The European Estate Investment has been plagued with apathy and general bleakness. It has been predicted that things are not likely to improve even in the coming year. The reason for this gory picture has been hinged on the fact that investors and fund managers are still expecting a lull of five years before a silver lining appears in the horizon.

In the midst of the thundering storms and darkness however, there appears to be sparks of activity but these activities are just too little to make a difference.

The tale of woe seems to be endless as FFO (performance matrix used in real Estate market) is reported to have dropped to $22.3 million, equivalent to 19 cents/share.

The United States has been hit very badly by the credit crunch. Though recent news suggests a 3.7% growth in the economy, this is yet to show in the Estate Investment Market. The reasons are unclear but this might not be unconnected with the fears expressed about that growth.

Many believe most of the growth came about by the car scrappage scheme that encouraged a boost in car purchases. Taking off car purchases, the only actual growth only comes  down to about 1.9% raising fears as to whether the much celebrated recovery is a reality or a mere media hype!

Talking about the estate Investment market in particular, the economic woos of the credit crunch and the attendant massive job losses are having an untold effect on estate investment. Recent reports show that for over one year, apartment landlords have been struggling with dwindling rent and reducing occupancies.

To survive, landlords have had to offer incentives like months of free rent and reductions in rent. Whether these incentives are enough to give the much desired boost or not, only time can tell.

It is not all woe though; amidst the tales of woe are little gist of improvement. According to the latest Forbes report, some encouraging housing statistics are beginning to trickle in. If the 15% rise in the consumer confidence index is anything to go by, then there seems to a ray of hope. However, market watchers are receiving the news with cautious optimism, and have warned that this does not indicate a full recovery.

One big question is “what should be my attitude to Real Estate investment in the current financial climate?”  Well, pundits are now offering advice as to how to invest in the troubled Real Estate Market. Some of the suggested options include short sales, fix amid flip as well as buy and hold techniques.

According to the expert report, short sales while difficult to find, are still a very good option in the current climate, especially with many foreclosures and struggling banks. You can only fix and flip if you buy at deep discount either for a bank or wholesaler. You must be very tactical and well informed though because it is easier to buy than to sell! The competition to sell is very fierce. Your best advices the expert, is to target first time buyers.