Over the summer, we are taking a break from our World in 2022
series and revisiting the prospects for subsectors of the Private
Capital market. This month we look at Real Estate.
High inflation, supply chain disruption, pandemic tail effects,
tightening monetary policy and the War in Ukraine have given rise
to a potent mix of factors disturbing the equilibrium of investment
markets in the first half of 2022, with equities and bonds seeing
substantial declines. Attention has turned to the potential impact
on property prices around the World, with concerns being voiced
over the historically high residential prices in some
countries.
Recent research by Capital Economics indicates that price falls
are already experienced in markets such as New Zealand and Canada,
where valuations appear to be stretched. And there has been
increased speculation about the combined effects of post-pandemic
hybrid working and escalating borrowing costs on occupancy and
demand in the
