The resurgence of COVID-19 in the United States has slowed a promising economic recovery. Asia is now leading the way in economic growth and EMEA, where the virus is mostly under control, is following close behind. If governments remain proactive and vigilant, the virus will continue to recede and the economic recovery will gain strength. And if a vaccine is ready before year-end, a more robust return to the workplace will occur.
We expect strong economic growth in 2021, driven by pent-up demand and economic stimulus. Nevertheless, it will be a long haul back for the economy and the real estate market. COVID-19 has dealt a heavy blow to the great cities of the western world, particularly in the U.S., because it has reduced the viability of mass transit and increased the adoption of remote working. On the other hand, the industrial & logistics sector is thriving on the accelerated growth of the digital economy.
CBRE’s Global Real Estate Outlook 2020 Midyear Review explains how real estate will be changed by the COVID-19 crisis and will eventually bounce back.