12 Nov,2020

Global Real Estate Bubble Index

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The Housing bubble shock was first experienced in the 2008 financial crisis, explaining the Real-Estate Bubble that was present. 12 years down the line with global recession in place to haunt the housing market again with complements from Covid-19 pandemic, surprisingly the Real-Estate prices accelerated despite all odds. 

Unlike 2008, the roles and active involvement of Government, adequate liquidity injection and other aligned policies have helped the housing prices to not plummet for the same. The dynamics of low interest rates, various relaxations in the Real-Estate Sector, financing conditions being streamlined seems to keep the investment demand high for Real-Estate.

But the Rental markets have taken a significant hit, owing to the lockdowns and a weaker housing demand. This situation might aggravate if the Government's support is also withdrawn leading to a downfall in the Real-Estate prices. Thus, investors need to be cautious about these factors and might consider before taking a short positions for the same.

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