the real estate sector in 2021, according to Savills

Luxury: the outlook for the real estate sector in 2021, according to Savills

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Savills World Research, the international real estate expert, published several impact reports last month analyzing the specific forecasts for each segment in 2021. A look back at the global outlook for real estate investment, prime residential real estate, and tips for investing in Asia-Pacific.

 

According to Oxford Economics, global GDP growth in 2021 is expected to be the fastest in 40 years, although it will only be enough to bring global GDP back to pre-crisis levels“, Savills said, estimating that with the development of vaccines and their distribution, economic recovery could occur. The reports reveal that advanced countries are taking the “whatever it takes” approach to supporting their economies “with very low interest rates and quantitative easing programs“, which will have an impact on real estate investment this year.

 

“The industrial and residential sectors experienced more modest volume declines, with market share gains representing 21% and 28% of total investment, respectively. The resilience of these sectors in the face of structural change means that the trend is expected to continue in 2021”.

 

However, investors seem to be looking to the long term, as Savills points out, noting that funds targeting the real estate sector continue to grow. “At the beginning of 4Q2020, there were more than 1,000 funds on the market – more than double the number in January 2016, according to Preqin. The funds are now targeting nearly $300 billion worth of investments, suggesting investment momentum through 2021“, the report said.

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