Real Estate Outlook – Global, Edition December 2022

Real Estate Outlook

Headwinds across market

Sharp rises in interest rates around the world are feeding through to real estate yields and cap rates. Buyers and sellers are adjusting price expectations accordingly. Real estate returns have slowed, and transaction activity has fallen as some deals agreed at prices prior to the slowdown have been aborted.

Fergus Hicks, Real Estate Strategist


Central banks around the world continued with aggressive monetary tightening in the third quarter. Large and consecutive rises in policy rates have taken them to levels unthinkable just a year ago and not seen since before the Global Financial Crisis (GFC). Central banks and economists underestimated the intense inflationary pressures that pent-up demand and bottlenecks in the economy would generate emerging from the pandemic. In addition, inflation has been given a significant boost by sharply higher food and energy prices due to the war in Ukraine.

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