18 Sept 2012

How Will Global Real Estate Emerge From the Economic Slump?

One of the biggest features of the current global economic crisis has been how real estate markets across the world have been decimated. This has led to several consequences, from families ending up homeless to businesses going bust, and property investors losing almost everything or making huge losses.

Unfortunately the global real estate sector has yet to fully show any signs of recovery in what is still a volatile marketplace. Part of the reason for this has been the general continued stagnation of global markets overall. What needs to happen across the world for the global real estate markets to begin to perform once again?

Crises Solved
As ridiculous as it sounds to say so, the problems in Greece at the moment currently have everybody in limbo with regards to their finances. For real estate to become the lucrative commodity that it once was, there will need to be an increased confidence in the financial markets as a whole, and that is unlikely to happen until the Eurozone and in particular the Greek economic situation is sorted out decisively.
Thankfully, there is action that can be taken without relying on one country to sort itself out first.

Invest or Buy
Whether you invest in properties as part of an investment fund or buy yourself, it doesn’t matter. The bottom line is that such interest will revive demand in the global real estate markets and begin to push the prices up. Of course, a few wealthy investors who put their money into real estate next week is not going to simply drive up the price, however over time there will undoubtedly be significant gains to be had.
At the same time, where you choose to look for property investments is just as crucial, as not everywhere is suffering the same slump or operating under the same conditions.

Expanding Horizons
While a general increase in demand from property investors will help to push up the price, the smarter investor will be looking at emerging real estate markets, fully understanding that this is where the biggest and best returns will be had during the long term.
Naturally in a struggling market the indicators are saying buy low and you almost cannot lose. However, focussing on countries and cities that are currently undergoing great regeneration, Turkey and Thailand would be two such examples, will enable investors to make the most of their initial outlay and capitalise once the market is once again thriving.
The advantage of places such as Turkey and Thailand is that there are wide ranging opportunities in both commercial and residential properties.

This is a guest post from Harworth Estates. Harworth Estates are one of the largest landowners in the UK. Whether interested in a commercial property for sale or an industrial unit to let, their large portfolio of assets meets all needs.

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