The roller coaster of prices: the world situation
As you know, our latest updates mainly concern how the international real estate market is defending itself against the Covid emergency. Today, we at Realigro have decided to inform you about the sudden change in prices, which is affecting most major cities. So, here is a brief but interesting analysis about the above mentioned topic. So, if you are ready and eager to know more, we can inaugurate our mini-guide!
We assume that the news is the best. In fact, the global price index has fallen worryingly, especially in recent months. The consequences of this have been the annual growth rate of the real estate sector, which has reached 3 %. The lowest ever recorded in history. It is not surprising, of course, that the portfolio dedicated to real estate investments is currently empty. The signs of weakening performance are to be attributed to the general insecurity that produced the instability caused by the Covid emergency. In particular, the percentage relative to the number of cities involved in this tragic fall in prices has fallen. It has gone from 15% of metropolises to 50%. A considerable gap, which seems to have literally paralysed every potential customer. The luxury sector is also worrying. Unlike what was recorded at the beginning of the pandemic (we are talking about the period from March to May 2020), the luxury segment is now also threatened by external criticalities. What does this mean?
There are basically two factors. The first is a frightening devaluation or an excessive increase in the prices of reference properties. Diametrically opposed choices but with the same objective. That is to raise the market. The second, the fear of not being able to make a safe investment, because of the primary expenses that, even for an extremely well-off person, can increase in a period of total closure. Analysing in detail the ranking of the most affected cities in the world, we can identify in the first places, the Turkish realities, characterized by a very limited offer and the weakening of the Turkish Lira.
To this is added the sudden increase in population in this country, which has generated a disorientation and social, economic and environmental imbalance. Following this, European cities emerge, among which Luxembourg stands out positively. It is the only country that has seen an increase of 14%. Swedish cities, on the other hand, which are famous for not having suffered a formal blockade, are characterised by a growth, albeit slight, in prices and income. Was it a winning move not to apply any lockdowns? According to the data collected, probably yes. In short, in general, the critical situation is the common thread that unites every nation. Regardless of government policy and restrictions more or less incisive to deal with the global emergency. What will happen in the coming months remains a dilemma. As always, we at Realigro will continue to keep you up to date on the possible repercussions in the real estate market!
We assume that the news is the best. In fact, the global price index has fallen worryingly, especially in recent months. The consequences of this have been the annual growth rate of the real estate sector, which has reached 3 %. The lowest ever recorded in history. It is not surprising, of course, that the portfolio dedicated to real estate investments is currently empty. The signs of weakening performance are to be attributed to the general insecurity that produced the instability caused by the Covid emergency. In particular, the percentage relative to the number of cities involved in this tragic fall in prices has fallen. It has gone from 15% of metropolises to 50%. A considerable gap, which seems to have literally paralysed every potential customer. The luxury sector is also worrying. Unlike what was recorded at the beginning of the pandemic (we are talking about the period from March to May 2020), the luxury segment is now also threatened by external criticalities. What does this mean?
There are basically two factors. The first is a frightening devaluation or an excessive increase in the prices of reference properties. Diametrically opposed choices but with the same objective. That is to raise the market. The second, the fear of not being able to make a safe investment, because of the primary expenses that, even for an extremely well-off person, can increase in a period of total closure. Analysing in detail the ranking of the most affected cities in the world, we can identify in the first places, the Turkish realities, characterized by a very limited offer and the weakening of the Turkish Lira.
To this is added the sudden increase in population in this country, which has generated a disorientation and social, economic and environmental imbalance. Following this, European cities emerge, among which Luxembourg stands out positively. It is the only country that has seen an increase of 14%. Swedish cities, on the other hand, which are famous for not having suffered a formal blockade, are characterised by a growth, albeit slight, in prices and income. Was it a winning move not to apply any lockdowns? According to the data collected, probably yes. In short, in general, the critical situation is the common thread that unites every nation. Regardless of government policy and restrictions more or less incisive to deal with the global emergency. What will happen in the coming months remains a dilemma. As always, we at Realigro will continue to keep you up to date on the possible repercussions in the real estate market!
