The global financial market on the rise

The world market for investing in real estate has reached epic proportions, breaking in 2013, the bar at 1.18 trillion and surpassing the record of 2012 was 22.6%, the biggest amount of investment after 2007.

Global investment in the world real estate market made a rebound in 2013 after many years of post-crisis stagnation. Against the backdrop of improving business sentiment in the property sector, the market has gained confidence, and excellent annual figures indicate that the market is their pre-crisis levels.

According to the forecast of the International investment magazine “Cushman & Wakefield’s”, in 2014 the amount of investment in the global real estate market will increase by 13% and reached the level of 1.33 trillion U.S. dollars. Confidence and improved liquidity, which was felt on the market in 2013, have given an impetus to the market tenants , as a result, the market began to flow additional assets , stimulating the growth of prices and investment activity.

The positive trend in the real estate markets was felt in all regions.

The Asian region experienced a strong rise is mainly due to China, Japan and Australia. The rise in these countries compensated for the fall in markets in Taiwan, India, South Korea, Hong Kong and Thailand.

In Europe, there was a diverse trend. Good growth was felt in Germany and the UK. The improvement shown by the real estate markets of Russia, Italy, Spain, the Netherlands and Belgium.

United Arab Emirates, Israel , Middle East countries and South Africa have experienced strong growth in 2013. France, Sweden and Poland showed results slightly exceeding the figures of 2012, While the markets in Switzerland, Denmark and Norway have worsened their data in 2013.

As Northern South America for the first time since 2009 saw a global growth investment. Excellent growth was observed in real estate markets of the United States , Mexico and Canada. The markets of Brazil and Argentina showed a decline.

Against the backdrop of good demand for the most successful real estate markets in North America, the UK there is a significant lack of objects. In such circumstances, investors are forced to seek other possibilities of application of their capital, choosing the Asian markets, the secondary market of the USA and southern Europe.

A new trend emerged in the sources of world investment capital. The main money bag of the world no longer are North American investors. There is a shift of trends towards investors in Asia and the Pacific. From investors in the Asia-Pacific region in 2013 was spent 88% more in various countries around the world. The share of North American investors is greatly reduced.

Another major player in the investment real estate market are the European pension funds.

But in their area of interest consists mainly of the real estate markets of the US and the UK.

In 2014, the U.S. real estate market and the UK is in for further growth. At least until then, until interest rates are increased.

The list of regions with geopolitical tensions such as the middle East, Thailand and now Ukraine, will create uncertainty in real estate markets in these countries and in neighbouring countries. Thus, the world real estate market waiting for a fairly complex multidirectional movement, for someone with the losses , for someone with income, but overall it is a strong improvement trend in the world.

® Helen Antre 12.03.2014

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