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Monday, 21 August 11:47 (GMT -05:00)



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Investments in real property: what is bullish trend caused by?


World news, investments. In 2011 real estate market finally returned to its pre-crises level of 2008, having successfully overcome the decline that had lasted more than two years. Paying attention to the flow-in of considerable investments into this sector, experts predict even higher growth and make most optimistic predictions. However, the dynamics of recovery is not the same everywhere.

 

Predictions on the increase of real estate prices in the world. What is bullish trend caused by?

 

According to experts of Forex Academy and stock exchange trade of Masterforex-V, the growth of real estate prices is supported by such fundamental world factors as:

1. Investment growth. According to predictions of the worlds leading consulting companies, in the current 2011 year the overall sum of investments into the world real estate can, according to some estimations, amount to 329 billion dollars. This is 17% more than the same index numbers in 2010.

2. The top performer, unexpectedly to many, will become Asian-Pacific region. There investments in real estate will increase almost twice. In 2011 this sector will receive the flow-in of more than 104 billion dollars, which is 45% more than last year. The sole sum of investments certainly cannot impress by its vastness, but the growth is very impressive.

3. Investments in US real estate. Real estate on American continent still remains very attractive to. In 2011 they will agree to invest in this sector 14% more means than last year.  This means the overall sum of investment about 111 billion dollars.

4. Concerning EMEA region (Europe, Middle East, and Africa), it will considerably fall behind its neighbours, being able to attract only 114 billion dollars. Despite the importance of the overall sum, this is only 2% more than in 2010.

5. Features of capitals. The characteristic feature of all these processes will become the local origin of capitals that are directed into real property. Contrary to pre-crises period, investors will prefer to invest money in well-known countries. For the overwhelming majority of businessmen these are their own states.

6. In Europe and Middle East local capital will provide more than 90% of all investments in real estate. These index numbers are somewhat lower in Northern Africa, about 80 %.

7. Investment climate. Improvement of investment climate in the world will be accompanied by the development of bank sector, which will be called to share all possible risks with investors.

8. The scale of transactions on real estate rent will increase, as this form of commercial relationships is much more predictable than the usual purchase-sale. Predictions on the rent are always more exact than predictions on a possible future cost of one object or another.

 

Another Chinese boom

 

What is another Chinese boom caused by?

considerable investment growth. Investments in real estate on the territory of PRC exceed even most optimistic expectations;

considerable growth of index numbers. It took only four months of the current year for the index numbers to exceed the index numbers of the same period in 2010 by 34%;

increasing sums of investments. According to the Bureau of Statistics of PRC, this sector of economy has received the flow-in of about 205.2 billion dollars, which is 1.334 trillion yuans.

the general area of real estate units under construction till May 2011 amounted to 3,524.72 mln. sq. m. This is 33.2% more than in the middle of 2010.

moreover, since January 2011 real estate units of the general area of 568.41 mln. sq. m. started to be constructed, which is 24.4% more than during the first five months of the previous year.

171.27 mln. sq. m. have already been commissioned this year. The growth, in comparison to the same period last year, amounted to 14%.

 

Russian real estate attracts investors

 

The growth of investments in real property on the territory of Russian Federation is not much lower than the Chinese one. During the first quarter of 2011 it amounted to 30%, which gave ground to make optimistic plans for the whole year:

1. The growth of primary market of real estate amounted to 66%, secondary – 25%.

2. Agreements on mortgage amounted to 26% of the overall number of transactions at the secondary market in Moscow, whereas in Russia these index numbers are even higher.

3. The average price of accommodation in Russia is currently predicted to increase by 9-10%, and in Moscow – by 15-17%. Russian experts are further expecting to receive the yearly increase of the finished projects at the level of 6%.

 

South-Eastern Europe becomes interesting to investors

 

During the first quarter of 2011 the volume of transactions at the market of real estate in Central and Eastern Europe amounted to 1.2 billion Euro. It is a very high index number for such region:

period of low liquidity. After the global economic crises, another considerable period of low liquidity was encountered at real estate market;

growth of investment activity. Investment activity in South-Eastern Europe started to grow only at the end of 2010. Investors started to actively return to the real estate market of Croatia. They have also appeared in Bulgaria and Romania, where investment activity has not been mentioned for a long time.

Poland remains the most attractive country in terms of investment. Investors’ activity at this market remains very high.

to some extent worse are the matters in Czech Republic and Hungary, but experts expect that the real estate market is going to experience considerable activity in 2011.

 

The Editorial Board ofMarket Leadermagazine holds a questionnaire in tradersforum: in your opinion, will the current trend of real estate market continue?

yes, of course, on a world-wide scale.

no, this sector is very unpredicted and involves numerous risks.

maybe, this market has always been one of the most dynamically developing. However, it is at this market where so-calledbubbles can often be met.

 

You are free to discuss this article here:   forum for traders and investors

 

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Trump’s Policies Make USA Lose Their Leading Position in the West

More and more international experts are concerned about Donald Trump’s policies. Some of them are concerned that because of him and his actions, the USA may lose their leading role in the Western world.  

