Mar 1, 2026
Jeffrey Kariwo
Chairperson
Real Estate Strategy in Higher Rate Cycles | Aramis Capital
Reassessing Real Estate Exposure in a Higher Rate Environment
Higher financing costs require a disciplined reassessment of property allocations. Investors must distinguish between leverage-sensitive segments and structurally resilient assets.
Real estate is undergoing repricing.
Higher financing costs are compressing speculative development activity while strengthening the case for income-focused, well-located assets.
Key considerations include:
• Debt Structure Sensitivity
Short-duration debt exposure creates refinancing risk in elevated rate cycles.
• Demand Fundamentals
Urbanization, demographic shifts, and commercial decentralisation continue to shape long-term demand.
• Asset Quality Discipline
Institutional investors should prioritise assets with strong tenancy quality and sustainable yield coverage.
Real estate remains a strategic allocation—but selectivity is no longer optional.
A disciplined institutional perspective on real estate allocation, refinancing risk, and asset quality in a higher rate environment.
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