The listed property sector is enjoying its best prospects since the pandemic period began five years ago as interest rates fall and a vicious cycle of plummeting commercial real estate values looks to be ending, according to UBS.

Turbocharging the rosy outlook is a serendipitous combination of factors: high costs have choked off construction across most sectors in recent years – from housing to office towers – just as demand grows or, in the case of office space, bounces back. That gives the owners and investors in existing real estate the upper hand.