2017 - Global Residential Investment Destinations
by Mr. Ashwinder
Raj Singh, JLL India
The global economy is expected to grow by 3.5% in 2018 compared to
under 3% in 2016.
This encouraging trend suggests more vigorous economic activity,
rising incomes and a keener appetite for real estate investments – not only
within India, but on international markets, as well.
Indians have historically been enthusiastic investors into
properties abroad. They know that purchasing real estate in a foreign country
helps diversify one’s financial portfolio and can ensure superb capital growth
and guaranteed regular rental income in the right markets.
Also, owning a home in a country of one’s personal preference is
an unbeatable lifestyle option, making that country a perfect destination for
leisure activities.
Given the importance of such investments, it is critical that one
understands the most suitable potential hotspots for property acquisition
abroad.
Here is a continent-wise breakdown for residential real estate
investment that can generate exciting returns in 2017:
1. United States..!
The American economy is expected to grow by 2.1%, and all major
economic indicators are strong as well. This would point towards a convincing
recovery from the 2008 recession, and signals increasing investor demand for
real estate.
It bears mentioning that America is currently becoming more
favourable for modestly-priced affordable properties rather than high-end and
luxury homes.
Los Angeles is one of the cities considered to be leading from the
front, while the Lower East Side of New York also presents an attractive
proposition for investments into this housing category.
2. Europe..!
The perennial favourite of tourists from across the globe despite
a few aberrations, Europe is going to be potentially strong in terms of real
estate investments.
For example, Montenegro – a country growing at 2.7% and an
extremely attractive tourism destination – can be considered to be a hotspot
for 2017. Since there isn’t a lot of awareness about this country, property
prices are still modest and attractive for early-mover investors.
Germany, the strongest economy in Europe today, has seen a rise of
23% in residential prices and is without doubt a tremendous opportunity for
residential property investors.
The UK, despite Brexit, is still a good bet as the property prices
are softening and the economy may witness a modest downturn, thereby making it
attractive for investors.
Italy is another country with great investment potential, with
Rome topping the charts. Finally, Portugal can be considered too given the
extremely attractive prices of built-up real estate in the country.
3. Asia..!
Owing to lower taxes on rental income and various other factors,
Tokyo in Japan is proving to be an interesting real estate investment
destination. Bangkok in Thailand is yet another market that offers high returns
on astute real estate investment.
After the country opened its gates to foreign investors, Vietnam
has suddenly come on the radar of attractive realty destinations, with
improving economic growth and a stable government proving to be additional
USPs.
4. Latin America..!
Global economic watchdogs have predicted countries like Chile,
Mexico and Brazil will come onto the path of sound economic recovery in 2017,
thereby making these countries very viable alternatives for real estate
investment.
5. New Zealand..!
This country ranks number 2 in the world on the International
Property Rights Index.
Even though property is not cheap there, the sparse population and
growing economy mean that there is less competition and the chances of
investing in plum properties are very favourable.
New Zealand is an excellent choice for investors looking for
enough room to grow and averse to the thought of fighting space in a crowded
market.
6. Turkey..!
Turkey has been in the news for all the wrong reasons recently, but its strategic location between Europe and Asia makes it an indubitable property investment hotspot.
It has been a business and trade hub for centuries, and the
current unrest and slowdown in economy in fact makes the country quite viable
for long-term investments.
Real estate investment predictions for global markets are always
subject for variances.
However, if one considers economic trends and the basic broad
fundamentals and parameters of property investment, it is quite possible to
identify regions in the world that can offer good returns on realty
investments.
At all times, the astute international property investor must
study an identified market minutely, understand the trends driving supply,
demand and price growth, and become familiar with the country’s own rules and
regulations for foreign investments.
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