Impact of Rising Mortgage Default Rates on Real Estate Investors

The podcast highlights the rise in mortgage default rates globally, posing challenges for banks, insurance companies, and pension funds that lent money to real estate investors. Real estate investors, especially in commercial properties, heavily rely on leverage to boost returns, leading to potential financial risks when mortgage payments come due. Changes in work patterns post-pandemic have affected office real estate investors, with reduced demand for office spaces impacting property values and rental performance.