We have seen a slowdown in the deploy­ment of capital in the real estate sector in the final quarter of 2022, as many investors are "pausing", pending more clarity around market conditions and asset pricing.

The news is not all negative, however. Down­ turns have been known to generate opportunities for those investors who are well-capitalised and nimble enough to take advantage of market dislo­cation. For those investors, volatility and decreased liquidity may present good buying opportunities in the distressed and special situation space, leaving them well-placed to take advantage of the projected market recovery towards the back end of 2023. For others, this is the time to "pause" until there is more transparency around market conditions, asset pric­ing and the cost of debt. Not surprisingly, we are also seeing a significant slowdown in fundraising, as allocators become more risk adverse.

That being said, the market has not shut entirely, and some of the large m