Global Super-Rich Looking for Deals in Europe, UK And the Middle East

Investors from Kenya and China seek holiday homes and residential property opportunities in Dubai. In 2012, the local government permitted non-European investors to buy residential properties, holiday homes and offices in the country.

However, other investors from overseas are attracted to European properties due to their low tax environment and low-interest rates. As a result, the prices of some properties have increased up to 35 per cent in some European countries. E.g., In Portugal, the property price increased 15 per cent from June 2016 to 2017.

The prices have picked up even in France, where the rates were stagnant for some time. Also, the apartment price in Paris increased to $1,042 per square foot (almost 5 to 6 per cent more than last year). 

The European real estate market is widely transforming due to Brexit, political changes & instability and unpredictability related to some European economies. Some of the rapidly moving events and changes in the political scenario in Germany, its stand with the UK, the separatist movement in Spain, and the elections in Italy have adversely impacted buying trends.

On the contrary, the stable regulatory environment & supportive infrastructure developments in Dubai have been attracting rich buyers from Africa and Asia.  

Europe is the best place for investors looking for commercial opportunities, and at least 53 per cent of the overseas buyers are looking for commercial properties in Europe. North America and the Middle East are other global regions favourable for overseas realtors. 

Savills forecast for 2018 compares Europe’s leading real estate markets, including London, Dublin, Lisbon, Berlin and Paris. 

London property costs declined in the previous year, so it is estimated that now is an appropriate time to get the best deals. It is believed that one can see a growth of up to 20 per cent in the next five years. As per Savills reports, the recovery in real estate is due in some regions, even as the market is confronting the new tax system.

It is forecasted that the growth will be up to 2 per cent in 2019 in the UK compared to 2018. Even the properties in Ireland offer significant opportunities where since the depression, prices have increased 86 per cent, and yet, the prices are below the peak value by 22 per cent. 

Dubai is ranked after the UK for offering great opportunities in real estate, where at least 25 per cent of Kenyan super-rich are buying properties. The super-rich report of 2017 by Knight Frank shows Nairobi, Rwanda, Tanzania and Uganda – produce the fasted growing super-rich, and the growingly affluent population is purchasing properties abroad, mostly in the UK and Dubai.  

Germany has a competitive economy, and prices are rising, but the rates peaked in 2015 and 2016. The UK and Germany are both facing an increase in population and a shortage of affordable homes, and the price in Germany is low compared to UK cities.

Cities like Frankfurt and Munich are constantly growing. These cities host the largest airports and have great art and architecture but low vacancy rates. Berlin has the infrastructure, transportation and growth, but the prices are not comparable to London. The local government has introduced rent caps to prevent rental growth, and other measures have been taken to restrict unrealistic growth. 

To get the latest deals and emerging trends in European properties, check - Hamilton International Estates (www.hamiltoninternationalestates.com).