Global direct investment in real estate fell for the first time on a quarterly, annual basis since the onset of the pandemic, according to a report this week from JLL.
It dropped 24% to $234 billion due to uncertain economy, monetary policy and geopolitics, JLL said.
Retail and hotel investment bucked the trend, rising 19% and 7%, respectively, according to the report.
Investment in the living sector – which includes multi-family housing, build-to-rent and student housing assets – was up 9% year-to-date, despite declines during the quarter, JLL said.
Imminent Recession is ‘Highly Likely’
David Bitner, whose official title at Newmark is Executive Managing Director of Global Research, tells GlobeSt.com that the US economy is continuing to grow, but market-based indicators and expert commentary alike suggest that an imminent recession is highly likely.
Labor markets are tight with around 1.7 jobs available for every unemployed person, “a dynamic that has initiated a chain reaction in which wages are growing at their fastest pace in decades causing a subsequent spike in inflation and, ultimately, a rapid increase in rates from the Federal Reserve,” Bitner said.
