“Uncertainty will remain high due to the virus, inflation and geopolitical tensions, but most indicators point to a steady improvement in confidence at a social and business level globally as 2022 progresses. This will lead to a rising cycle of performance for most markets despite differing structural headwinds,” said David Bitner, Head of Capital Markets Insights, Global Research at Cushman & Wakefield.
The virus will continue to dominate in early 2022 but increased global immunity and greater knowledge about the virus will allow for a slow improvement and for return-to-work strategies to get back on course. This suggests better economic growth before the summer, which will feed occupier and investor confidence, though this could be undercut by rate volatility and geopolitical risk.
In the second half of 2022, improving economic growth will hopefully be accompanied by better news on inflation and COVID-19. With government subsidies being reduced, the private sector will take over as the driver of expansion, and occupier markets will grow more confident.
Recovery will continue moving into 2023 with COVID-19 present in the background, and climate now the number-one risk factor for businesses. Occupier recovery will deepen, with office and retail markets benefitting, and structural change driving demand. For investors, the slow increase in interest rates may suggest that investment strategies need adjustment.
Note: For more investor insights, please refer to Cushman & Wakefield’s The Signal Report: Global Guide to CRE Investing In 2022.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and approximately 60 countries.
In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit cushmanwakefield.com or follow @CushWake on Twitter.
