US real estate enters new upward cycle

The United States real estate sector is entering a new upward cycle following a period of intense transition caused by rapid interest rate hikes by the Federal Reserve in 2023. Nicolas Ibanez, president and co-founder of Drake Real Estate Partners, notes that while increased credit costs interrupted a long period of high liquidity, the current environment presents significant opportunities for well-capitalized investors and funds.

Market data indicates that while property values in the U.S. saw an aggregate decline of approximately 20% due to rising rates, there has been a slight recovery of between 3% and 5%. Ibanez emphasizes that the core fundamentals of the sector—specifically the ability of properties to generate cash flow and provide inflation protection—remain intact. He identifies the reindustrialization of the U.S. and the repatriation of manufacturing as key structural drivers for the market in the coming years.