Cross-border real estate investors are rethinking their strategies in response to exchange-rate volatility and the convergence of global interest rates, according to a new analysis from commercial real estate giant JLL.
The company pointed to the shrinking of the gap between U.S. interest rates, which have fallen significantly amid the COVID-19 crisis, and those in the Eurozone. That's helped decrease the cost of hedging between the two currency regimes, which will potentially spur more inbound investment into the US.
"When you look back at the situation in the U.S. just a year ago, the talk if anything was of higher interest rates," Pranav Sethuraman, global capital markets research manager at JLL, said in the report. "But that scenario has quickly changed as macro-economic outlooks have been brought firmly into view."
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Dan Packel
Dan Packel is an editor on the Business of Law desk at ALM. He writes a weekly briefing for Law.com, "The Law Firm Disrupted," on change and innovation in the legal marketplace. He is based in Philadelphia. Contact him at [email protected]. On Twitter at @packeld
