Though the pandemic has taken a heavy toll on India, there is still plenty of hope for those in the real estate market. Experts predict that real estate in Asia’s third-biggest economy will continue to be resilient against the tides of uncertainty. This is thanks to a strong investment climate catering to firms in countries like Japan and Australia.
But what about other key players in the Asian real estate sector that can affect investments locally? Here are four real estate trends across the region that investors need to know.
South Korea: New construction to address increased home prices
From 2019 to 2020, Seoul’s home prices increased by 22%, according to a new Knight Frank wealth consultancy report. With this significant increase, the government plans to add 830,000 homes in the next four years, over 300,000 of which will be located in Seoul.
This supply move comes after their efforts to deflate demand rate — including a tax hike and stricter implementation of lending regulations on apartment reconstruction — had failed to stop buyers from flocking to the market. Indirectly, this action also impacts the continuously declining birth rate of the nation, since the lack of affordable housing might discourage younger generations to have families.
Qatar: Lenient foreign property ownership rules encourage more buyers and expatriates
In contrast, house prices in Qatar are falling due to diminishing demand, and as a result, there is an oversupply of residential properties. To counter this, the government announced amended foreign property ownership rules, in an effort to motivate foreign investors.
These rules increased the number of locations where non-Qataris can own real estate properties and introduced new advantages of purchasing residential and commercial units, provided that there are no modifications made in the units’ appearances. Moreover, real estate investment funds are also made available to middle- and limited-income citizens. This move has brought impressive results so far, as the country is now experiencing increased real estate transactions.
Japan: Traditional hot baths are attracting private investors
Japanese traditional hot springs, also called onsens, are now becoming targets of investment from private equity funds and other big businesses. This is especially observed as tourism once again booms in anticipation of the Tokyo Olympics. A guide to Japanese onsens by Expat Bets explains that these public baths are fed by hot springs, which are present all across the country. There are some 3,000 of these in different Japanese prefectures, at temperatures of at least 25 ºC (77 ºF), and in a wide variety of locations — from beaches and riverbanks, to mountaintops and cliffs.
These picturesque settings encourage investors to view onsens as opportunities for profit. The big challenge, however, comes with convincing owners to turn over their properties are still owned by and passed down from one generation to another.
Indonesia: Beach- and lake-oriented properties reopen the tourism industry
Life in Bali, Indonesia has seen no disruptions, with facilities continuing with their operations despite demand dropping at the onset of the pandemic. In fact, waterfront destinations are growing in popularity, as tourism slowly goes back to normal, and digital nomads travel again.
Inevitably, prices are now stabilising because of the expected increase in requests and transactions. Because of Bali’s proximity to the sea and beaches, buyers are encouraged, since they can picture an improved lifestyle within the province.
There are plenty of moving parts to consider when doing business in the world of real estate. Monitoring market trends within and across countries can be quite useful, especially as India continues to make a name for itself as a prime market for international investors. With the right research and a modern platform for buying property in India, you can make the best choice for