Real estate investors around the world are starting to revise their expectations for returns in the sector as concerns surrounding economic uncertainty, reduced access to finance and an oversupply of stock take hold. This is the primary finding of the recent Global Property Survey by bfinance.
The organisation reported that the real estate managers who responded to its poll are forecasting lower returns in all major regions through to 2013. Although, investors looking to achieve returns in the short-term may want to consider buying property in Russia.
Russia will perform strongly in 2011 thanks to its strong commodity based economy and the recovery in energy prices
, according to the bfinance survey.
"Despite some variation in forecasts the overall trend is unmistakable. Forecasts for property total returns over the next three years have started to wane partly in response to uncertainty over prospects for economic growth and the subsequent impact on occupier markets. This combines with bank financing issues and additional supply of stock for sale, providing unwelcome news for institutional investors," said Vikram Aggarwal, senior associate of bfinance.
- Thursday 21 October 2010