Where the real estate growth in the country has been fickle, the property market worldwide has been no different. There were times when investors didn’t wince while buying or leasing property in London or New York. Properties in London, New York, Paris, Hong Kong and Shanghai were selling like hot cakes. And then the terror struck in 2008, and the housing markets around the world tumbled like so many dominos.
As the financial crisis tears its way into a fifth year, the global property industry has found some appeasement with some optimism returning to the sector. With the perceived reduction in macroeconomic risks and some improvement in debt markets around the globe, the search for yield is low, interest rate environment is somewhat supporting the investor activity. As such, the analysts are expecting a rebound in the sector in 2013 with growth reaching over 10 percent over 2012.
However, this does not mean that things are going to be similar to what they were like back in 2007. While it may take a couple of years for the so-called safe havens like London and New York to continue to provide the best safeguards for property investment due to the economic conditions, some emerging markets’ staggering performance spellbind real estate investors, renters and analysts.
In its recent Property Barometer of 2012, IP Global has given some surprising revelation about the hottest picks for global investors based on their performance and forecasts. Where sun will shine bright for Turkey’s Istanbul, the group sees cloudy skies for Singapore!
Figures show that Turkey is expected to grow at a staggering 6.7 percent GDP growth rate in the OECD by 2017. Both housing market and rentals in Istanbul have seen double digit growth figures recently and the outlook for the city is bright due to relaxed government regulations and better economic growth.
Where Istanbul is a hot pick for its growth and rise in housing market, Australia’s Perth cannot be ignored for it has been under limelight for its high GDP growth underpinned by the booming mining sector and improving employment figure.
Wise investors would like to stay far away cities spotted to have a cloudy investment climate in the Property Barometer 2012. Property prices in coastal Spain continued to decline through 2012 to levels as low as those reached in 2002 on account of grim economic upshots and increasing unemployment. On the other hand, government’s attempts to cool Singapore’s market are expected to keep the pressures on prices for some time.
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BRIGHT FAIR CLOUDY
INVESTMENT INVESTMENT INVESTMENT
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Turkey Mangolia Coastal Spain
Perth Paris Miami
Boston Los Angeles Singapore
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