What strategies do international investors need to adopt to take advantage of the way the world is going? We pick three major trends that we think will be important for the next decade or so.
■ The rise of secondary
■ Growth of second-tier cities
■ Rise of resorts
Prime or secondary?
In the world of global real estate investing, the prime residential markets in first-tier cities around the globe have taken the brunt of buyer interest for the last decade or so. The growing importance of private wealth in the sector, particularly after 2008, has meant that capital has been concentrated beyond the realm of institutional, commercial property owners. This means it has increasingly been focused on residential but it has still landed in many of the same locations previously favoured by the corporate investor.
The focus on first-tier cities and on the prime, central locations of these cities has partly been a result of global urbanisation and the focus by people of the world on city living. In Asia, the top cities are very often the only places where grade A investable new stock can be found.
In European, American and other ‘old world’ developed cities though, the choice of stock is less limited but still investment is concentrated in the more prominent and best-known sectors. These have very often been considered as ‘safe havens’ for capital.