Analysis of investment volumes on the world market for 2019
The experts presented the report on the real estate market development and also gave the sector forecast for the current year. According to the data, the analysis of the volume of investments into the sphere made up 1.8 trillion dollars. This index has remained at the level since 2018.
Retail was the weakest segment, it was financed the least. As for several years in a row, the most popular remains the residential and office real estate market, investments in it increased by 6%. Investments in industrial facilities grew by 3%, with such real estate taking the third place in terms of financing. Investments in retail last year decreased by 21%.
According to the forecast for this year, the most popular will be office objects located in large cities around the world. However, it should be taken into account that in some cases the opportunities are limited, besides, not all real estate can boast of high profitability. Therefore, some investors will try other options for investment. At the moment, the promising types of financing are compact housing for students and apartment buildings. In addition, more and more attention is attracted to the colling projects and centers involved in data processing. Experts say that the interest in the latter facilities will grow significantly.
As the results of 2019 showed, investments in the commercial real estate market in Russia amounted to $2 billion. According to the forecasts of the specialized company, this year the volume of investments in this segment may increase up to 3 billion dollars.
The leading position in terms of investment in real estate is occupied by Tokyo, although the amount of funding has slightly decreased compared with 2018.
Trade tension, which is observed between the U.S. and China, is reflected in this segment of the global economy. This is manifested primarily by a decline in the activity of U.S. investors. There are also some difficulties in Europe. Brexit is forcing companies to act with extreme caution; many prefer to wait for the processes of reorientation of the EU economy and stabilization of the situation. Investors are not in a hurry to invest in new projects; they study objects more selectively for profitability and payback period.
North and South America showed a decline of 8% at the beginning of last year, but by the end of the period the volumes were leveling off and almost reached the level of 2018. Interest in the regions of the Middle East and Africa has fallen, there was a decline in investment to 2016.
Despite the fact that in Europe activity in the markets of Germany, Great Britain and France decreased, the volume of investments in real estate of Sweden, Bulgaria, Ukraine, Czech Republic and Russia showed excellent rates. According to experts, the positive dynamics will remain in the current year.