Financial Times FT.com

Real estate suffers hangover from rate rises

By Jim Pickard, David Turner and Dan Pimlott

Published: July 5 2007 03:00 | Last updated: July 5 2007 03:00

All the best parties tend to conclude with painful hangovers. In real estate, the celebrations have been going on for nearly five years against the heady backdrop of strong investor demand, rising prices, cheap debt and a benign occupier market.

Some canny investors have made a killing from highly geared bets on rising property markets from Mumbai to Madrid. And global real estate stocks are up 341 per cent since March 2003.

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