A degree of calm has returned to markets, but investors remain nervous about where the next blow-up could occur – and attention is increasingly focused on commercial real estate. But are the concerns about real estate justified and – if so – where in the sector do the risks lie? And even if real estate isn’t a direct threat to stability, how will it be affected in the economic fallout from the turmoil in the banking sector?
From direct bank exposures to open-ended funds, economists from across our Commercial Property services held this special online briefing about real estate’s potential vulnerabilities and answered client questions about the outlook. During this 20-minute session, the Chief Property Economist Andrew Burrell and the property team addressed key issues, including:
- How the property sector could fuel contagion amid rising interest rates;
- Why property won’t trigger a repeat of the Global Financial Crisis;
- How the macroeconomic fallout from the turmoil could affect valuations.