 Despite the fluctuations in the housing market in recent years, real estate investment continues to be an attractive asset class for investors. With the potential to earn recurrent income from rentals, real estate can be a lucrative investment opportunity. Although the current scenario of high-interest rates may give some investors pause, the right investment in the right market can still yield significant returns. Investing in real estate can still be considered a viable option despite the current scenario of high-interest rates in 2023. Real estate remains an attractive asset class for investors due to the opportunity to earn recurrent income from rentals. Record-low mortgage rates and a scarcity of available inventory kept the US housing market strong in terms of buyer demand in the past two years. Although mortgage rates have risen, the strong housing demand is still driving prices up, albeit slowly. The US housing market continues to be a somewhat moderate seller's real estate market, with annual price growth slowing down and inventory rising. Potential homebuyers may still face a bidding war if they are looking for a new house at the moment. As a real estate investor, it is important to crunch the numbers and determine the best cities to invest in. During the pandemic, prospective homebuyers around the United States paid top dollar for homes, with remote employees and their desire for more lavish homes fueling the market. However, with the lack of homes for sale, many potential buyers may be unable to find affordable entry-level housing, predisposing them to transition into single-family rentals. Rental demand is expected to continue to increase in 2023 as a result. The single-family rental market in the US remained robust as renters flocked to the suburbs in Q3 2022, according to Arbor's Q3 2022 Single-Family Rental Investment Trends Report. SFR is seen as a viable alternative for potential homebuyers who are priced out of home ownership. The report showed that SFR rent growth slowed but remained elevated, while build-to-rent (BTR) construction starts reached a new record high of 69,000 over the past year. Additionally, cap rates remained unchanged at 5.3% despite rising interest rates. This presents a great opportunity for real estate investors looking to purchase single-family rental properties. This asset class is best positioned to grow in the coming years. The interest of investors in single-family rental homes has risen to a great extent during this pandemic. Large investors are gravitating toward it. However, it is important to conduct thorough research and choose the best places to invest in real estate in 2023. All real estate is local, so understanding the local factors that can affect your investment is crucial. Single-family rental homes provide an affordable and flexible option to meet the needs of families and individuals in search of quality housing. As of now, institutional investors account for only 2 percent of the 90-million unit market, according to NHRC. This is meager as compared to the US multifamily sector, where more than 50 percent of ownership is held by institutional investors. Hence, the single-family rental market remains an emerging market for both individual and institutional investors. In conclusion, despite rising interest rates, investing in real estate can still provide a reliable source of recurrent income. The single-family rental market is particularly promising, as it continues to grow and attract more investors. It's important to do your due diligence when selecting a city to invest in, but with the right research and strategy, real estate can be a great investment opportunity. Let's take a look at some of the best places to invest in real estate. How To Choose the Best Places To Invest In Real Estate? You may be located anywhere in the world, but the basic principles of the real estate business remain unchanged – you want to choose those places for your investment properties where the return on investment is high. To maximize the returns from your real estate investment you want to buy property in places with the following features:
Don't take any uninformed decision without evaluating the fundamentals of the real estate market you intend to purchase in – is it growing, stable, or declining? Are you planning for short-term capital gains or long-term buy and hold? If you're considering a real estate investment in the coming year, there are a few markets worth investigating further due to anticipated price increases. We looked at data and examined trends from across the US to bring you this list of the 21 best places to invest in real estate. Here are the best places to invest in real estate and buy rental properties. They all have their own set of qualities and disadvantages, but many of them are less expensive than the national average.
