Forecast of development of the global real estate market in 2012

09.12.2011 11:28
Real Estate Market Analysis | Forecast of development of the global real estate market in 2012 Analysts Knight Frank talked about how they see the immediate future of the world property market. Despite economic difficulties in most major cities in Europe and U.S. house prices in 2012 will grow.

Major trends in the global market

Experts estimate that price increase will occur in 44% of the studied cities, but will share the same cities, where house prices will fall. In the remaining 12% of the cost of settlements did not significantly change.

Related article: Real estate prices continue to fall in Ukraine


The world market is growing importance of real estate, because in this segment of the rapidly increasing number of potential buyers. Judging by the forecasts, the number of millionaires in the world by 2020 will almost double, and their total assets reached 202 trillion dollars. Wealthy people increasingly regard the investment in real estate as a profitable investment.

Analysts believe that higher prices are needed for:

The growing number of large private investors, including foreign ones;
Limited supply;
The overall economic recovery.

The first factor is particularly evident in London and Paris, the second - the same place, as well as in Moscow, Nairobi and Kuala Lumpur, the third - in Beijing. In all these cities are expected to rise in price is stable.

Decline in prices is observed, mainly in Asia. Government of China and Singapore have taken so vigorously "cooling" measures to contain price increases, with the result that the cost of housing in those markets began to fall sharply.

Prices in 2012

Market has developed unevenly. This is evident not only globally, but on a scale of one part of the world. For example, if we talk about Europe, then in Geneva and Madrid are expected to fall, and in Moscow and Paris - rapid growth. Price growth will be negative in the major Asian cities like Ho Chi Minh City, Hanoi, Singapore, Shanghai, Mumbai and Hong Kong. However, the Beijing housing price will rise by 5-10%.

Can not forecast to come true?

The forecast, presented by Knight Frank, - this is the most probable variant of the market. But there are factors that can make a difference.

For example, flooding in Bangkok, which occurred in October-November 2011, strongly influenced by market conditions. Maybe this disaster will be the reason for the decline of interest in real estate in the Thai capital. Because of the "cooling" measures the housing sector in Singapore and Beijing could do worse than expected by experts. The unstable political situation in Russia and some countries in Africa and the Middle East could also adversely affect the real estate market.

If we talk about growth rates, high inflation and debts on loans, these factors are unlikely to significantly affect the development of the market, because for the most affluent buyers, they are not important.

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Content tags: Housing Market Forecast
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