FIDIC

The COVID-19 pandemic which has been most servery in the last 30 days, has touched every corner of global markets even though the impact has varied depending on the different circumstances in different geographies.

According to the latest global market sentiments survey by UK based Savills, there has been a 62 percent fall in transaction values across all sectors globally. Most transactions happening are those which were in progress before the onset of COVID-19.

Hotels and retail have been the hardest hit by the current crisis. Retail markets have seen the sharpest fall, with activity reported to be down in 82 percent of the 24 countries surveyed.

Hotels, have had significant contractions in occupancy following a shutdown in global travel. This mirrors another survey by Safari Bookings, which found that tour operators in Africa’s US$12.4 billion safari industry, had lost more than 75 percent of bookings since the onset of the crisis.

“Occupiers, dramatically adjusting their behaviour to new ways of living and working have altered market fundamentals. Investors have paused to take stock of conditions and deal volumes have fallen,” says Savills.

More countries reported office, logistics and residential values as unchanged than they did falling. In terms of occupied demand and transaction activity, logistics and real estate transactions have been the most resilient.

“Logistics is a bright spot, with 57% of markets recording no change, or rises, in transaction activity, opposed to 43% seeing falls. Unsurprisingly, healthcare activity and values are holding firm,” says the survey.

Overall, the survey shows that 67% of countries reported a moderately negative market impact while 29% cited a severely negative impact.

At a sector level, healthcare, logistics and to a lesser extent institutional residential are currently the most resilient across occupier demand and investment activity.

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