The Global Financial Crisis Tidal Wave And Its Residual Effects On Real Estate Investment

It’s been more than ten years since the global financial crisis. Since then, the number of real estate investment deals of over US$500 million has more than tripled and cross-border investment volumes are at a 10-year high.

- Nicholas Wilson

This comes off the back of cautious yet hungry investors looking for yield during the time of low interest rates globally as a repercussion of the global financial crisis. Gradually, their appetite grew as debt remained cheap and they shifted their attention to assets with higher risk and higher return, such as real estate. In fact, by the end of 2018, global real estate assets under management hit US$3.2 trillion. With monetary policies remaining lenient, we observe four key ways in which Asia Pacific real estate has changed since the global financial crisis.

Deals increase in complexity as investors become more risk averse