Global Economy Keeps Improving, but at Slower Pace

Tarrant Parsons, Economist, RICS. Image courtesy of RICS

It’s been a strong year for the global economy so far, with a lot of lost ground made up. And with employment levels picking up and business confidence improving as vaccination programs progress, trends on the occupier side of the market should continue to improve as we get closer to the year-end.

However, the RICS Global Commercial Property Sentiment Index Property Monitor for the third quarter of 2021 suggests that sentiment among professionals working in the real estate industry has changed little compared with the preceding three months, indicating that the pace of the economic recovery has slowed down compared to the first half of the year.

Image by Markus Spiske via Unsplash

Unsurprisingly, the industrial/logistics sector continues to grow strongly, followed by multifamily and data centers. The office sector is also showing signs of improvement in several areas of the world, particularly in Europe.

In the latest episode of the RICS quarterly podcast series with Commercial Property Executive Senior Editor Laura Calugar, Economist Tarrant Parsons warns about the upcoming risks for the commercial real estate industry. Although the pandemic is somewhat under control across most parts of the globe, attention should now focus on supply shortages and inflation.

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