Why real estate investors are watching the dollar

On the flip side, owners’ interest is often piqued if currency fluctuations aren’t on their side. Baggfelt notes that investors with pre-determined exit strategies can find themselves in a pinch if demand shifts due to a lack of foreign buyers.

Investors “who may have been late cycle buyers in 2019, with a five- or six-year exit strategy, may today need to consider when actually might be optimal to divest”, says Baggfelt.

Getting the timing right is also a factor for sellers when considering when best to repatriate proceeds from a sale.

“When the local, home currency is weaker, converting foreign currency proceeds can of course result in higher returns for a seller,” he says. For example, Japanese investors invested in the UK have gained a lot over the past four years, “However, since the summer, the yen has started to appreciate, so this might be the right time to move”.