I
nvestors with pre-determined exit strategies can find themselves in a difficult position if currency fluctuations aren't favorable. Those who bought late-cycle properties in 2019 may now need to reassess their divestment plans, considering factors like market shifts and foreign buyer demand.

    Sellers also face challenges when deciding the best time to repatriate sale proceeds. If the local currency is weak, converting foreign currency can result in higher returns. For instance, Japanese investors who bought UK properties have seen significant gains over the past four years, but since the summer, the yen's appreciation may make it a good time to sell.

    Currency fluctuations are also affecting financing costs. Investors are becoming more aware of exchange rate risks when borrowing in foreign currencies. If the local currency depreciates against the debt currency, repayment obligations can increase. However, this risk can be mitigated through hedging strategies or by obtaining financing in the same currency as the property purchase.

    Recent market volatility and central bank decisions have created a surge in demand for data and insight among both buyers and sellers.