RESEARCH • 4 December 2019

Outlook 2020: Identifying opportunities in a late cycle

Some things have not changed over the last 12 months: The US-China trade conflict is still dominating global politics, geopolitical trouble spots have not calmed down and uncertainty has not decreased significantly. But in other respects, things have become even more challenging for investors.


With global growth disappointing in 2019 and forecast to slow further in 2020, occupier markets will probably be less dynamic than the last few years. The European Central Bank and the US Federal Reserve have changed tack, diverging from their expected tightening paths to loosening monetary policy due to slowing economic growth rates and persistently low inflation. As a result, government bond yields have fallen further, which we think will prolong the real estate investment cycle for a while longer. 

In fact, we believe that the lower-for-longer interest rate environment is probably with us for the next few years. Due to the scarcity of alternative investment options, we anticipate that the share of capital that investors allocate to real estate will remain strong. 

Investors can benefit from our local expertise and on-the-ground-knowledge, supported by in-house research and experienced teams in 16 offices across Europe and Asia-Pacific. The Savills IM Outlook 2020 report features our views on the European and Asian commercial real estate markests, serving to help investors identify opportunities in a late-cycle environment.




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