B
enzinga and Yahoo Finance may earn commissions or revenue through links below. The real estate industry has faced significant turbulence, particularly in retail and commercial sectors. Despite this, JP Morgan sees a "generational opportunity" in real estate over the next several decades.

    JP Morgan's optimism is outlined in its 29th edition of "long-term capital assumptions." This report provides a 10-15 year outlook for over 200 asset classes and 19 global currencies, aiming to counter the "short-termism of modern finance." Global strategist Alan Wynne emphasizes that these long-term assumptions are crucial for investors making strategic portfolio decisions. Without this perspective, JP Morgan's investment decisions would be heavily influenced by current market conditions, which can change rapidly.

    The COVID-19 crisis and subsequent interest rate hikes devastated several real estate sectors, particularly retail and office. These sectors rely on short-term financing to acquire assets, but elevated interest rates left many developers unable to refinance debts while vacancy rates soared.