"The difference between the transaction values estimated by the buyers and the ones estimated by the sellers has reduced significantly and it is expected to decrease in the next 12 months. This suggests a possible acceleration of the transactions towards the end of this year. Moreover, the real estate executives are more confident regarding the evolution of the global economy than six months ago ", the study shows, according to Agerpres.
The respondents were much more optimistic regarding the labour occupancy growth (48% in 2013 compared to 28% in 2012), corporate revenues (49% in 2013 compared to 22% in 2012) and the credit availability (51% in 2013 compared to 18% in 2012). The last category is critical for the real estate sector, because of its dependency on financing.
"The obvious optimism registered in our study, even if partly cautious, suggests that the real estate environment became more stable for transactions also seen in the optimistic trend Romania started this year. Though the active investors are still interested in buying assets with higher standard at prices under the level of the market", said Horiana Istodor, senior manager within the department of Financial Evaluation and Modeling of EY Romania.
From the first five markets considered attractive for investments, four – India, China, Qatar and Chile – are the emerging markets with a strong growth potential, but also a higher risk. The fifth market in the top – Canada – had a solid economic growth in the last years and resisted the world financial crises better than most of the other countries.
"A notable absence on the list of favourite markets for investments is represented by the European countries, Germany is the best situated, on 15th place. This thing suggests a constant concern of the real estate investors for the economic stability and the tendencies of the economies in the euro zone. The total volume of the real estate transactions reached 214 billion dollars in the first quarter of 2013, with 23% growth compared to last year. The growth was registered by all type of properties", the cited release shows.
Global Capital Confidence Barometer is a periodical survey conducted with the top executives from companies around the world, made by Economist Intelligence Unit (EIU). The interviewed are EY clients and contacts. This edition of the survey focused on the 117 top executives from the real estate sector, hospitality and constructions. (source: dailybusiness.ro)
