Heishi Group: Now is a good opportunity to invest in real estate.

Nadeem Meghji, Global Head of Real Estate at Blackstone, recently proposed that commercial real estate is entering a new phase in the cycle, creating one of the most attractive entry opportunities for investors in recent years. Meghji stated that real estate values will peak in 2022, followed by a 22% decrease over the next two years, primarily due to rising benchmark interest rates and continued challenges in the office market. It is not until early 2024 that clear signals of stabilizing values will be seen. The recovery will be gradual, rather than a sharp V-shaped rebound, but the market has reached a stage that attracts capital allocation. Based on this assessment, Blackstone has invested a total of $42 billion in equity funds since then, allowing the investment portfolio to take advantage of the upward opportunities brought by the cyclical recovery. Meghji stated that current real estate prices still have a significant relative advantage: their value is only 7% higher than the bottom period, while stocks and fixed-income assets linger near their peaks. This combination of valuation reset and relative value creates one of the most attractive entry opportunities for disciplined investors in recent years.