1. Boise, Idaho Boise, the capital city of Idaho, is becoming a popular destination for real estate investors for several reasons. Boise's strong job market, affordable housing, growing population, stable real estate market, and low property taxes make it an attractive destination for real estate investors. Whether you are looking to purchase a rental property or invest in real estate for capital appreciation, Boise offers a great opportunity for investors. Here are the top reasons why Boise is considered one of the best places to invest in real estate: Real Estate Appreciation: The real estate market in Boise, Idaho has shown strong growth over the past 10 years, with a home appreciation rate of 217.86% and an average annual rate of 12.26%, putting it in the top 10% nationally for real estate appreciation, according to NeighborhoodScout's data. Despite a lower appreciation rate of 7.62% over the last year, Boise's latest quarter showed a 3.87% appreciation rate, equivalent to an annual rate of 16.41%. However, this rate is lower compared to 80% of the other cities and towns in Idaho. It is important to note that while these are average rates for the city, individual neighborhoods within Boise can vary greatly in their investment potential. Strong job market: Boise has a thriving economy, driven by a strong job market in industries such as technology, healthcare, and education. This growing job market attracts new residents, which drives demand for housing and increases property values. Affordable housing: Compared to other major cities in the US, Boise offers more affordable housing options, making it an attractive option for first-time homebuyers and investors. This, in turn, can lead to steady rental income for investors and the potential for capital appreciation over time. Growing population: Boise is experiencing steady population growth, as people are attracted to the city's high quality of life, outdoor recreational opportunities, and affordable cost of living. This growing population drives demand for housing, which can lead to increased property values. Stable real estate market: Boise has a stable real estate market with a low rate of foreclosures and a consistent rate of home price appreciation. This makes it an attractive option for investors who are seeking stability and predictability in their investments. Boise, ID Real Estate Trends: The median listing home price in Boise, ID was $528.9K in December 2022, trending down -2.9% year-over-year. The median listing home price per square foot was $292. Boise, ID was a seller's market in December 2022, which means that there are more people looking to buy than there are homes available. The market had a total sales-to-total listings ratio above 0.2, which tends to favor sellers. On average, homes in Boise, ID sell after 62 days on the market. The trend for median days on market in Boise, ID has gone up since last month, and slightly up since last year. These housing market trends in Boise are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 2. Houston, Texas Houston is one of the all-time best places to invest in real estate. This city is the home of the US oil and gas industry and offers perennial employment opportunities. Greater Houston is Texas' fifth-largest metro region, with over 7.2 million residents, and its population continues to expand at a rate nearly double that of the rest of the country. Forty-one Fortune 1000 companies are headquartered in the Houston region. Houston ranks fourth in the nation on this measure, behind Greater New York, Chicago, and Dallas-Ft. Worth. These strong macroeconomic factors continue to power the Houston housing market. Houston, Texas has several factors that make it a strong market for real estate investment. Some of the reasons include:
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Houston, TX sell after 59 days on the market. The trend for median days on market in Houston, TX has gone up since last month, and slightly up since last year. These housing market trends in Houston are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 3. Dallas, Texas Dallas is another good place to invest in real estate in 2023. Dallas, Texas is one of the most rapidly growing cities in the United States, and for good reason. It has a thriving economy, a growing population, and a diverse real estate market that offers opportunities for both residential and commercial investments. Dallas is a great place to invest in real estate due to its strong job market, affordable housing, growing population, diverse real estate market, positive real estate trend, and pro-business environment. Whether you're looking to invest in residential or commercial properties, Dallas has something to offer everyone. Here are some of the top reasons why Dallas is one of the best places to invest in real estate:
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Dallas, TX sell after 62 days on the market. The trend for median days on market in Dallas, TX has gone up since last month, and slightly up since last year. These housing market trends in Dallas are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 4. Las Vegas, Nevada How can we miss Las Vegas on our list of best places to invest in real estate? Las Vegas has experienced several booms in its history. And it saw an incredible real estate bust during the Great Recession. Las Vegas’ recovery hasn’t made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn’t keep investors away. Throughout the pandemic, the Las Vegas housing market was among the hottest in the United States. Las Vegas is a city that is known for its vibrant entertainment scene, luxury casinos, and world-class dining experiences. However, it's not just a great place to visit, but also a prime location to invest in real estate. Las Vegas is an excellent location for real estate investment, with a strong job market, high rental demand, affordable housing, a growing population, investment in infrastructure, a thriving tourist industry, and favorable tax benefits. If you are considering investing in real estate, Las Vegas is a prime location to consider. Here are the top reasons why Las Vegas is one of the best places to invest in real estate:
Pioneer Park is the most affordable neighborhood, with a median listing home price of $290.5K. These housing market trends in Dallas are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 5. Atlanta, Georgia Atlanta, Georgia is a city that has experienced remarkable growth in recent years and is now considered one of the best places to invest in real estate. From its booming economy to its diverse culture, there are numerous reasons why you should consider investing in Atlanta real estate. Atlanta is Georgia’s capital and economic center. It is considered one of the 10 most productive states that contribute to the USA’s GDP annually. Atlanta is a city that offers a lot of potential for real estate investors. From its strong economy to its growing population, there are plenty of reasons why you should consider investing in this city. With its low cost of living, diverse culture, and good returns on investment, Atlanta is one of the best places to invest in real estate in the United States. Here are the top reasons why you should consider investing in this city.
