Why rising inflation is unlikely to spook property investors
This week, we learnt both British and US inflation rates accelerated unexpectedly in June, challenging the view that high inflation during the post-Covid recovery will be temporary. Joining Anna on the podcast to discuss the impact of rising inflation on property markets is David Bailin, Chief Investment Officer at Citi Global Wealth, and Knight Frank research partner Flora Harley.
24 September 2021
David says that inflation is likely to last longer than expected but is not a major cause for concern for property investors. His view is inflation is temporary and due to distortions created by the pandemic, although he says it could last for several more months. He shares his views on best bets for property investors from last mile logistics to data centres and digital infrastructure.
Flora highlights why there’s less risk for the housing market now compared to the 2008 recession. The pair also discuss persistent supply chain disruption and the severity of cost inflation for the construction sector.
Image by Gerd Altmann from Pixabay
