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Investment Outlook 2020

Andrew Phipps • 03/12/2019
Who will be the risk-takers?
Although weak economic growth and historically low yields are likely to continue in 2020, there are still opportunities to seek higher returns – and an increasing number of investors are willing to try. However, any high-yield property asset will come with risks that need to be understood, so investment intelligence is more important than ever. In our new Investment Outlook Report, we take a look at the key trends in store for 2020, including:
Private equity dominates high-yield

Private equity firms have spent 58% of their capital on non-CBD offices so far this year: retail warehouses and shopping centres are a distant second and third, with around a 12% share each. If current trends continue, this investment sector will be the leading source of capital for high-yield investment in 2020.

Which investments?

Investors seem to prefer higher-risk office purchases to higher-risk retail, as office risk factors tend to be easier to manage. Non-CBD (Central Business District) offices remain the most likely targets – though faltering retail assets should also provide good opportunities for investors looking to repurpose or redevelop.

Location is key

The UK will continue to be the largest source of high-yield deals, but investors will increasingly look further afield in Europe, with the Saxon Triangle and northern Germany becoming top picks. As high yields have become harder to find in Germany and France, there has also been a steady increase in investment activity in The Netherlands, as well as more sporadic investment in Italy and Spain. 

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Andrew Phipps (image)
Andrew Phipps

International Partner
London, United Kingdom

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Explore all of the Outlook 2020 articles:

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Insights • Forecast / Outlook

Demographics Outlook 2020

Over the last 40 years, Europe’s population aged 65+ has almost doubled in size. Meanwhile, 55% of people now live in cities, and single-person households are increasingly standard. In our Demographic Outlook report, we examine how real estate is reacting to these trends – and where the opportunities lie in 2020.

Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Political and Economic Outlook 2020

Change is the “new normal” – and in 2020, the real estate sector is likely to face the continuing effects of a global economic slowdown, trade wars, and the further polarisation of politics and an ongoing talent shortage.

Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Construction Cost Outlook 2020

The construction industry is not typically thought of as a driver of change – and its buildings are still assembled in largely the same way they were 50 years ago. Now we're seeing tech solutions to address rising construction costs.

Andrew Phipps • 03/12/2019
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Insights • Sustainability

Environment Outlook 2020

Currently, buildings are responsible for 40% of energy consumption and 36% of CO2 emissions in the EU, so it is critical that the real estate sector plays its part in helping achieve climate goals.

Andrew Phipps • 03/12/2020
investment
Insights • Forecast / Outlook

Investment Outlook 2020

Who will be the risk-takers?
Although weak economic growth and historically low yields are likely to continue in 2020, there are still opportunities to seek higher returns – and an increasing number of investors are willing to try. However, any high-yield property asset will come with risks that need to be understood, so investment intelligence is more important than ever. In our new Investment Outlook Report, we take a look at the key trends in store for 2020, including:
Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Logistics Outlook 2020

2020’s headline news is that logistics real estate will continue to be driven by key trends in e-commerce, technology, and labour availability.

Andrew Phipps
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Insights • Technology

Technology Outlook 2020

The real estate industry is now witnessing some fundamental changes. After years of lagging behind the pace of technological change, property is beginning to catch up.

Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Outlook 2020: Central Business Districts

Should we leave CBDs behind? The Central Business District used to be the beating heart of a city. In recent years, however, changes in behaviour, technology and economic life have led to a greater spread of activity.
Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Outlook 2020 Social Change

In our Social Change Outlook report for 2020, we look at the most important factors driving change in the new decade – not just for society in general, but also for the future of real estate.

Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Retail Outlook 2020

New mindsets will drive change

Today’s retail sector is undergoing major disruption, fuelled by a set of powerful technological, social, demographic and economic forces.

Andrew Phipps • 03/12/2019
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Insights • Forecast / Outlook

Mixed Use Outlook 2020

The concept of mixed use property development is undergoing a revolution. The new generation of developments will be altogether different: genuine multi-functional spaces that increase flexibility, create experiences, and provide maximum connectivity.

Andrew Phipps • 03/12/2019
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Insights • Commentary

Leadership Resilience

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Andrew Phipps • 07/04/2020