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Atlanta, GA sell after 73 days on the market. The trend for median days on market in Atlanta, GA has gone up since last month, and slightly up since last year. These housing market trends in Atlanta are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 6. Orlando, Florida Orlando, FL is a tourism and entertainment favorite, because of this, it remains a strong real estate investment destination. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns. Orlando, Florida is a highly sought-after destination for both tourists and real estate investors. With its warm weather, a bustling economy, and world-renowned attractions, Orlando offers a number of compelling reasons to invest in its real estate market. Orlando's strong tourism industry, growing job market, affordable cost of living, thriving business community, and a growing population all make it one of the best places to invest in real estate. With a wide range of investment opportunities available, from rental properties to commercial real estate, Orlando is a market that real estate investors can't afford to ignore. Here are some of the top reasons why Orlando is one of the best places to invest in real estate:
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Orlando, FL sell after 72 days on the market. The trend for median days on market in Orlando, FL has gone up since last month, and slightly up since last year. These housing market trends in Orlando are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 7. Tampa, Florida Tampa, FL is also on the list of best places to invest in real estate. With a population of more than 4 million, Tampa, FL is not only an attractive metropolitan area but is also one of the most frequently visited tourist destinations. Tampa, Florida is a thriving city that has been experiencing steady growth in terms of both population and economic development. It is one of the best places to invest in real estate, due to its growing population, strong economy, affordable cost of living, thriving tourism industry, access to the beach, investment opportunities, and favorable climate. With so many factors working in its favor, it's no wonder that Tampa is a popular destination for real estate investors. Here are the top reasons why Tampa is one of the best places to invest in real estate.
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Tampa, FL sell after 70 days on the market. The trend for median days on market in Tampa, FL has gone up since last month, and slightly up since last year. These housing market trends in Tampa are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 8. Spokane, Washington There are several reasons why Spokane, WA is considered one of the best places to invest in real estate. These include its affordable Spokane housing market, strong rental demand, growing economy, and abundant outdoor recreational opportunities. Additionally, the city has a thriving arts and culture scene, a variety of educational institutions, and a low cost of living, all of which make it an attractive destination for both residents and investors alike. Here are the top reasons why Spokane is one of the best places to invest in real estate.
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Spokane sell after 69 days on the market. The trend for median days on market in Spokane has gone up since last month, and slightly up since last year. These housing market trends in Spokane are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 9. Chicago, Illinois Chicago is also on our list of the best places to invest in real estate. Chicago is the third-largest metropolitan area in the U.S., with almost three million in Chicago and another ten million in the surrounding metro area. Chicago has a large population, a diverse economy, and a stable market. Chicago's strong rental market, thriving downtown, presence of well-developed infrastructure, blue-collar areas with high rents, large population, investment opportunities in revitalizing neighborhoods, affordable housing, investment in public transportation, and thriving start-up culture make it an attractive destination for real estate investors. Here are the top reasons why Chicago is one of the best places to invest in real estate.
The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Chicago sell after 73 days on the market. The trend for median days on market in Chicago has gone up since last month, and slightly down since last year. These housing market trends in Chicago are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 10. Austin, Texas Austin, TX is also on our list of best places to invest in real estate. The Austin real estate market isn’t as big as Dallas, San Antonio, or Houston. Austin is only the fourth largest city in the state. However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years. There are tons of high-paying tech jobs that moved to Austin in the last couple of years. As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in 2023, and this trend should continue in the coming years. This is going to be more attractive for the areas being close to neighborhood amenities and close to shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin’s economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn’t kept up with the pace of people moving here. Here are the top reasons why Austin is one of the best places to invest in real estate.
The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Austin sell after 62 days on the market. The trend for median days on market in Austin has gone down since last month, and slightly down since last year. These housing market trends in Austin are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 11. Columbus, Ohio Columbus is also on the list of the best places to invest in real estate. Its strong economy, diverse job market, affordable housing, and growing population as some of the key factors that make it an attractive destination for real estate investors. Additionally, Columbus's well-developed infrastructure, revitalizing neighborhoods, and thriving start-up culture, provide ample investment opportunities for those looking to invest in the city's real estate market. Here are some top reasons why Columbus, Ohio is one of the best cities to invest in real estate:
The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Columbus sell after 46 days on the market. The trend for median days on market in Columbus has gone up since last month, and slightly up since last year. These housing market trends in Columbus are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 12. Lakeland, Florida Lakeland, FL also enters the list of the best places to invest in real estate in 2023. Florida is one of the most popular states for real estate investing, and Lakeland is a hidden gem in the Sunshine State. Located in the heart of Central Florida, Lakeland is a rapidly growing city with a strong economy, a thriving job market, and a growing population. With affordable housing, a strong rental market, and a low cost of living, Lakeland offers real estate investors the significant potential for long-term growth and profitability. Here are the top reasons why Lakeland, Florida is one of the best cities to invest in real estate.
