Many economists expected the recovery period after the pandemic is ranging between 2-3 years in order to return to 2019 levels; however, they forgot the following factors caused due to the pandemic and lockdown period as follows:
- People way of living has been changed dramatically either extreme spending to enjoy life or extreme saving
- Mass unemployment regardless all manipulated media news, the unemployment rate was getting higher since March 2020
- Governments increased taxes, tariffs which are causing a high inflation rate
- Investors, banks, developers limit their spending and limiting/delaying/slowing down their on-going projects
- Prices of logistics and supply chain processes are getting higher than usual to recover 2020 losses
- Mass closures and solvency of many small medium business globally
- Uncertainty level is extremely high due to the fears of a new lockdown due to the pandemic
- …. and much more…
The above are just few examples of many others that affect the market prices in realestate where each country is searching for a catalyst to stimulate their economy and motivate internal/external trading…
As a matter of fact, the main indicator of economy strength is the rate of jobs generated as it’s the fuel of people lives, more jobs, means more trading activities, more spending, wealthier society, and eventually strong economy. However, the other factors such as: gross country income, traits, taxes, import/export, and others are useless if the jobs rate is low or unemployment rate is high…
Realestate sector is the main driver for many economies as it’s connected to all levels of society, so the uncertainty will result an increase in the prices at small closed economies and a decrease in prices for vast, open economies depending on each country regulations and laws…
In general, the global economy is at recovery stage; however, it’s very very slow process, so it’s your personal judgement to know when to invest or to rent based on your own judgement if prices hit the bottom or reached the peak…