Global inflation and a perilous economy mean real estate is facing a downturn in 2023. But remember, when the going gets tough, the tough get investing!
When all hell breaks loose in the global economy, you have two choices. Fall deep down, or fetch those savings of yours and put your money where it’s worth. Real estate is still one of the best places to invest your money in, even in light of the global economic crisis and inflation of 2023, because despite the short-term fluctuations and declines, real estate values tend to increase over time. This means that if you invest in a property now, you’ll likely see a return on your investment in the long run.
Why You Should Invest
Investing in real estate can be a rollercoaster ride, but don’t let that scare you away. Sure, the market can be unpredictable, but where’s the fun in playing it safe? As we pointed out, real estate values tend to increase over time, so if you’re willing to take the leap, you could see a return on your investment in the long run. Of course, it’s not all sunshine and rainbows – location, demand, and government policies can all affect property values, so you’ll need to do your research and have a bit of luck on your side. Plus, let’s be real, investing in real estate requires some serious cash. But hey, if you’ve got the dough and the guts, why not give it a shot?
The Current Real Estate Economic Situation
The global real estate market is in a tricky position. It’s a real nail-biter, with prices expected to cool down in 2023 as per the IMF, and hitting some of the world’s greatest economies (remember we already warned you about NYC?).
But why the sudden freeze, you may wonder? Well, it’s all because of the world economic crisis – you know, the stuff you’ve been hearing about all over in the news. Central banks are raising their rates to curb inflation, and as a result, real estate loan rates are soaring like a flock of seagulls.
The meltdown has already started, and the numbers are giving us the shivers. In China, sales have dropped by a jaw-dropping 43%, while the UK is experiencing a 28% decline in property sales. Even more notoriously stable economies such as Sweden, Canada, Australia, and New Zealand are feeling the icy cold grip of this market downturn. Property values are dropping, with the US and Spain experiencing a hit of around 3%, and up to 7% in Germany.
United Kingdom
Buying property in the UK has always been a challenge, but foreign investors can now pounce on profitable deals like a cat on a laser pointer. With falling property prices and a surplus of supply, buyers can now haggle their way into the perfect investment. And if that’s not enough, real estate experts predict a drop in mortgage rates, meaning you can finally live your “home sweet home” dream without breaking the bank.
Spain
Spain may have lost its real estate mojo, but it’s still a great place for expats to buy property. Sure, the market’s been in a slump since the end of 2022, but hey, who hasn’t had a bad day or two? The good news is, the housing supply is steady, and there are fewer people fighting for it than before. In fact, experts are predicting a 5% drop in prices, which is like getting a discount on your tapas.
France
It looks like French real estate is putting up a fight against the global crisis in 2023. 2022 was a real champ, with over one million transactions, but 2023 might be a bit more low-key. Experts are predicting a slower rise in prices, but hey, 900,000 to 950,000 is still nothing to sneeze at. And if you’re an expat or foreign investor, there are still good deals to be had, especially if you head to the right cities. Lyon, Toulouse, and Bordeaux are the places to be if you want to snag a bargain on a chateau.
In conclusion, the global economic crisis and inflation of 2023 may mean a downturn for the real estate market, but it’s not all doom and gloom. Real estate investments can still be a smart choice, as values tend to increase over time. While some countries are experiencing significant declines in property sales and values, others, such as the UK and France, may offer good opportunities for foreign investors. As with any investment, it’s important to do your research and seek guidance from experts to make informed decisions. So don’t let the current market conditions scare you away from real estate investing – remember, when the going gets tough, the tough get investing!