Global real estate investment falls 26% in 2020

April 3, 2021 | 5:00 am

During 2020, global real estate investment fell 26% compared to 2019, according to CBRE estimates.

The region that presented the most relevant falls was the Pacific, with a decrease of 73% compared to 2019, followed by South America, with a decrease of 44%, and Europe, with a contraction of 33%.

However, in the fourth quarter of last year, investment recovered 84%, compared to the previous quarter, as a result of the increase in investor confidence.

“Germany replaced the US as the top destination for foreign capital in 2020. At the market level, London saw a strong rebound in capital inflows in the fourth quarter and claimed its first position as the most desired city for foreign investment,” it says your report.

According to the information, London received $ 12 billion in cross-border investment, followed by Paris, with $ 9 billion, and Berlin, with $ 6.2 billion.

However, considering the total investment, not just the cross-border, it was Los Angeles that received the most capital with 32,000 million dollars, followed by New York, with 31,000 million, and San Francisco, with 24,000 million dollars during the 12 months of the anus.

From the point of view of the investment strategy, credit and maintaining the rent of existing tenants were favored, although long-term demographics and trends in technological integration in real estate were also relevant.

Another decisive factor for investment is environmental, social and governance (ESG) criteria, as they motivated 23% of investments.

Investors are expected to continue a more marked trend toward opportunistic purchases by 2021 “as total returns fell dramatically in 2020,” detailed CBRE.