The world is becoming more global every day, providing many opportunities for real estate investors looking to expand their horizons and portfolio holdings. Below, we discuss five international markets that offer the most investment promise.
5. Spain
The Spanish economy nearly faced collapse in 2012, but government reforms have stabilized the situation and the Spanish outlook is bright. Currently, real estate prices stand at 25% below their highs of 2008, attracting investors looking for a bargain. With continued stability and growth, values are predicted to rise, particularly in locations such as Majorca, Ibiza, and the Balearic Islands, which draw European tourists and vacation-home buyers. Vacation destinations are fortified against economic downturns more so than locations on the main-land because of the demand for housing which outweighs the supply.
4. United Kingdom
The second European country on our list, the United Kingdom, has been the recent subject of conjecture as to its future given the Brexit vote. As markets calm down after initially negative responses to the vote, it appears that the UK will not only survive its separation from the EU, but is projected to stabilize and grow as the Kingdom returns to more autonomous rule while still engaging in robust trade with the remaining EU nations. As always, London is a city in high demand with limited supply, but there are many other cities that also offer the potential for high returns on investment over the next few years. Manchester is one such city, poised to take the greatest advantage of the new normal in the UK.
3. Singapore
The Asian market has suffered setbacks in the past few years, but the response to those setbacks has created a window of prime-investment opportunity for investors willing to take the risk. Measures to stem the untenable growth have resulted in a slowing of the market, causing sales to lag, and resulting in reduced property values. Savvy investors recognize this as a chance to get into the market at a low entry-price now, before the market booms again, resulting in massive growth in property values, which could leave investors counting substantial profits.
2. United Arab Emirates
The UAE is a bastion of stability in the Middle East, attracting foreign investments and creating consistent growth. Over the last three years, the UAE economy has shown a rate of annual growth of over 4%. At the center is the city of Dubai, which has stood as a global business hub for years. The potential for long-term growth is strong in the UAE, as more investors move into the country, creating jobs and a need for housing. In addition, the UAE is considered one of the safest countries in the Middle East.
1. United States
In a survey of 14 countries, real estate advisory firm Savills considered economic and demographic trends to predict a rise in property values over the course of the next five years. The results of the survey showed the U.S. to be the hottest country for investment following three years of economic growth as the nation moves out of the recession brought about by the financial and housing crises of 2008. Factors such as population growth, rising wealth, and an increasingly limited housing supply add to the likelihood that property values will rise significantly in the immediate future.
San Francisco is at the center of growth potential, supported by its proximity to Silicon Valley and the perpetual flow of new tech jobs into the area. New York, Los Angeles, and Miami are also predicted to continue to rebound. These cities, and others, have attracted foreign investors from Canada, Mexico, India, and the United Kingdom, who understand the potential as well as the stability the U.S. market offers.
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