Real estate markets around the world are set to slow considerably in 2011 following the post-crash bounce. According to the Global Residential Market Forecast from estate agent Knight Frank, prices are likely to remain fairly static in the coming 12 months.
Indeed, despite an improving outlook in parts of Europe and Asia during 2009 and 2010, government austerity measures and increasing taxes are likely to cause the market to stagnate.
"Funding constraints, for both developers and purchasers, will begin to limit the recovery in development volumes in 2011," the report adds. "[This means] a structural undersupply of housing will contribute to slightly higher-than-trend rates of price growth from 2012 and beyond."
However, there will be some exceptions to this rule due to an overhang of distressed property in a number of global markets - most notably the US, Spain and Ireland.
Overall the outlook is that the global housing market will deliver small but positive growth in 2011. Knight Frank explains that the real test for market resilience, especially in Europe and the US, is likely to come at some point in 2011 when interest rates begin to climb from their current historic lows.