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5 Trends to Watch

One

Global real estate markets slow but on track for robust 2019

Momentum in global real estate markets has slowed in 2019 as investment and leasing volumes moderate from last year's exceptional levels. However, investor and corporate occupier activity remain healthy and are on track to finish the year well above historic average levels.

2019 Prospects

Capital Values

Capital Values ~4% Increasing

Rents

Rents ~3% Increasing

Development

Development 28% Peaking

Vacancy Rate

Vacancy Rate 11.3% Rising

Leasing

Leasing 41 m sqm Lower

Investment

Investment US$ 730bn Lower

Leasing, vacancy, development, rents and capital values relate to the office sector. Full-year 2019 forecast values. Capital values, rents and development figures refer to percentage change. Global vacancy rate - percentage value, leasing volumes in million square metres, investment volumes in US$ billions. Source: JLL, July 2019

In this podcast, we answer some of our clients’ questions and share our perspectives on the key global real estate market trends and outlook for the next 12 months.

Two

Two

Investment activity softens from near-record 2018 as investors maintain discipline

Although fundraising and capital available for deployment into real estate has set new highs, investment activity has dipped by 9% on a year ago. Global investment activity over the full year is likely to come in marginally lower than 2018 as investors maintain discipline, with a growing focus on defensive sectors driven by structural demographic, consumer and technological change.

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Three

Two

Global office construction cycle ramping up

Office leasing demand has stayed healthy so far this year, though the pace is now running below the record-breaking levels of 2018. Construction activity is anticipated to peak this year with new office deliveries likely to be one-third higher than last year. This will ease constraints on occupier activity in some of the tightest markets while gradually pushing up vacancy rates during the second half of the year, causing rental growth to slow.

More on office

Four

Four

Another positive year for global logistics markets

Structural demand drivers including e-commerce and supply chain restructuring continue to support global logistics markets, with robust demand holding vacancy rates near record lows. Leasing momentum is expected to remain strong, albeit decelerating from recent all-time highs, which should continue to propel rents higher for the rest of 2019.

More on logistics

Five

Five

Retailers and landlords look to diversification and redevelopment

The retail sector is in a state of reinvention, with landlords and developers retooling shopping centres through redevelopment and diversification of the tenant mix. The ability to provide unique experiences and services will continue to be key in coming years as landlords seek ways to differentiate themselves and lure shoppers into physical centres.

More on retail

Global Market Perspective, August 2019

Chapters

Compare Markets

Investment Market

Investment Market

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Corporate Occupier Markets

Corporate Occupier Markets

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Offices

Offices

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Global Office Index

Global Office Index

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Retail

Retail

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Warehousing

Warehousing

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Hotels

Hotels

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Residential

Residential

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Downloads & Contacts

Global Market Perspective, August 2019

JLL's regular view on the impact of economic forces on property markets worldwide. It is a unique combination of updates from professionals on the ground and the insights of our leading research organization.
Read summary report (PDF, 328 KB)



For more information, speak to one of our Research experts

Jeremy Kelly

Jeremy Kelly

Director, Global Research Programmes

Jeremy.Kelly@eu.jll.com

Matthew McAuley

Matthew McAuley

Senior Analyst, Global Research

Matthew.Mcauley@eu.jll.com

David Green-Morgan

David Green-Morgan

Director, Global Capital Markets Research

David.Green-morgan@ap.jll.com

Ben Breslau

Ben Breslau

Director - Head of Research, Americas

Benjamin.Breslau@am.jll.com

James Brown

James Brown

Director - Head of Research, EMEA

James.Brown@eu.jll.com

Megan Walters

Megan Walters

Director - Head of Research, Asia Pacific

Megan.Walters@ap.jll.com