How will 2020 turn out for the real estate market?/
It is interesting to see how different forecasts by analysts of the world’s real estate are confirmed or not. In 2020, the demand for housing was growing. Thus, the International Monetary Fund (IMF) expected growth of about 3.4% for the global housing sector (compared to 3% last year).
According to forecasts, developed markets in developed countries will show greater growth than developing countries. In developed countries, real estate growth has been more focused on offices and industrial premises.
As for the European market, in recent years there have been changes to it. According to a survey by PwC and the Urban Land Institute, 2020 was supposed to be very active in European real estate. In some countries, however, political fluctuations and uncertainties have occurred, and construction costs have increased. But this does not deter investors, but attracts, as do low-interest rates and people’s genuine optimism.
The attractiveness of real estate is particularly associated with the monetary environment. Central Europe comes to the fore, where there is an influx of foreign investors who are particularly interested in office and commercial real estate.
As for the UK, after leaving Brexit, the weakening of the pound and low house prices have caused the housing sector to attract various investors.
If you look broader and look at the economies of other countries, it is impossible not to note the growing economy of Southeast Asia. Some of the main investors are residents of the United States and China, who are developing their global assets.
The commercial real estate market in Asia is developing, and it is estimated that growth will continue in 2020. Experts confirm that there is a positive growth trend in the Asia-Pacific region. In this region, 8 cities made it into the top 30 cities for investment in commercial real estate. As for foreign investments, they are also growing; 35% of the total volume falls on them. Capital inflows also increased in percentage terms and it is expected that they will increase in 2020.
The National Association of Realtors said that sales of new homes could increase by 11%, leading to a 13-year high. The market will become more competitive in the first half of 2020, and at the end of the year, offers would decrease.
This is what experts predicted for 2020, but now the situation could change radically. Despite the fact that real estate is stable, its future is still unknown.
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