Real estate is among the most sensitive assets to interest rates. With the world’s central banks well into a historic tightening cycle, what happens to one of the most widely held asset classes?
Residential property has already taken a hit in many countries. Some markets that had been perceived as the world’s frothiest, likeSweden and Canada, are sliding back toward pre-pandemic price levels.
Commercial and industrial real estate is a very different asset class, heavily owned by institutional investors. Do commercial and residential property move in lockstep, or will the dynamics be quite different?
For office buildings and retail developments, are interest rates more important than secular trends, like the rise of work from home and online shopping?
Which countries will see the steepest downturns? Is there a refinancing crisis on the horizon?
Or should investors be preparing for surprising resilience– and a historic buying opportunity?
Our experts will dissect these and other challenges.
As real estate continues to be a prominent topic amongst the Macrobond community, more of our expert users have provided their own 2023 real estate outlooks. Have a read – their insightful viewpoints provide a deeper understanding of the trends shaping one of the world's biggest asset classes.