Real Estate

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Real estate markets are once again heating up in the world: in some cities prices are overrated, says UBS, according to 2016-edition "Global Real Estate Bubble Index". In Geneva and Zurich, the two swiss select cities, tension remains but at a lesser extent.

As published today by UBS, a few years later by the great wave of corrections in the real estate sector worldwide, overestimates have widened in most cities.

When something extraordinary happens, such as Brexit, it is necessary to observe and analyse its potential financial and economic impact. While the first steps must still be taken in the negotiations for the UK’s exit from the EU, together with Keller Zable we have taken a look at the possible scenarios in the real estate market, with particular attention to Great Britain, the rest of Europe and possible developments.

The German Real Estate market is in a boom phase. The reason, according to a study by Postbank, must be sought in the fact that investors are taking away the savings from the stock and bond market to invest in real estate.

Although most Germans seems to prefer the rent to the purchase of the house, the sector of real estate has become an increasingly attractive option. This not only because the cost of rent has suffered significant tweaks to the upside, but also for the obvious benefits that come from a battered economy that continues pushing the monetary policy banks to keep interest rates at historic lows.

Japanese household spending continued to decline in July as the strongest labor market in at least two decades failed to boost wage growth significantly. Household spending fell 0.5% year-on-year in July, according to Japan’s Statistics Bureau, the fifth-consecutive decline and the 21st month out of the last 24 that spending has fallen. Analysts had expected spending to fall 1.3% in July.

In Switzerland, buy real estate is more attractive than investing in stocks. The benefit would be linked to greater efficiency and / or reduced risk, according to a survey done by the brokerage firms Moneypark.

The 80 experts questioned sector in the first quarter of 2016 argue that the prices of properties owned should remain stable or drop slightly at most. Nearly half of respondents believe that it is a consolidation of the constant prices markets and excludes a housing bubble.

Housing crisis grows. According to data released by the Resolution Foundation think tank, there was a drop in the number of homeowners in England, recording the worst figure in the last thirty years.

The percentage of households that own a home, including those with a mortgage, reached its peak in 2003, to 71%, to collapse this year at 64%, a figure not seen since 1986.

Ninth consecutive month of growth in housing prices in major cities in China, after a losing streak lasted 14 months. The signs of a stabilization in the housing market therefore continued in June, thanks to incentives such as lower taxes, and the requirements in terms of initial deposit. According to information of the Chinese National Statistical Office, the average price of new homes rose last month by 7.3% annually compared to 6.9% registered in May (6.2% in April). Instead it slows from 0.9% to 0.8% sequential growth in house prices.