Resicom – Holiday Investment – 04-21 – LB

Top Luxury Property Markets Worldwide

Overseas property investors are always looking for the top property markets in the world to invest in. Here we look at the best past performers and predictions for this year.

Luxury property markets in Singapore, Japan, Spain, and the United States performed well in 2018, International Luxury Property Expo (ILPE) analysts report. In 2019, European markets (Spain, France, and Germany), as well as in Canada and the United States are expected to boom.

In 2018, luxury real estate in the Asia-Pacific region saw the highest upturn in prices. In Singapore, the growth rate reached 11.5 per cent, and Tokyo experienced 9.4 per cent growth. This upsurge in interest can be attributed to political stability and an optimistic outlook on the economy.

Another reason for the rise in prices is high demand from overseas property investors, mostly Americans and Chinese, and to a lesser extent from Europeans. As for Japan’s capital, the real estate market was boosted by the upcoming 2020 Tokyo Summer Olympics.

Last year was also good for the American upscale property markets. In New York, prices remained stable while in Los Angeles real estate became 7.8 per cent more expensive. Investors were also found to favour real estate in San Francisco, where the sale of homes valued at US$2 million or more grew by 16 per cent during 2018.

European luxury property markets were dominated by Spain, where prices rose 10.4 per cent and the number of transactions rose 13 per cent. Most investments came from British, American, French, and Belgian property buyers. Berlin trailed Madrid by 2 per cent, with luxury real estate price growth of 8.5 per cent. ILPE experts expect real estate in the German capital will continue to rise in price until at least 2020.

Experts say that prices for upscale real estate will continue to grow through 2019. Madrid, Paris, and Berlin are expected to lead with six per cent growth. Real estate in Canada and the USA will continue to increase in value as well, whereas activity in Singapore is likely to slow, and luxury real estate prices in Hong Kong may drop by as much as 10 per cent.

British overseas property investors may wish to study the predictions below before investing abroad this year.

 Top Seven Cities form Price Rises in 2018

  1. Singapore – 11.5%
  2. Madrid – 10.4%
  3. Tokyo – 9.4%
  4. Berlin – 8.5%
  5. Cape Town – 8.2%
  6. Los Angeles – 7.8%
  7. Beijing – 7.3%

 Top Five Most Promising Property Markets in 2019 (Forecast for price growth)

  1. Madrid, Berlin, Paris – 6%
  2. Miami – 5%
  3. Vancouver – 3%
  4. Los Angeles, Sydney – 2%
  5. Geneva, Melbourne, London – 1%

 Top Three Destinations Where Prices for Luxury Real Estate Will Drop

  1. Hong Kong – 10%
  2. Mumbai – 5%
  3. Dubai – 2.4%

 Top Five Hotspots for Primary Luxury Property Markets

  1. Victoria, British Columbia, Canada
  2. San Diego, California, USA
  3. Orange County, California, USA
  4. Washington, D.C., USA
  5. Paris, France

 Top Five Hotspots on the Secondary Luxury Property Markets

  1. Santa Fe, New Mexico, USA
  2. Muskoka, Ontario, Canada
  3. Sarasota, Florida, USA
  4. Sun Valley, Idaho, USA,
  5. The Bahamas

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