 

 

According to Fareed Zakaria, political expert, CNN host and columnist for The Washington Post, Trump’s recent political decisions have made the European Union so united that Putin could never have dreamed of. Even though he is not going to make the Western world collapse, the USA may still lose the number-one status in the Western world.

Publication date: 31 July 12:09 PM

Does China Oust Russia From Central Asia?

As the situation in Afghanistan is getting worse, this is raising a lot of concerns in the international expert community. The Islamic terrorist threat may spread from there to Russian and China, they say.

 

 
According to a Norwegian observer for Dagbladet, there exist 5 countries in Central Asia that can be seen as potential threats to Russia and China. The thing is, the Islamic terrorism may well spread from those countries to their neighbors. They say that Afghanistan is now the biggest potential threat since the amount of armed conflicts in the country are getting more and more frequent and tough. As Taliban (the local terrorist organization) is said to be sponsored and suppled with arm and ammo, the USA seems to be putting the blame for this on Russia.
Publication date: 29 July 11:53 AM

China Invests Heavily In Africa

You probably know that has been investing in a number of countries of strategical importance. There is a lot of African countries on the list. According to several observers, Chinese banks have given such countries over 77 billion euros since 2000.

 

 
Not so long ago, there was a documentary broadcast on the national TV. The documentary is about a railway line in Kenya built by China Road and Bridge Corporation. It praises Chinese engineers and tells the viewer that the Chinese government is ready to support African countries on their way to economic growth.
Publication date: 24 July 11:46 PM

Chinese Economy Is Way Stronger Than Trump Thinks

The Chinese economy has got much stronger. It can now even be compared to the American one, which is viewed to be the world’s strongest economy. Washington clearly underestimates Beijing when saying that the China has been flourishing in the international markets exclusively at the expense of unfair trade.

 

 
Publication date: 23 July 10:48 AM

British Start Getting Disappointed with Brexit, Soros Says

Last year’s Brexit referendum has become a major challenge for the British government, George Soros says. He says that more and more British citizens start getting disappointed with the Brexit.

 

 
The world-famous financier and CEO of Soros Fund Management assumes that now the economic reality starts revealing the real state of affairs and debunk their delusions related to the happy living outside of the European Union. More than 12 months ago, the advocates of the Brexit scenario were trying to persuade people that this choice won’t affect people’s standards of living. Well, since then, the government has been trying to implement this promise at the expense of increasing the internal debt.
Publication date: 14 July 02:40 AM

Two Reasons Why Russia Keeps Losing Influence Over Post-Soviet States

After the USSR ceased to exist, the Kremlin was counting on retaining their influence in the region. However, the truth is that Russia as the major successor to the USSR has been losing its influence over the remaining post-soviet states. There are 2 reasons for that.

 

 
According to the related report recently published by private American analytic company Stratfor, there is a range of new tendencies making it difficult for Russia to stay influential in the post-soviet region, especially when it comes to Ukraine. The two major reasons for that are believed to be the declining role of the Russian language in the region as well as the existing threats of mass protest inside Russia itself.
Publication date: 06 July 01:42 PM

Business with China: New Reality after Blocking Yandex and VK in Ukraine

Ukrainian President Petr Poroshenko has expanded the list of sanctions against individuals and legal entities from Russia. To be more specific, Ukraine imposed sanctions on several Russian online companies, including Yandex, which is Russia’s biggest IT company, as well as some other popular web services like VK, Odnoklassniki, and Mail.ru Group. According to the presidential decree, Ukrainian Internet providers are forbidden to grant access to those blacklisted websites.

Publication date: 06 July 01:13 AM

China Doesn’t Need Russian Gas and Pipelines

Don’t you remember how a couple of years ago Gazprom cut natural gas supplies to Ukraine a number of times. By the way, Ukraine alone used to buy 55 billion cubic meters of natural gas back then. Now Ukraine buys no natural gas form Russia at all. Apparently, Moscow keeps on looking for other outlets. There has been a lot of buzz about China as a new big outlet for Russian natural gas and crude oil. It turns out that two new pipelines should have transferred to China some 38 billion cubic meters of natural gas every year. Yet, this was the maximum amount, and it couldn’t clearly make up for the export of natural gas to Ukraine.

Publication date: 05 July 11:15 AM

Mass Media on Forthcoming Trump-Putin Meeting

For those of you who don’t know, the first official meeting between Donald trump and Vladimir Putin has been confirmed. It’s planned for July 7, during the G20 summit in Hamburg, Germany.

 

 
Some observers say that the White House did the Kremlin a favor by being the first one confirming the official meeting during the G20 summit. This announcement helped the sided to get of the rumors around the situation and helped Moscow to save face in the Russian media space.
Publication date: 05 July 06:24 AM

Putin and Trump Part Ways

According to The Daily Telegraph observer Con Coughlin, even if Donald Trump used to seek ways to improve the relations with Russia, today he is probably going to really abandon this idea. The thing is that not so long ago, the U.S. hit a Syrian fight jet, the one belonging to Bashar Asad’s troop. Since Putin and Asad are allies, this fact is definitely going to affect the process of improving the U.S.-Russia relations, and probably suspend this process for the near future.
 
Publication date: 29 June 11:50 PM