Global Real Estate Highlights

1. New York, New York – It is still very popular among investors, in spite of a slowing economy, residential and commercial sector. The main investment consideration of New York is its long-term strength.

2. London – Just like New York, London is also facing a slowing residential and commercial sector. However, it is still considered as one of the most attractive markets for international real estate investment.

3. Washington, D.C. – Many opportunity funds are looking for bargain buys in D.C.’s falling residential market, mainly due to overbuilding and poor loans. However, the commercial property market is worth the look because it benefits from all the government-related businesses in the area.

4. Paris – It is not only popular for being one of the most romantic cities in the world, but also one of the best office markets too. Vacancies are at all-time lows, supply doesn’t meet demand especially with limited construction in the pipeline.

5. Shanghai – Investors are bullish with Shanghai’s continuing growth and development potential. Moreover, Shanghai properties, especially in the residential sector offers better value for investor dollars. Properties are substantially cheaper in Shanghai compared to Hong Kong, but rental rates in Hong Kong are only a bit more expensive. The capitalization rate in Shanghai is 7%, while in Hong Kong, it is only 3.3%.

6. Tokyo - Japan is a stable bet among investors because of its extremely low inflation rate of 1%. Moreover, Japan’s economy was spared from the effects of the sub prime crisis due to its lack of exposure from the sub prime banking debacle that affected other Western banks.

7. Singapore – Home sales dropped, but the retail sector’s outlook is bullish due to consumer spending and tourism at all-time highs. Moreover, the growth of its medical tourism made medical properties as the fastest-appreciating real estate in Singapore.

8. Munich, Germany – The lease rates of the office sector is at all-time highs largely due to the strong international investment in the city. In 2005, $2.6 Billion was invested in real estate, it jumped to $10 Billion by 2007.

9. Sydney, Australia – Australia’s industry and materials resources helped fuel much of Asia’s growth. This continued growth in the macro economy increased rental yields in the residential, commercial and property sectors. As long as commodity prices continue to rise, the future looks bright. Although, it is important to note that Australians are currently experiencing the least affordable housing market in the nation’s history.

10. Hong Kong – Hong Kong is one of Asia’s financial capitals, which makes the office-space sector a critical market for real estate investment. Due to a lack of space, demand usually outruns supply, especially in the Traditional Center and Cheung Sha Wan.

You can read more about this report, sourced from Matt Woolsey at Forbes.com

Interestingly, from Matt Woolsey’s report, there is a growing trend of investors diverting their funds into commercial real estate. This only confirms that real estate is still a good investment, in spite of the sub prime mortgage meltdown.

Real estate covers diverse types of property. Although, it is no secret that the residential sector is down; especially on major economies such as US and London, there are still a lot of investment opportunities available, particularly in the office space sector.

Thus, if you have the extra money to invest, don’t sit around waiting for the next real estate boom! Look for growth areas and explore other cities for great real estate deals.

Photo Source: Flickr.com by laffy4k