WE ARE HERE FOR THE NEXT CHAPTER
This pandemic has shifted the economic landscape, influencing economies across the globe, but instead of looking back I want to look forward, to what is yet to come. The economic outlook is set to improve from spring onwards, in line with the availability of an effective vaccine. The recovery will take time, but the deployment of the vaccine will boost consumer spending. As the uncertainty of lockdowns diminishes, consumers will begin to spend once again on travel and hospitality.
Real estate had a difficult year, but I firmly believe it will bounce back strongly in 2021. Property has been a safe haven for investors hunting yield and this will continue. Far from heralding “the death of the office”, the crisis has highlighted both changing habits and an office's contribution to corporate culture. Surveys indicate a building desire to return to the office, mainly during midweek, which suggests that the net impact on demand will be less than first thought. Digital connectively is now vital, collaboration space will grow, and tenants overwhelmingly want flexible solutions for uncertain times. London and our regional cities, now the destination for record levels of tech and infrastructure funding, remain best-placed to extract value from these trends.
ESG will also take centre stage with COP26 in November. With the REIM business' launch of a pioneering new fund and the bank's ground-breaking support for decarbonising housing strategies, we are at the forefront of the industry's journey to net-zero.
This pandemic has taught me that the future is no longer where we are headed; it is here and we are the ones creating it. Join us as we embark on the next chapter and create the future we all desire.