However, the recent surge in real estate investment is believed to drive much of the world’s economic growth in 2019.
China’s market super active with the help of cross-border investments
Investment in commercial property in China sky-rocketed to $7 billion in the first quarter in 2019. Much of this investment comes from cross-border investors. As a result, economists believe that China’s GDP will surpass the US’ by the end of the upcoming decade. Currently, China is the top choice of foreign investors who are eager to invest in China’s real-estate market.
China is a market ripe with opportunities for investors who are willing to seek diversification and income stability. Shanghai alone has attracted a massive $10 billion capital which is a testimony to China’s growing real estate market.
Challenges in Asia: Commercial property and investors
The Sino-US trade war continues to haunt real estate investors in Asia. The Asian markets struggled to keep pace with last year’s economic growth as the global demand for consumer goods also experienced a downturn. Despite this, economists are confident that real estate markets in Hong Kong, India and China would recover from the temporary decline in investment and growth rate will see improvement in the coming years.
Canada recession aftermath
Massive downturns in housing markets in Toronto and Vancouver rung alarm bells among investors. However, Chris Catliff, the president and CEO of North Vancouver-based Blueshore Financial, is optimistic and warns investors to refrain from panicking. He asked investors to conduct thorough research on different locations in the urban centres before making any major investment decision and to invest in Real Estate Investment Trust which pays dividends on a variety of real estate assets.
Global Wealth reassured – Major cities are proof of that
Research by Anthony Duggan has indicated that commercial real estate continued to remain a favoured investment sector for global investors during the year 2017. The real estate markets in Hong Kong, New York and Shanghai showed promising results with a surge in investment activity. Real estate offers the remarkable potential for capital-value growth and the chance to diversify from existing assets. Hence, there is no surprise that real estate investment will play a crucial role in global economic growth in 2019.