标题: Capital Market Expectation [打印本页] 作者: jbaldyga 时间: 2011-7-13 16:44 标题: Capital Market Expectation
Could some one explain why real estate and other real assets would increase in value when inflation is greater than expected inflation. What is driving the higher returns?作者: cityboy 时间: 2011-7-13 16:44
The return to real estate is dependent on the net operating income (NOI). Inflation can be passed through to operating income (rental payments) therefore, higher inflation will lead to higher rentals and higher real estate values.