Property Cycle

A property cycle can be seen as a logical sequence of recurrent events reflected in factors such as fluctuating prices, vacancies, rentals and demand in the property market. Business and economic cycles typically last over a decade and property cycles in different sectors are influenced by them.

There are in fact two different property cycles, the first being the physical cycle of demand and supply, which determines vacancy that, in turn, drives rents and the second being the financial cycle where capital flows affect prices.