Are you into the real estate business? If you are then it is a must to know something about the top cities for real estate investment. The following is a list of the best places for real estate:
1. Washington D.C
Compared to New York, Tokyo and London, Washington D.C. had taken the conventional back seat, but since 2009 this has been changing. This is because of a $1 trillion wave of government spending that has resulted in investors flocking to Washington in search of opportunities in both the commercial and residential markets. These new programs naturally need new offices, new space, and new residences for the new employees coming to town.
Although Washington has ousted London in the world ranking of the best cities for real estate investment, London cannot be removed entirely from the list just yet. This is because even with their financial troubles, London along with New York are still second and third in the ranking respectively.
According to Knight Frank, residential properties in London continue to decline by 3.5% per month while commercial spaces are declining by 2% per month. Subsequently the vacancy rates for offices have steadily increased. Even though the UK is going through a recession, the market remains safe ground for long term investment and investors can still get reasonable discounts.
3. New York
New York was considered bulletproof, but the economic down turn there proved to be one bullet that shattered this market. According to some experts sales volumes in some neighborhoods went down by almost 75%, and according to a New York Based Commercial Real Estate firm, even premium areas such as 57th Street or Soho have not submitted quarterly reports. Despite this, New York is still third place on the list.
If you are looking for industries that can manage a real estate collapse, then Tokyo is the right place. Following Japan’s lost decade (in the 1990s), Japanese investors have learned to avoid issuing and buying the subprime real estate products that were found in Europe and the USA. Thus Tokyo is seen as a safe haven, especially when it comes to knowing where the reasonable valuations are because there are few “unknowns” in this market. To know more about real estate investment here you can consult with such firms as SFI realty.
The Chinese economy has slowed from 9% to 7% with Deuthsche Bank stating that China could be facing its worst deflation in a decade which has been driven by decline in the Chinese property market. But do not be too worried Shanghai remains an attractive place to do business because there is now a chance that investors can get discounts on new properties.
6. San Francisco
According to the National Association of Realtors, the San Francisco metro area has fallen in value by 25% (in its supply of residential space). On the commercial side however, the city is doing well as 7 million square feet of new offices have now been opened.
7. Los Angeles
Los Angeles may not be on the top list of investing targets for realtors due to bad loans, subprime mortgage areas, and its high rates of foreclosure, but it is still ranked 19th in the world. Moreover, an increased transaction volume has increased sales by up to 102%, pushing the city to the top of the list.