The Era of Higher Rates is Behind Us

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Published on Business Today

The financial landscape has experienced a significant shift in recent times, with higher interest rates causing concern among borrowers. However, according to Michael Arougheti, President and CEO of Ares Management, there is good news on the horizon. In an interview with ‘Money Movers’, Arougheti shed light on how borrowers are managing the impact of higher rates, the challenges faced by the real estate sector, and his insights into the commercial real estate market.

Managing the Impact of Higher Rates

Arougheti revealed that the worst of the higher interest rates is now behind us. Borrowers have successfully adjusted their strategies to absorb the impact of these rates. This resilience has helped to stabilize the market and build confidence among industry participants. With a favorable economic outlook, borrowers are cautiously optimistic about the future.

Challenges in the Real Estate Sector

The real estate sector has been under stress due to the higher rates. However, Arougheti noted that these challenges are not insurmountable. The industry is adapting to the changing environment by exploring alternative financing options and adopting innovative solutions. This adaptability is vital in maintaining the stability and growth of the sector.

Insight into the Commercial Real Estate Market

Arougheti shared his perspective on the commercial real estate market. While acknowledging the impact of higher rates, he highlighted the resilience of the sector. The market has shown a remarkable ability to adjust and find new avenues for growth. Investors and borrowers are embracing innovative strategies to maximize returns and navigate the changing landscape successfully.

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In conclusion, the tumultuous era of higher interest rates appears to be behind us. Borrowers have demonstrated their ability to adapt and absorb the impact of these rates. The real estate sector, despite facing challenges, remains resilient and is actively exploring new opportunities for growth. As we move forward, it is essential for industry participants to stay informed, flexible, and innovative in order to seize the potential of the post-higher rates era.

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