Is 2021 The Year To Buy Property? - Enness CEO in The National

Global Property Markets Defy Covid-19 Predictions of a Major Crash

2020 was expected to bring a significant downturn in global house prices as the Covid-19 pandemic pushed economies around the world into recession. Instead, a combination of monetary stimulus, historically low interest rates and continued buyer demand helped support property markets in many countries.

Global house price growth accelerated across numerous markets, with prices rising in 45 of the 55 countries analysed in the year to September 2020. Demand also shifted as changing lifestyles encouraged more buyers to prioritise larger homes, gardens and outdoor space, driving movement away from densely populated urban areas.

Several countries recorded particularly strong house price growth, including Turkey, Vietnam, New Zealand and Germany, while markets such as Austria, the Netherlands, Taiwan and Canada also saw notable increases.

Not every market performed in the same way. Property prices declined across parts of the Gulf region, with Dubai and Saudi Arabia recording falls, while Egypt experienced one of the largest reductions among the major markets analysed.

However, some property professionals remained optimistic about Dubai's outlook. Lower property prices and historically low borrowing costs created opportunities for buyers, particularly first-time purchasers looking for villas and townhouses. Increased demand for larger homes and reports of limited availability in prime locations also pointed to changing market dynamics.

International buyers continued to view residential property as an important component of a diversified investment portfolio. However, the pandemic reinforced the importance of taking a location-specific approach, as the strength and recovery prospects of property markets varied considerably from country to country.

While low interest rates can make property finance more attractive, buyers should consider the long-term affordability of borrowing and ensure they can continue to service a mortgage if interest rates increase in the future.

Read the full article on The National