Roaring or groaning ’20s for real estate?

A global pandemic kicked off the 2020s: A decade still feeling the effects of the 2007-2008 Global Financial Crisis and preceded by years of deep social, environmental and technological change in which inequality increased, extreme political views became more prevalent, climate action took center stage for the first time and digital technology became ubiquitous.

We look at the parallels between the 2020s and the heady times of the 1920s – a decade of great upheaval.  We consider what made the 1920s roar and explore the significant positive and negative trends that will shape real estate in the 2020s.

Highlights:

Reasons for roaring

1. Pent-up demand for travel and retail 
2. Political forces working together
3. Potential for an investment boom in green technologies
4. The growing influence of ESG and impact investing
5. The rise of real estate alternatives
6. The opportunities from global trade
7. Urbanization is here to stay
8. Technology and innovation to spur productivity
9. China’s coming decade

Reasons for groaning

1. Low interest rates, capital misallocation and asset overvaluation
2. Debt piles and a risk of tax increases
3. Inequality and political divisions
4. Dead malls, ghost hotels and deserted offices
5. Climate change