The Best Real Estate Returns Come After Recessions

Source: Institutional Investor — 

Amid a slow down in the economy, higher financing costs, and mounting fears of a recession, real estate values are fast declining. But the downturn is an opportunity for investors who stick with their real estate holdings — or invest more — during the downturn.

In fact, superior returns in real estate tend to follow recessionary periods, according to the latest report from Cohen & Steers, which has $88 billion in assets, including $56 billion in real estate.

“When you look back, whether it’s on the public or private side, the best returns in real estate follow periods of economic and capital markets disruption,” James Corl, head of private real estate at Cohen & Steers, told II. “It’s just axiomatic that once we pass the point of maximum uncertainty in the markets…you can see some very interesting returns. But the setup for that is going to be painful.”