Three Megatrends Dominating Global Real Estate Investment
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Three Megatrends Dominating Global Real Estate Investment

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The below infographic captures three megatrends that are the driving forces behind global real estate investment.

Three Megatrends Dominating Global Real Estate Investment

Three Megatrends Dominating Global Real Estate Investment

According to CBRE, the world’s largest real estate investment manager, the three trends driving the commercial real estate market can be summed up as the following:

1. Globalization

There’s $1.1 trillion expected to flow into commercial real estate in 2016, and much of that money will be stemming from international sources.

World-class cities are seeing more outside capital for all types of real estate. Take London for example, where 60% of commercial real estate has been bought by international investors over the last 10 years.

How can investors make this trend their friend? By looking for opportunities to diversify real estate portfolios across a broader mix of geographies and asset types, and by thinking globally while developing strong knowledge of local markets before investing.

2. Demographics

The world is shifting fast as far as demographics go.

Western countries will be welcoming many more retirees to their ranks. Meanwhile, the middle class in Asia will explode in growth. Once just 500 million people in 2009, it will be 3.3 billion by 2030 – accounting for roughly two-thirds of the global middle class.

Where will these people live?

Cities. About 50 megacities will account for the vast majority of economic activity. (See which megacities are growing the fastest here)

Look at investing in emerging markets that have a rapidly expanding middle class, and look for opportunities to capitalize on areas with large retiree populations.

3. Technology

Lastly, as technology becomes more ubiquitous, it will have an impact on real estate markets from several angles.

The amount of tech workers grew 61% between 2010 and 2013 among the top 15 urban centers. Also, driverless cars will also have widespread market penetration by 2029, and this will reshape and re-map entire communities.

Explore emerging technology hubs for real estate opportunities, and look for opportunities in urban-adjacent industrial properties as businesses establish distribution centers near cities to reduce the costs of delivery.

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Agriculture

Charted: U.S. Egg Prices More Than Double in 2022

This chart shows the increase in the national average price of a dozen Grade A eggs in the U.S. in 2022.

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This chart shows the increase in the national average price of a dozen grade-A eggs in the U.S. in 2022.

Charted: U.S. Egg Prices Double in 2022

Eggs are a staple food for many countries around the world, and the U.S. is no exception. Americans eat between 250‒280 eggs a year on average.

Eggs are also easy to cook, protein-dense and supply many daily vitamins needed for healthy living, making them a popular meal or ingredient. So when egg prices rise, people notice.

MetalytIQ charted the rapid rise of egg prices in the U.S. during 2022, using data from the U.S. Bureau of Labor and Statistics (BLS).

Eggs-asperating Prices

Over the course of 12 months, the national average price for a dozen large Grade A eggs more than doubled, to $4.25 in December from $1.93 in January.

Egg Prices Per Month (2022)Price per dozen
January$1.30
February$2.10
March$2.50
April$2.52
May$2.86
June$2.71
July$2.94
August$3.12
September$2.90
October$3.42
November$3.59
December$4.25

The biggest culprit has been an avian flu outbreak that resulted in 43 million chickens culled to prevent the spread of the disease.

This led to a severe shortfall in egg supply. Egg inventories in December had fallen by one-third compared to January. Combined with increasing demand during the holiday season, prices skyrocketed and empty shelves became apparent in some states.

This is not the first time avian flu has disrupted the industry.. In 2015, a similar outbreak pushed egg prices up 40% in nine months, reaching a high of $2.97 per dozen eggs in September 2015.

Will Egg Prices Drop in 2023?

Avian flu isn’t the only storm the egg industry has been facing in 2022.

The prices of soybean and corn—the main components of bird feed—account for half of the cost of eggs. They’ve been heavily affected by the war in Ukraine, which has driven grain prices higher.

In the near-term, egg prices are expected to remain high. Containing the avian flu outbreak will remain the biggest factor in determining the prices, but as suppliers increase production, prices may cool off a little in 2023.

Eggs and dairy make up nearly 10% of the average person’s daily calorie intake. Check out the rest of our dietary make-up in Visualizing a Rapidly Changing Global Diet.
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