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The effect of high inflation and rising interest rates on real estate values and valuation approach
Journal of Building Survey, Appraisal & Valuation,
12
(2),
102-109
(2023)
Abstract
Following on from the COVID-19 pandemic and the challenges faced during that period, valuers now have new issues to consider, as rapidly rising inflation and volatile interest rates not witnessed for a generation have had an effect on markets during 2022 — especially in the final quarter and going into 2023, as we see far reduced investment volumes and ongoing price discovery across European markets. This paper looks at how rising inflation and interest rates affect values and also how valuers need to develop new skills and understanding in valuing real estate assets in increasingly interconnected global financial markets.
Keywords: valuation; inflation; cost of capital; debt; sentiment; discount rates
The full article is available to subscribers to the journal.
Author's Biography
Christian Luft has over 20 years in the valuation business as a MRICS qualified valuer. Christian is Chairperson of the International Valuation Standards Council (IVSC) European Membership and Standard Recognition Board which formed at the start of 2020. He is a Director at Jones Lang LaSalle (JLL) and leads their EMEA Retail Valuation business, having focused on the retail sector for most of his career to date. In his role Christian is responsible for a number of key valuation client mandates, primarily owners of shopping centres and retail parks. He is also responsible for developing expertise and best practice in shopping centre valuations. Outside of JLL Christian has also been a panellist and keynote speaker at a number of conferences across the globe representing not just the retail sector but also the wider valuation industry, including IVC Conference in Riyadh 2022 and the opening panel at MAPIC 2022.
Citation
Luft, Christian (2023, September 1). The effect of high inflation and rising interest rates on real estate values and valuation approach. In the Journal of Building Survey, Appraisal & Valuation, Volume 12, Issue 2. https://doi.org/10.69554/HCDT7364.
© Henry Stewart
Publications LLP
Publications LLP