Savills names America as top location for residential investment
The latest Savills World Residential Investability Ranking has named America as the world’s best location for residential property investment.
Savills has examined the 5-year price growth forecast of key cities which have historically attracted investor interest.
The report encourages investors to have an understanding of macro metrics and of the ‘local, shorter term drivers of house prices’ before investing.
“It is vital that investors understand the long term demographic, economic and supply-side drivers of demand – and therefore sustainable value – when making investment decisions. These can be different at national and local level.
“When a growing population, growing affluence and limited housing or land supply converge, we would anticipate real house price growth. The absence of one or more of these variables can stall a housing market and the absence of two or more can send property values downward,” the report said.
Although the USA has been ranked as the no.1 spot for residential property investment, some locations are better than others.
Director of Savills world research Yolande Barnes comments: “There is a world of difference within the USA between top tech cities and languishing rustbelt ones.”
If you are considering investing in American property, the Company tips San Francisco as a top location for investment in the residential markets. San Francisco is expected to see the strongest mid-term growth ahead of NYC, LA and Miami.
The rest of the world…
The United Kingdom was ranked fourth behind the UAE and Singapore as the best place to achieve strong rental returns and capital appreciation.
China and Hong Kong have been ranked 11th and 12th as rental growth has eased in recent times.
The report suggests that property values and climbs in rents could be restricted in world class cities such as London, Singapore and Hong Kong.