Key Global Property Market Insights for Q3 2017
Global property markets are booming and clued up investors are facing a plethora of new opportunities.
Those are two of the key messages to come out of the latest Property Frontiers Global Market Roundup. The quarterly guide reveals insights into markets around the world, giving investors the intel they need to know where to look next.
Ray Withers, CEO, Property Frontiers says, “Global property markets are constantly shifting and keeping up with an entire planet’s worth of opportunities is no easy task. That’s why we’re constantly researching and reviewing data, to identify emerging trends and seek out the most promising areas for investment, no matter which country they may be in.”
The Q3 2017 Global Market Roundup reports that the UK remains an attractive destination for property investors, with annual house price growth picking up to 5.1% in July. London’s residential market continues to decline though, with buy-to-let mortgage numbers half of what they were a year ago and just 37% of listings ending in a sale.
Elsewhere in Europe, Vienna, Zurich, Madrid, Berlin, and Amsterdam are all attracting significant capital when it comes to residential real estate investment.
With European regulators currently considering loosening solvency restrictions on real estate investments by the insurance industry, that capital flow could double to as much as €500bn in the near future.
At the very top of the list in Europe is Iceland. In fact, Iceland is currently the most profitable residential market in the world, with growth of 23.2% in the year to June.
Over in the Asia-Pacific region, investment opportunities are equally interesting. The Philippines enjoyed economic expansion of 6.8% last year and a reworking of property taxes may well be on the horizon, making this a country to watch very carefully.
Meanwhile, residential investment levels in China are falling, as regulators introduce a raft of measures to stabilise runaway prices.
South Korea is also falling from favour, with investors instead opting for Hong Kong and India. The former reported the highest house price growth in Asia in the year to June, at 21.1% according to Knight Frank. The latter is enjoying five-year price appreciation of a staggering 69.7%.
The Americas present an equally mixed picture. Canadian cities are falling from grace, with talk of the bubble deflating, if not bursting entirely. Foreign investors are flocking to the US instead, purchasing 49% more residential property by value this year than last, based on figures from the National Association of Realtors.
Latin America is also holding its own, with Argentina and Brazil both looking promising once more.
Finally, the Middle East and Africa are looking extremely interesting.
Ray Withers adds,“Africa’s population is set to double by 2050. That projection is driving a massive need for housing across the continent and opportunities for investors are rife.”
In Nigeria, the current housing shortage of 18 million units is widening every year, with urbanisation drawing an estimated 40,000 people per day to the country’s cities. The UN World Tourism Organization reports that North Africa was the fastest growing sub-region in the world in Q1 2017, with an increase of 17.8% in visitor numbers. Meanwhile, business confidence in the global hospitality industry has reached its highest level in a decade, opening up a plethora of new investment opportunities to those who like to stay ahead of the curve.