Trends in the World Market Vs Covid-19 Battle
Finally, some clear trends are emerging as the disturbances caused by the coronavirus pandemic expand, the nation’s struggling to control the situation and residents put under Work from Home (WFH) regime. Research published by Moody’s Investor Service hinted at the risk exposure of various sectors, real estate companies managed to pass cheap on this list with only 5% of the rated project and infrastructure companies in Asia Pacific region placed in the high-risk bracket.
About 67 per cent infrastructure companies in the Asia Pacific are enjoying a relatively low exposure to the COVID disruptions due to the following reasons
- Nature of services
- Value for money
Government initiatives, policies and rules supplemented to the comfortable position of real estate.
Property beats other investments over 25 years.
A look back over the last 25 years demonstrates how the expression “safe as houses” also rings true during considerable uncertainty.
Between the period of 1995-2020, real estate registered an increase of 458%, making it the best performing investment asset class.
Why the stress on “uncertainty”?
Humans are hard-wired to seek comfort and certainty. Any hints of the foggy situation and see humans lose their cool. A home you own in the times of pandemic provides a mental relief. Even if everything goes south, at least you have a roof on your head.
Rise of the super-rich
The US dominates world market with 2,40,575 Ultra High Net Worth Individual (UHNWIs), Asia’s five-year trends hinting a double-digit growth against North America’s projected rate.
India tops the charts with an expected +73%, China +58%, and Indonesia +57% rate.
- HNWI or High Net Worth Individual is a wealthy person, particularly one with investable assets over $1 million.
- Wellness as a measure of national performance, 80% of UHNWIs are dedicating more time and money into their wellbeing.
40 cities were shortlisted by Knight Frank’s team of residential property experts, identifying the prime property hotspots for 2020. Sentosa in Singapore, Amizmiz in Marrakech and Maida Vale in London being the most desirable destinations for realtors and consumers alike.
Low-risk exposure to a hinted rise in the super-rich and Singapore coming out as the go-to destination for reality in 2020. We can say the market is somewhere showing clear trends. The trust Indian consumers bestow on real estate is working as a strong catalyst with real estate transactions flowing still!
Good days are ahead!
- Shirley, A. (2020, May 10). The Wealth Report: Covid-19 update. Retrieved July 13, 2020, from Link
- (2020, June 03). Only 5% Asia Pacific infrastructure firms highly exposed to COVID-19 disruptions: Moody’s. Retrieved July 13, 2020, from Link
- Bill, T. (2020, March 31). Property beats other investments over 25 years. Retrieved July 13, 2020, from Link