The first quarter of 2019 has unraveled a few important real estate facts across the world. The prices of real estate in Singapore, Madrid, and Tokyo have witnessed a jump of almost 8-10 per cent with a constant surge in requirement too. Simultaneously real estate prices in Dubai and London are seeing a major dip with the demand for these locations drying up too. On the other hand the real estate market in European Union (EU) has been relatively steady & positive. 

Germany real estate stands out as a shining example in EU and real estate in Berlin has performed exceptionally well in 2018 and the outlook remains very good even in the year 2019.

As per the latest report from the real estate analysts at The International Luxury Property Expo there is a paradigm shift in the investment pattern of real estate investors and the preferred real estate investment locations across the globe are changing.

Not surprisingly the most favored real estate investment destinations are those countries which have experienced stability & increase in real estate prices over the recent years.

 

Some very strong cases in point are those of the following countries:

Singapore

A very stable economy and a robust real estate environment has ensured that the investment in real estate in Singapore has multiplied handsomely. Luxury real estate in Singapore has seen an increase by a whopping 11.5 percent and it seems that this positive story will continue for some time to come.

 

Tokyo

Like its South East Asia neighbor, the capital of Japan has scored heavily and real estate investment in Tokyo especially in luxury properties have shown a positive growth. Luxury property prices in Tokyo have seen an increase of above 9 per cent and luxury real estate investors seem to be paying a lot of attention to Tokyo as a real estate investment destination.

 

Beijing

Not too far behind, Beijing which is definitely becoming a global city has also witnessed good momentum in terms of property price rise and investor interest.  With a decent increase of almost 7 percent and above in terms of prices, Beijing real estate values are definitely attracting global luxury investors today.

 

Germany

On the European side of the story, the ILPE events in 2018 witnessed a lot of property and real estate investors indicating their liking for real estate in Spain & conveying their sentiments to invest there too. The fact that there has been a major upsurge in real estate prices in Madrid amounting to more than 10 percent definitely validates the observations at the IELPE 2018 events.

Germany holds on to its top position in terms of being the most preferred real estate investment location in Europe due to a lot of strong reasons. Germany economy has been robust and the fair & transparent taxation structure in place has encouraged growth there.

Another strong indicator is the fact that here has been a jaw dropping Euro 57.5 billion investment in German real estate in the last year of 2018. This extraordinary quantum of investment confirms the confidence that real estate investors have in Germany currently. It is therefore no surprise that at the IELPE events, from among the EU countries, Germany real estate has garnered the maximum number of enquiries from potential buyers and investors.

Recent years have been a little rough for European Union as a whole in terms of real estate growth as well as investments. The affluent and high net worth investors have always shown an affinity towards Europe when it comes to luxury property investment or real estate investment in general. However the year 2017 was a tough one on European real estate & other businesses due to various concerning factors including the French & German elections but Brexit was definitely the biggest worrying factor for sure. 

Pleasantly and surprisingly 2018 saw a turnaround of sorts and real estate prices recovered slightly. There was a notable increase in luxury real estate values in some European markets especially.For example Berlin real estate & property prices increased by a healthy 8.5% and Paris real estate in beautiful country of France saw a decent 6% price rise. As of today, some of the most expensive European real estate can be traced in the mesmerizing European country of Monaco, where the average real estate price is USD 62.5 on every square metre.

The good news is that overall the entire EU region has seen a good 6% growth in luxury real estate & high end properties over the past year. 

Also when it comes to safe property investment Western Europe is still the hot favorite amongst property investors who still believe that it is a secure investment option for real estate.

 

Political instability effecting real estate: 


Certain key real estate markets including important luxury property hubs have seen some tough times due to the political climate around. For example, London real estate, an evergreen favorite with every real estate investor globally has lost its sheen by almost 1.8%. The capital of Turkey, Istanbul has also witnessed its real estate prices erode by 2.4% and there has been a 6.2% downfall in the real estate market in Vancouver, Canada.

 

DIP in UAE – Dubai market:


There has been a gradual decrease in UAE real estate prices and also the real estate investor confidence to invest in Dubai. An average decrease of about 6% in real estate prices have dented investor confidence and real estate investors should definitely do a lot of due diligence before investing Dubai properties today. 

There is still a positive side to the Dubai real estate story and that is that a good number of property deals are still happening and the UAE property markets are expected to rebound on the strength of various factors including Expo 2020 – a global business event that is going to be held in Dubai shortly.

 

Forecast & Real Estate Highlights for 2019


ILPE analysts & experts point out some key factors & issues that would impact luxury real estate in 2019.

  • Investor inclination towards luxury holiday rental apartments is increasing. This interest includes countries in Europe like Italy and Spain. It also includes some countries of Asia including Thailand.
  • One has to tread carefully & diligently, especially in the beginning half of 2019, when it comes to UK & London real estate investments due the Brexit vote factor.
  • There has been a steady withdrawal of European money from markets and investments have been consistently increasing from Asia and CIS countries. Some of the noteworthy countries from this lot include China, Hong Kong, India, Russia, and Azerbaijan.
  • Transaction volumes in under construction, off plan properties and pre construction real estate has been on the rise and investors are showing their preference for good deals in this segment.


About ILPE:


One of the big names in the world of luxury real estate exhibitions globally, ILPE  is definitely a giant in its category. It is a series of powerful B2C exhibitions dedicated to luxury properties & investments that are organized across the globe. Some of the prominent locations that ILPE has been successfully staged include Cannes, Shanghai, Mumbai, Moscow, Bangkok, and others.Meticulously planned with utmost attention to details and with a lot of highly impactful marketing, every IELP attracts some high net worth individuals and prestigious investors from across the world.

 

ILPE Monaco, 2019


The humongous Monaco International Luxury Property Expo 2019 has been planned and would be conducted on 15-16 May in Monaco’s Grimaldi Forum. Monaco is an ultimate destination when it comes to luxury, style and high end real estate. There will be 200 developers and 1,000 individual investors from 80 countries coming concurrently on a single platform.

The team at ILPE works closely & directly with private investors and has its focus on global real estate all the time.

All the statistics have been shared by the ILPE analytical services team.



About the author
Suhas Kataria

Founder and CEO of Realspace Assets LLP, a seasoned industry hand with hands on work experience of more than 15 years’ in real estate. He has also managed to put in place a highly organised core team consisting of deal makers, real estate marketing professionals, computer programmers, web .

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