Now that we have settled into 2019 and the Year of the Pig, have you considered what investment opportunities are becoming available?
The past few years demonstrated an increased interest in cities other than traditional residential markets such as London, New York and Sydney. In general, investors were, and are looking for diversification, lower initial capital investment and areas with strong economic stories supporting them. With some of these factors in mind, what locations should you consider investing in? The list below offers suggestions to consider this year if you have not already done so.
The Birmingham story continues to grow from strength to strength. For its young population, 38,000 new jobs forecast for the next ten years, 49% graduate retention from its five universities and infrastructure investment and expansion, there has never been a more appealing time to invest in the UK’s second city. In recent news, the £1.5 billion pound Smithfield masterplan has gained traction and has been confirmed for construction. Along with all the activity in the local economy, perhaps despite it, Birmingham remains affordable, with steady, stable growth in price and rental yields, making Brum a good investment opportunity.
While Vancouver and Toronto have long been on the radar for investors, it is only in recent years that Montreal has stepped into the spotlight. Montreal attracts investors with its lack of foreign buyers tax and more affordable property prices compared to other Canadian cities, where there are also changing regulations and tax rules imposed on overseas investors. Foreign direct investment in Montreal increased by approximately 50% in 2017, bringing in US$2 billion from foreign companies.
Montreal has diverse economy, with industries ranging from finance, apparel manufacturing and transportation, and it is an AI hub, home for global tech companies such as Facebook, Google, Microsoft and Samsung. The city also has a strong tertiary education presence with eleven universities, including the renowned McGill University. Montreal offers a unique lifestyle for work, rest and play, and is ranked the best place to live in Canada for its lifestyle.
Vietnam’s positive economic outlook, demographics and its continuing growth are what attract investors who are looking to diversify their residential portfolios. Behind the scenes, its strong population growth, increase in foreign investment through manufacturing and other businesses are what support the demand for residential real estate. According to the Economist, South Koreans are by far the largest foreign investors in Vietnam, with over US$58million in registered capital in the country. Samsung and LG have opened several enormous factories, which have boosted the economy. In addition to foreign direct investment, relaxed foreign ownership regulations in the residential sector have enabled many overseas investors a way into the country’s property market.
Chicago is an interesting choice. As a city, it is home to a diverse range of businesses, including McDonald’s, United Airlines, Boeing, Kraft-Heinz and nearly 30 other Fortune 500 companies headquartered there, while an organic tech economy thrived over the years, producing well-known digital companies such as Groupon. A growing population had Euromonitor International forecast Chicago to be one of six new global megacities by 2030. The University of Chicago, ranked at number nine, and Northwestern University, number 34, are just two of the city’s world-renowned schools. Last but not least, a recent UBS report stated Chicago’s residential property is among the most undervalued among twenty major centres in the world.