Global property markets: not just paint by numbers

Looking at lists and numbers in isolation can only take you so far when painting a cohesive picture of Global property markets. Indeed, sometimes one factor in isolation can be misleading; it is necessary to look at how everything hangs together to get a true feel.

Take Istanbul for example: it has the lowest average property price across our selection at £72 psf but when taken in conjunction with its 15% house price growth over the last year (the fourth highest across our selection), it becomes evident that it is a stellar investment choice.

Similarly, Lisbon has recently experienced its first increases in house prices in 5 years which, when coupled with low £ psf values, makes it a good investment choice. Madrid (£157 psf) and Barcelona (£159 psf) too are both particularly well priced at the moment, and have been named ‘ones to watch’ in 2015. In a similar vein, Berlin (£182 psf – 10th lowest on our list) enjoyed 15.6% growth over the last year.

Paris is attracting more international attention than it has in 15 years despite recent price falls of -2.8% over the last year, savvy investors snapping up properties while they have the chance. And Moscow, despite oil price drops and the impact that had on the economy, enjoyed house price growth of 8.5% over the last year and rental growth of 3.5%.

Of course in some situations the numbers do speak for themselves, even in isolation: take Dublin and Edinburgh where the picture is only bright. Dublin has experienced house price growth of 21.6% over the last year while Edinburgh has experienced 20% (not to mention the 19% rental growth). But despite growth, both areas have relatively affordable properties by global standards and with the economies in both of these places booming, this can only go one way: up, at least until the market settles the way it tends to post-recession. Similarly, London’s market, always strong and resilient, is now exceeding where it was prior to the global financial crisis and continues to attract  international and domestic attention.

Across the Atlantic, New York’s market has re-established well with the current market being more or less at its pre-crash strength. Average prices are £432,243 which is nearly four times higher than the national average. Similarly, Los Angeles’ market is also going strong with average prices now £344,102. Chicago is only just starting its recovery with average home prices having grown 1.2% over the last year to £120,128.

The Canadian cities of Vancouver and Toronto have both recovered well, with Vancouver particularly robust. Toronto experienced GDP growth over 3.1% over the last year and is expected to have 3% further growth over the coming year.

And in Asia, the markets remain strong and stable despite economic volatility, mainly as a result of government intervention policies. Singapore has the third highest average rentals at £1,650 psf while Hong Kong has the 7th at £1,344. Tokyo has the fifth highest average rental growth at 7.6% while Hong Kong tops the average property prices at £980 psf while Singapore comes in as 5th at £519 and Tokyo comes in as 6th at £447.