Entering the COVID-19 crisis, real estate market fundamentals around the world appeared largely sound. Demand was adequate to absorb the modest supply volumes in most cities and sectors.

After four months of forced economic hibernation, societal lockdowns, staggered reopenings and pandemic relapses, the environment is now even more convoluted. Increased uncertainty may yet prompt asset allocators to re-evaluate some long-held propositions that have supported investment decisions throughout the post-GFC period. Near- and medium-term strategies will be influenced by markets, sectors and strategy type, overlaid by the perceived balance of all uncertainties and outcome probabilities.

Agile work strategies and the need to reconfigure office space in real time could see many companies move towards “core-and-flex” office models, where businesses retain the majority of their real estate on long leases, but hold a substantial minority on flexible, short-term rental agreements.

Spain hospitality and leisure industries are set for a “solid recovery” that will open up a number of opportunities for real estate investors in the next 18 months.

A number of megafunds have dominated headlines over the summer in Europe.

Over the space of the first six months of 2020, the COVID-19 crisis has changed our world profoundly. Collectively, we are all trying to come to terms with an unprecedented event that continues to develop.

COVID-19 is shaping up to be one of those defining moments that is likely to change the behaviour of future generations. While it is too early to predict whether we will be referring specifically to the “COVID-19 generation” in the coming years, the ramifications of the pandemic on our lives and work will be felt across all demographic cohorts.