Global Property Market at a Glance

April 28, 2009	(1 votes, average: 5 out of 5)  Loading ...
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Everywhere you go in Madrid, For Sale signs on half-built apartment blocks dominate the Spanish capital. No surprise: The global recession has hit the country’s once-booming real estate market harder than most. Property prices from Barcelona to the Balearic Islands fell 6.5% in the first quarter of 2009 alone. They are expected to drop 35% or more from their 2007 peak by the end of this year.

The economic downturn—in Spain and dozens of other countries—has left many homeowners struggling to keep up with their mortgage payments. But for well-funded property buyers, the recession is opening up a bonanza of cut-price deals. When times were good, cheap credit fueled almost insatiable demand for second homes and investment properties. Now, financing is harder to come by, and developers are slashing prices to offload stock built for a dwindling number of buyers.

The power shift in property sales is gradually enticing investors back into the market. From European hot spots in Croatia and Montenegro to less exotic investments in Florida and the Southwest U.S., now may be the right time to buy. Double-digit price declines since 2007 and the renewed strength of the dollar against foreign currencies make buying overseas more affordable for Americans. And emerging countries, especially Brazil and India, carry the prospect of continued economic growth despite the downturn while offering properties costing as little as one-eighth the price of the average U.S. home.

News Published Under:   Real Estate India, Property Prices |

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