Explore our latest global real estate insights where we look at how inflation and rising interest rates are affecting the global markets as well as asset trends, and upcoming opportunities.
Some key highlights from the report include:
- The war in Ukraine has created more geopolitical risk and continues to impact commodities and energy prices. Some areas in APAC are only now coming out of lockdown, while parts of China look set to remain in lockdown due to the country’s strict adherence to the zero-COVID policy. This is adding to inflationary pressures, impacting both the economic outlook for 2022 and 2023, and the evolution of interest rates back to longer-term norms.
- Market yields / cap rates are re-pricing in light of the shift in interest rates, but at different rates by both location and sector.
- Volatile foreign exchange rates could cause cross-border buying activity to take a backseat until rates stabilise over the next 6-12 months.
- Furthermore, new regulations in Europe and a shift to standardising how companies declare and report on ESG, are accelerating the push towards the decarbonisation of assets. This is creating extra flux and opportunities in what is a complex trading environment.