Categorized | Residential

Prime Real Estate Prices Expected to Drop Across the Globe

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Over the last two years, prime real estate markets across the globe have defied expectations and regional trends by achieving unprecedented increases. Even in areas where average real estate markets saw a drop in price and demand, prime neighborhoods experienced massive gains.

That trend, however, will likely change in the next year according to real estate experts. Prime real estate markets around the world are expected to see prices drop by more than forty percent. The biggest declines will likely be experienced in Asia. While such factors as weakening job markets and the European debt crisis will certainly play a role, one of the major factors affecting the situation, particularly in Asia, is that of government policy.

The Chinese government’s decisions to curb the growth of their property market is playing a tremendous role in the overall outlook, as prices in the nation are expected to experience massive declines in the next year.

In other areas, such as Africa and the Middle East, the real estate market is largely being impacted by political turmoil. Both regions have had, and continue to have very volatile political situations, and as such, the outlook of the prime real estate market looks exceedingly dim. Many prime investors are opting to avoid those regions.

There are some cities where the prime real estate markets are expected to continue to flourish. Moscow, Paris and London are expected to continue their recent success. Despite threats of a debt crisis, those three markets are considered to be relatively stable in addition to being major global business zones. As such, their performance is not expected to falter.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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