Some Considerations Regarding the International Real Estate Market – Present and Future Predictions

Abstract

Abstract The purpose of this paper is to analyze the situation of the real estate market worldwide, to identify the main characteristics that influence the decision to invest, to find the correlation between the real estate market and the financial one and to present the most recent estimations regarding the future evolution of the international real estate market. The financial crisis that began in the second half of the last decade created imbalances in all the fields of the economic and social life and provoked very interesting mutations. The international real estate marked was confronted with important changes of rhythm, as dimensions and structures, as well as intervention levers. Some effects of the generalized economic crisis such as: the growth of the unemployment rate, the reduction of the purchasing power or the intensification of the migration process of the active population have deepen the gaps between the rhythms of the dynamics of the real estate investments at a national level and they led to the most unexpected decisions. In the last several years, the imbalances between the financial market and the monetary market generated instabilities at a world scale and speculative policies, that in some countries accentuated the uncertainties and they delayed the start towards economic revival, and in other countries they constituted strong points in redefining future strategies for development. From a geographical point of view, the new map of the real estate markets will offer a completely different from the one that existed until 2007. A new generation of “Asian tigers” looks to dominate the real estate market and countries like Qatar, Chile or India will define themselves as area of maximum interest for the real estate investors.