Moody’s warns of global real estate turbulence due to high interest rates and economic slowdown

Moody’s Investors Service reports a negative outlook for the global real estate sector amidst challenging financial conditions and a slowing global economy, according to an Investment Executive article.

High interest rates present various challenges for both REITs and other commercial real estate firms, including elevated funding costs, reduced market liquidity, and decreased property valuations. Although a projected decrease in interest rates later in the year may boost transaction activity, the report warns of potential further declines in asset values if a weakening economy dampens real estate demand.