Sandra Brown 10/5/2020
Global real estate market to recover by 2022
Cushman & Wakefield conducted a study of the situation in the global real estate market. The company's experts believe that this market has not yet reached the bottom. Its fall may end only by the end of next year, and then recovery will begin. The results of the fourth quarter of this year will be worse than forecasted. After that, real estate companies will revalue their assets.
Strategies for 2021 will be revised, which could lead to a recession in this sector of the global economy. Low rates in force in many countries have become an effective tool to support the economy. However, the possibilities for further reduction have been exhausted.
The authorities of many countries have almost no instruments for economic stimulation. In the coming years, the return on assets will be close to zero. The company report also says that the coronavirus pandemic has led to changes in the office real estate market. The demand for office space is expected to fall by 9.6 million square meters next year.