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Abingdon Global Assets looking to invest further in response to robust market forecasts for 2022 from industry leaders in the global real estate investment sector. Although the pandemic has wreaked worldwide havoc, conversely, it seems to have galvanised the global real estate investment market, with brokers hailing 2021 as one of the best years on record.

50% more deals in 2021
The Exchange (euronews.com) recently reported, that although 2021 has been a rollercoaster ride for this $10 trillion sector, global property investments, in fact realised a year-on-year increase of 50 per cent.  By the end of Q3, the sector had achieved an all-time high of $755 billion USD.

Changing consumer trends
The pandemic has changed global consumer trends. The long periods of lockdown provided time to reassess property requirements and now people are acting upon their decisions. Demand has changed towards properties with outdoor space, which created a turbulent market of price rises and drops, depending upon whether a property has outdoor space.

7% growth predicted for UK market
Analysis by the UK publication, Investors’ Chronicle, suggests that 2021 was an “intensely strange year” mainly due to the upward trajectory of residential property prices by an average of 8.2 per cent over 12 months. Commercial property is highlighted as a particularly strong performer.  This confidence is reiterated in Strutt & Parker’s House Price Forecast for 2022, which predicts market growth of up to 7 per cent.

Record year for French real estate
There were fears that Covid would kill the market, but in fact, demand is rising, especially in the luxury market, historical areas and the western sectors on Paris. The desire for outdoor space is driving up the instances of second home ownership for example in Paris and Provence.

According to Proprietes Le Figaro, 2021 was a recording breaking year for the French property market, achieving over 1,555 million sales in one year. Prices have stalled at around 10,800€ m² and there is easy access to credit making property an attractive investment. Alexander Kraft, CEO of Sotherby’s International Realty France Monaco explains, “Paris hasn’t been the most energetic market, but it has withstood the pandemic well, especially on account of prices which remain stable.”                                                            

US recovery to continue
CBRE’s EMEA Real Estate Market Outlook 2022 report also delivers good news across all sectors, predicting pre-pandemic levels and volumes expected to increase up to 5 per cent.

As WFH is faded out and people return to the office, there will be an increase in demand for commercial rentals. The Logistic market is expected to retain its position as the preferred investment option, with a predicted yields of up to 3 per cent. 

Finally, the residential market will increase its share of the investment market and will be dominated by ESG (Environment, Social and Governance) future proof assets. Investors will increasingly view ESG elements as a crucial element of their analysis.

In conclusion, 2022 will be a bumpy ride, but the prognosis is positive. Despite the threat of Covid variants and other risk factors, the population is determined to get back to the office, start travelling and are buying new homes. 

Abingdon is buckled up and ready for the ride!

Find out more about Abingdon’s investment policies by contacting info@abingdon-ga.com