he international residential
T
slowdown has thrown up an “We’ve had our negativity.
interesting conundrum; how one
person’s challenge can be viewed as
Now it’s time to look forward.
another person’s opportunity. The
challenge is that successive years of
There are opportunities if we
booming housing markets, high economic
growth and cheap credit have combined to
produce an unsustainable over-supply of new
want to grab hold of them”
property and a widening disparity between
Charles Weston-Baker, Director of Savills International Residential
asking prices and affordability.
Savills has been forthright about the effects of
the downturn and believes that most markets Savills International Residential Department.
will continue to see price falls in 2009. Then For that reason, there is opportunity aplenty too.
confidence and widespread economic growth Savills analysis suggests five key factors that can
will take centre stage in 2010. boost the long-term prospects of global
“Yet it is vital to see this in context. Many residential markets; all are robust enough to
international markets have seen a decade of withstand the immediate downturn.
price rises of 10 per cent or even 20 per cent Firstly, the sharp growth in the number of
annually. The five years to 2007 in particular saw High Net Worth Individuals since before the
very sharp rises year on year and values quickly Millennium creates an enduring foundation.
double when you have annual performance like HNWIs have the funds and flexibility
that. Against such a backdrop, even today’s throughout the downturn to take advantage of
largest falls of 50 per cent in some cases will still investment opportunities. This is complemented
leave a long-term legacy of substantial price by the appearance of demand from new wealthy
growth” says Charles Weston-Baker, Director of buyers in emerging nations such as Brazil,
savills global residential review 5
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