Fall in year on year property prices is good news for sustainable investment
Global property price falls could be creating a more sustainable environment for investors, according to one expert.
Christopher Chadd, head of research at Property Frontiers, said that the pre-recession price booms were based on irresponsible lending activities and speculation, and that the current environment is much more sustainable.
He said: "The fact that prices are still down year on year is no bad thing at all. Markets need to correct and stabilise. First and foremost, property markets are dictated by local supply and demand and if the local market is priced out of the market then a market isn't sustainable."
The comments come after the Knight Frank Global House Price Index revealed that property values were up for the third quarter of 2009, but overall were still down year on year. The UK was noted as recovering particularly well in the wake of the global property crash.
In total 68% of countries recorded a quarter three increase and 57% were down year on year. This was most obvious in the United Arab Emirates State of Dubai.
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