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Five Trends to Watch

One

Real Estate Markets to Carry Momentum into 2019

Global real estate markets have exceeded expectations as we enter the final quarter of 2018, with investment and corporate occupier activity set to surpass 2017 and finish the year at their highest levels since 2007. There are signs that activity is slowing as we move into 2019 and, while demand remains robust, volumes are likely to moderate from this year’s exceptional levels.

2019 Prospects

Capital Values

Capital Values 2-3% Increasing

Rents

Rents 2-3% Increasing

Development

Development 4% Rising

Vacancy Rate

Vacancy Rate 12.4% Rising

Leasing

Leasing 42 m sqm Stable

Investment

Investment US$ 700bn 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, October 2018

Two

Two

Investors maintain steady course despite uncertainty

A significant weight of capital is targeting real estate as allocations to the sector increase, but volumes are expected to soften somewhat in 2019 as investors broaden their approach to accessing real estate and ongoing selectivity and difficulty in finding alternative income-producing assets limit investment growth.

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Three

Two

Growth in flexible office space continues to accelerate

Adoption of flexible office space continues to increase as workforces become more agile, technology advances and companies rethink how they use space. As markets around the world adjust to this structural shift in occupation, most companies are expected to increase their usage over the next five years, with major implications for corporations, developers and investors.

More on corporates

Four

Four

Sustained demand for logistics space keeps expanding pipeline in check

Global logistics markets are continuing their growth trend, with record demand holding vacancy levels close to historic lows despite the continuing expansion of supply pipelines. With strong pre-leasing activity and limited speculative construction we expect vacancy rates to remain stable, driving additional rental growth.

More on logistics

Five

Four

Retail adapts to keep up with changing consumer tastes

The continuing emphasis on customer experience across the globe means that the share of non-retail tenants, including food and beverage outlets, lifestyle brands and fitness centres, is expanding, with landlords actively responding to changing consumer tastes.

More on retail

Global Market Perspective, November 2018

Chapters

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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, November 2018

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 full report (PDF, 359 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