The global real estate market is going to slow down in the coming 2016 as prices are just 7% away from the historic highs of 2008 pre Lehman Brother’s collapse. I have highlighted the story f this slowdown in my previous article on December 2014http://www.ianalysis.co.in/2014/12/real-estate-bubbleburst-to-be.html. Commercial property prices in major U.S. markets, as measured by Moody’s and Real Capital Analytics, have exceeded their previous peak by more than 30%.China has already set the tone for its slowdown as it has already exhausted its over capacity of production and now its dwelling with Ghost City. Prices in US are just 7% away and UK homes are only able to sell somehow. The biggest factor to be watched out is that slowdown in new construction has already began hence demand of steel, cement and other ancillary industries are getting cooled off. This is a big threat for the global economy. Luxury real estate segment is also cooling off which means buyers are thinking that a collapse will begin soon. At the same time stamp duty hike in London has created a negative effect on the real estate market.
INDRANEEL KRIPABINDU Sen Gupta