5 Hotspot Cities To Make Real Estate Investments Globally

In this era of globalization and easy access to information, people have started looking beyond their borders for economic opportunities. Real estate investors are also following this trend, and have holdings in select global hotspots.

Choosing the perfect place for investing in real estate requires extensive research, and not every city will be a profitable investment.

Global Real Estate Trends for 2019

Statistics show that most residential real estate prospects are found in the most mature markets of North America and Europe. Also, 44% of the total real estate value is under the ownership of 17% of the world’s population. If we talk about global real estate investment trends, it’s evident that the government policies have a major role in determining the real estate market of its countries. A few of them benefit real estate investors, while others have the opposite effect. According to an IMF study of 57 national economies, it was determined that:

The real estate value of 18 countries declined during the financial crises of 2007-12 and haven’t recovered yet, 18 countries have rebounded since 2013, and 21 countries experienced minor drop that they quickly overcame.

European cities like London, Munich, Amsterdam, Oslo and Vienna have experienced a price increase due to the gap in the demand/supply chain. Property rates will drop when this gap is eventually bridged. Overpriced markets always go through a correction, which causes the resale prices to create disappointment for investors.

In North American cities like San Francisco and Los Angeles, the prices of real estate have outgrown the income rate to such an extent that it has become an unsteady long-term investment. As per a study conducted, investment in cities like Hong Kong, Munich, Toronto, Amsterdam, Vancouver and London might pose a greater risk than the buyer is willing to take on. These cities have risen about 35% in value over the last five years, which shows that a correction is not only essential, but inevitable.

As for the most profitable cities from a real estate perspective, you might want to continue scrolling down for more insights to stem wise real estate decisions. However, let us tell you one golden rule in advance; try to invest in cities where market forces are encouraged, instead of places with government policy domination. The market may have ways of balancing itself out with time, but  governments aren’t as sensitive to the concerns of investors.

1. New York

The city of New York is one of the steadiest and strongest real estate markets in the world. Given the city’s job diversification, excellent employment rates, strong transport infrastructure, cultural diversity, art, dining and recreational options, it will forever attract individuals and families to make a home in the city that never sleeps. Not to mention the fact that the people of New York have high-paying and steady jobs that support real estate prices, which makes it a low-risk, profitable investment option. Manhattan real estate prices are valued fairly, instead of being in a bubble or being overvalued, creating an ideal situation for a steady profit margin in the housing sector.

A fair price means that the asset is valued at its true market or actual price. The bubble occurs when the asset exceeds its value because of speculation, demand hikes, or supply limitations. You’d want to liquidate the asset before this bubble bursts and you lose the profit margin.

2. Hong Kong

With its vibrant blend of British colonial influence and Chinese culture, Hong Kong has always been a prime target for mainland Chinese investors. The city is presently well into the real estate bubble. However, the property rate has increased steadily since 2012, with an average of 8% price hike per annum, and a booming 18% in the year 2017. This rate, though not sustainable in the long run, makes for a prime short term investment opportunity owing to the consistent high demand of the mainland Chinese investors. Realtors affirmed that the real estate market of Hong Kong isn’t in any danger of an all-out crash.

3. Singapore

Geographically speaking, Singapore enjoys a strategic position of advantage. It is the financial center of the world and has gone through a recent market price correction. Its residential properties are valued fairly and offer a stable market. Domestic home buyers are benefiting optimally from the government’s recent rental income tax and property price policy measures, even if the foreign investors have been affected slightly negatively.

4. Tokyo

Tokyo is hosting the Olympics in 2020 and is presently one of the most prominent real estate markets in the world. The increasing number of domestic billionaires is choosing Tokyo to have high-end properties constructed. It is a safe place to invest for foreign buyers, who are looking for upscale lifestyle amenities. The stability of the Japanese Yen is one of the contributing factors to strengthening the real estate market in the Japanese capital. There has been a 5% real estate value increase in Tokyo’s real estate market over the past five years. The three As of Tokyo; Azabu, Aoyama and Akasaka in Minato ward, comprise the most luxurious neighborhoods in Tokyo and are ideal locations for investors in the city, owing to the massive residential development plans currently underway.

5. São Paulo

The heart of Brazil, with its effervescent nightlife and foodie haven, has always attracted a lot of attention from a residential perspective. With its stunning skyline and architectural masterpieces, the city is Brazil’s financial and transport hub. As the country overcomes the recent recession, São Paulo is Latin America’s State of the Future for the upcoming years with its economic potential and a healthy investment atmosphere, which is boosting the real estate market of the city as well.


A few other worthwhile real estate prospects are San Francisco, Miami, Boston, London, Ho Chi Minh City, Seoul, and Phnom Penh. If you are looking to invest in South Asia, you might want to consider cities like New Delhi, Lahore, Karachi and Kuala Lumpur. You can visit the local property portals like Prop.pk to ascertain the local residential property buying and selling trends.

Buying rental or residential property in a new city is either a task of brave speculation or a calculated maneuver. Some cities are overpriced and others are fairly priced. There are some cities that offer good ROI with low tax rates, and some cities are dominated by governments that discourage foreign investors. One needs to thoroughly study the market before making a purchase and have a plan for when and how to liquidate this asset to gain maximum profit.

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