A View of the Global Real Estate Price

Sujan Afi S

Introduction

Some of us want to have a house in a foreign land. We often say to ourselves, “I wish I had a house in Switzerland!” 

When you can dream, then dare to act too! 

Are you the one looking for investing in an international real estate market and confused about the prices? Then you are in the right place as we are going to discuss the prices of real estate property worldwide!

The prices of real estate property are largely influenced by location. Therefore, it seems quite common that with the change of country or region the value of real estate prices will also change. Even within a country the value of the property changes with the change of location. In general, real estate property value is comparatively higher in the capital area, city and urban area, etc. On the other hand, it is comparatively less in rural areas.

The difference in global real estate price

Although not all countries allow you to invest in the market of their real estate sector several countries welcome you to invest. However, you need to compare the prices of real estate property across various countries. Through this comparison, you will be able to understand the price of various locations worldwide. Thus, you can choose a location at your convenience. 

The price of real estate property is comparatively high in developed countries like the USA, UK, France, Japan, Canada, Italy, etc. Most of the European countries have higher real estate prices. The countries where the per capita income and GDP is relatively high have higher prices for real estate property. The economic condition of such places is relatively good and it influences their lifestyle. On the other hand, the developing and less developed countries like the African countries, Central American countries, and Asian countries like Bangladesh, Pakistan, India, Nepal, etc. have comparatively low prices for real estate property.

Expensive Location around the world

The average price of per square meter real estate property in Monaco is above 50, 000 USD which is the highest among various countries and locations of the world. 

The price of the property in the UK, France, Switzerland, Hong Kong, Russia, USA, Singapore etc. is quite high. These places appear in the list of the top ten most expensive real estate countries in the world. Besides the local as well as the international demand for property in these places have contributed to the increase in the price of the property in these areas. For example, the average price per square meter of real estate property in the city of London is over 30,000 USD!

Cities like Hong Kong also have very high real estate prices. You need to pay at least 20,000 USD per square meter of real estate property in Hong Kong. In Singapore, the average price of the real estate sector is around 20,00 USD per square meter.

Trends of real estate market after the great economic depression of 2008

During the time of economic depression of 2008, the global real estate market got affected significantly. The prices of the real estate market went down significantly across the globe. After this crisis, the prices of the global real estate market again increased throughout the globe. American property market observed a 12% increase in the price of the real estate sector in 2013. Along with that the prices of the real estate market steadily increased in countries like Switzerland, Austria, Germany, Canada, South Africa, Munich, etc. The average price per square meter property in Munich is now around 15,000 USD!

Most of the southern European countries like Spain, Portugal, the Netherland, Norway, Ireland, etc. have observed a continuous decline in the price of the real estate market since the great economic crisis of 2008. Spain, for instance, has experienced around a 30% fall in the price of the real estate sector since 2008. Even many European countries have launched a golden visa scheme to promote their real estate market. 

Although the average price of the real estate market of Japan is quite high a price decline is witnessed in the past few decades. Although it has increased slightly higher after 2013 it is not enough for increasing the overall condition of the real estate sector of the country.

However, Brazil represents the most expensive real estate market of the Latin American continent. In Brazil, the average price per square meter real estate property is above 4,000 USD whereas in Ecuador it is around 1,000 USD. The real estate market of Brazil has experienced continuous steady growth since 2008.

Covid – 19 and global real estate prices

During the initial stage of Covid – 19, the price of the real estate sector got down globally. Along with a sharp fall in the price of real estate property, a decline in the size of the market was also observed throughout the globe, especially during the time of lockdown. Lockdown in various countries significantly reduced the economic activity of the countries. This was associated with the negative or slow growth of the country. This negative or slow growth of the country was largely responsible for the fall of prices of the global real estate sector. But after the initial setback, the economic growth increased across the globe at a higher rate. At present, the value of real estate prices also increased globally.

Conclusion

The value of global real estate prices differs significantly with the change in location and time. Therefore, to make your investment profitable you need to do deep research on the global real estate prices and their trends. Many local and global factors are associated with the price of the global real estate sector. You need to analyse them carefully before investing. Normally the countries where per capita income is higher have a high price for real estate properties than the countries having low per capita income. 

I hope that I have been able to give a brief idea about the trend that goes on at present around the world. However, it is always better to consult with an expert real estate agent before taking any kind of decision, as it is going to be a big investment. Roodland is the one-stop solution for all your questions related to real estate. The experts will not only help you choose the best location to buy your dream home but also give you proper guidance regarding other matters too! So, drop a mail at info@roodland.com to reach our experts at the earliest! 

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