BUILDING ON A SOLID FOUNDATION OF DEMAND

Real estate has been largely unaffected by the fallout of the pandemic, but investors are encouraged not to get complacent as the sector has its cracks. And yet, there are alternatives, writes Jennifer Hill

Real estate had a solid 2021 as Covid-19 accelerated pre-existing trends. But investors shouldn't be fooled by this apparent bullishness: identifying sectors with the strongest foundations requires prudence, and this will be critical to building future returns as inflation stays higher for longer. 

‘It’s easy to get burned in a red-hot real estate market,’ says Bernie Wasserman, president of real estate investment firm Participant Capital in Miami, Florida. ‘Whether buying a home or investing in a real estate investment vehicle, rising inflation and the potential for an economic slowdown can impact property types and geographies differently.’

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