After a period of instability with higher levels of inflation, central banks across the world started hiking interest rates to levels not seen in decades. In response, REIT developers are cutting back on projects to counter low demand and rising borrowing costs, which in turn hurts investment levels. As such, there was a shake-up in the real estate sector. Global REIT indices such as FTSE EPRA and FTSE NAREIT plunged 32% and 22%, respectively, since the Fed’s first interest rate hike in Mar-22. The key question now is when interest rates will be cut and the sector’s resiliency to navigate through the “higher for longer” narrative, as it should be a clear winner when Central Banks start cutting rates decisively.