Thursday, May 8, 2014
Melbourne, Tel-Aviv, and Chicago could out-perform the real estate markets in prime world cities in the next few years as global investors seek alternative locations, according to a new report.
The Candy GPS Report, published recently by Candy and Candy, Savills World Research, and Deutsche Asset and Wealth Management, identifies 12 cities around the globe with the potential to show strong residential property price growth in the next few years. Prices in these rising cities are generally much lower than in the world-leading cities, making them more affordable prospective investments for expats.
The list ranges from well established cities, such as Melbourne, Australia, to centers in developing economies such as Chennai, India.
Yolande Barnes, Director, Savills World Research, who conducted the analysis said: "As prime real estate in many premier cities has become more fully valued, emboldened investors are now spreading their wings and looking for high yielding secondary properties in those cities as well as starting to consider the value of second-tier cities in countries with strengthening economies."
"This more adventurous approach is likely not only to provide higher income returns but also the opportunity for significant capital growth. Real estate values will grow as new cities all over the globe rise on fortune's wheel. Property rents and values will rise in line with new and growing economic strength."
Factors taken into consideration in the report include whether English is the first spoken language; the presence of new tech industries and financial centers; favorable conditions for international companies; and a large, young, and well educated population.