Real Estate: how deep could prices fall?

by Thibaut Cuillière, Stéphanie Dossmann and Thierry Cherel

The return of inflation in the spring of 2022 and the resulting rise in interest rates have put a strain on property yields. Real estate, traditionally considered a safe haven, now compares badly with other investments, such as the bond market. Real estate asset prices started to decline in the third quarter of 2022 and this trend is likely to continue into 2023.

Natixis Corporate & Investment Banking's three sector analysts, Stéphanie Dossmann, Thibaut Cuillière and Thierry Cherel, explain the extent of this downtrend, identify the most resilient segments, and underline the means available to real estate companies to preserve their balance sheets.


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