What lies ahead for global property markets in 2017
This past year has been characterized by numerous
The hottest markets (and Europe)
We expect some of the top national real estate markets in 2017 to include the United States, Germany, Vietnam and India. Cities that are expected to continue doing well in the new year include Los Angeles, Barcelona, Madrid, Istanbul, Budapest, Bangalore, Mumbai, Bangkok, Manila, Ho Chi Minh City, Shanghai and Shenzhen.
The US market is poised for success. The US dollar is appreciating and yields are going up. Property in USA may be of interest to investors because property often works well to hedge inflation.
Many Asian markets are ascendant, especially India’s. As the fastest growing major economy in the world, India has garnered the keen attention of major investors. This is due to several factors: growing household consumption, comparatively low household debt, a maturing financial market and reduced interest rates.
As a whole, Europe does not appear to be positioned for much change. Rates are likely to remain low for a prolonged period and we are likely to see continued interest from local buyers.
The most popular property types among overseas investors
While 2016 witnessed policy changes that affected the popular
Commercial property with short term contracts may be of most interest as with rising inflation owners will be able to renegotiate rates relatively frequently.
In slower markets,
In some markets, such as the UK,
In the US, Trump’s
One trend that investors should keep an eye on is the rise of
Visa and nationality regime trends
Other countries are more proactively modifying their visa and nationality regimes. For instance, Cyprus has changed its threshold requirement for property investments for citizenship.
According to Tranio real estate expert Yulia Kozhevnikova, investors in Cyprus can now gain citizenship for EUR 2 million. Prior to November 2016, that figure was EUR 2.5 million. “Residence permits are granted to all property buyers, regardless of the price, and permanent residence permits are granted to buyers of homes costing upwards of EUR 300,000.” Thus, Cyprus offers one of the simplest routes for investors wishing to obtain EU passports.
Elena Milishenkova, Thomas H. Espy and George Buznik, Tranio.com