Trends in the International Real Estate Market


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What are the Trends in the International Real Estate Market?

The international real estate market is constantly evolving, with trends and shifts in demand driven by a range of factors, including economic conditions, political stability, and lifestyle preferences. Here are some current trends in the international real estate market:

Shifts in demand due to COVID-19

The pandemic (2020-2022) has significantly influenced international real estate trends, with many buyers and renters now seeking more space, outdoor areas, and home offices. There is an increased demand for properties in suburban and rural areas, as well as for properties with amenities such as pools, gardens, and home gyms.

Rise of remote work and digital nomadism: As more people are able to work remotely, there has been a rise in demand for properties that offer a high quality of life, including access to nature, cultural attractions, and recreational activities. Some locations, such as Bali and Costa Rica, have seen a surge in interest from digital nomads seeking a more flexible lifestyle.

Interest in sustainable and eco-friendly properties

There is growing interest in sustainable and eco-friendly properties, with buyers and renters seeking properties that are energy-efficient, environmentally friendly, and built with sustainable materials.

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Continued interest in urban properties

Despite the pandemic-related shifts in demand, there is still significant interest in urban properties, particularly in major cities like New York, London, and Tokyo. However, some buyers and renters are seeking properties in quieter, more residential neighborhoods within these cities.

Interest in properties that offer a good investment return

Real estate can be a profitable investment, and many buyers and renters are looking for properties that offer a good return on investment, either through rental income or potential resale value.

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Rise of shared ownership and vacation rentals

Shared ownership and vacation rentals are becoming increasingly popular, particularly in high-end markets. This allows buyers to enjoy the benefits of owning a second home without the full cost and responsibility of ownership.

Overall, the international real estate market is dynamic and complex, with a range of factors influencing demand and pricing. Keeping up with these trends can help buyers and renters make informed decisions about their real estate investments.

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International real estate trends from 2004 onwards

The international real estate market is expected to undergo a number of significant trends in the coming years, driven by a combination of factors including globalization, urbanization, climate change, and technological advancements.

Here are some of the key international real estate trends to watch from 2024 onwards:

Continued growth of Sun Belt markets:

Sun Belt markets in the United States, such as Austin, Dallas, Nashville, and Phoenix, have experienced strong growth in recent years, and this trend is expected to continue in the coming years. These markets are attracting new residents and businesses due to their favorable climates, job opportunities, and lower cost of living.

Rising demand for sustainable real estate:

Investors and occupiers are increasingly prioritizing sustainable real estate, as they recognize the long-term benefits of such assets. This is leading to increased investment in energy-efficient buildings, renewable energy, and other sustainable features.

Growth of the logistics sector:

The e-commerce boom is driving demand for logistics space, such as warehouses and distribution centers. This trend is expected to continue in the coming years, as more and more people shop online.

Emergence of new asset classes:

New asset classes, such as data centers, life sciences facilities, and co-working spaces, are emerging in response to changing economic and technological trends. These asset classes are expected to attract significant investment in the coming years.

Increased use of artificial intelligence (AI) and blockchain technology:

AI and blockchain technology are being used to transform the real estate industry in a number of ways. For example, AI is being used to improve property valuations, identify investment opportunities, and automate tasks. Blockchain technology is being used to create more transparent and efficient real estate transactions.

In addition to these general trends, there are also some specific trends to watch in different regions of the world. For example, in China, the government is expected to continue to focus on affordable housing and urban renewal. In Europe, the real estate market is expected to be impacted by the ongoing war in Ukraine and the energy crisis.

Overall, the international real estate market is expected to be dynamic and evolving in the coming years. Investors and occupiers who are able to anticipate and adapt to emerging trends will be well-positioned to succeed.

Global Real Estate Trends by Continents from 2024 Onwards:

Exploring the evolving landscape of real estate across continents, we delve into the anticipated trends and transformations set to shape the global property market from 2024 onward as follows:

Asia
Luxury Real Estate in Demand:

Asia’s rising wealthy population is driving an increased desire for luxury real estate, especially in major cities like Hong Kong, Singapore, and Tokyo.

Foreign Investment on the Rise:

Asia is becoming a hotspot for foreign investment in real estate, thanks to its robust economic growth, stable political environment, and relatively affordable prices.

Sustainability in Focus:

The importance of sustainability is gaining traction in Asia, reflecting in the real estate market. The demand for sustainable properties is expected to rise as buyers show willingness to pay extra for green features.

Europe
Urban Living Continues to Thrive:

European cities like London, Paris, and Berlin remain popular, with a sustained demand for urban real estate expected in the coming years.

