It's unlikely that real estate will be permanently repriced if interest rates remain high for the long run, according to CBRE global chief economist Richard Barkham, in a report issued this week.
He said that inflation expectations should drop over the course of 2023 near the Federal Reserve's 2% target.
"The real interest rate, determined by the supply and demand for capital in the global economy, likely won't rise significantly due to demographic factors," Barkham said. "The term premium is small and should remain constant."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