The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Lakeland sell after 83 days on the market. The trend for median days on market in Lakeland has gone up since last month, and slightly up since last year. These housing market trends in Lakeland are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 13. Ocala, Florida Ocala, FL finds itself on the list of the best places to invest in real estate in 2023. Ocala, Florida is a small but growing city that offers plenty of opportunities for real estate investors. Known for its beautiful natural landscapes and historic downtown area, Ocala has become a popular destination for retirees, young families, and outdoor enthusiasts alike. In recent years, the city has experienced significant economic growth, thanks in part to its diverse industries, including healthcare, education, and manufacturing. Here are the top reasons why Ocala is one of the best cities to invest in real estate:
The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Ocala sell after 85 days on the market. The trend for median days on market in Ocala has gone up since last month, and slightly up since last year. These housing market trends in Ocala are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 14. Birmingham, Alabama Birmingham, AL also ranks in our list of the best places to invest in rental real estate in 2023. The Birmingham AL real estate market continues to take steps in the right direction. Birmingham, Alabama is a growing city that offers many opportunities for real estate investors. Known for its rich history, cultural diversity, and economic growth, Birmingham is quickly becoming a top destination for both new residents and businesses. Overall, Birmingham offers a combination of affordability, economic growth, and cultural attractions that make it an excellent city for real estate investors looking to maximize their returns. Here are the top reasons why Birmingham is a great city to invest in real estate:
The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Birmingham sell after 60 days on the market. The trend for median days on market in Birmingham has gone up since last month, and slightly up since last year. These housing market trends in Birmingham are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 15. Durham, North Carolina Durham, NC is also one of the best places to invest in rental real estate in 2023. The Durham housing market has made considerable improvements since the housing bubble burst. Only two years after the market crash in 2008, Durham was considered one of the few favorable locations to invest in real estate. With strong population growth and a solid economy, the rental demand in Durham, North Carolina is continuously increasing. Durham, North Carolina is a rapidly growing city that offers a strong economy, diverse population, and thriving cultural scene. Here are the top reasons why Durham is a great city to invest in real estate:
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Durham sell after 69 days on the market. The trend for median days on market in Durham has gone up since last month, and slightly up since last year. These housing market trends in Durham are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 16. Charlotte, North Carolina Charlotte is also one of the best places to invest in rental real estate. The Charlotte metropolitan area or Metrolina has experienced rapid population and job expansion. One reason for this is the city's business-friendly environment. The homebuyers in the Charlotte area have dealt with a persistent seller’s market, which has shrunk inventory and driven up home prices. Charlotte, North Carolina is a thriving city known for its diverse economy, vibrant culture, and attractive quality of life. It is the largest city in North Carolina and the second-largest city in the Southeastern United States, making it a hub for business, education, and entertainment. Here are the top reasons why Charlotte is a great city to invest in real estate:
The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Charlotte sell after 70 days on the market. The trend for median days on market in Charlotte has gone up since last month, and slightly up since last year. These housing market trends in Charlotte are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 17. Colorado Springs, Colorado Colorado Springs is also on the list of the best places to invest in rental real estate. Colorado Springs, Colorado is a vibrant city located at the base of the Rocky Mountains. With a growing population and strong economy, Colorado Springs offers a variety of opportunities for real estate investors. Here are some top reasons to consider investing in the Colorado Springs real estate market:
The market had a total sales-to-total listings ratio below 0.12, which favors sellers. On average, homes in Colorado Springs sell after 115 days on the market. The trend for median days on market in Colorado Springs is flat since last month, and slightly up since last year. These housing market trends in Colorado Springs are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 18. Denver, Colorado Denver, Colorado also makes the list of the best places to invest in real estate. Rentals in this city have been gradually increasing over the years. This consistent growth has been driven by a buoyant economy creating jobs. Tourism is also high, driving strong returns in the holiday rental market. Jobs are a major reason why people move to Denver in the first place. Denver is a bustling city that is quickly growing in popularity, attracting an influx of residents and businesses to the area. That explains why Denver is one of the top cities for in-migration, attracting people from all over the state as well as the country. With a thriving economy, stunning scenery, and a range of amenities, Denver is a great place to invest in real estate. Here are the top reasons why:
