Washington – The Urban Land Institute and PwC recently released the 2022 Global Emerging Trends in Real Estate report.
Based on interviews with international real estate experts and investors, the forecast addresses top-of-mind issues, including worldwide apprehension following the Russian invasion of Ukraine, the impact of surging global inflation on the industry, and the role of real estate in exacerbating climate change.
Experts note that despite conflict in Europe, rising construction costs, and the uncertainty of global supply chains, real estate tentatively remains an attractive target for investors, especially as a protection against inflation. Consensus also shows that capital is flowing toward efforts to make real estate more sustainable. The report examines how to best fund the move to net-zero.
Gareth Lewis, director, PwC Real Estate, comments, “Our research for this year’s Global Emerging Trends in Real Estate Report has highlighted some familiar themes to the last few years. Coming out of the pandemic we were seeing generally high levels of confidence in the outlook for real estate investors, driven primarily by the availability of capital looking for yield. But along similar lines to previous years, ever present in the background are concerns around the lingering effects of the pandemic, the endurance of the extended real estate cycle and the impacts of the structural changes hitting the sector. The Ukraine crisis, however, has created a new and more sharply focused cause for immediate concern particularly around rising inflation and interest rates, giving rise to stresses that the real estate world has not had to grapple with in earnest for decades.”
ULI will host a webinar on March 23, where an expert panel will explore the report’s takeaways.