How War, Interest Rates, and Global Turmoil Are Shaping Real Estate

In a world where war in the Middle East escalates, oil prices climb, and interest rates remain sticky, investors are left wondering: What does this all mean for real estate?

Here’s the truth geopolitical conflict doesn’t just affect military strategy. It changes the entire investment landscape. From central bank decisions to lending environments, it alters where capital flows, how buyers behave, and what types of assets become resilient or risky.

Now more than ever, investors need a lens that’s both global and hyper-local. That’s what we do at NNG Capital Fund analyze the macro, act on the micro.

The Global Picture: War, Inflation, and Interest Rates

With the Israel-Iran conflict intensifying and global markets rattled, here’s what’s unfolding:

• Rising oil prices from instability in the Middle East are stoking inflation concerns.
• The Fed is hesitant to cut rates, keeping interest rates elevated longer than many expected.
• Cost of capital remains high, and real estate investors are adapting or exiting.
• Safe haven demand rises capital shifts into hard assets like real estate and gold.

Translation for real estate:

• Borrowing remains expensive.
• Only quality operators with sound fundamentals can thrive.
• Value is found in distressed acquisitions, strong cash flow, and low cost-basis strategies.

Why This Matters for Real Estate

At the macro level, these forces are expanding cap rates and exposing overleveraged owners. But real estate isn’t a monolith it behaves differently across asset classes and geographies.

We’re finding success in two very different, but very strategic, markets:

Northern New Jersey: Luxury That Moves

Even with elevated rates, the luxury buyer hasn’t left the room. Why?

Because they’re:

• Well-capitalized (often paying cash or using jumbo financing).
• Driven by lifestyle, privacy, and turnkey design, not rate sensitivity.
• Moving out of NYC into high-quality towns with top schools and vibrant communities.

Our most recent success?

We just put one of our luxury spec homes under contract for over $2 million after just 45 days on market a testament to targeted design, smart execution, and disciplined market knowledge.

We’re focused on high-demand towns like:

• Millburn, Montclair, Chatham, and Summit
• Median sale prices: $1.2M–$2.5M+
• Strong absorption for homes that are fully renovated, modernized, and move-in ready

We buy off-market, redesign with luxury in mind, and list during strategic windows for maximum impact.

Middle Georgia: Workforce Housing That Performs

In contrast to the luxury space, we’re also aggressively investing in value-add multifamily in Middle Georgia where the fundamentals are quietly strong and the upside is substantial.

Here’s why we’re bullish:

• Macon-Bibb County and Houston County are growing due to job creation from Amazon, GEICO, and Robins Air Force Base.
• Rent growth remains steady at 2.3% YoY, with room for further increases through renovations.
• Occupancy rates around 88.5% present opportunity for repositioning and operational efficiency.
• Acquisition cost is low, and the spread between cap rate and interest rate can be preserved with proper underwriting.

We focus on:

• 100+ unit assets, C+/B- class, built post-1975
• Renovations that modernize interiors and add smart tech
• Creating lifestyle amenities like dog parks, fitness centers, and upgraded laundry rooms
• Stabilizing with professional management and tenant engagement to increase occupancy and retention

Why We’re Doubling Down Even During Global Uncertainty

Because this moment presents a once-in-a-decade dislocation. The combination of fear, rate pressure, and economic headlines is driving many operators to sell cheap.

We’re mitigating risk through:

• Fixed-rate debt with rate caps
• Stress-tested underwriting on rent, cap rates, and renovation timelines
• Hands-on management, both on our luxury flips and workforce housing
• Local market mastery in both NJ and GA

This isn’t speculation. This is strategy.

Final Thoughts: In Chaos, There’s Clarity

Global war, elevated rates, media panic all of it is real. But so are the underlying fundamentals in markets like Northern NJ and Middle GA.

We’re not afraid of disruption we’re trained for it.

And when you combine:

• A value-driven approach
• Deep local knowledge
• Proven execution
• And a clear eye on global macro forces…

You create opportunity.

If you’re an accredited investor looking to align with experienced operators who are actively deploying capital in today’s market not waiting on the sidelines we invite you to connect.

Learn more at nngcapitalfund.com

Real assets. Real execution. Real returns.