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As Values Drop, Here’s How To Catch A Falling Knife Without Getting Cut

Timing is everything.

As real estate values start to fall in the wake of rising interest rates and an economic slowdown, investors with cash to spend have opportunities.

Yet knowing when to buy in a falling market is one of the trickiest skills in real estate investing: Go too early, and possibly endure a period of further value falls that erodes returns. Go too late, and miss the opportunity to buy at low values.

Get it right, though, and be almost guaranteed strong returns when the market rebounds.

Bisnow spoke to six veteran investors about gauging when to buy, how to avoid going too early and, as the old saying goes, the proper way to catch a falling knife.

Here’s how, in their own words, lightly edited for style and clarity.

— Mike Phillips

August 1, 2022
Prestbury Chairman Nick Leslau +
Clearbell Senior Partner Manish Chande +
Seven Dials co-owner and Director Mickola Wilson +
Précis Capital Partners chief executive and co-founder Randeesh Sandhu +
Frogmore chief executive Jo Allen +
Moorfield Chief Investment Officer Charles Ferguson Davie +