Investing in global property in different countries all over the world is becoming more common among people who want to invest their money for a long-term. Real estate was one of the most popular investments in 2017, and it is very likely that this trend will continue in 2018. When trying to understand factors the will influence the property market, it is important to take into consideration global economic predictions for 2018. Many significant economic events like the Brexit, the political changes in Europe and in the US and the end of the recession in Russia will definitely have a large impact on properties and real-estates in the upcoming year.
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Safe Haven Investors
Equities and bonds are facing tough times in 2016. Market sentiment has equities at flat to negative, and bond funds are going through a drought. Investors in these markets are therefore looking for a safe haven, and the property market is the biggest benefactor.
Sentiment towards property is very positive at the moment, and while in the property market anything could happen, reports say that it is likely to continue for the foreseeable future. If you decide to invest in the real estate sector, then be sure to learn how to handle large money transfers with zero fees.
How to Choose The Right Property Investment?
The answer is actually changes depends on the goals of each investor and the reward / risk one is willing to take. Below you can find some of the most interesting global property investments in different kinds of destinations over the world – UK, US, Euro Zone countries and also some very interesting investment at the end, Bulgaria.
You can also view our best property investment blog list to stay up to date with the most recent trends.
United Kingdom – Weak Pound
65 million people live in the UK. 9 million live in London, but the property market there is too risky and the prices are already in the sky. The north of England is another story. This is one of the interesting destinations to invest your money, and it will be very attractive investment in 2018. This area’s economy is growing thanks to employment opportunities, business developments, and building of public structures like universities and more leisure facilities.
One of the great advantages for foreign investors to invest in property in the UK is the weak GBP, due to the Brexit in June 2016. The Pound haven’t fully recovered from last months’ events and is expected to become stronger when uncertainty will vanish.
Generally, prices are expected to increase by 2%-3% depends on the property’s characters.
Rising Interest Rates in the US
In 2008 recession, real estate prices plummeted, however, in some places across the US prices haven’t fully recovered yet. There are still opportunities that needed to found.
The US is always a good and stable investment relatively, although these days, the elected president, Donald Trump, enters some uncertainty to US economy and to the real estate market as well. We don’t believe that the interest rate in the US will change significantly, thanks to the fact that the factors that lead to this decision to increase the interest rates 3 time this in 2017 haven’t changed at all. However, if Trump’s economic plan will start inflation, interest rates could rise faster than expected, which will affect real estate prices.
Generally, it’s a good time to own property in the US, as prices are on the rise. This is due to low supply and high demand, and reverses the trend seen towards the end of 2015. If you’re not lucky enough to already own a property in a prized location, you’ll have a hard time getting hold of a spot now. But if you do own property in the US, its value might be going in just the right direction.
It’s a good time to own property in the US, as prices are on the rise. This is due to low supply and high demand, and reverses the trend seen towards the end of 2015. If you’re not lucky enough to already own a property in a prized location, you’ll have a hard time getting hold of a spot now. But if you do own property in the US, its value might be going in just the right direction.
EU Zone – Political Uncertainties
Property investments in the EU zone is definitely a question most expert will struggle about its right answer. When the expected growth rate in the EU zone is around 1.5%-1.8%, which is a slight slowdown, and political uncertainties with no solid policy are knocking on the door, it is quite hard to say when it’s the right time to purchase or invest in a property. Some experts will say 2018 is the right time since Euro is expected to weaken and prices will be low.
France is a favorable destination in 2018. 2017 was a very dynamic year in the property market in France as well. Generally, property price in France increased between 1.3% to 2.2%, depends on the area (Mainland France, Greater Paris and French provinces), and depends on the type of the property (Second-hand properties, older apartments, older houses and more). Looking more closely in some areas, we can tell that price in Saint-Étienne decreased by almost 3% comparing to last year. Moreover, these days there is a risk for the EU zone to collapse, and in France case it might minimise substantially the number of potential buyers. If we are looking at property in Germany, we believe that the end of EU zone (if it happens) will cause the other way around – prices will increase sharply.
Germany looks like a great destination to invest in properties. According to a late research, 1 of every 7 companies in the UK consider moving to Germany because of the Brexit.
Italy is listed as the favourite destination of property buyers, with Rome the most-searched place in the world. Close behind is Portugal – Ponta Delgada and Ericeira in particular. A favourable exchange rate has kept these locations popular in spite of economic concerns in Italy and a slowing decline of property prices.
However, getting a mortgage in Italy is more difficult in 2016 due to a lowered loan-to-value maximum rate. Still, buyers are clamouring for property in these key locations.
Russia – The End of The Recession?
Some say 2018 is going to be an excellent year to invest in Russia, and especially in the real-estate market. The recession in Russia is expected to end at the beginning of the year. Unless the oil prices take another hit this year, it is likely to see the real estate prices increase as well. Prices of many of the properties in Moscow, that dropped in 2014-2015 are starting to show first recovery.
Another important factor the will impact the property prices in Russia is the warm relationship between president Trump and president Putin. After Russia’s intervention in Ukraine and the economic embargo that was extended to 2016, some say a renew in the relationship will help significantly to Russia’s economy. Moreover, 2018 FIFA World Cup has started to influence the real estate market and will probably push it forward.
Bulgaria – A Nice Surprise
Bulgaria is one of the most developing countries in eastern Europe. Already in 2012 Bulgaria was rank at the 8th place for the most popular destinations for property investments around the globe. This trend continued over the years, and will probably continue in 2018. Gross Rental Yield in Bulgaria is more than 5%.
The new law that allows foreign buyer to invest in property without registering a Bulgarian company, make it easier to buy properties and helps Bulgaria to become a popular destination.
Another interesting investment in property, that doesn’t consider a special country or region is the co-working spaces. Offices are one of the most popular type of real estate at the moment. An idea of the office is gaining more traction – co-working spaces. These are commercial spaces that give self-employed businessmen and freelancers a place to work at a small fee, without having to buy or rent. This may be the future of offices, as many jobs today can be done from anywhere.
s mentioned, offices are the most popular type of real estate at the moment. A new idea of the office is gaining traction – coworking spaces. These are commercial spaces that give self-employed businessmen and freelancers a place to work at a small fee, without having to buy or rent. This may be the future of offices, as many jobs today can be done from anywhere.
International property is an incredibly popular market now. 2016 has seen global property investment rising, and the trends are expected to continue. More investors are going to buy an asset overseas. Offices and co-working spaces are very popular. Residential properties in hotspots such as Bulgaria, Italy and Portugal are also highly prized. 2018 should see these trends continue, especially for investors looking for a safe haven.
If you are buying property abroad be sure to check our top property tips, best property blogs, and view specialized currency services for property investors, such as the ones offered by Currencies Direct.