Every investment carries a risk, and in an uncertain economic environment, this risk can cost investors. In almost all major markets surveyed, the risk premium for office investments decreased between the first and the third quarter of 2022. One of the reasons for the decrease is the rising borrowing costs due to soaring inflation. Dubai had the highest risk premium amounting to 2.92 percent, whereas Singapore, Seoul and Hong Kong had negative risk premiums. What this means is that investors in these markets are hypothetically likely to make higher returns from investment in government bonds than offices.
Risk premium for office real estate investment in select markets worldwide from 1st quarter 2022 to 3rd quarter 2022
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Savills. (November 11, 2022). Risk premium for office real estate investment in select markets worldwide from 1st quarter 2022 to 3rd quarter 2022 [Graph]. In Statista. Retrieved December 22, 2024, from https://www.statista.com/statistics/1224129/office-real-estate-risk-premium-globally/
Savills. "Risk premium for office real estate investment in select markets worldwide from 1st quarter 2022 to 3rd quarter 2022." Chart. November 11, 2022. Statista. Accessed December 22, 2024. https://www.statista.com/statistics/1224129/office-real-estate-risk-premium-globally/
Savills. (2022). Risk premium for office real estate investment in select markets worldwide from 1st quarter 2022 to 3rd quarter 2022. Statista. Statista Inc.. Accessed: December 22, 2024. https://www.statista.com/statistics/1224129/office-real-estate-risk-premium-globally/
Savills. "Risk Premium for Office Real Estate Investment in Select Markets Worldwide from 1st Quarter 2022 to 3rd Quarter 2022." Statista, Statista Inc., 11 Nov 2022, https://www.statista.com/statistics/1224129/office-real-estate-risk-premium-globally/
Savills, Risk premium for office real estate investment in select markets worldwide from 1st quarter 2022 to 3rd quarter 2022 Statista, https://www.statista.com/statistics/1224129/office-real-estate-risk-premium-globally/ (last visited December 22, 2024)
Risk premium for office real estate investment in select markets worldwide from 1st quarter 2022 to 3rd quarter 2022 [Graph], Savills, November 11, 2022. [Online]. Available: https://www.statista.com/statistics/1224129/office-real-estate-risk-premium-globally/