Global commercial real estate (CRE) investment totaled US$147 billion in Q3 2020, improved from Q2’s trough but was 49% down compared to Q3 2019.
Effective management of the pandemic was a major factor behind the investment recovery in Q3. Markets in Asia and Europe, including South Korea, Taiwan and the U.K., led the rebound.
Cross-border investment volume fell by 54% in Q3 2020 compared to the same quarter last year. Germany and India were top destinations for foreign investment in Q3 2020. On a trailing twelve-month basis, London reemerged as the top destination for foreign capital.
Global retail yields edged higher, while industrial and office yields remained stable in Q3 2020. The all-property yield spread over bond widened by 44 bps from Q3 2019, driven by abundant dry powder and low cost of capital.