Colliers International says the recovery of investment into global real estate is expected to be sharper and faster following the COVID-19 crisis than the period after the GFC. The real estate advisor notes that although a global recession is to be expected “there are glimmers of hope with the latest China Manufacturing PMI data showing stabilisation in March following a fall to record low levels in February”. Oxford Economics data shows that following a contraction in global GDP by 1.8% quarter on quarter in Q1 and a further 0.3% decline predicted in Q2, there should be of around 1.5% and 1.8% in the third and fourth quarters respectively.
Tony Horrell, CEO of Colliers International UK and Ireland, says the fall in global GDP runs alongside other factors including the restrictions on global travel for both trade and tourism, a fall in oil prices and volatility in the stock markets.
“The good news is that the bounce back we expect of each of these is relatively short and recovery is set to be sharp.”
Source: IPE Real Assets