Hottest overseas real estate markets in 2014
If you are an institutional or individual real estate investor looking overseas, the old adage of location, location, location is always in the forefront of your mind. But, also make sure to hire a competent local real estate broker and attorney to guide you through local and national real estate law. So, where will you buy in 2014? Let’s take a look.
Moscow is on fire. Not literally on fire, but the Moscow real estate market is red hot. This market is hot enough that many deals are snapped up by wealth management firms. But, you can get in on the action by purchasing shares in a real estate investment trust that focuses on Moscow while eliminating much of the risk.
Moscow may be unique on this list in that the closing costs associated with residential real estate transactions are incredibly low, keeping more of your money in the property.
Low property taxes and its gateway position to China give Hong Kong two elements that make real estate investors salivate. A huge local buyer base creates a strong foundation for Hong Kong’s property market, but institutional investors have been present for decades. Deals may be tougher to find as there is limited inventory, but a seasoned local broker will know when it’s time to pounce.
You don’t get the sixth position in the list of fastest rising property prices without effort. Taiwan has worked hard to keep interest rates low and builders maintaining healthy inventories. Your best bets will usually be close to larger cities, but local brokers can also forecast where new factories are planned, giving you an edge if you are focused on residential property. New factories, particularly in outlying cities, mean new jobs and workers with housing needs.
Turkey’s geographic position as the “Gateway to the World,” is almost outshined by its racing property markets. There is still plenty of coastal property not yet developed and the newer Turkish cities have well designed and executed urban growth plans. Locals are adding second homes, but European and American investors aren’t bashful about Turkey, either. Don’t ignore Istanbul. There’s a very good reason that the largest airport in the World is planned near Istanbul. The longer the EU and Middle East take to stabilise, the more your Turkish real estate investments will continue to skyrocket.
The only European market worth a look other than Turkey is Austria. Recently discovered as a great vacation destination, Austria’s investor population includes most developed nations and many of the world’s biggest institutional investors. Until the European Union can find a way to get its economic act together, Austria will remain the only north European destination for real estate investors.
One Central or South American option worthy of pursuit is Columbia. The country has a deep raw material export base, including gold and oil and a newly minted middle class is hungry for single and multifamily real estate as well as the commercial properties to serve new residents. Outside investors should focus on the larger cities, including Medellin.
Apparently unwilling to continue to watch Panama collect all of the revenue that comes with moving freight through the Panama Canal, Columbia partnered with China to build a competing rail line that should also create explosive growth on both Columbian coasts.
Hosting an Olympics and World Cup is usually pretty good for a city’s real estate, but Brazil was already heated up. Investors can work with local partners, real estate trusts and other vehicles for sourcing, funding and operating investment in Brazil’s many larger cities.
Dubai seems to consistently avoid many of the traps that other Middle Eastern real estate markets fall into. Dubai rarely involves itself in local or regional squabbles, choosing instead to focus on tempting foreign investors with its many beautiful property options. Demand is exceeding inventory, creating at least a short term ride for investors who move quickly. Much of the current investment in Dubai real estate comes from India. Dubai is globally known as a very safe area and this also helps to maintain property value growth.
Although India’s real estate value increases were slightly less robust than some other markets, it is still a hot market. Internal and external institutional investors will continue to drive India’s solid real estate value growth, but that is expected to change next year with individual home buyers leading the pack.
There were many overseas property investment opportunities available in 2014 for the short or long-term individual and institutional real estate investor. Watch for the upcoming year and invest with caution in certain regions. Some areas should also be looked at as temporary investments, but in the next year all the listed real estate markets should see positive growth.