Housing markets and Property forecasts worldwide in 2013

The economist on November 2012 carried an article which said  "House prices have stabilised since their 2009 trough, and have even made small but steady gains in recent months. Investors convinced that a full-blown housing recovery is under way—a big “if”—are looking for ways to profit from it "

In the United States, KKR, Colony Capital and Blackstone are among those amassing large portfolios of homes, mostly buying from banks’ foreclosure auctions. Keefe, Bruyette & Woods, an investment bank, estimates that around $6-8 billion is being lined up to invest in single-family homes, the most appealing part of the market.

The economist also predicted a world in 2013 for property as follows - Aside from the sickliest economies in the euro zone’s periphery, property markets will show some signs of life. House prices in America will rise by around 3%, up from 1% in 2012, according to the Mortgage Bankers Association.For commercial property, investors should expect average annual returns of between 6% and 8% over the next few years, depending on the region, according to RREEF, an investment adviser. The brightest prospects are in industrial properties in Asia, prime office locations in northern Europe and apartment blocks in large, coastal American cities. 

The predictions of the economist are in line with our earlier article on real estate forecast in 2013. With better market scenarios prevailing in the property markets world over, Indian investors can now move ahead with confidence in 2013 since growth prospects worldwide would ensure inflow of funds into the housing sector and thereby renewed confidence in real estate investments and lowering of chances of any bubble in the new year.