Real estate breaks records in 2018
With investment of 643,000 million, the highest since 2007.
Real estate purchases will increase by 0.5% at the end of the year. But analysts predict a fall of 5% in 2019, forecasting investments will drop next year to around 700,000 million dollars (616,000 million euros).
Real estate is on the rise throughout the world. The real estate market will close 2018 with a direct investment in property purchases of 730,000 million dollars (642,651 million euros), according to JLL consultancy.
This is the highest data since 2007. For this analysis, the Global Market Perspective report collects the transactions performed on office, residential, commercial, logistics and hotel assets. In 2018, the growth of investment will be 0.5%.
Looking to 2019, JLL expects a reduction of investment of 5%, up to 616,000 million euros
However, the consultancy does not expect a new investment record in 2019. JLL forecasts a reduction of 5% for the next year, which would mean that the investment is around 700,000 million dollars (616,000 million euros). The report highlights that «investors continue to grapple with commercial tensions and high political uncertainties, as well as rising interest rates in the United States and volatile energy markets.» Despite this, «real estate investments continue to be attractive.»
Madrid, the second city in the world where prices increase the most
Madrid is positioning itself as one of the most attractive capitals for the real estate sector. This is reflected in the consultant’s report, which points out that the Spanish capital is, after Amsterdam, the city where asset prices are growing the most, with an increase this year of 18.5% compared to a global average of 6.5%.
Looking ahead to next year, JLL continues to position Madrid as the second city with the largest increase in real estate prices (first place is awarded to Moscow). In 2019, the increase will be between 5% and 10%. Specifying by segments, Madrid has the largest occupancy rate of office space. In 2018, the contracting of assets of this type has grown 10%, third behind Singapore and Berlin.