Individuals who have decided to invest in property around the world will be pleased by the latest statistics to have been released by Global Property Guide. After the majority of countries around the world saw massive falls in value as the economic crisis took hold, many are now entering a phase of recovery.
According to its most recent survey, the global housing bust is "effectively over", with 19 out of the 36 countries experiencing price increases during the first quarter of 2010. Furthermore, out of the 15 countries which saw falling values during the same period, eight saw the falls happen at a slower rate compared to the year before.
However, real estate investment opportunities
in certain destinations, such as Ireland, Bulgaria and Thailand, are unlikely in the near future, the report claims.
Spotlight on European Recovery
The majority of European countries have been enjoying strong house price growth over the course of the past year. Nordic countries including Finland and Norway performed well, with 11.03 per cent and 7.65 per cent house value increases respectively, and are expected to continue on their impressive rebound over the course of the year.
Other markets that performed well include the UK, which saw prices up by 5.43 per cent nationwide - although a 15.7 per cent increase in London may have been enjoyed by early investors to the region. This rapid growth has not gone unnoticed by many overseas investors to the country, with many taking advantage of the relatively weak sterling as well.
Meanwhile, other countries in Europe that did not fare so well over the course of the last year include the tormented Spanish market (5.73 per cent fall), although the decline was not as steep as last year's drop (7.24 per cent), something that the report says points to these markets reaching the bottom.
It is worth noting that the price increases are inclusive of the first quarter period and do not take into account the recent troubles that a number of eurozone destinations, such as Greece, have been experiencing.
Because of this, questions still have to be asked about the extent of the economic recovery that has been experienced in a number of locations, particularly within Europe, and time needs to be taken to assess the long-term impact that the recession has had on the real estate market.
- Thursday 03 June 2010