Why rising inflation is putting global property prices at risk – The National
- Date: 25-Oct-2021
- Source: The National
- Sector:Real Estate
- Country: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?