Russian-Ukraine War’s Impact On Investment and Markets Ahead

Russia’s invasion of Ukraine has left almost everyone in shock across the globe. As the conflict escalates, things are becoming serious because the war in any part of the world impacts almost every region. Investors from every asset class and every country are concerned about tomorrow, as not just stocks are tumbling but the market is also dipping.

The aftermath of war

Before we start doing the aftermath of this war, it is crucial to understand that war can significantly impact major countries. Gold prices are increasing and so is the value of oil and the price of other key commodities are also spiking at an unbelievable rate. If we look at this ongoing war’s impact on the world, we can clearly say that war cannot do any good for anyone and we will also understand with time that how long-lasting the effects can be.

What do experts have to say?

One thing that every market expert and strategist suggests is that every business and real estate investor must keep calm and carry on. First of all, do not panic and do not take hasty investment decisions.

In a war-stricken region, it is not advisable to keep your assets as it takes long before the country and its economy get back on the path of recovery. Though the stock market tends to recover quickly but it takes a long for potential investors to start investing in tangible assets like the real estate sector.

Russia-Ukraine war’s impact on the broader market

Market rattling happens after the war or if any such crisis break-out anywhere in the world but no one talks about the short-lived and long-term impacts. It is historically observed that in any such scenario, the global market becomes resilient and the impacts tend to be short-lived.

According to Lindsey Bell, chief markets and money strategist, almost 12 months after such events – the market edges higher.

The market tends to be resilient in times of strife; the stock market may not provide you hedge in this time but a few asset classes such as real estate markets are likely to withstand the struggling phase.

Energy

As the tension escalates, Saudi Arabia and Qatar – the world’s top exporter of crude oil and one of the top liquefied natural gas LNG) exporters, respectively, have been experiencing higher demand for their energy supplies. According to experts, Qatar could redirect some gas exports to Europe to ease the energy strains. A few have stressed the importance of a faster crude oil supply and urged Saudi officials to pump crude oil and increase its production capacity.

Oil in spotlight

During this crisis, the price of crude oil has touched the value of $105 a barrel for the first time since 2014. However, if adjusted to the inflation, crude oil would need to top $120 a barrel to reach 2014 levels. The ripple effect will be felt across the world, in almost every consumer market – as now people will have to pay higher prices for the fuel.

Bottom line

Investing in real estate proves to be the safest bet and what better market can be than Dubai real estate for investment purpose. Seeing its 2021’s performance, the real estate sector has seen a record number of transactions – both in terms of numbers and value; it is worth the investment.

To make the most of your investment, you must know all about the top-performing areas and promising residential and commercial developments that can generate positive Return on Investment (ROI). To get your hands on the right investment opportunities, you must contact the team HFRE at +971 4876 2473 to discuss your investment plans and one of our team members will revert to you with the best available options, within your budget.

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