Whilst the coming economic downturn within the global economy is presenting signs of concern, more importantly – it is also providing opportunities within real estate markets. In August 2018, global real estate prices reached a record high, and like any economic cycle, any ideas of witnessing exponential growth is completely unsustainable and as history shows, is simply not possible.

According to agriculture asset finance, as of the summer in 2019, real estate prices in global cities were sitting 45% higher than what they were at their previous peak back in 2007 before the last major global economic crash. We have advanced beyond the mature stages of this economic cycle and we are sitting in a downturn period which will go beyond a correctional phase into a period of recession. The UK, US and a number of major European countries are already experiencing a fall in property prices. Despite the current downturn, in the long-term, real estate’s very bottom line will at the bare minimum always act as a reliable wealth preservation vehicle, along with achieving a positive growth incline. On conservative estimates, the UK property market is forecast to experience a 56% increase by 2027, emphasising that property is a long-term game and an ideal vehicle that ensures wealth preservation whilst producing steady and reliable growth.

We are great believers that comes downturn comes opportunity. Our real estate acquisition and property development strategies ensure that we are perfectly poised to maximize the value of our global real estate portfolio during the coming economic conditions. Successful portfolios are created from the point of purchase, and times of recession present us with the greatest opportunity to acquire real estate at low prices, which enables us to benefit from the maximum growth occurrence within each economic cycle.

Commercial property is also a strong long-term asset, and like all markets, within the current and forecasted coming economic conditions, we can always see potential signs for positive and negative tides of momentum. The most important factor to understand is that the negative tides of momentum always occur within relatively short spaces of time, whereas positive tides of momentum that are reliable, usually mature over a longer term that requires patience.

The current market is highly accommodating in terms of available supply. The effects on occupational activity from any political uncertainty over Brexit and the impacts it will have upon doing business in the UK are yet to be seen, along with the possible impacts from rising base rates and consumer debt, as well as national debt. However, we can also see more positive momentum being driven from an increase in lending, greater levels of investment from Chinese capital, along with fostering new trade deals from our partners within and outside of Europe.

Here at Charter Life, we specialise in developing our real estate portfolios by focusing our strategies upon securing wealth preservation, and securing reliable, steady and above all – growth that is sustainable. We specialise in securing off-market real estate acquisitions that are exclusively available to our chosen clients.