SPONSORED: Nuveen Real Estate – Real estate can still offer hedge against inflation

Rising inflation has caused some investors to question whether real estate still serves as an effective inflation hedge. The answer is a qualified yes, according to Donald Hall, head of research, Americas, for Nuveen Real Estate. In an interview published in the March issue of Institutional Real Estate Americas, Hall discusses the nuances of the property market performance outlook in 2022, given rising interest rates and increased construction costs. “Interest rates are certainly likely to rise, but dry powder targeting real estate is still near record levels. Even amid the pandemic, global institutions raised their target allocations to real estate yet again, and institutions based in Asia collectively have exposure still 290 basis points below their current target. Between increasing allocations and the record amounts of dry powder, there is a lot of capital targeting the sector, and relative to other asset classes, real estate is still attractive,” notes Hall. To ac