Research Briefing | Nov 26, 2021

Global | Real estate is not a hedge for this type of inflation

Real estate is not a hedge for this type of inflation

The received wisdom that real estate is a good inflation hedge is an oversimplification. This is revealed by our two plausible high inflation scenarios for the year ahead utilising the recent integration of real estate markets into the Global Economic Model.

What you will learn:

  • Our baseline sees inflation as partly relative demand driven and so real estate returns are set to bounce back in 2022, as activity and employment are important short-term drivers.
  • Our analysis demonstrates that real estate is a good hedge against further demand driven inflation, but not against the cost push inflation that it is arguably the bigger threat today.
Back to Resource Hub

Related Services


What AI means for economies, businesses, jobs & cities

Artificial Intelligence has the potential to fix the world's productivity problems, just as previous general purpose technologies such as steam power, electricity, and computers have, in our view.

Find Out More


Australia: Flight to quality occurring but secondary markets may not be doomed

We believe the most significant policy measures to come through in the budget for residential building are the announced tax tweaks for build-to-rent (BTR) development.

Find Out More