World real estate market broke record for 11 years

World real estate market broke record for 11 years

A “starting point” is important for price increase and dicrease. If the cost of the “square” is small relative to the salaries of local residents, rental income and prices in other cities of a similar scale, it means that sooner or later the growth will begin.

Analysts have named the leaders and the reasons for the growth

The volume of transactions in the world in the first quarter of 2018 increased by 15% compared with the same period in 2017 and reached a maximum in 11 years.

According to analysts at JLL, in monetary terms, the volume rose to $ 165 billion.

The main growth driver was the US market, where the result (“plus” 23%) was the highest since 2015.

The European region began with confidence in 2018: the volume of investment transactions remained at the level of 56.3 billion dollars, which is 18% higher than the average historical value of the first quarters.

The Asia-Pacific region overcame another maximum: the volume in the first quarter reached $ 40 billion, an increase of 34% year-on-year and surpassing the previous best result of 2008 by 22%.

Analysts called the countries with the highest increase in housing prices. These include Ireland, the Netherlands, Germany, Thailand and Mexico.

According to the results of the third quarter of 2018, housing prices increased most of all in comparison with the same period of 2017 in Malta (+ 12.86%), Hong Kong (+ 11.11%), the Netherlands (+ 8.45%), Singapore ( + 7.93%) and Ireland (+ 7.21%). Such data are contained in the Global Property Guide ranking, which includes 45 countries of the world.

The Philippines (+ 5.75%), Macau (+ 5.49%), Germany (+ 5.15%), and Thailand (+ 5.13%) and Mexico (+ 4.75%) are included in the second five. In Russia, housing prices rose slightly by 0.18%. Prices for houses and apartments in Europe rose in 14 of 24 countries.

The global market remains high activity and stable demand. At the same time, a slight decrease in investment is expected by 5-10%, to about 650 billion dollars by the end of 2018. This is happening against the background of the continuing shift in focus of investors from traditional transactions on the purchase of individual objects in the direction of new opportunities, such as debt financing, mergers and acquisitions, alternative real estate sectors.

But in Ukraine after the 2008 crisis, real estate is only getting cheaper. Ukrainians have been urged to invest money in real estate, calling this area one of the most promising, where money “works,” rather than lies “dead weight.” Today the situation has changed dramatically.

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