Higher interest rates have made family offices more selective about investing in real estate, CNBC reported.
Family offices are private wealth‑management entities that oversee the assets of high‑net‑worth families, often making investment decisions independently of public markets.
Rising borrowing costs mean that the cost of financing property purchases has increased, which can lower the expected returns on real‑estate investments and prompt family offices to tighten their investment criteria.
As a result, many family offices are reassessing their real‑estate portfolios and are focusing on higher‑quality assets or alternative sectors that can better withstand the current interest‑rate environment.
<small>Source: CNBC — read the original story there.</small>