Impact of the Great Recession on the real estate industry

As the Global Financial Crisis morphs into the Great Recession, there is considerable uncertainty about where real estate markets are heading.  Have we reached the bottom or are we still on the way down?  This edition of Beyond Borders focuses on how the Great Recession is impacting real estate markets around the world.

Governments around the world are taking significant steps to stabilise the banking sector and stimulate economies.  In this edition of Beyond Borders the details of the large stimulus packages introduced to boost the economies of Australia, Singapore and South Africa are highlighted.

While the drop in real estate values is causing much grief, it does provide opportunities to restructure property holdings without triggering capital gains as highlighted in the article from the Channel Islands. 

Decreasing property prices are not the only cause for concern, as general trading conditions deteriorate, tenants are under pressure to meet lease payment obligations. 
As highlighted in the article from the UK, it is important for landlords to have a strong understanding of their tenants so that they can act quickly to minimise the risk of tenants who do not pay.

Stephen O’Flynn
Chairman
Moore Stephens International Real Estate Group