Document summary
This report considers the unaffordability in real estate markets as a potential risk and opportunity for investors. Global urbanization growth trends suggest that two-thirds of the world’s population is expected to live in cities by 2050 up from 54% in 2014. Given the lack of real estate affordable options, more than 50 million households by 2020 will be potentially left out of the biggest cities globally.
Data has shown that rental and sales prices for the luxury market segment have already peaked and have started to decline. More limited investment flows into affordable housing and forecast long term increases to demand make this segment an attractive alternative for investor’s capital.