Property prices are steadily increasing. Get an overview of the development of the real estate industry.
The real estate industry is considered an important part of the economy. Property prices are steadily and dramatically rising in most countries of the world. The International Monetary Fund (IMF) shows, how the prices of houses have developed the recent years worldwide.
Housing prices topped earnings and pensions of the population
In some countries, prices of houses rose more rapidly than the incomes of the population. It is particularly striking that house prices, particularly in Germany, New Zealand and Austria are well above the income of local residents. The cheapest properties, however, are in Spain (2015). Thus, an immense gap between the countries can be observed on housing prices. Also, the ratio of house prices and pensions is unbalanced, because housing prices rose faster in the past than people's retirement payments: Turkey especially stands out, followed by Germany and New Zealand.
The IMF has the property prices in view
The IMF wants to keep a check on housing prices, to avoid future problems, which were caused in the past by the real estate industry. So the real estate sector was the starting point of the financial crisis, said the IMF. The housing crisis proved especially critical in the US, which got the global financial and economic crisis rolling. This enormous crash had not been anticipated by any expert. The IMF website allows you to compare prices of homes in different countries. In addition, the property prices are set in relation to income and rents, so that real estate markets can be analyzed. After real estate prices had stagnated initially after the financial crisis, the IMF now confirms that prices in most countries are starting to rise again.
Germany, as the largest source of wealthy investors
Germany acts as a trusted source of wealthy estate investors worldwide: 945 Billion US $ is Germany accounts for 18% of the world investment in the real estate industry. Here Germany supersedes Switzerland and the United States, which are generally considered the most prosperous countries. Especially in the cities of Frankfurt, Munich and Hamburg there is a number of wealthy investors who make part of Germany's enormous contribution to the real estate industry.
The secret gold mines of the property market
Not only Germany is proving to be a bonanza of real estate industry. In the future, cities such as Melbourne, Tel Aviv and Chicago could take the places of successful real estate markets in the world metropolises. The Candy Global Prime Sector Report, real estate companies like Candy & Candy, Savills World Research and German Asset & Wealth Management show which factors will be decisive. Especially important prerequisites for the success of these cities is the presence of new high-tech industries and financial centers, a favorable environment for international companies, English as a first or second language and a young and well-educated population. Especially attractive are cities such as Tel Aviv, Melbourne and Chicago, as the price level compared to world cities was significantly lower. Considering these aspects, these cities remain accessible for real estate investors.
Nick Candy: "Investors are looking for real estate investment opportunities outside of the world metropolises."
Nick Candy, CEO of Candy & Candy explains why investors will be based in cities like Tel Aviv and Chicago in the future: "Currently investors are looking for new investment opportunities beyond the established safe havens and world cities." Now investors search more and more for new locations that lay aside the usual world metropolises: "Our customers UHNW (ultra-high-net-worth individual) are increasingly looking for locations outside of the mainstream, to expand their property portfolios."
40% of global real estate assets come u. A. from Germany
Especially the UHNW customers from Germany, Japan and the United States were particularly active in the real estate investments. Nearly 40% of the global real estate assets of high net worth customers are due to these countries, study authors of the report confirm. Particularly Hong Kong, London, Moscow, Singapore and New York have benefited from private real estate investments. $ 2.2 trillion of the global real estate assets of the extremely wealthy go can be attributed to the account of these five cities.
The development of the transaction volume in the real estate investment market in Germany
Generally, an increase in the aspect of investment volume on the part of the market of commercial real estate investments as well as on the German real estate investment market could be observed in recent years. Especially office properties were among the most sought after investment properties. A popular asset class in the housing market are also existing real estate portfolios. In the future, the investment in real estate will rise: on the German real estate investment market the transaction volume of around 62-65 billion euros is forecasted for 2016.