The market had a total sales-to-total listings ratio below 0.12, which favors buyers. On average, homes in Denver sell after 134 days on the market. The trend for median days on market in Denver has gone up since last month, and slightly up since last year. These housing market trends in Denver are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 19. Raleigh, North Carolina Raleigh is also on the list of best places to invest in rental real estate. Raleigh, North Carolina is a city on the rise, offering a thriving economy, a strong job market, and top-tier amenities. The Raleigh metropolitan area – the city and its surrounding suburbs – account for about one and a half million people. Raleigh offers a range of attractive qualities for real estate investors, including a strong job market, a growing population, affordable real estate prices, top-tier universities, a thriving cultural scene, access to outdoor recreation, and a growing tech industry. These factors make it a great location for real estate investors looking to capitalize on the city's potential for growth and maximize their returns. Here are some of the top reasons to invest in the Raleigh, North Carolina real estate market:
The market had a total sales-to-total listings ratio above 0.2, which favors sellers. On average, homes in Raleigh sell after 63 days on the market. The trend for median days on market in Raleigh has gone down since last month, and slightly up since last year. These housing market trends in Raleigh are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 20. Phoenix, Arizona Phoenix is also on the list of best places to invest in rental real estate. It is becoming a top destination for people living in high-cost areas like Los Angeles & Seattle. Phoenix is a rapidly growing city that has become an attractive market for real estate investors. With a strong and diverse economy, a growing population, and a range of amenities, Phoenix offers many opportunities for those looking to invest in real estate The Phoenix real estate market offers many opportunities for investors looking to capitalize on the city's strong economy, growing population, and range of amenities. With affordable housing, high rental demand, and a range of investment opportunities, Phoenix is a market worth considering for real estate investment. Here are the top reasons to consider investing in the Phoenix real estate market:
The market had a total sales-to-total listings ratio between 0.12 and 0.2, which favors none. On average, homes in Phoenix sell after 78 days on the market. The trend for median days on market in Phoenix has gone up since last month, and slightly up since last year. These housing market trends in Phoenix are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. 21. Seattle, Washington Seattle too makes our list of one of the best places to invest in real estate for those who can afford it. Seattle offers strong economic prospects and a buoyant labor market. This means that rental occupancies are expected to remain high. The city’s population has grown consistently over the last few years with families drawn to the city’s lifestyle. Housing prices have doubled in the past five years, growing twice as fast as the national average since 2016. Seattle’s tech landscape and real estate market are rapidly evolving. Google has upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond. GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years, we have seen that this market has priced out many middle-class buyers. Despite the high cost of living, Seattle, Washington, remains a hotbed for real estate investment. The city's strong economy, growing job market, and attractive location make it an ideal choice for investors looking to capitalize on the city's steady growth. Overall, Seattle's strong economy, growing population, limited housing supply, high-quality education, attractive location, and stable market make it a top choice for real estate investors looking for a reliable and profitable investment opportunity. Here are the top reasons why investing in Seattle's real estate market may be a wise decision:
The market had a total sales-to-total listings ratio between 0.12 and 0.2, which favors none. On average, homes in Seattle sell after 75 days on the market. The trend for median days on market in Seattle has gone up since last month, and slightly up since last year. These housing market trends in Seattle are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Now that you know where to invest in real estate, it's time to figure out how to do it properly. One of the best investments you can make is in income-producing rental properties, but only if you know what you're doing. We can help you succeed by avoiding risk and boosting profit by researching top real estate growth markets. Foreign Investment in US Real Estate: A Look at the Latest Data Foreign individuals and corporations are free to purchase residential or commercial real estate in the United States. Real estate is a global asset class, and foreign investment in the US real estate market has been an important source of capital for many years. The National Association of Realtors® (NAR) publishes an annual report on international transactions in US residential real estate to provide insights into the trends and patterns of foreign investment. Let’s take a closer look at the latest data. Dollar Volume of Foreign Buyer Residential PurchasesAccording to the NAR report, the dollar volume of foreign buyer residential purchases during April 2021-March 2022 was $59 billion, which is equivalent to 2.6% of $2.3 trillion of the dollar volume of existing-home sales. This indicates that foreign investment in US real estate continues to be significant. Number of Foreign Buyer Existing-Home PurchasesThe report also reveals that 98,600 foreign buyer existing-home purchases were made during April 2021-March 2022, which represents 1.6% of 6.06 million existing-home sales. This demonstrates that foreign buyers are still active in the US real estate market. Interestingly, the report found that 57% of foreign buyers who purchased US residential property were already residing in the United States. This includes recent immigrants (less than two years at the time of the transaction) or non-immigrant visa holders who reside for more than six months in the US for professional, educational, or other reasons. Top Foreign BuyersThe report also lists the top foreign buyers in the US residential real estate market. The top five countries are Canada (11% of foreign buyers, $5.5 billion), Mexico (8% of foreign buyers, $2.9 billion), China (6% of foreign buyers, $6.1 billion), India (5% of foreign buyers, $3.6 billion), and Brazil (3% of foreign buyers, $1.6 