As luxury real estate prices rise once again, VL Hendrikson identifies four locations around the world that are ripe for overseas investment. With prices on the rise, check out the top four cities real estate investors should consider.

Despite the global devastation caused by the Covid-19 pandemic, it has been a good time for real estate. The prices of blue-chip properties, or those of the richest five percent, are rising at their fastest rate in four years and have increased an average of 4.6 percent year-over-year for the first quarter of 2021, according to Prime Global Cities Index from the London agency Knight Frank.

Low interest rates fuel buyer confidence, and after spending so much time at home, people are reassessing their life situation. This has spurred a home buying frenzy around the world, with affluent buyers seeking more space, more amenities, and access to private outdoor spaces.

Many have looked away from the towns to the coastal villages or small towns in the countryside. Cities have been less popular, which means buyers have the opportunity to increase their property holdings at a reduced price. At the same time, with many people still working from home, beach destinations are heating up.

Here are four locations ripe for real estate investment.

Bangkok

Aman Nai Lert Bangkok

Prices for prime properties in Bangkok fell during the pandemic, falling 2.4% in the first quarter, compared to the first three months of the previous year, according to Knight Frank. In addition, the supply is increasingly limited as fewer and fewer projects become available and the space for luxury residential complexes shrinks. “Selling prices have come down, making it easier for buyers to make decisions because they believe that in the future well-located projects will cost more. In addition, there is very little land available in these areas for the development of future projects, ”said Nattha Kahapana, deputy general manager and chief of office of Knight Frank in Phuket, in a report on prime and super prime condominiums. in the fourth quarter of last year. . Some developers have also delayed opening new buildings in 2020 due to the pandemic, so more opportunities are on the way. Including Aman Nai Lert Residences, an Aman outpost in the verdant oasis of Nai Lert Park. The luxury, residential and spa complex will include 50 lodgings and 52 hotel suites. Units will feature high ceilings, warm and natural finishes and furnishings, private terraces, and access to everything Aman has to offer, from its five-star spa to a resident-only patio lounge and library.

London

Real estate investment: La Terrasse Appartement OWO
The terrace of the OWO apartment

There are also opportunities in the British capital, although the situation is starting to change. In May, prices rose in central London for the first time since May 2016, when British voters chose to leave the European Union. Since then, political uncertainty has caused average prices to fall by 17%, according to a report by Knight Frank. But prices rose 0.3% year-on-year in May, a sign of both the out-of-EU transition and the pandemic resuming. Covid-19 has pushed many city dwellers to the countryside, but now, with the rollout of vaccines and the easing of travel restrictions, experts expect a rebound. “Things are picking up where they left off after the general election in December 2019 and buyers can recognize good value after five or six years of falling prices,” said Tom Bill, UK residential research manager. Uni at Knight Frank, in report. Although there are additional taxes for foreign buyers, Knight Frank predicts that prices will rise 25 percent by 2025. An upcoming project is OWO Residences by Raffles, the Singaporean hotel brand now owned by the French hotel company Accor. The historic Edwardian War Office building once housed the Department of Defense and various military intelligence departments, and the conversion – it will include 125 hotel rooms and 85 signature residences, all with white glove service – will open the next year.

Antigua and Barbuda, Caribbean

House in Antigua and Barbuda
House in Antigua and Barbuda

Beachfront locations and vacation destinations have seen an influx of buyers looking to set up home offices on the ocean. As working from home continues into its second year, even more people are embracing this lifestyle – and the more idyllic the location, the better. Antigua offers this with its 365 beaches, as well as golden visa benefits that give foreign buyers access to citizenship through real estate investments. It is also exempt from income, inheritance and wealth tax. “As we’ve seen throughout 2020, consumers are increasingly interested in locations that provide a safe haven, open space and a lifestyle,” said Philip White, president and chief executive officer. management of Sotheby’s International Realty, in a press release regarding the opening of its Antigua and Barbuda office in December. Sharilyn Cort, founding member and majority owner of the company, continued: “The luxury real estate market in Antigua and Barbuda is of a high standard, signaling to investors that they can get the most out of their investment and low costs. of detention. They are currently marketing a house of over 20,000 square feet, with water views, integrated security, lighting and entertainment systems, an oceanfront swimming pool and an integrated indoor-outdoor floor plan, for $ 3.2 million.

Manhattan, New York

Real estate investment: Main bedroom of the Waldorf Astoria residences
Waldorf Astoria Residences New York, master bedroom

Rumors of Manhattan’s demise have been greatly exaggerated, as evidenced by record sales this spring. The number of transactions increased by almost 30% in the first quarter of 2021, compared to the previous three months, according to a report by Douglas Elliman. But the number of transactions is supported by the fall in prices. Data from Elliman showed average selling prices in the borough were down 8.4% to US $ 1.7 million quarter over quarter, and 9.4% from in the first quarter of 2020. This has created opportunities for buyers, as sellers – on the advice of their real estate agents – to no longer ask for “ambitious” prices. Additionally, many new developments offer concessions, such as reduced closing costs or extras like storage to encourage sales. And while travel remains difficult for many overseas buyers, the developments are reaching overseas customers with digital marketing tools and live video tours, according to Dan Tubb, senior sales manager at Waldorf Astoria New York towers, the reconversion of the legendary hotel which will bring 375 new residences in the Upper East Side district of the city. Several international buyers have purchased residences at the blind Waldorf, and others have made offers upon hearing that they may face competition on the desired unit. “We encourage interested parties to buy off plan now, as the residence of their choice may not be available once international travel returns,” Tubb said.


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