National CRE News In Your Inbox.

Sign up for Connect Daily to stay informed and save time. Connect Daily is our email publication that provides you with the latest and most relevant CRE stories of the day all in 150 words or less.

Sub Markets

Property Sectors


National  | 

Global Gateways Are Poised for Housing Rebound, Some More Than Others

There’s no disputing that the pandemic disrupted life in gateway markets across the globe. The effects on housing markets have varied, though, across markets and between the rental and ownership sectors. 

Rents fell in 18 out of 27 markets in Cushman & Wakefield’s global survey, which encompassed cities ranging from New York City and Hong Kong to London and Melbourne. In contrast, ownership prices rose in 22 out of 27 markets, indicating that residents have confidence in these global urban centers.

“Homeownership has outperformed rental pricing in large part because the pandemic has more severely impacted renters compared to homeowners and those with the means to become homeowners,” Cushman & Wakefield reports. “Housing sales have accelerated and been brought forward due to the pandemic, which indicates that sales may drop off in the near term post-pandemic, particularly as pricing has heated up and will price out potential buyers.”

The firm groups the 27 markets into one of four broad categories. In the “up and up” grouping are markets where rents and home sale pricing increased during the pandemic: Paris, Amsterdam, Berlin, Atlanta, Stockholm, and Shanghai. Just two of the 27 cities—Shenzhen and Mexico City—were “rising rental markets,” where apartment rents increased while for-sale prices declined.

Hong Kong, Madrid and Milan reside, to varying degrees, in the category of “recovery watch markets,” where both rents and home prices declined modestly. “Hong Kong is the most expensive housing market globally, so it is not entirely surprising that in the pandemic prices remained essentially flat while rents fell in-line with most markets,” reports Cushman & Wakefield. 

Most global gateway markets fall into the “double-down” category, with rising home prices and falling rents during in 2020, indicating that residents “doubled-down” on these markets with a greater commitment by purchasing homes rather than fleeing. “Rents fell in general because the advantages of urban living were discounted during the pandemic, resulting in fewer inflows,” the report states.

Looking ahead, Cushman & Wakefield sees a variety of drivers behind the rebound potential for the 27 gateway markets. Ranking highest in the overall composite score are Amsterdam, London, Atlanta and Los Angeles, each for different reasons.

“Amsterdam demonstrates broad-based rebound potential with weakness only in its reliance on immigration; London is similar but with greater supply risk,” the report states. “U.S. markets are notable for their capital markets liquidity across the board, but Atlanta stands out among them for its rent momentum while Los Angeles is favorable for its low homeownership conversion risk and COVID-19 recovery.” 


Inside The Story

connect with Cushman & Wakefield

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Lease
  • ◦Economy
New call-to-action
New call-to-action