Affordable Housing on the Rise:

The increasing cost of living in many European cities is fueling demand for affordable housing in both rental and sales markets.

Second Homes Gain Popularity:

The trend of owning second homes is expected to grow in Europe, driven by factors like affordable travel, the desire for holiday escapes, and the rise of remote work.

Americas
US Housing Market Growth:

The US housing market is poised for continued growth, propelled by low interest rates and a robust economy, potentially leading to higher home prices.

Affordable Housing Demand in Latin America:

Rising living costs in many Latin American countries are driving a surge in demand for affordable housing in both rental and sales markets.

Caribbean Second Homes:

The Caribbean remains a sought-after destination for second homes due to its stunning beaches, warm climate, and proximity to the United States.

Australia
Strong Demand in Major Cities:

Major Australian cities like Sydney and Melbourne are anticipated to maintain strong real estate demand due to population growth, economic strength, and limited land supply.

Affordable Housing Needs:

Escalating living costs in major Australian cities are boosting demand for affordable housing in both rental and sales markets.

Regional Areas on the Rise:

Regional areas are gaining popularity as people seek more affordable housing and a better quality of life, leading to increased demand for real estate in these areas.

Africa

The African real estate market is expected to experience strong growth in the coming years, driven by rapid economic development and urbanization. Some of the key markets to watch include Nigeria, Kenya, and South Africa.

One of the key trends in Africa is the growing demand for housing. This is due to the rapid population growth and the increasing urbanization.

Another key trend is the increasing investment in commercial real estate. This is being driven by the growing economies of many African countries.

In summary, while the global real estate market is expected to remain robust, specific trends like the growing demand for luxury properties, increased foreign investment, and a focus on sustainability are key factors to consider in investment decisions.

Here are some cities to consider for real estate investment in 2024 and beyond:

North America
  • Austin, Texas: Austin is a rapidly growing city with a strong economy and a diverse job market. It is also a popular tourist destination, which helps to support the rental market.
  • Phoenix, Arizona: Phoenix is another rapidly growing city with a strong economy and a diverse job market. It is also a popular retirement destination, which helps to support the demand for housing.
  • Dallas, Texas: Dallas is a major economic hub with a diversified economy. It is also home to a number of Fortune 500 companies, which helps to support the job market.
  • Atlanta, Georgia: Atlanta is a major transportation hub and a financial center. It is also home to a number of corporate headquarters and universities.
Europe
  • Berlin, Germany: Berlin is the capital of Germany and one of the most important economic centers in Europe. It is also a popular tourist destination.
  • Amsterdam, Netherlands: Amsterdam is the capital of the Netherlands and a major financial center. It is also a popular tourist destination.
  • London, United Kingdom: London is the capital of the United Kingdom and one of the most important economic and cultural centers in the world. It is also a popular tourist destination.
  • Paris, France: Paris is the capital of France and one of the most important economic and cultural centers in the world. It is also a popular tourist destination.
Asia Pacific
  • Shenzhen, China: Shenzhen is a major economic hub in China and one of the fastest-growing cities in the world. It is home to a number of tech companies and startups.
  • Bangalore, India: Bangalore is the capital of the Indian state of Karnataka and a major economic and cultural center. It is also known as the “Silicon Valley of India” due to its large number of tech companies.
  • Jakarta, Indonesia: Jakarta is the capital of Indonesia and one of the largest cities in the world. It is also a major economic and cultural center.
  • Singapore: Singapore is a city-state in Southeast Asia and a major financial center. It is also a popular tourist destination.
South America
  • Santiago, Chile: Santiago is the capital of Chile and one of the most important economic centers in South America.It is also a popular tourist destination.
  • Bogotá, Colombia: Bogotá is the capital of Colombia and one of the most important economic centers in South America. It is also a popular tourist destination.
  • São Paulo, Brazil: São Paulo is the largest city in Brazil and one of the most important economic centers in South America. It is also a popular tourist destination.
Africa
  • Lagos, Nigeria: Lagos is the most populous city in Africa and one of the most important economic centers. It is also a major financial center.
  • Nairobi, Kenya: Nairobi is the capital of Kenya and one of the most important economic centers in East Africa. It is also a major financial center.
  • Johannesburg, South Africa: Johannesburg is the most populous city in South Africa and one of the most important economic centers. It is also a major financial center.

It is important to note that this is just a small sample of cities that may be good for real estate investment in 2024 and beyond. There are many other cities that could be considered, depending on your individual investment goals and risk tolerance. It is also important to do your own research before investing in any real estate market.

Sources: The Business Research Company, PWC

Photo credit: Tama66 via Pixabay

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