Global Real Estate Trends
Scotiabank
Download Document| Date Published | 2015 |
| Version | |
| Primary Author | Adrienne Warren |
| Other Authors | |
| Theme | |
| Country | Canada |
Abstract
The recovery in global property markets remains relatively sluggish and uneven, mirroring the slow pace of global growth and broad disinflationary pressures. Unprecedented monetary accommodation is supporting improving demand in many nations, but high unemployment, weak consumer confidence and credit constraints are an impediment to a broader and more synchronized performance. Housing markets in Europe are mixed, mirroring divergent economic performances. Faster-growing economies, including Ireland, the U.K., and Sweden, continue to show strong price appreciation. Property markets in others, including France and Italy, are still languishing. Encouragingly, prices in a few hard-hit areas, notably Spain, are showing signs of stabilizing after a lengthy period of decline. In the Americas, Canada and the United States remain steady performers, with low single-digit real house price increases supported by low lending rates and moderate economic growth. Latin America is a global out performer, despite some loss of regional economic momentum and an intensifying property slowdown in Brazil. Chile, Colombia and Peru continue to post solid price gains, and conditions are firming up in Mexico alongside recent market reforms. Slowing regional growth has cooled property markets in much of Asia. Real home prices in China are still declining, and have flattened out in South Korea and Indonesia. Russia’s property slump also continues to deepen. The notable exception is Australia, with housing demand underpinned by strong population growth and foreign buyers.