Categorized | International

Prime Real Estate Markets Struggle Around the World

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Prime real estate markets around the globe have long been considered a safe investment for most investors, particularly in comparison to the tumultuous stock markets around the world. However, that perspective may be changing, as prime real estate markets around the world are starting to show significant signs of weakness.

Buyer confidence seems to be taking a hit, particularly as both Europe and the United States face struggling job markets and heightening debt crises. Furthermore, increasingly stringent lending standards around the world have many investors casting doubts on the performance of real estate in the short-term and long-term.

While prime real estate prices did experience an increase in the past month, it was the lowest increase in more than two years. Prices in some key Asian markets, such as Mumbai have dropped at staggering rates of the last two years. What may be even more concerning is that only eight prime cities experienced increases in real estate prices over the last three months, showing that overall demand is declining,

The slowdown in prime real estate prices in both Europe and the United States are not exactly surprises on the global property market. However, the declines experienced in Asia outside of China do come as a bit of a surprise. Analysts are not exactly quick to write off prime real estate around the globe, however. They believe that the most recent numbers only tell a small part of the story, and that economic officials and investors must look at the long-term growth when assessing how safe it is to invest in prime real estate around the world.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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