When the American economy sneezes, the world catches a cold.
When a new president gives it a boost via tax cuts and imposes tariffs on imports, real estate markets around the globe weigh the possibility of higher interest rates, altered investment flows and changing patterns of corporate occupation.
“A higher-for-longer interest rate environment means less real estate valuation yield compression and more expensive debt for governments, consumers and real estate investors to contend with.”
For investors, that makes it imperative to invest in real estate sectors that can benefit from inflation, which include rented residential, short-let industrial and hospitality. But whatever the sector, the notion that rates would fall and undo some of the valuation declines that have occurred across the world in the past two years seems even more uncertain now.
