In 2020, real estate investment dropped substantially due to Covid-19 related travel restrictions. In Europe and the Middle East, investors have focused increasingly on their local markets, reflecting the ‘flight to familiarity’ among cross-border investors.

Covid-19 has brought forward a number of structural changes that were already underway. Working from home has become a common practice (from 9% to 40%) and online shopping penetration has accelerated (from 12% to 16%). This has left many office buildings underutilised, causing concerns amongst investors about security of income.