Global Outlook is Knight Frank’s forecast report looking at the trends shaping the property markets of 33 leading cities. The report provides a 2019 outlook and beyond, for commercial and residential property, as well as alternative sectors, like hotels, care homes and student accommodation.
Trade tensions, political events, and an increasing debt burden alongside rising interest rates will all conspire to make 2019 a challenging year for the global economy. We expect a moderate economic deceleration in worldwide GDP growth, and the change in the economic landscape will demand a response from property investors.
Higher interest rates and the end of quantitative easing means we are reaching the end of the ‘everything bubble’. For the past decade it was enough for investors to buy property in major gateway markets and the generosity of central banks would help ensure strong returns.
The shift towards a more normalised monetary policy means that investment strategies will change as investors focus on income, asset management, specialist sectors and development opportunities to secure outperformance as debt costs rise.
In this report, we have set out Knight Frank’s view on likely market performance in 2019 and highlight opportunities across commercial and residential markets globally. We have
considered the outlook for rents, yields, transaction volumes, and have set out our thinking on global debt markets and the outlook for property lending.