Location Ventures CEO Rishi Kapoor was recently featured in Bisnow article titled “The Heat Is Off? Recession-Related Valuation Drops Could Douse Overheated Markets”. Touching up on the possibility of a recession and its effect on property values in the U.S real estate market.

From the article:

With a likely recession on the horizon, property owners across the U.S. are preparing for the drop in property values that tends to accompany economic downturns, but some property types can anticipate a harder hit than others.

Property types responded differently to pandemic-era market shifts, causing some to shoot up in value at a supercharged pace while others languished. But now, faced with a recession, the playing field could be leveled.

Higher interest rates and tighter lending will likely slow transaction volume and depress prices, but Location Ventures CEO Rishi Kapoor posits that any such correction will be healthy for long-term growth of the industry. His company holds a $3.5B residential and commercial portfolio.

“Both factors work toward stabilizing what has been record-breaking and rather unsustainable transaction volume and pricing,” Kapoor said. “We enjoyed it, but always knew the tide would recede, meaning a re-evaluation of deals, and whether placing more equity on the table to close a transaction is worthwhile.” 

Lower prices will also represent a fresh jumping-in point for opportunistic investors ahead of the next phase of growth, Kapoor said.

Read more from the Bisnow article HERE