Global housing construction levels are forecast to rise by 2 per cent per year to 60.6 million units in 2022, offering new opportunities for overseas property investors.
India and China are expected to account for over 33 per cent of the new homes under construction around the globe by 2022. Their expanding middle classes and growing urban populations stimulate significant demand for housing. There has also been the recent implementation of government programs to increase the supply of low income housing in the two countries.
The new research, from the Freedonia Group, a Cleeveland-based industry research firm, also found that the fastest annual increases in new housing construction are projected for Greece and Spain.
The two European countries each saw double digit declines between 2012 and 2017. However, an improved economic situation alongside a stabilisation in house prices has stimulated activity. There is also a growing interest in new property developments from foreign buyers looking to invest in the countries.
Overseas property investors had traditionally been attracted to the Mediterranean locations, however the severe effect that the financial crash had upon the two nations meant that property activity seriously stagnated. Finally, government programs have been implemented in Spain to increase the construction of rental housing. However, despite strong projections and growing activity, new housing in each country remains far below historical figures.
On a global scale, housing stock is forecast to expand at a pace of 1.5 per cent during 2022. This is rising slightly faster than the world’s population. Higher income levels will encourage families living in shared properties to move into their own homes. This will also encourage affluent families to purchase second homes. Finally, single family dwellings are likely to continue to account for nearly two-thirds of existing homes globally. However, growing urban populations are stimulating an expanding share of multi-family units.