Geopolitical risks have increased, but markets have so far signalled volatility rather than systemic stress – an important point for commercial real estate. So far, the effects have been mainly seen in commodity prices, but not in a revaluation of long-term interest rates or in a noticeable tightening of financing conditions. As a result, the valuation support for income-oriented assets is largely maintained.
The relative robustness of listed real estate companies underlines their defensive role and, if historical patterns are repeated, points to an incipient recovery in valuations in private markets. In an environment where uncertainty outweighs fundamental weakness, returns remain driven primarily by cash flow stability, disciplined operational execution and selective positioning.
