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Global property securities “well placed” amid current macro environment
The global macroeconomic environment may provide challenges for real estate investors, but the underlying fundamentals for most property types will be supportive of investment in the sector, according to Stephen Hayes, head of global property securities at First Sentier Investors.
First Sentier’s global property securities team invests in publicly traded real estate around the world, with a team of 10 and offices in Sydney, New York City and London.
Right now, there’s a lot of inflation coming through the system, globally, says Hayes. In addition, the geopolitical risks in Europe, following Russia’s invasion of Ukraine, have “added fuel to the inflation fire,” notes Hayes. Supply-chain constraints are driving up costs as well.
“We’re expecting inflation to rise,” adds Hayes. He also expresses the view that there is a greater risk of a slowdown coming in 2023 given the current macroeconomic environment, stating, “the macro side is a bit up in th