Published:
Across the world, there are a wide variety of resources needed to successfully operate a business. Many people may be quick to name equipment, technology, wealth, and labor as key resources. However, a resource that is often overlooked is land. Land along with buildings located on the property make up real estate. The global real estate market holds great importance for businesses and people around the world involved in the buying and selling of property. This week the globalEDGE blog team will explore several aspects of the global real estate market including private real estate and green construction. This post will take a look inside the international housing market and the market characteristics of several different countries.
Overall, the world’s housing market continues to struggle with prices falling in many countries including Australia, Israel, Ireland, and the United States. With property prices in China falling, there is also speculation that this market decline could cause some long term problems for the economy. A study prepared by the Global Property Guide showed that housing prices fell in 25 out of 44 major countries. However, some countries experienced growth in their housing markets this past year. Two of these countries, Brazil and India, are considered major emerging economies and their housing markets have grown right alongside their economy. Housing prices in Brazil were up nearly 6 percent in 2011 quite possibly because Brazil is the next host country for the 2014 FIFA World Cup and the 2016 Summer Olympics. In India, there were strong price increases for housing in almost all major cities.
While Europe has had mixed results in the housing market, one particular country has been able to achieve consistent price growth. The real estate market in Germany was relatively unaffected by the global financial crisis, mainly because the banks followed a conservative lending approach and did not create a housing bubble. Home prices in Germany have increased about 5 percent annually since 2008 but now some areas in Germany have seen increases as much as 15 percent. Germany’s housing market has attracted foreign investments from many countries abroad including the United Kingdom, Japan, and several Middle Eastern countries.
As part of the Global Real Estate Blog Series, we will also take a look at the green construction trend in the global market and different aspects of commercial real estate around the world. Additionally, the February Newsletter features global real estate and the impacts of rising farmland prices on countries around the world. We encourage you to check out February’s newsletter and the rest of the blog series, hope you enjoy!
File under
Share this article
