GLOBAL RENTAL YIELD OUTLOOK

Real estate industry will continue to soar high next year. Due to the continuous robust growth of this industry, its future will be the centre of rapid economic and social change that transforms the built environment. Rental yields are simple to calculate but too crucial to check that a certain property is a step in the right direction of one’s path to financial independence.

It is expected that fast-growing cities will experience return opportunities ranging from low risk/low yield in advanced economy core real estate to high risk/high reward in emerging economies. The amount of institutional real estate will be adjusted downward from the 45% base of GDP. By 2020, cities will be swelling across the fast-growing countries in Asia, Africa, Middle East and Latin America.

As for parts in Europe, its sliding property values could plateau by 2020, wherein the prices will stabilize as rental yields improve. For the US rental property market, the revenue potential for builders and property owners will remain positive even though prices have flattened or fallen in some areas. The US rental property market is a growing chunk of the now estimated $127 Trillion global real estate market which accounts for 60% of all mainstream assets.

Cambodia has both high rental yields and strong appreciation prospects.

The real estate market in Cambodia is tied up to its consistently growing economy. Right now, entry-level condominiums in metro cities are valued at only $1500 per / m² while units in the high-end category cost about $3200 on average.

By 2020, it is expected that migration will be firmly established since there are already thousands of people migrate from country to city across Asia, Middle East, Latin America and Africa. There will be a demand for specific types of real estate due to growing emerging market’s middle class.