With all the doom and gloom surrounding the property markets, we felt it was about time to take a look at those markets that have remained robust and healthy throughout the current credit crunch. So here are five markets that have consistently performed well, regardless of the ups and downs seen recently.
Manhattan, New York
Unlike much US real estate, Manhattan had a good year. With 1.6 million people living in an area of 22.96 square miles, Manhattan will always suffer from under supply. According to Peter Comitini “Favorable rates of currency exchange for international buyers continue to catalyze foreign investment in property,” with average sale prices rising 12% t0 $1,395,000. For the full report visit here.
Prime London property continued to buck the UK downward trend. Despite conflicting reports, two months of prices falling and gloomy predictions, prime London property increased in value by 13%. Once again, limited supply and foreign buyers keeping the market strong. More detailed reports available from Prime Location.
Rents and prices for luxury residential properties on Hong Kong Island surged by 14.1% and 37.9% y-o-y in 2007, while mass property prices increased by 13.9%. Ten years after the handover, China’s continuing economic growth is still influencing Hong Kong. Foreign buyers accounted for over 20% of property sales in Hong Kong, many of them in commercial property.
According to KHS France, figures from the Paris Notary Chamber showed an 8.7 percent increase in Paris real estate prices for 2007, with the average price of old and unoccupied apartments reaching £4,550 per sq m.
Demand for property in Dubai continues to increase, largely due to the continued influx of expatriates – the population is projected to grow by another 400,000 between 2007 and 2010. Despite the recent announcements of new projects it is unlikely that supply will keep pace with demand. Historically, Dubai has out-performed the market by a considerable margin – surely there must be an end at some point, but this seems to be unlikely within the next 5 years.
Dubai is an exception to the rule in this list in that there are no physical constraints there is only so much space in the West End or Hong Kong where the only place to go is up. But in Dubai, where waterfront property becomes in short supply they have an innovative solution build some more beaches.