Real estate debt faces a challenging year

Once known as a predictable, stable and easily modelled asset class, real estate has seen a tumultuous start to the decade that has thrown doubt on many established investment philosophies.

The challenges began with the black swan event that was covid-19, something few investors could have predicted, and its fallout has turned many aspects of the real estate industry on its head.

As if that was not difficult enough for real estate investors, inflation has jumped in the aftermath of the pandemic and this of course led to a rapid increase in interest rates as the ‘lower for longer’ era came to an end.

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