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Why the global real estate market is still healthy

On Behalf of | Jan 12, 2016 | Residential Real Estate

Delaware investors who are interested in the global real estate market may be understandably concerned about volatility in the marketplace. Indeed, some sources expect that the combination of increased interest rates, low oil prices, and other such factors may generate long-term instability in the market that may be difficult to recuperate from. However, the global real estate may continue to be a relatively safe investment even through this expected volatility.

The reason for this is that demand remains high for real estate locations that are known for being the most desired. For example, as many as 94 percent of developers have indicated that they’ll increase their rate of investments in the United States. San Francisco, New York City and Los Angeles are said to be the areas with the greatest activity in this regard. Similarly, developer interest has continued in European target markets, and ongoing land development is expected in cities such as London and Frankfurt.

Many commercial real estate developers who already possess a diverse asset portfolio have stated that they will seek to acquire new properties in the near future. While some have expressed concern about the influence of changing interest rates in the U.S. and China, buyers are financing their purchases with loans to help them continue to afford properties in the most desired markets.

Given all the different factors involved in this matter, it may be advisable for someone considering initiating a real estate transaction to discuss the matter with a lawyer beforehand. A lawyer who understands the laws and regulations in a particular marketplace can help a client to avoid the most common pitfalls associated with these transactions and work to ensure everything proceeds smoothly.