Property owners in the French capital can look to the future with confidence
As Prian.ru notes, two main trends can be identified in the ranking below. First, in cities whose real estate markets have suffered the most from the crisis, one can purchase square meters at reduced prices with confidence in their subsequent growth. On the other hand, metropolises that have been less affected by the economic recession may also be suitable for long-term investments – because their real estate markets demonstrate stability.
1. WASHINGTON
The unemployment rate is one of the key factors influencing the development of residential and commercial real estate markets. In Washington, which houses numerous government agencies, this indicator is the lowest in the country at just 4.1% (the US average is 7.2%). As experts note, the market may also be positively affected by US President Barack Obama's $1 trillion plan to stimulate the national economy.
2. LONDON
The British capital is also called a market of open opportunities. Housing prices in central London are falling by an average of 3.5% per month, with the rate of decline in the commercial real estate segment at about 2%. Even if the UK experiences a downturn, in the long term investors will feel quite comfortable in London, analysts note.
3. NEW YORK
New York's residential real estate market long resisted the economic downturn. As a result, housing prices remained quite high. However, local realtors are now reporting a drop in prices. Moreover, square meters have begun to fall in price even in such elite areas as 57th Street or SoHo.
4. TOKYO
Japan also has experience in overcoming the consequences of a crisis in the real estate sector. In the 1990s, the country experienced a situation similar to that seen today in global real estate markets. As a result, the real estate market of the Japanese capital is one of the most stable, especially when compared with American or European markets.
5. SHANGHAI
The rapid development of the Chinese economy over the past decade has led, among other things, to an increase in the pace of construction. Currently, the real estate market of China's largest city is experiencing an oversupply. Unsurprisingly, square meters here can be purchased at significant discounts.
6. SAN FRANCISCO
According to the National Association of Realtors, as early as 2008, housing prices in San Francisco fell by 25% compared to the previous year. As for commercial real estate, an increase in vacant office space has been noted. Together with the addition of 650,000 square meters of new space this year, this creates a favorable market environment for buyers.
7. LOS ANGELES
Due to a large number of foreclosed properties and extremely weak buyer activity last year, Los Angeles could not be considered a good place for real estate investment. However, a 102% increase in residential real estate sales transactions indicates that the market has begun to recover.
8. PARIS
Last year, housing prices in the French capital rose by 2.8%, and the vacancy rate (just 5%) is one of the lowest in Europe. No price collapse is expected here, as occurred in the USA, UK, and Spain. Moreover, Nicolas Sarkozy himself promised to prevent a mortgage crisis in the country. All this gives reason to consider the Paris real estate market quite stable.
9. HOUSTON
The capital of Texas is attractive primarily from the perspective of commercial real estate investment. Over the past three years, rent here has increased by 36%. At the same time, experts note that low operating costs attract new companies, which naturally need offices.
10. SINGAPORE
The global economic crisis has also affected one of the world's largest ports – Singapore. Recently, cargo volumes here have sharply declined. Although this factor has scared away some investors, Singapore still remains one of the growth centers in the Asia-Pacific region. Unsurprisingly, experts predict good prospects for long-term investment in this city-state.