Given the constant changes and evolutions seen throughout global politics the importance of diversifying your property portfolio to help protect yourself from adverse changes is significant. We have created a brief overview of recent changes in the property market of four countries we feel represent exciting areas to invest.
The scepticism regarding investment in Spain is understandable. Over the last decade, the Spanish economy has undergone a terrible recession. The most notable crisis was the property bubble bust faced in 2007/08. However, since 2016, the Spanish property market has seen sustained economic growth, with house prices increasing. A combination of increased demand in Spain’s construction sector and increased lending goes a long way to explaining these changes.
Further to this, Rightmove has revealed that Spain remains the most popular destination for Brits looking to buy property abroad.
Over the last few years, the Irish market has experienced somewhat impressive growth. However, in 2017 this has soared; Irish house prices have increased more in the first quarter of 2017 than the entirety of 2016. One potential region to look at would be North Dublin, the area that has experienced the largest rise in property prices. The Irish Times explains this rise as prospective buyers being “priced out of the expensive South Dublin property market”, forcing them to look elsewhere.
Venturing outside Europe, Australia presents an interesting opportunity for prospective buyers. CoreLogic have revealed that the South East of Australia has experienced the highest rate of growth amongst the country; most particularly Sydney, in March 2017, experienced an 18.90% increase on the previous year.
Whilst there are many who continue to support the Australian economy, it is worth noting that there is a school of thought amongst some analysts that the Australian property bubble may burst. As such, it is worth approaching this with some caution, none the less, it is a country worth looking at.
Within Asia, Hong Kong is currently experiencing the most significant growth rates. When looking at House Price Indexes year on year, there is a general trend demonstrating sustained growth.
Moreover, Jones Lang LaSalle (JLL) has forecasted continued growth over the next 30 months predicting an increase of housing prices by 15%. This is partially explained by strong housing demand; household formation is currently outstripping transaction volumes.
Whilst these countries are not guaranteed opportunities, they do represent interesting prospects to have a look at if you as a landlord are keen to expand and diversify your existing property portfolio.
Written by Jafar Tabaqchali of Arthur Online.