Important Things You Need To Know About The Real Estate Market In 2010

By Tom Sullivan

The global economic down turn is over now and there is stability in the economies. The real estate sector that suffered a lot in the past 2 to 3 years has started recovering again. This is a good time considered by the investors to invest in the real estate sector any where in the world because the property prices are low and they're wished to further improve in the near future.

Experts in that market who keep an eye on the real estate sector of the whole world say that before making any investments in the commercial real estate sector any where in the world one must know the following 5 things. They will help him make profit. These 5 things are as follows:

Crisis in the middle of 2010

It's predicted by the real estate experts that there will be a dip in the property market in the mid of 2010 or by the start of the third quarter. This is because the market cannot always go up constantly. The real estate market movement is cyclical and it keeps on changing. But, the downward trend isn't seen to last long as the real estate sector is improving but investors and businesses which do not take in consideration this fact would need to bear losses. Therefore, they must keep in mind the market movement of the real estate sector.

Different property trend in different regions

It is expected that there will be a huge difference in the property prices and trend in terms of region. Most of the time the property prices move up and down along with the international market however in 2010 the trend would be kinda funny. Countries like Dubai, Emirates, USA and UK will have a steady growth whereas countries like Saudi Arabia and Egypt will have a bullish trend in the market. A bubble in the real estate market of China is likely to burst which will put negative effect on the market. So, for investors who invest in the international market it is important to understand that this year there will be a lot of variations in the real estate market trends of different regions. This is all due to separate demand and supply in the real estate sectors of these countries. Therefore one must be aware of all the changes going around.

Rise in mortgage rates

Mortgage rates in 2010 will rise because of the fact that last year the mortgage rates around the world were really low. When that sector starts recovering the major economies of the world feel hesitant to give mortgage properties to the people. Because they get the properties mortgaged and then lose the ability to pay off the debts. Therefore, economies and banking regulators have tightened the lending criteria so that any uncertain scenario could be handled and only those people could get the properties which really possess the power to pay back the debts.

If an investor is wishing to enter into that sector this year he needs to take in consideration all these 3 things so that he might not face any downside in future.