billion). Colombia also makes the list with 3% of foreign buyers and $1.0 billion. Implications for the US Real Estate MarketForeign investment has been a key driver of the US real estate market, and the latest data from the NAR report suggests that this trend is likely to continue. Foreign buyers are attracted to US real estate for a variety of reasons, such as economic and political stability, a strong rule of law, and a relatively low cost of living compared to other developed countries. These factors make the US an attractive destination for foreign investment. Furthermore, foreign investment can provide significant benefits to the US real estate market. For example, it can boost economic growth, create jobs, and increase demand for US goods and services. However, foreign investment can also have its downsides, such as driving up home prices and reducing housing affordability for US residents. In summary, the latest data on foreign investment in US real estate from the NAR report highlights the ongoing importance of foreign buyers in the US real estate market. While there are potential benefits and drawbacks to foreign investment, it is clear that the US real estate market remains an attractive destination for global capital. References:
 Navigating interest rate disruption in CRE, bank and hospitality execs on the state of lending, Trepp’s April CMBS report, and office buildings are ripe for multifamily conversion Navigating Interest Rate Disruption in Commercial Real Estate The inflation rate has cooled some as mid-2023 approaches, allowing the Fed to slow the pace of its rate hikes. But for many, the damage is done, with the fallout still reverberating, especially in commercial real estate (CRE). An ebook from PwC—“Navigating interest rate disruption: How real-time data can facilitate better CRE decisions amid volatility”—provides an overview of the CRE market and some advice on how to manage through. The report looks into a combination of factors, including economic and geopolitical forces, the ripple effects of Covid, increased construction costs, inflation, and more. Sections of the 9-page report (with excerpts) include:
 Six Bank and Hospitality Executives Discuss the State of Lending Amid Bank Failures
Lenders and hospitality executives at the 2023 Meet the Money national hotel finance and investment conference commented on the current state of the banking crisis. Six of their comments were published in Hotel News Now: Ash Patel, president and CEO, Commercial Bank of California; Alan Reay, president, Atlas Hospitality Group; Matt Mitchell, vice president, Hall Structured Finance; Bruce Lowrey, managing director of investments, CIM Group; Matt Bailly, vice president of real estate, Prospera Hotels; and Keegan Bisch, vice president of originations, Stonehill. Read their comments here. For more from the conference, see this article from CoStar: “Five Key Takeaways on Hotel Investment from Meet the Money Conference.” For more on how bank failures could make hotel financing harder to find, click here. CMBS Delinquency Rate Holds Steady in April, But Office Rate Continues to Rise This is an excerpt from Trepp’s Delinquency Report (May 3). To access the full report, click here. “The Trepp CMBS Delinquency Rate held steady, but the segment that everyone continues to watch closely saw its rate move higher again in April 2023. The Trepp delinquency rate was unchanged in April at 3.09%. Declines in the retail, lodging, and multifamily rates offset a small increase in industrial loans and a bigger increase for offices. “Office remains the most heavily watched part of the market as firms look to aggressively reduce space. Sublease space is at or near record highs in many markets as demand from big tech firms has eroded sharply. In addition, many companies are letting leases expire or are renewing for smaller footprints. “Last week, Microsoft announced it would offer up several hundred thousand square feet in Seattle. The tech bellwether has already announced plans to relinquish more than two million square feet in that city. One in Three Office Buildings in Major North American Cities Could Be Ripe for Multifamily Conversion The combination of 1) companies (especially tech firms) continuing to lay off people by the tens of thousands, 2) the ongoing shift to working from home, and 3) the current U.S. housing shortage has caused landlords across the country to seek innovative ways to fill their millions of square feet of empty space. “Up to 34% of office buildings in 14 major North American markets could be potential candidates for adaptive reuse. Looking at more than 26,000 buildings, office to residential conversions could open the door to potential housing for thousands of families in as many as 8,996 properties,” according to global commercial real estate advisor firm Avison Young. “Adaptive reuse is an important conversation we are having around the art of the possible, to demonstrate how this potential solution contributes to placemaking and to the revitalization and vibrancy of our neighborhoods—particularly our downtown cores,” said Sheila Botting, Principal and President, Professional Services, Americas at Avison Young. “We must reimagine how we want to live, work and play. Adaptive reuse is one of the key components of how we do that as a community.” For more, click here. Kaufman Development is buying Franklinton’s Idea Foundry, the largest makerspace in the world5/20/2023
 Kaufman development’s massive Franklinton development project, Gravity, has a massive new acquisition to its name. The Idea Foundry, a 65,000 square foot former factory located at 421 W. State St. billed as “the largest makerspace in the world”, will be purchased by Kaufman, to become part of the Gravity community. Gravity’s second phase, which is currently under construction, is located across State Street from the Idea Foundry. Created in 2008 by Alex Bandar, the Idea Foundry moved to its current Franklinton location in 2014. Today, it houses more than 500 entrepreneurs and makers, and is home to a litany of state of the art tools like laser cutters and 3D printers. According to a press release, Kaufman will purchase the Idea Foundry from owners Nancy Kremer and Christopher Celeste. Bandar will continue to operate the space, which will now be backed by Kaufman’s resources.
