As we all know, the pulse of the developed markets will still rely on the evolution of inflation and the measures adopted by central Banks in terms of interest rates. In 2022 we left behind a world of 0, and even negative rates in Eu- rope, and moved to historically high hikes to control inflation. Now, we enter 2023 where, at least for the first half of the year, rates are expected to continue to rise, albeit more moderately. When evaluating a developed real estate market such as those in the U.S. or Europe, as most investments are leveraged, it is key to com- pare the rate of return on rental assets versus the interest rate on mortgage loans. Today, in most cases, this ratio in the USA is turn- ing negative, therefore, it is probable that the market will continue to contract and adjust for the excess appreciation seen during 2021 and the first half of 2022. On the other hand, we see an opportunity in Europe: there, the post- pandemic appreciation rates were moderate and the interest rates, even though they increased, are still relatively low compared to the USA. This generates the possibility of obtaining some positive re- turn both on the capital invested and the debt taken on. The strategy that generates more value is related to the acquisition of distressed properties For instance, in a market such as Spain, which did not experience a great boom and the strong appreciation seen in the USA, and which will continue with reasonable interest rates and positive returns, will still be an attractive market. 82 FEATURED ARTICLES