RCA Insights

Global Commercial Property Sales Drop to Seven-Year Low

By on February 5th, 2021

Global sales of commercial real estate fell by almost a third in 2020 under the stresses of the Covid-19 pandemic, the latest edition of Global Capital Trends shows. Transaction volume fell 29% year-over-year to the lowest level since 2013.

On a positive note, the pace of declines in many leading markets, including the U.S., moderated into the final quarter of the year. For several Asian markets, annual deal activity reached all-time highs in 2020, as shown in the latest issue of Asia Pacific Capital Trends, also released this week. South Korea, Taiwan and India all touched record transaction volume for income-producing property such as offices and industrial buildings.

Global investment tilted to the industrial and apartment sectors in 2020, with the office sector losing ground. For the beleaguered hotel sector, 2020 was the worst year since the Global Financial Crisis. The volume of hotel properties sold fell by 65% year-over-year, the steepest decline among the major property types.

Global Capital Trends 2020 report preview

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