Capital flows into and out of a real estate market are an important indicator of its health and outlook, sometimes pre-empting price increases or corrections.

How did 2017 fare with regards to real estate capital flows, and how does the 2018 outlook look for real estate investors?

Here are 4 things to watch out for.

In summary, here’s how 2018 looks like, according to JLL.

The volume of office vestments globally will be down 5 to 10% due to macroprudential measures in various countries, but that will not stop capital values inching higher by 2% and rents by 3%. Development is likely to slow as investors once again turn their focus to income producing assets.

Leasing will be stable though vacancy could rise as corporate occupiers, industries and workforces grapple with the large macro trends of digitization, a mobile workforce and co-working.

Also read: PWC ULI real estate Asia Pacific outlook 2018