Why rising inflation is putting global property prices at risk – The National

rates, cent, interest, inflation, property,
Middle East

Why rising inflation is putting global property prices at risk – The National

Global property prices have skyrocketed for more than a decade, fuelled by all-time low interest rates, but what happens when borrowing costs finally start rising? We may soon find out.

As inflation picks up everywhere, today’s near-zero interest rates may soon prove unsustainable. One day, we may look back at the world of sub-1 per cent mortgage rates with incredulity. Today’s prices would be hard to sustain if interest rates flew to 5 per cent or 6 per cent.

For now, money is cheap and property is expensive. Could that equation suddenly go into reverse?

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