The real estate market is one of the slowest markets to react to macroeconomic changes. But it is demographics that set the pace and that looks very bad in Japan and especially in Europe. So european real estate owners, get ready, it's going downhill soon as the continent follows Japan's demographic decline. Now that interest rates are rising across the board in Japan, real estate prices are likely to roll over. Then there will be a decade of deflationary adjustment, which will hit private households, mortgage holders and the banking sector.