Ridalio, a billionaire investor and founder of Bridgewater Associates, warns that real estate may not be an effective investment in 2025, and that the sector could struggle to provide strong returns.
According to Dario, the current economic situation makes property ownership less attractive compared to other investment options.
In an X post on August 11th, he pointed to an increasing sensitivity of assets to interest rates, noting that rising interest rates could actually erode value despite persistent inflation concerns.
Dario also highlighted the tax burden as an important drawback. Real estate is a fixed, concrete asset, so it is easy for the government to tax, eat up investors' returns and limit its role in portfolio diversification.
Furthermore, he argued that the immobility of property limits the ability of investors to quickly redistribute capital in response to changing market conditions.
Analysts argue that record gaps, due to high mortgage rates, affordability challenges and economic uncertainty, are dictating the cooling market.
Meanwhile, Dario has recently expanded its warning beyond real estate, warning that the US and the global economy could face “worst than a recession” amid the breakdown of financial, political and geopolitical systems.
He argued that without fiscal reform, the US could face a crisis with worse outcomes and demand for debt supply, particularly without reducing the federal deficit to about 3% of GDP.
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