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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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Settlement between Microsoft and Nokia will be shut this Friday, as stated by Optionova

This week at last will be shut a settlement between Microsoft and Nokia. Programming Organization purchases the Finnish organization's versatile division. "Settlement of the Century", as it is called by a few experts, will be shut on the 25th of April, this Friday. Furthermore, on the 29th of April, Nokia will entirety up trimestral results. Specialists of binary options broker Optionova will tell about it in details. 

Publication date: 23 April 07:04 AM

Apple and Google will battle for the right to be the first in supplying diversions and requisitions, as they assume in Optionova

Apple and Google went on the war way for the vicinity of singular gaming requisitions in their working frameworks. Designers are urged to earnestly advertise faithfulness. It is accounted for by The Wall Street Journal (WSJ) alluding to educated sources. The subtle elements will be told by binary options broker Optionova. 

Publication date: 22 April 10:08 AM

Shares of Google, as stated by Optionova, fell after the production of the quarterly report

Google discharged its fiscal effects for the first quarter of 2014. Markers have been expanded contrasted and the same period a year prior. Notwithstanding, certain variables befuddled gurus such a great amount of, that in the wake of summing up, the shares on the stock trade fell. Why did it happen, examiners of binary options broker Optionova will retell of it.  

Publication date: 18 April 12:28 PM

Specialists of American doctor's facilities started to utilize Google Glass, as it got known to Optionova

 A standout amongst the latest improvements in Information Technology - Google Glass - just about promptly after all vital tests turned into a prominent item in the Internet space. Occupants of numerous nations like to investigate all the upsides and downsides of this advancement, and at exactly that point because of the consistent screening to discover the date of the arranged section into the business sector of unique glasses.

Publication date: 14 April 04:33 AM

Saudi Arabia Destroyed USSR: Can It Destroy Russia?

 

Some Western experts say they have found Russia’s heel of Achilles. The USA thinks the best way to press Putin is to manipulate oil prices since Russia is an export-oriented economy. In particular, it depends on oil and natural gas exports. Therefore, too weak prices may finish the Russian economy, US politicians believe.
 
The experts say that Saudi Arabia may help the USA and the West in general to implement this ambitious goal aimed at undermining the Russian economy, which depends on energy exports.
Publication date: 08 April 11:40 AM

In Optionova they figured out, that in several years Apple will speak to a "transparent" iphone

 The USA IT- goliath Apple affections to patent different developments. Regularly these licenses are never utilized, however the thought stayed for possible later use. Then again, in some cases the organization deliberately enlists that will be utilized within its future overhauls. As of late it got realized that Apple needs to get records on the transparent Savvy. Examiners of paired alternatives intermediary Optionova will tell the subtle elements.

 

Publication date: 02 April 08:29 AM

Sanctions Against Russia and Consequences For Ruble, Dollar and Euro

 

The EU promises to impose tough sanctions on Russia, thereby following into the USA's steps. The leaders claim Russia will have to pay for annexing the Crimea, which used to be a part of Ukraine. These sanctions are promised to be divided into several packages and rounds to introduce them gradually. The ultimate goal seems to be a complete breakup of all the economic and political relations with Russia.
 
Market Leader and Masterforex-V Academy tried to figure out the possible consequences of these sanctions for the involved economies and their national currencies.
 
Publication date: 28 March 06:38 AM

As it turned out by Optionova, Google will secure Gmail clients from the security administrations and spies utilizing extra encryption

  

Google normally upgrades its email administration Gmail. This time, the Internet giants protected its clients from the security administrations. To build security, the whole trade of letters was exchanged to a protected HTTPS- convention. Unapproved persons have no right to gain entrance to Google's servers to the conveyance. About the preferences of this strategy will let you know about the investigators of double choices by the representative of Optionova. 

Publication date: 27 March 05:38 AM

George Soros on Ukraine, EURUSD Prospects

 

It seems like the entire world is currently watching and discussing the situation around Ukraine and the Crimea (which was recently joined the Russian Federation after the local referendum).
Publication date: 24 March 10:30 AM

EU Abandons South Stream, Consequences For Europe, Russia and Natural Gas Futures

 

It is common knowledge that the EU has always complained about the South Stream, long before the Ukrainian crisis. These complaints are based on Europe's desire to preserve its energy independence and to get cheap (or almost free) energy sources from outside (since there are no domestic energy sources).
Publication date: 20 March 12:43 PM