Inflation

The need for affordable accommodation is acute, and an increasing volume of private capital is available to the sector, but making development projects ‘pencil’ remains challenging.

Rising rates and stronger pricing are reshaping Japan’s property market, pushing capital toward higher-yielding strategies, say Minoru Yonekura and Kenya Shimono with Seven Seas Advisors.

Leveraging a flex living strategy can help address supply-demand imbalances and acute affordability issues across major gateway cities, say Bain Capital’s Ali Haroon and Rafael Coste Campos.

Higher borrowing costs are changing underwriting across Japan, but surging domestic capital and strong rental growth continue to keep pricing surprisingly resilient across assets, writes James Alker.

A domestic housing shortage, home ownership affordability challenges and slowing construction starts are all proving to be tailwinds for investors, explains RMR Group’s Matt Jordan.

Investors are being forced to reconsider how returns are generated in a market long defined by stability, as the country's real estate sector undergoes one of its most significant transitions in decades.

Investors are increasingly turning to stability in US multifamily markets, say American Landmark Apartments’ Andrew Yam and Tom Lubeck.

Real estate investors are pivoting to specialist residential sectors as supply, demographics and rates reshape risk-return dynamics across markets, say Macquarie Asset Management’s Erin Ledger-Beaupre, Brendan Jones and Justin Ayre.

After a period of repricing, residential real estate is reasserting itself globally as a key pillar of diversified investment portfolios, says UBS’s Fergus Hicks.

Participants in PERE’s roundtable say a combination of public investment and regulatory reform could help to revive Germany’s stalled economy and real estate market. But they also fear a fragile recovery could be derailed by global events.