Please note: this article is more than one year old. The views of our CIO team may have changed since it was published, and the data on which it was based may have been revised.
The real estate sector faces a difficult global economic environment as central banks continue to tighten monetary policy. Global growth fears are also dampening demand. Potentially supportive factors exist too – for example, the value of rents in inflationary periods – but a differentiated view of the sector is important.
In our latest CIO Special, 'U.S. and European real estate: taking a closer look', we focus on:
- How central bank action is cooling real estate markets through rising interest rates and monetary tightening
- Difficulties regarding construction activity levels and the issue of rising of input costs
- Varying circumstances and performance outlooks of several real estate sectors and the reasons for it