“Kramer and Christopher took a scrappy, grassroots community of makers, put us in a rocket ship and launched us. Now, Kaufman is refueling us to take us even higher,” Bandar said in a press release. “There is already so much synergy between The Idea Foundry and Gravity, and this will allow us to amplify and accelerate our growth and impact in remarkable ways. This takes us from being a space for creatives to being a district for creatives, with opportunities that will be unique to any makerspace in the world.” Gravity tenants will have access to the Idea Foundry under the change in ownership, and the space could see a variety of potential new additions, such as building out the Foundry’s basement, rooftop and parking lot, creating an artist-in-residence and entrepreneur-in-residence programs, and creating pop-up spaces for artists and makers.  Nation's Biggest Mall Landlord Steps Up Efforts To Diversify, Transform Its Retail Centers Simon Property Group, the nation's largest mall owner, expects to spend roughly $1.5 billion building 2,000 multifamily units and hotel rooms as it looks to add density and expand some of its retail properties in new ways.
The Indianapolis-based landlord estimated it will have construction of the projects completed over a five-year span, CEO David Simon said Tuesday on a first-quarter earnings call. He discussed the real estate investment trust's pipeline of apartments and hospitality properties while pointing to what he described as the company's successful redevelopment of Phipps Plaza in Atlanta, a mall that now has a Nobu hotel and restaurant and Life Time fitness center on its site. Mall owners around the nation have been diversifying and adding density to their centers, bringing in nontraditional retail uses to help drive foot traffic and to take the place of vacant anchor tenant space and unused surface parking lots. And now Simon Property is stepping up its efforts on that front. “We have several densification projects under construction and a pipeline of identified projects," David Simon, who is also the company's chairman and president, told Wall Street analysts. "Now that’s not going to happen overnight, but that’s going to happen over the next few years," he said. "So that to us is a real opportunity.” Simon Property expects to start work on several of these projects this year, but the CEO said the REIT is "frankly being a little bit cautious." Simon said, "We’re still permitting some things in California and the Northwest. So we’re going to just see how the world is." Plans for Texas, California and Florida Asked about the cost of the multifamily units and hotel rooms, Simon said it is hard to isolate them from overall mall redevelopment efforts. "But my instinct would be probably about a billion and a half dollars. ... Somewhere in that range" for the construction, he said. The CEO didn't offer too many details. But he said some of the residential units are planned for Austin, Texas; Orange County, California; and Seattle. In terms of hotels, they will be headed for Florida, as will some residential units, according to Simon. “It’s kind of where you would expect it to be, where supply and demand is in our favor,” he said. The REIT is also considering building a hotel on Cape Cod, Massachusetts, because there would be a demand for it there, according to Simon. The CEO didn't specify which malls, if any, the 2,000 units would be built and added to. But Simon did refer to the reimagining of Phipps Plaza in the Buckhead section of Atlanta. "As we give back real estate through our redevelopment efforts, the big focus is on where we can add some mixed uses, because we do think that what we did in Buckhead is having a tremendous impact on the overall value of that real estate,” Simon said. Possible Joint Ventures There are several ways the company could finance the construction, according to the CEO. “I think we will do selective [joint ventures] on certain of the residential development," Simon said. "And it also may be that we could potentially bring in third-party equity, too. We’ll look at each deal individually. But that’s certainly a possibility.” Last October, Simon Property acquired a 50% stake in developer Jamestown as it looks to expand and wring new revenue from its portfolio by diversifying its shopping centers. Jamestown has been involved in landmark projects such as Chelsea Market in New York City. The CEO also said leasing demand is strong at Simon Property's malls and that the properties are getting a boost because tourism is coming back. The 2.8 million-sf development will include 36,000 sf of restaurants, retail space.  The project, a redevelopment at the site of a dated shopping center, will be marketed as the new “front door to Davie, Fla.” targeted to young professionals. $1 billion residential project, The District in Davie, will bring 1.6 million sf of new Class A residential apartments to the hot South Florida market. Located near Ft. Lauderdale and greater Miami, the development will include 36,000 sf of restaurants and retail space. The development will also provide 1.1 million sf of access controlled onsite parking with 2,650 parking spaces. The project, a redevelopment at the site of a dated shopping center, will be marketed as the new “front door to Davie,” targeted to young professionals. Amenities include a pool and 24-hour fitness/spa treatment room, a penthouse level Sky Lounge reservable for indoor and outdoor entertainment with kitchen and seating, and ground floor storefront spaces. Planned lifestyle amenities include pet-friendly features such as bark parks and grooming stations, game lounges and children’s play suites, as well as multiple work-from-home accommodations including co-working spaces and meeting rooms. The project’s five buildings will range from 20–24 stories, each level offering thoughtfully designed studio, one-, two-, and three-bedroom apartments, some with dens. Unit sizes range from 589 sf to 1,460 sf. Each unit will provide keyless entry, high-speed Internet, and smart thermostats. Outdoor social spaces will include rooftop pools, outdoor kitchens, fire pits, and green spaces for outdoor yoga, games, and movies. Planned green elements include electric vehicle charging stations in garages, complimentary bicycle parking/storage areas, and LED lighting technology for energy efficiency. Light-filled rental apartments include exceptional finishes, flexible layouts, and state-of-the-art appliances. Designed for the South Florida lifestyle, the rental units prioritize indoor/outdoor living with ample glass and private terraces on each floor. The apartments are complemented by a robust amenities package for multi-generational appeal. Phase one completion is expected in 2025.  