By Ashley Osborne | Head of UK Residential & Managing Director – International Properties

 

The incentive of high tangible assets, stable income returns, and capital appreciation are pushing more and more investors to look for property investment opportunities at safe haven locations.

But before we get into it, it’s important to know what makes a certain city or country a safe haven.6 factors to determine a safe haven for property investment

  • Increase in population – An increase in population is usually associated with an increase in demand for future housing.
  • Increase in jobs – As with the above, when the job market grows, there is typically a higher demand for housing.
  • Strong and stable economy – With a stable economy and a flourishing job market typically comes an influx of immigrants, which ultimately result in an increase in housing demand.
  • Shortage of housing supply – Supply of housing in a city is conversely related to return on investment. The lower the supply of homes, the higher their re-sale value and rental prices would be.
  • Well-planned infrastructure – Proper transportation systems and infrastructures are key indicators of a safe haven. Coupled with the other factors above, it would mean the city’s standard of living is high, making it a great property investment opportunity.
  • Fewer government restrictions – The better the country’s regulations on property investment and the fewer the restrictions they place on overseas investors will generally make the country favourable for property investment.

Known Real Estate Safe Haven Cities

  1. London has been and continues to be a safe haven for foreign investors. With minimum government barriers to purchasing property and a strong demand predicted in the future, housing supply continues to be a shortage. Moreover, with the development of a major infrastructure, the Crossrail, properties in London’s neighbouring counties are seeing an increase in price and demand alike.
  2. New York is considered the most stable and most recognized market in the United States. As the financial hub of the world, its strong economic environment and high quality of life ensures continued demand for property purchase and rental.
  3. Sydney, Australia is another city that has seen constant returns on property investment in the past 30 years, making it another lucrative hotspot for foreign investors. With the help of increasing GDP, low unemployment and interest rates, and quality of life on par with other major hubs, it is easily one of the top safe havens for property investment.
  4. Vancouver has always been considered one of the safest (and relatively cheaper) cities to invest in. With an open-door policy to foreign investors and non-residents possessing the same rights as residents, investors continue to flock the market. In addition, the new SkyTrain Evergreen Line development cements Vancouver as one of the best property investment opportunities.

Explore the many property investment opportunities at safe haven locations including London, New York, Sydney, Vancouver and more.