PROPERTY
MARKET
INDEX
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The Property Market-Index tracks key trends impacting international, national and regional real estate markets, rating them against the overall sector through an extensive research modelling process which considers multiple macro data analysis and buying trends whilst highlighting vital structural components impacting a section of a particular property market.
We regularly review property values, investment and economic growth in international, national and regional real estate markets to summarise and forecast future market trends.
Global overall market update 2023 - 2025
This unique Property Market-Index rates different locations in relation to buying trends.
Each report considers the key and most relevant metrics linked to buying property against the current economic climate. Common metrics between each report include house price trends over the past three months, years, and five years, as well as schools, local culture and heritage, and transport links/amenities.
Our latest research shows that despite political and economic challenges, international property markets are showing resilience overall, with over 50% of property investors saying they will look to expand their portfolio in the year ahead.
While there will be more property availability in late 2023 compared to the first half of the year, real estate values are forecast to grow by 6.4% against the top ten international property real estate markets, with a 7% property value increase expected in 2024 and a 7.1% growth in 2025.
Our research also suggests property values are forecast to grow by 6.8% CAGR over the next three years across all markets up to 2026.
Interest rates should also peak in 2023, benefitting sellers regarding the cost of capital and repayments.
Our most recent findings highlight that a number of the international property markets are bucking the downward trend despite economic and geopolitical challenges, and a generally static/declining property market. The top locations will largely be major regeneration areas, with significant investment in infrastructure, culture, heritage and international incentives to invest, and/or a lack of land and supply over demand.
Below are some of the key performance indicators:
• Geopolitical challenges such as major conflicts and the impact on energy, agriculture, commodities and supply chain issues.
• The pace of global inflation is decreasing to normal levels.
• Regional, national or international strategies to incentivise investment.
• Rating and indexing growth segments for investment.
With unemployment staying low and inflation moving to a more manageable 2.9% next year, the property market will continue its long-term growth.
Global Property Market – Key performance indicators 2023 - 2025
- Property values are forecast to grow by 6.8% CAGR over the next three years across all markets up to 2026
- Unemployment will peak at 4.6% in 2023 in the top ten property markets
- Supply and demand will still be an issue due to the level of new stock available
- GDP is expected to grow by 3% by 2024
- Some outlying coastal regions as well as city related regeneration will see the highest levels of growth in the property market over the next three years. This is as well as long-term structural changes taking effect on where people want to live and work
- Certain locations in Europe are performing well, especially where there are investment incentives for real estate
- Portugal, France and the UK are expected to outperform the market, especially where investment and regeneration or land prices are at a premium
- Wealthy areas attracting ex-pats due to Golden Visa or other exemptions are expected to see significant market growth over the next three years
