2024: Financial experts predict global real estate crises and rising interest rates

2024: Financial experts predict global real estate crises and rising interest rates

According to a report from www.watson.ch,

The forecasts for the real estate market in 2024 look bleak. Chinese real estate companies are experiencing drastic declines in sales and falling prices, which could lead to a major crisis. Problems are also increasing in South Korea, Hong Kong and Indonesia, which can be attributed to rising interest rates. In Europe, Luxembourg, Germany, Finland and Sweden are particularly affected by price declines. Switzerland, on the other hand, continues to experience high demand for homes despite warnings from the National Bank, leading to tight supply and rising prices. Nevertheless, there were first signs of falling prices for single-family homes in the last quarter of 2023. These could continue in 2024, but remain relatively limited. The shortage of building permits makes the situation even worse, as only around half of the building permits actually required were granted in the last twelve months.

Current developments on the real estate market point to an ongoing crisis. Falling real estate prices and rising interest rates could have a negative impact on the industry, particularly in China and other Asian countries as well as in some European countries. The situation in Switzerland is also tense due to strong demand and tight supply. It is expected that prices for single-family homes and condominiums will decline slightly in 2024, but will still remain high. Insufficient building permits can also have an impact on the real estate market.