Rising debt costs chill global real estate outlook

As the cost of debt nudges higher than potential yield, real estate investors are re-evaluating their exposure to the sector.

Global real estate investors entered the year in buoyant mood. Many property sectors racked up bumper returns in 2021. Globally, self-storage and industrial assets, for example, achieved total returns of 77.5% and 50.9% respectively, according to the National Association of Real Estate Investment Trusts (Nareit). Investment activity continued in a similar vein into this year, with global volumes 13% higher in the first six months of 2022 compared with the same period in 2021, Savills data shows.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access