Today’s real estate environment reflects a “new old cycle,” where conditions feel familiar but are shaped by fundamentally different structural forces, according to Mike Acton, head of research and strategy at AEW, in a recent report.
Economic signals are mixed, with resilient growth alongside fragile sentiment, creating uncertainty for investors.
The long-standing tailwind of declining interest rates and cap rate compression has largely ended, removing a key driver of past performance. Instead, higher-for-longer rates are resetting pricing, valuations and return expectations across property markets.
This shift has created what AEW views as one of the most attractive entry points in over a decade, with property values adjusted downward and yields at more compelling levels.
However, the opportunity comes with greater risk, as investors can no longer rely on macro tailwinds to drive
