The real estate industry changes cyclically, according to the current trends in the economy. The changes in the industry mirror the given country's history of economy. For example, in the USA the real estate industry was blooming after the World War II, decreased in the 1970s, increased in the early 1980s, decreased again in the late 1980s, and rose at the end of the 1990s. In spite of the low interest rates, the industry was blooming in the mid-2000s, up to the beginning of the crisis.The Location of the Property is the Most Important Factor
Several brokerage firms extended their business to property to be able to deal with the crisis successfully. The location of the properties is one of the most important factors regarding their merchantability. To be a real seller, the property has to have excellent public transportation access, good quality roads and education. The incomes, stability and success of local economy are also important factors. The real estate experts in the United States are optimistic: they predict an average 6-percent increase for each year up to 2015.
Investors Are More Willing to Take Risks
The investors in Europe are more and more optimistic and willing to take risks when buying property. In the first quarter of 2013 the commercial property market increased, especially in Germany, Great Britain and France. Globally USD 94 billion worth property was sold. Providing higher interest rates than the money market, the real estate industry is getting to be more and more attractive to the investors. The popularity of the premium quality estates is increasing, particularly in Munich and Paris.
Optimistic Predictions
According to the predictions, besides the Spanish and the Italian market the Central-European real estate market is going to draw the investors' attraction soon as well. To be a real seller the properties have to have a favorable location, a possibility of expansion and fit in the current portfolio of the investor. Offices and premium hotels have been especially popular recently. The real estate experts are optimistic: according to their predictions the market will rise in 2013: the total amount of investments can be USD 500 billion globally, which means a 10 percent increase.
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Source: www.franchisehelp.com; www.portfolio.hu
