- March 1, 2012: Vol. 6, Number 3

To read this full article you need to be subscribed to Institutional Real Estate Europe

Getting Personal: Real Estate Investors Know that Inflation Can Ruin a Beautiful Relationship

by Richard Fleming

Inflation is a personal thing; it affects everyone differently. We all have a view on how high or how low inflation is, and we all have a different story to tell on how much we think our hard-won spending power is being relentlessly eroded by increasing prices. It’s rarely a case of how little that spending power is being eroded, as every little bit takes on a significance even in a low-inflation environment. For many people, inflation is about how much the price of the bus or railway ticket to work went up by at the beginning of the year. Deflation, if we thought about it, could be about how much the price of flatscreen TVs has come down by in the past year — and there’s nothing more deflating than seeing the price of that super TV you bought for Christmas come down further since you bought it. 

If only it were that simple. Investors hate inflation even more than they hate uncertainty and volatility — it destroys value, introduces an

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy