You will see a lot of these articles; charting the top overseas property investment destinations in a given year, but this one is different. Most of the articles will focus on residential property investment, some lumping residential and holiday let investments as part of the residential sector, and others on the commercial sector. This one will cover the top 10 overseas property investments [full stop].
In the history of property investment overseas which is either very long or very short depending on how you look at it (short in its current form, much older in other forms) there have been few times where international investment property was so plentiful. What's more overseas property investment advice is far better quality now than it has been for years, because the international downturn sorted the wheat from the chaff.
Right now in the main cities of the world's emerging markets, circumstances are converging to create fantastic opportunities for those with the means and stomach for buying overseas investment property. We are talking rapid economic growth, rapid population growth, growing employment, growing affluence (income per capita), growing mortgage markets, and growing consumer spending. This convergence of factors is presenting near equal opportunities across residential and commercial sectors.
At the same time we are seeing strong recoveries across many developed markets, where the ability to buy properties and assets and low prices means they also present good opportunities. Here are ten cities offering some of the best overseas investment properties in the world right now.
Note: this is not meant to be a top 10 chart, it is simply a list of ten of the top destinations for all round property investment. For example, some of the top commercial hotspots have very hot prime residential markets, but they have been excluded because the lower classes of residential property are either not spectacular or weaker.
- Istanbul (Turkey)
- Strong economy, rapid population growth, rapid employment growth, rapid income growth, mortgage growth and consumer spending growth.
- Sao Paulo (Brazil)
- Strong economy, rapid population growth, rapid employment growth, rapid income growth, and consumer spending growth.
- Paris (France)
- Strong stable economy enjoying a strong recovery, stable growth in residential property prices, growing returns in commercial sector (income returns and capital values).
- Warsaw (Poland)
- Growing into regional business hub, undervalued residential property and growing commercial returns.
- Berlin (Germany)
- Strong economic growth, undervalued residential property, growing rents, growing commercial returns (income returns and capital values).
- Prague (Czech Republic)
- Strong economic recovery, undervalued residential property, rapid growth in commercial property returns.
- Hong Kong (China)
- Rapidly growing residential market, searing growth in office and retail sectors, and wider commercial return growth.
- Bucharest (Romania)
- Undervalued residential property, strong commercial growth, particularly in office and warehouse sectors as it grows into regional business hub.
- Sofia (Bulgaria)
- Seriously depressed property prices across all sectors, now a benefit as the economy and property markets begin to recover. Recent reports indicate a return to stable growth in commercial and residential property.
- Budapest (Hungary)
- Strong opportunities in commercial sector, particularly office and warehouse as it becomes regional business hub. Residential property severely undervalued (per sqm).