What are the global real estate trends in 2016?
There are several global real estate trends in the second home market, which were noted during 2015 and 2016. Following trends are influencing investor’s decisions about their project-building concept.
1. RECOVERY OF THE SECOND HOME MARKETS
The recovery in real estate values, which started in world cities in 2009, is now beginning to extend beyond the prime markets in those cities and towards second home markets and resorts.
Prime city markets - New York, London, Hong Kong, Singapore and Paris are the most important international hubs for high net worth individuals (HNWI) residential real estate. Those markets have shown good performance but have become much more fully valued, so buyers are actively looking for alternative real estate markets in which to invest. Prime second homes in the most sought after locations are an obvious choice.
2. PRICE GROWTH
Low interest rates are making overseas property loans more affordable, although lending requirements are much more stringent than in the pre-crunch era.
Price growth resuming and continuing in most high quality second home markets for the next seven years, concentrated in the prime sector that will be equity driven rather than debt reliant.
Second home and resort markets would follow the strong sales growth set in primary markets and surge to strong performance in the coming years.
3. AUTHENTICITY AND EXPERIENCE
Buyers are seeking for the authenticity, more interactive and genuine experiences in their travels, looking to be closer to the cultures and lifestyle of the destinations they visit and spend their holidays. They want to say: “I did it”, “I saw it”, “I experienced it”.
4. RENTAL PROGRAMME
Nowadays buyers are more conscientious about their investments and calculating return on investments and how they can cover the expenses of the property in clever way. That’s why they are looking for good rental programmes. Majority of investors are offering different programs for the residential part of their projects in order to have more successful sales.