The Executive Director of the British Association of Real Estate (NARA) Paul Batho predicts that in 2025 the global real estate market expects another rise in prices, and thus the crisis.
Last week the European Congress of the International Real Estate Federation (FIABCI) was held in Riga. In his presentation, Paul Batho explained why in 2025 we can expect the crisis in this area. After analyzing spikes in property prices in 1973, 1989 and 2007-2008, he came to the conclusion that if the shocks of 1973 and 1989 were regional, the crisis of 2007-2008 has already become global, the next crisis will no doubt be even more serious.
Currently, the expert said, the world real estate market is growing, as evidenced by the stabilization of prices (in particular, in Latvia, where the congress was held), the growth index of house prices (House Price Index) in the United States, as well as the fact that the rates for office rent in the heart of London exceeded finally, those of five years ago.
Cheap "resale" in Latvia is at a standstill for four years: rising by 1.5% a year - and this is stability. "A luxury property in the heart of Riga and Jurmala is growing by 10% a year", said Edgars Sins, the president of the Latvian association of real estate brokers (LANIDA).
As for Russia, the situation here can be described as stagnant, says the president of FIABCI 2011-2012 Alexander Romanenko. The expert argues that the evidence of stagnation is the stabilization of prices in some regions and the delaying solution to the crisis.