In spite of the global economic uncertainty, real estate still remains one of the most favoured asset class for global investors. In almost all markets, property prices, rents and returns continue to rise steadily.
The last few years we have seen a new growth in various global markets, which brings with it that all important question, where should I invest?
Before this question can be answered, you first need to decipher what it is you want to achieve from your investment.
First things first get to know your markets. Generally, to see a good return on any property investment, whether in rental or resale, you need to ensure the demand will be there. You also need to ensure you understand how the market works, every market is different and is dictated by different laws and legislations. Generally, in the UK the regulations in place are fairly bias and favour both landlords and tenants, however, in other European markets they tend to highly favour the tenant over the landlord, which could result in being stuck with a tenant in situ for some time.
Generally, for a higher rental return you should be looking in area’s that benefit from high student intake, international tenants and young working professionals.
Now for the hotspots…
Leeds is located in West Yorkshire and is one of the most diverse economies of all the UK’s main employment centres. The city is home to over 109,000 business and access to a workforce of 1.4 million individuals. Due to the increase investment in Leeds through the Northern Powerhouse initiative, both house prices and rental prices are expected to rise respectively by 3.3% and 3.2% over the next five years. Making it an ideal location for your next property investment.
Liverpool is also one the ‘core cities’ within the Northern Powerhouse initiative, and due to this the city has received an investment injection since the initiative was announced in 2014. With major regeneration projects currently being undertaken across the city, such as the Liverpool Waters scheme, the latest figures are predicting house price growth of 12% over the next four years.
During 2018, the Portuguese economy experienced its fastest growth since 2000 and the country has also had the steepest decline in unemployment across the EU over the past 5 years. Due to this Lisbon has experienced astonishing growth rate in both capital and rental values – with capital appreciation forecast growth of 19.2% and an estimated 27.3% rental price growth over the next 5 years.
Düsseldorf is situated in the heart of Europe and is an important economic centre. An under-supplied housing market, evidenced by a vacancy rate of 1.4%, has led to upward pressure on both rental and capital growth rates over the past decade. Rents have risen 40% since 2009, whilst prices for new apartments have increased 100% over the same period,
The Complete Zeitgeist 2019
The zeitgeist compiled by leading global residential asset investment specialists Complete Prime Residential is a creative, insightful and thought-provoking collection of concepts in residential real estate investment and management of your properties. Providing an A-Z of all things real estate in the spirit of now get your own copy of The Complete Zeitgeist 2019.