What Investors Should Expect in the 2022 Real Estate Market

All in all, 2021 has been a rollercoaster of a ride, but the real estate market was surprisingly exceptional in 2021.

But if you've missed your chance to place your investment and is figuring out if the market is still the same in the new year - we're here to tell you what to expect in the real estate market in 2022.

We asked Juwai IQI Group Co-Founder and CEO Kashif Ansari some questions, and he weighed in and gave us insights into where the real estate market will head in 2022. Here's what he had to say:

1. Where in the global markets should investors invest in the coming year? Why?

Juwai IQI Group Co-Founder and CEO Kashif Ansari said:

“The first rule of property investing should always be: Don't lose money. That means investors want to limit the potential downside to their investment. In the environment that we expect to prevail in 2022, investors will seek safety and protection from potential loss.

“The markets that appear to be safest for 2022 are, for the most part, no surprise. In Asia, look at Singapore, Seoul, Tokyo, landed property in Kuala Lumpur and luxury property in Manila. Down under, look at Auckland, Sydney, the Gold Coast, Melbourne, Brisbane, and Perth. In the United States, consider Miami, Austin, Los Angeles, New York, and San Francisco.  In Canada, look at Toronto, Vancouver, and Montreal. In Europe, think Paris, London, Frankfurt, Berlin, and Stockholm.

“What all these destinations have in common is a good long-term story around yields and/or capital gains. I think many savvy investors would believe they are less likely to lose money in one of these gold-standard markets.”

2. What is likely to be the big trend in the international property markets next year?

“The big trend is 2022 will likely be a downshift in the global pandemic-caused price boom. In many markets, prices will continue to climb, but at a slower pace. Low inventory, accumulated savings, and pandemic-driven new demand trends will all remain positive factors in international property markets. It's just that their power will be reduced. “

3. How is the Omicron strain of the virus going to impact investors' sentiment on the international property market?

“Omicron is scary, but we don't know yet the impact it will have. Most analysis at this point suggests Omicron will pause and possibly even reverse the opening trend that had been gathering pace in Q3 and Q4 of 2021. Covid-19 no longer strikes investors with fear. We have all learned we can live with it. Property investors have more money in the bank than before Covid, and many are looking for a way to put that money to work.”

4. How can investors weigh the risk of different countries implementing housing policies that may increase regulatory intervention or limit mortgage lending? Do you expect regulation to increase in specific markets?

“You may see new market-cooling regulations in New Zealand and Canada. Of course, such rules have just been rolled out in Singapore.”

5. Is the trend of buyers from urban centres moving to the suburbs in many markets during the pandemic expected to persist, end, or reverse in 2022 if COVID-19 recovery is strong?

“Cities, inner suburbs, and lifestyle markets are all very popular with owner-occupiers and investors as we go into 2022. In those areas, buyers are looking for more space and amenities. The great migration is still underway as residents reevaluate their lifestyles and choose to live in new locations, but this story is no longer about leaving the city for the suburbs. The traffic is going both ways.”

Looking to ride the trend waves and finally place that real estate investment you've been wanting to do so since 2021? Here's your chance!

You can drop us a message below and ask us any questions on real estate - our professional team of real estate agents will get in touch with you as soon as possible!