While no one expects the market to pick back up anytime soon, there are some changes on the way for 2010 according to property experts. The various forecasts from experts might be spread over a range of ideas. Some topics remain constant through their answers, primarily regarding the buyers, asking what division is going to be hit the hardest, and what the heavy reliance on the status of the US dollar in relation to the Euro is.
For one, there’s constant prediction that there will be a change of buyers. According to Lucy Russel, managing director of Quintessentially Estates, the higher impact of the recession in Western countries will shift the buyer status over to the East. However, it seems that even within the Eastern countries, we can see a division. Martin Dell, director of Kyero.com in Spain observes that the stronger German, French, and Dutch economies will enable those buyers to negotiate property deals aggressively in countries like Portugal, Italy, Ireland, Greece and Spain who are slower to recover.
Opinions on the state of the dollar seem to vary slightly. While most predict the dollar will only continue to lose value, some believe it is gaining value in comparison to the Euro. Dagmar Sands, broker with Real Estate International, has stated that he believes more US banks will be closed and that our pricing will fall even further than it has. He has clients in Germany who have decided to wait until the dollar falls to a 2-1 ratio before purchasing. James Wyatt, of Barton Wyatt International, believes that many U.K. buyers will be flocking to Florida as they start to turn from Europe because of a weaker Euro. His reasoning is that U.K. interest rates are on the rise, leading to this effect on the Euro.
As far as what countries might be seeing the most attention, Stuart Johnson, product sourcing manager for Experience International, U.K., believes that because of its status as the most visited country in the world, France has a strong developing market. With a “stable and robust real estate and mortgage market,” developers are now using these credentials to create more tempting deals. Canada, as said by Bruce Hiatt of Luxury Reality Group, will continue with a strong loonie and a high demand for residential condos.
Naturally, one can never predict for certain what 2010 will bring, but hopefully some of the more positive forecasts will be correct. However, one must be prepared for the worst, and in that case, be ready for the property market to be giving more attention abroad.