Top 10 Global Investment Property Hot Spots
The top ten property investment hotspots across the world change on a regular basis, because property investment is affected by global politics, the world economy, and other factors. And yet, some of the same hotspots make the top ten list year after year. London and Dubai are usually in there, partly because despite apparent political upheavals, especially in the UK, investors still see these destinations as safe places for their money.
So let’s take a look at the ten most popular investment hotspots, and see whether a property purchase might be a sound investment.
Investors seem to see recent price declines as a buying opportunity, and now appear happy to ignore Brexit uncertainty and dive in while prices are affordable. Although “affordable”, in terms of the UK’s capital, is always going to be a relative term.
Dubai’s continued development as the key economic hub in the Middle East, means it retains its popularity with investors. Indian property investors are particularly keen, as the Indian government is seeking closer ties with the United Arab Emirates.
There is still a huge appetite for British property from foreign investors who have been priced out of prime central London. Chinese buyers love shopping at Bicester Village and are buying flats nearby. Other popular UK hotspots are Manchester, Liverpool and Leeds.
4. Hong Kong
Property consultants, Knight Frank, report that property prices are up 15.7% in the last year, shrugging off concerns of a Chinese recession.
The tiny island has been repositioning itself as a centre for the global gaming industry, and its associated software development. Its economic transformation has led to property prices rising as much as Hong Kong – 15.7% in the last year.
A country many of would be hard put to place on a map, Slovenia actually borders Italy, Austria, Hungary and Croatia, and also has an Adriatic coast. It’s in the EU, but has a population of only two million. Property rose 13.4% last year – so investors clearly have confidence in its future.
Another EU member, with a fast developing technological sector and strong government support for innovation. Its historic capital, Vilnius, is increasingly seen as an underpriced gem. Early investors pushed Lithuanian property prices up 11.5% last year.
Despite political upheavals, Hungary was a property hotspot last year, with a growth of 10.5%. The OECD reports that Hungary had one of the best performing OECD economies in 2018. With corporate tax going down to 9%, and personal income tax at 15%, strong growth is forecast. Budapest is attracting a lot of investment, rural regions far less.
Perhaps a surprising entrant to the list, given the war in Syria, and political developments within the country, but property prices rose 10.5% in Turkey last year. A lot of the reason was a plunge in the value of the Turkish lira, which made property extremely good value, and meant record numbers of Turkish properties were sold to foreign buyers.
There are some strong rises in property prices in Mexico, despite the Mexico City earthquake. One ancient part of Mexico City saw prices rise 49% in 2017, according to the Global Property Guide .
While political and economic uncertainty is rife, property continues to look like a safe investment. However, investors should look at the domestic inflation rates and currency levels in the countries they’re considering, to ensure that apparent cheapness isn’t a result of economic problems.