The latest findings of the Economic Experts Survey (EES) indicate that global property prices are expected to rise by an average 9% over the next decade. The survey, conducted quarterly by the ifo Institute and the Swiss Economic Policy Institute, predicts specific increases of 8.4% in the UK, 6.0% in the US, and 5.5% in France.

According to ifo researcher Timo Wochner, the surge in real estate prices is primarily driven by factors of demand rather than supply. Among the respondents, 37% cited higher living standards, rising incomes, population growth, and the need for larger living spaces as the main reasons behind the anticipated price hikes.

The trend towards remote work is also contributing to the increased demand for real estate. Wochner added that 27% of the experts believe that supply factors such as limited production capacity, higher prices for construction materials, and a lack of available building lots are responsible for driving up real estate prices.

Geographically, Western Europe (6.4%) and North America (7.7%) are expected to experience below-average price increases. On the other hand, Southern Europe (18.4%), Eastern Europe (14.9%), South Asia (25.1%), West Asia (22.4%), and Central America (24.4%) are anticipated to witness significantly higher growth rates.

The survey results also indicate a strong correlation between regional inflation predictions and experts' expectations of real estate prices. Ifo researcher Philipp Heil cautions that the actual growth rates are likely to be lower than the projected figures. For instance, house prices in the UK have increased by over 67% in the past ten years, while the corresponding figures for the US and France stand at 112% and 25%, respectively.

Furthermore, 12% of respondents identified monetary policy, inflation, and governmental actions as additional drivers of real estate price increases.

Conducted between June 14th and July 2nd, 2023, the survey garnered insights from a total of 1,405 economic experts across 133 countries. It serves as a valuable source of analysis for understanding the potential future trajectory of the global real estate market.