The real estate market is often referred to as the “barometer of the economy”: as soon as macroeconomic conditions change, prices, demand, and investment flows react almost instantly. Therefore, the question of how promising a particular market is concerns not only analysts but also private buyers planning to invest in housing, and determining a region’s potential means looking not only at the current situation but also at the trends that will shape its future.
Economic and social indicators
The first thing experts pay attention to when analyzing the real estate market is the economic foundation of the region. GDP growth rates, employment levels, inflation, and the availability of mortgage loans directly affect consumer activity. If the economy is developing steadily, people are more likely to decide to buy housing, and investors are more likely to make long-term investments. The social factor is no less important. Population growth, migration to large cities, improved quality of life, and the development of education create a steady demand for housing. In recent years, economic stability and employment growth have been key factors in the revival of the real estate market in Portugal. The Golden Visa program, the development of the IT sector, and the relocation of international specialists to Lisbon have led to an increase in real estate prices of almost 10% per year. Similar dynamics can be observed in Turkey: the influx of internal migration and foreign residents supports high demand in Antalya and Alanya.
Urban infrastructure and regional development
Even with a stable economy, the real estate market does not develop evenly. Infrastructure can literally change the fate of an entire district: a new transport interchange, university, business cluster, or promenade increases the attractiveness of a location and creates new demand.
Investors evaluate not only completed projects, but also the plans of municipal authorities. For example, ten years ago, the Başakşehir district in Istanbul was considered a suburb, but after the opening of a new metro line and the construction of a hospital complex and business park, it became one of the fastest-growing locations in the city. A similar effect can be seen in Barcelona: the development of transport hubs and the reconstruction of the waterfront have increased interest in the Poblenou and Sant Martí districts, which were not previously considered prestigious.
In the long term, areas with a comprehensive approach to development – combining transport accessibility, a high-quality environment, and well-designed public spaces – will benefit. It is precisely these areas that are becoming centers of long-term demand.
International context
The principles of real estate market valuation are universal – they apply not only within a country but also internationally. Analysts use the same criteria when assessing the prospects for real estate overseas: economic stability, political predictability, infrastructure development, and standard of living.
Investors are increasingly turning to foreign markets as a means of diversifying their capital. For example, thanks to visa reforms and major infrastructure projects in the UAE, the volume of real estate transactions in Dubai increased by more than 30% in 2023. This clearly shows how the combination of a stable economy and an open investment policy makes the market particularly promising.
Assessing the prospects of such areas requires a careful approach: it is important to consider not only macroeconomics, but also local characteristics – from the tax regime to urban development strategy. This is what allows us to determine where the most interesting investment opportunities are emerging today.
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