Making the step up from having vested interests in the UK housing market to being a global luxury real estate investor can be daunting. Suddenly those rungs on the premium property ladder are feeling pretty slippery underfoot, and more than just a little heavy on the wallet, too.
But you’ve got to speculate to accumulate, as the experts say, and if you’ve got the capital available to back your ambitions up, you might even find the world of luxury real estate investment is a very lucrative one indeed.
This shouldn’t just be a case of spinning the globe and seeing where your finger lands. You might as well be spinning a roulette wheel with all your money on red. Instead, to make sure you’re in the black, here are some of the best places in the world for luxury real estate investment.
DUBAI, UAE
They don’t call it the City of Gold for nothing. In just a few years Dubai has grown spectacularly from a sleepy Gulf port to a global business hub and icon of ostentatious luxury and wealth the world over.
Dubai’s rapid expansion is symbolised by its skyline, with the current record breaking collection of towers unrecognisable from the same view just twenty years ago. Incredibly, the tallest building in the world, the Burj Khalifa, has only been standing for a little over a decade.
This breakneck redevelopment spells something of an opportunity for luxury real estate investors, as property in Dubai is ultra-modern and as technological advanced as it comes. What’s more, with a transient working population, the city offers much higher rental yields than many more mature, established real estate markets.
There are also new visa laws concerning residency and property ownership in the country that are more favourable to foreigners. Do check out these useful tips for expats moving to Dubai for more on that.
MANCHESTER, UK
Whilst London is the obvious choice for a premium property investment on terra firma, it’s in Manchester that we think the luxury real estate market presents more lucrative opportunities.
Let us explain why.
According to RWinvest’s guide to the best way to invest for retirement, Manchester is predicted to have huge property price growth across the next five years. On the whole, property prices will increase by an average of 6.2% across the UK over by 2027, with some high-performing regions such as the North West set to witness a growth of as much as 11.7%, where key cities like Manchester stand out as some of the best places to invest in UK property.
There are also high levels of employment and capital growth in the city, spurred on by regeneration projects like the development at St Johns, a new Manchester city-centre neighbourhood that will create a number of new homes, workplaces, and leisure and shopping attractions. All of this means a luxury property purchase here makes a whole lot of sense, and could well see a significant return on investment.
Read: 5 IDEAL reasons to buy property in Manchester
Alternatively, another predicted upcoming investment hotspot is Birmingham, with average yields set to grow by 8% in some areas of the city following the construction of HS2 and, consequently, some London commuters choosing to leave the Big Smoke for Brummagem.
TORONTO, CANADA
Toronto is a city on a seemingly unstoppable upward trajectory. In Resonance’s annual ranking of the World’s Best Cities, ‘The Six’ (as one famous resident has nicknamed Toronto) ranked 18th, with experts praising its exponential growth, culturally, financially and in terms of size. It’s the fastest growing in all of North America, and is predicted to be the continent’s third largest in the not too distant future.
What’s more, Toronto has the ninth highest number of Global 500 head offices in the world, encouraged by fast growing real estate wealth. Luxury real estate auctions are particularly big business here, driving prices up by increasing that sense of exclusivity and scarcity in premium property listings in the city.
All of this makes it an incredible place to invest in luxury property; there are young, aspirational folk living here with big money to spend. Will you join them?
FORTALEZA, BRAZIL
For luxury beachfront property investment, Brazil’s Fortaleza ranks as one of the top five in the world, according to the Global Property Survey, as reported on by Forbes.
Brazil is one of the world’s largest economies, and growing fast. The capital of the country’s Ceará state in the northeast, Fortaleza is one of the largest urban centres in South America, in terms of both size and population. Considering it’s also a beach town, with long stretches of golden sands and surf, it’s no surprise that luxury properties here are in high demand, bolstered by that exquisite mix of a prime location on the coast and big-city amenities further inland.
With recent increases in the number of international flights into Fortaleza, tourism is booming here, with so much to see and do in the city. Combine this with the fact that Brazil’s middle class has been growing at a confident, consistent rate of 1% per year, and it seems like luxury property investment here makes perfect sense in terms of ROI.
SINGAPORE
Singapore is consistently named as the world’s most expensive city. Although that title changed hands last year, with Tel Aviv taking top spot, there is still serious money in the Lion City.
In fact, low taxes, continued stability, capital preservation, and a universally-praised response to COVID-19, have made Singapore a more attractive place to invest than ever before. According to the Strait Times, luxury home sales rose to a new high in 2021, with 3’500 sold.
With Singapore ranking 11th in the world in terms of millionaire density, and average incomes rising fast, the purchase of a luxury property here could be a wise investment indeed. Might 2022 be the year you move to Singapore?
ANTALYA, TURKEY
We’re finishing up in Antalya, Turkey’s fastest growing city and the gateway to the country’s glorious Turquoise Coast, and a place predicated to be on the cusp of a lucrative spell.
In the first four months of 2020, prior to the global coronavirus crisis, house sales in Antalya rose by 12.5%. With 2018 and 2019’s currency crisis followed by rapid growth at the tail end of 2020, many indicators suggest that now is a good time to enter the Turkish property market.
If you’re keen to read more about that, then check out these 7 reasons investors are buying property in Antalya in 2022.
*Anything written by IDEAL Magazine is not intended to constitute financial advice. Always consult with an independent financial advisor or expert before making an investment or any personal finance decisions.*