Most Popular Cities for Investing in Luxury Real Estate
Billionaires around the world have been buying real estate at an increased rate, and those purchases are focused on specific cities in the world. Some major cities have their own “billionaire quarters” that are growing much faster than any other housing market. The emergence of new wealthy classes in China and Asia has especially contributed to this trend. CEO of Christie’s International Real Estate, Dan Conn, described the craze for luxury estates as the desire to own “trophies”. While the current pandemic and economic uncertainty has slowed things down and made them more uncertain, broad trends are expected to continue. Let us find out, then, which are the world’s five most popular cities to own luxury real estate in.
One might think that London holds this spot, but Dublin seems to be Europe’s most desired location when it comes to luxury real estate. The Irish beat the Brits at this battlefield because they avoided Europe’s 0.2 price decline and made a 0.6 price increase in the luxury real estate market. While the rest of Europe was tackling the economic crisis, Ireland has kept the continent in the spotlight when it comes to billionaires’ homes. The interesting history and lively atmosphere of Ireland’s capital are also influencing its popularity among the elites.
The Japanese capital is a great place for real estate investors, both foreign and domestic. The relatively inexpensive high-end properties in Tokyo are expected to become more expensive, and their price will probably grow from year to year, as more and more foreign businessmen are creating ties with this Asian country. Japan is putting its name on almost every positive top list and it will surely be no different for the opulent mansions that will be built there.
Steady GDP growth through the years, low corporate and capital tax rates, and miles and miles of space along the coast that’s just ready for new property development. What more could you want? Montenegro itself relies mostly on luxury tourism, so it’s been attracting foreign investors from all over the world. Tivat is Montenegro’s crown jewel because it has clean beaches, an active ex-pat community, and so much untapped potential for clever investors. Investing in beautiful luxury real estate in Montenegro is definitely a smart move because your property will hold its value over the years. You won’t have any trouble renting these places, and Tivat’s popularity is likely to grow over the years as the city’s tourism keeps booming.
Tel Aviv, Israel
The real estate prices in Tel Aviv have jumped for about ten percent, most likely due to technological advancements and the growing industry. The high-end housing market in Israel is healthier and more robust than ever. Luxury properties combined with a marvelous view on the Mediterranean are making Tel Aviv an attractive place to live for billionaires around the world. Take the seashore out of view, you still have extravagant mansions in the countryside, and the prices are not getting lower.
The demand for high-end properties in this city is constantly growing, no matter the trends in the real estate market. What keeps the price of luxury houses in Sydney at a high level is strong interest from foreign investors, low interest rates, and the overall view of Australia as a country creating “new wealth”. The increased demand for luxury estates is, however, pushing the city’s properties out of the reach of ordinary people.
Los Angeles, California
Year after year, the prices of real estate are increasing in this Californian city. Though the average prices of properties are not that high, luxury establishment prices are increasing. Being the home of Hollywood, it only makes sense that LA is the IT-place for people seeking outrageously expensive and large mansions. LA’s housing market has plenty more inventory to offer, so red carpet stars can expect new, equally wealthy (maybe not equally famous, but who knows), neighbors.
Luxury buyers will probably make decisions about purchasing properties in the future based on the globalization of markets and foreign buyers’ restrictions. The decisive factor will most likely be the possibility of (almost) unrestricted purchase power. Currently, the cities that are favored by the buyers and the global economy are centers of creative knowledge rather than industrial centers.