MAINLY FOR STUDENTS Understanding property cycles can make or break investors and their advisers. Here Andrea Carpenter, author of High Rise and Fall, illustrates how the market can expand and contract over time.
What does a property cycle really look like? With the market in the later part of the current cycle, EG charts an historic perspective on the industry’s evolution. S
tarting in the mid-1990s and rolling on through until 2012, this is the cycle that took the industry through the global financial crisis. It was a period of momentous change, seeing the establishment of opportunity, or private equity, investing on an organised scale by the Americans, the establishment of the European fund management industry and greater use of and innovation in debt.
It might be history, but the fallout of the Lehman crash still affects the industry today.
Click here to see larger version of the timeline
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Andrea Carpenter is the author of High Rise and Fall: the making of the European real estate market, published by Routledge. Buy from www.routledge.com and use the code FLR40 for a 20% discount.
