Optimism drops among investors in wake of Ukraine war
Russia’s invasion of Ukraine has dampened recent optimism among real estate investors and developers, reigniting fears of further heightened and lasting inflation.
The finding, contained in the latest Emerging Trends in Real Estate Global Outlook report by the Urban Land Institute and PwC, has raised concerns that a new wave of unease will hit confidence, resulting in a slowdown in deal making, especially in Europe. According to the report, the real estate industry was already “starting to ratchet back expectations” for 2022 after the record investment of last year, but that the war has taken economic uncertainty to even higher levels. “The prevailing view in the industry is of moderating economic growth, inflation peaking coming out higher for a longer period and longer lasting supply chain issues,” write the report’s authors.
Apprehension has also emerged from expectations that European governments will divert spending in favour of defence and en