Prospects for Real Estate Investment in 2023 Under the Threat of a Global Recession

What are the prospects for real estate investment in 2023 after the threat of a global recession? Lately, you should often come across the term “global recession 2023” in various mass media. What exactly is a global recession? A global recession is when there is a prolonged decline in the global economic sector over a period.

If this global recession actually occurs in 2023, then developed countries will face a contraction, economies in developing countries will slow down, and stock trading will experience a decline. The Indonesian government itself has begun urging the public to prepare for the threat of a recession.

The threat of a global recession was initially due to an increase in interest rates by central banks around the world. This is the impact of inflation that has occurred due to the COVID-19 pandemic and the Russia-Ukraine conflict. By the end of 2022, the threat of a global recession is still looming. National and global economic conditions are also expected to be dire in 2023.

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Real estate investment prospects for 2023

This will naturally affect various sectors, including the property sector. Since the pandemic situation, the property sector has continued to face various challenges. What will happen to the property sector in 2023 in the shadow of a global recession? Although overshadowed by the global economic recession, real estate agents believe that the real estate sector will continue to operate in 2023. This is because the need for property in the form of a house as a place to live or as investment tool is still quite high in Indonesia.

It is believed that the prospect of investment in real estate in 2023 is still quite potential in the middle of the current economic conditions. One of the property experts, the Executive Director of the Lippo Group, John Riady, believes that the real estate sector in Indonesia remains promising. Driven by the macroeconomic conditions of the national economy which are still much better than those of other countries.

According to John, the property sector is still one of the largest supporting sectors for the Gross Domestic Product (GDP). It is believed that the property sector is able to turn the wheel and strengthen the national economy if it can be saved in the middle of this condition.

Although public demand for property is still quite high, in 2023 the property sector must face the challenges of inflation and rising interest rates. This will cause an increase in the price of industrial raw materials, as well as an increase in mortgage interest rates which will slow down the pace of home buying.

Developers are required to be more innovative to face this challenge. However, according to the Country Head of property consultant Jones Lang LaSalle, James Alan is also optimistic that Indonesia is still an attractive investment destination for local and global investors.

The construction of new toll roads and toll roads outside the city is expected to have a positive impact on property development in cities other than Jakarta. Although overshadowed by the threat of a global recession, property experts actually consider 2023 to be the right time for investors to make property transactions.

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