Low Interest Rates Helping Drive Recovery

Low interest rates and slowly improving market conditions have helped global real estate markets to post a modest recovery during 2010....

Low interest rates and slowly improving market conditions have helped global real estate markets to post a modest recovery during 2010. According to the Global Real Estate Trends report by Scotia Economics, the rebound was "modest and bumpy".

However, the general loss of momentum in global growth was reflected in the residential property markets, the report said.

"Despite still attractive borrowing costs, the expiry of purchase incentives in many markets, the relatively slow pace of job creation and mounting concerns over the financial strains facing debt-heavy developed nations are weighing on confidence," Adrienne Warren, a Scotia Economics senior economist, said.

"These factors will likely keep many prospective buyers on the sidelines in 2011."

Among the countries tracked by the report a number enjoyed a growth in average property values, including Australia, Canada, France, Sweden, Switzerland and the UK this past year.

Meanwhile, prices were flat in Germany and the United States, and declined in Ireland, Italy, Japan, and Spain. 

- Monday 10 January 2011

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