Risk premium for office real estate investment worldwide Q1-Q3 2022, by market
Every investment carries a risk, and in an uncertain economic environment, this risk can cost investors. In almost all major markets surveyed, the risk premium for office investments decreased between the first and the third quarter of 2022. One of the reasons for the decrease is the rising borrowing costs due to soaring inflation. Dubai had the highest risk premium amounting to 2.92 percent, whereas Singapore, Seoul and Hong Kong had negative risk premiums. What this means is that investors in these markets are hypothetically likely to make higher returns from investment in government bonds than offices.
