Location, location, location! That has been heralded as the most important factor in property investment. The right location can make or break your venture's success. To make things easier for you and help you succeed, we have taken the time to put together a list of the greatest places to invest in real estate.
But before we begin.
Real estate is a long-term investment. It's unlikely for you to see any significant financial gains overnight. But as time passes, your property will appreciate, allowing you to build equity in case you decide to sell or rent out.
After all, Andrew Carnegie once said, "Ninety per cent of all millionaires become so through owning real estate." And given his wealth, it's safe to assume he knew what he was speaking about.
If you're determined to put Carnegie's words to the test, these are the locations you should be aiming for.
Despite different challenges, the U.K.'s real estate market offers many opportunities and benefits for local and international investors. This phenomenon is mainly because of the ever-growing under-supply of housing.
Between 2010 and 2020, property prices in London, Birmingham, and Manchester grew considerably. A trend that hasn't stopped and that is expected to continue. Average house prices are estimated to increase around 34% by 2035. It makes the United Kingdom's real estate market attractive for conventional and digitally oriented investors.
The rental market is as lucrative. London and other popular regional cities are in short supply of rental properties. It offers investors advantageous low void periods and opportunities for rent increases that aren't typical in other real estate markets worldwide.
Japan's Tokyo and Osaka have flourishing real estate markets. Both cities have a robust demand but a limited supply of properties. In addition, the country's prominent tourism industry has increased the necessity for hotels, residential buildings, and commercial facilities.
The 'Land of the Rising Sun' offers fantastic opportunities to individuals and businesses who wish to invest in development projects, housing construction, and income-generating properties. Japan also offers tokenised real estate. It's an innovative way to invest in property where investors can acquire digital tokens representing real estate shares regardless of the size of their capital.
The U.S. has always had a vast real estate market that lures all types of investors. It's known for its stability, steady price appreciation, and high demand, especially in major cities such as New York, Los Angeles, Charlotte, Nashville, Austin, etc.
The country's strong economic growth and constant creation of new jobs fuelled the market's allure and stability. Another important factor is the mortgage payments, which remain affordable compared to other developed countries.
Overseas investors find the U.S. real estate market appealing because it:
Europe's largest economy offers an incredible real estate market to investors. Germany is the third largest exporter in the world. It's estimated its economy will reach €5.34 trillion by 2035, making it a haven for individuals and businesses looking for a profitable Return on Investment (ROI).
Cities like Berlin, Frankfurt, Munich, and Leipzig are predicted to experience noticeable growth in the years to come. With this, house prices are expected to increase by 45% by 2035. Moreover, the German capital has a homeownership rate of approximately 14%, meaning the rental market is highly developed.
Germany and its largest cities are home to numerous profit-generating properties. The rich variety of options offers investors opportune times to acquire real estate, which can build significant equity that will result in great returns in the long term.
The Iberian Peninsula has always been popular among property investors and tourists. Spain and Portugal are hot spots for real estate operations thanks to their stable economy, eye-catching coastal locations, and interesting tax incentives.
Compared to other countries in the list, prices on the Iberian Peninsula remain affordable for the time being. However, local properties are projected to appreciate regularly over the next decade.
Both countries have a high demand for rentals, especially from ex-pats, digital nomads, and tourists, enabling investors to achieve yields well above 5%. Investments in luxury resorts and urban gentrification, especially in Portugal, are also climbing, giving individuals and businesses many choices to generate passive income.
Abu Dhabi and Dubai boast some of the world's most prestigious and opulent skyscrapers and buildings. The UAE is a treasure trove for investors who want to purchase prime real estate as the prices remain stable despite the area's current downturn.
With the introduction of property tokenisation and DAOs, the Emirates are no longer exclusively available to high-net-worth individuals and legacy institutions. Nowadays, investors of all sizes can acquire real estate in Abu Dhabi, Dubai, or any other region in the country.
The UAE's magnificent infrastructure and tax-free income policy make it appealing to businesses, individuals and families of all generations and sizes. It has led to the development of the local rental market, meaning a wide selection of revenue-generating properties to choose from.
East Europe's real estate market may not be as interesting as the one in the western parts of the continent, but nevertheless, it shouldn't be discarded light-handedly. Countries like Romania, Bulgaria, Greece, and Turkey have displayed impressive economic growth since the turn of the century.
The region generally offers investors lower prices than Western Europe, which means potentially higher yields as the local economy grows. Tourism in the area plays a pivotal role in developing the rental market. Short-term rentals are in demand in the region, resulting in high occupancy rates that generate excellent profit for property owners and investors.
Other notable locations that provide amazing real estate investment opportunities are France, Italy, South Korea, Canada, and Switzerland, to name a few. The reality is that all countries have cities and regions, which can enable individuals and businesses who own properties to build equity and benefit from high yields.
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