A report published today by international real estate advisor Savills has ranked the United States of America (USA), the United Arab Emirates (UAE) and Singapore respectively as the top three countries for residential investability on the basis of economic growth and market recovery.
The new World Residential Investability Ranking focuses on countries with cities and resort locations that have consistently attracted investor interest over recent years. It also advises investors in international residential real estate to combine an understanding of macro metrics with an appreciation of local, shorter term drivers of house prices when making buying decisions.
Ranking 14 leading countries on the basis of broad economic and demographic factors, the consultancy looked at key demand variables such as population growth, wealth and economic growth, alongside supply and price levels, in order to see which countries are set to perform best. It lists the United States of America a clear number one for investability on the basis of economic growth and market recovery potential.
Local considerations had to be taken into consideration, the firm said. “There is a world of difference within the USA between top tech cities and languishing rustbelt ones,” said Yolande Barnes, director of Savills world research. San Francisco is among the very best of their selected residential markets.
The UAE comes second in their country rankings for residential investment potential, as domestic wealth creation and increasing demographic and regional demand continues to grow. The Dubai real estate market has seen this type of more robust demand take the place of more speculative overseas investment in recent years but Dubai is too near the top of the present cycle to top the investability league.