2014 Property Investment Review
Last year was quite an interesting one in the global property market, with the two power houses of the West, London and New York, really underlining to investors the importance of investing into strong currencies as well as strong economies.
Both cities benefitted from price growth in central areas last year, with some locations seeing double digit upside on residential property values. The vacancy rates in these central locations remain very low, which is a strong indicator of a healthy market, although with the rate at which prices have risen over the past few years, yields in the typically favoured parts of Central London and Manhattan have suffered.
However the real property stories of last year in these markets were in the surrounding locations. A number of Outer London locations firmly emerged as worthy of investor consideration, and a similar situation was seen across the pond, with Brooklyn in particular showing healthy growth and strong potential to continue.
Another strong plus in each of these markets was the significant year-on-year increase in transactions from domestic buyers, which we always like to see – entering a market or sector that depends purely on demand from investors really narrows down your exit strategy options.
Elsewhere in the world there were a number of other positive stories for real estate investors. Dubai continued its excellent 2013 performance in the first half of the year, only to see a considerable slowdown in the summer amid fears and forecasts of a bubble soon to burst.
Nevertheless, the city still enjoyed property price and rental value increases of 15-20% over the year, and it’s clear that the inevitable decline and cooling down in property value growth coupled with a stalling of increasing rental prices was exactly what the market needed to remain viable and in good shape for long-term stability and security.
We also saw very good performance in Australia. Having watched most of the trials of the GFC from the sidelines, Australia emerged relatively unscathed and now stands as a booming economy that is ripe of profitable investment.
Strong growth has been seen across the countries three major cities, but the better value on offer in Melbourne and in particular Brisbane place them above Sydney as destinations on which investors would do well to keep an eye.
Written by: Gary Powell
Director – UK, IP Global
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Sally - Silversurfer's Editor (see all)
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!