EPRA Conference: Roubini sets out challenges for real estate

Speaking at the EPRA ReThink Conference 2022, staged in Paris this week, keynote speaker economist Nouriel Roubini, CEO of Roubini Macro Associates, discussed the prospects for real estate in the current global environment.

He said that when central banks fight inflation history suggests that a hard landing is more likely than a soft landing. “We’re not yet in a hard landing but we’re getting there in the US, Europe and UK.”

“Some people say, a hard landing is going to be short and shallow, mild and vanilla – I beg to disagree,” he added, explaining that there is so much debt in the system.

He did add that rising inflation can be good for real estate as it is in limited supply can provide a hedge against inflation. But if banks fight inflation by increasing real rates as well as nominal rates and this causes a recession the risk is higher for any asset including real estate.

Real estate is a good investment but people have to think about resilience to climate change, he added.

Please click on the video above to watch the full interview or listen to the podcast below.