Global Real Estate's Returns in the Time of COVID

Fritz Louw and Niel Harmse

April 27, 2021

In 2020, the MSCI Global Annual Property Index recorded its first negative capital growth since the 2008 global financial crisis, as property returns decelerated. The index weighs real estate investment returns by estimated market size across 25 countries to provide a snapshot of property returns across the world.

While the COVID-19 pandemic resulted in lower capital growth across most global property markets, there was some variance in underlying sector performance. Industrial properties delivered superior returns across most markets in 2020, on the back of strong e-commerce growth. Retail and hotels, affected by lockdowns and social distancing, underperformed — but not in all markets.

How to interact with this plot: From the first dropdown, select a measure to compare across global property markets and sectors. From the second dropdown, select a country to highlight its long-term performance profile, 2020 ranking and sector returns. Clicking on the respective sectors' performance bars in the third chart switches the sector for global comparison in charts one and two.

Note: Gaps in published data can be the result of absence of coverage or the application of strict confidentiality and portfolio-dominance rules.