Look around. If you're a multifamily housing investor, you've seen a steady increase in the number of condos and apartment complexes popping up everywhere. Currently, 35% of the U.S. population is renters, and that figure is rising. However, for owners and operators of multifamily communities, attracting and retaining residents will depend on the ability to integrate amenities and services that meet the expectations of today's (and tomorrow's) increasingly savvy residents. The emergence and adoption of cutting-edge technologies is just the ticket for meeting that challenge. Here are five predictions that I believe will gain momentum and revolutionize the work and leisure lifestyles for residents as well as optimize investments for owners and operators. 1. Prepare to experience a virtual living space beyond your imagination. Virtual and augmented reality technologies are reinventing the leasing process for both agents and residents. The savings in time, effort and costs for leasing agents are substantial. Donning lightweight AR headsets, prospective residents can tour multifamily communities online and enter a virtual world where realistic avatars walk them through floor plans and community amenities. Digital layouts can allow renters to visualize how their existing furnishings will fit, experiencing how it would feel to actually live there. This virtual staging can eliminate on-site staging and photography costs, reducing the time, staff and office space needed to maintain property portfolios. Strategic planning and problem-solving for properties can be done directly from the office. VR can be effective for employee training, and AR glasses in the field can enable maintenance staff to collaborate with the central office for issues and repairs. Virtual application possibilities are endless and can enhance the experience for both operators and potential residents. 2. Retire your leather billfold for a crypto wallet. Cryptocurrencies like Bitcoin are gaining wider understanding, acceptance and use across many industries. There has been a steady climb in consumer interest and investment, particularly among Millennials. A form of potential online digital payment for goods and services, crypto relies on blockchain technology that tracks and records each transaction in a decentralized manner through a distributed ledger. Its secure data sharing and strong privacy can eliminate attempts at data manipulation. With tight security, transparent record-keeping, instant transfers and no government controls or "middleman" fees, cryptocurrency may become an attractive option for multifamily operators as well as residents. Some forward-thinking multifamily operators are already accepting Bitcoin for rental payments as well as offering Bitcoin rewards for positive resident behaviors and referrals. As Forbes notes: "Blockchain can make MLS property data more centralized and accessible, [with] title records easier to track and transfer." Multifamily operators would be wise to keep a watchful eye on this rising currency movement and consider the many benefits and applications. 3. Kick the traditional parking garage to the curb. Instead of vast underground lots with space(s) designated for every unit, multifamily parking in the future may look quite different. Owners might partner with car share companies for residents to use the services of electric cars only as needed. Dedicated pickup and drop-off zones would allow for the convenient use of autonomous vehicles and rideshare services. Residents with a focus on "green" initiatives already rely on public transportation and walkability factors. Bike storage, rental amenities and other reward incentives for carless residents should attract rental applicants to properties offering these features. With less dedicated parking, multifamily owners can use the reclaimed space for amenities like halls for community activities or even shared VR rooms. 4. The knock at the door could be your bot buddy. Consumers have developed high expectations for service delivery, and technological innovations are rising to meet these demands. What once seemed like science fiction is fast becoming reality. For example, Amazon has patented blimp warehouseswhere AI-based drones will fly back and forth to pick up packages and deliver them to drop zones below. By early 2022, Wing—Alphabet's drone service—had already made 200,000 deliveries. In the very near future, multifamily communities could provide myriad drone and bot services to benefit residents and improve the bottom line as they deliver right to your door. With NASA working on urban air mobility maps of metro air spaces, this futuristic image of autonomous drones above and robots below is no longer far-fetched. 5. Net-zero emission designs will bring sunny days for multifamily units. The promise of lower utility bills can be a major incentive in choosing a unit. Multifamily operators are capitalizing on the benefits of cheap, clean and renewable energy sources. According to the Net Zero Energy Coalition's latest report, multifamily living now accounts for 58% of all net-zero carbon units in the U.S. that are under construction, newly completed or in the design phase. In California, all new multifamily housing construction must have solar panels for dwellings up to three stories. Communities sharing solar arrays, energy allocations and credits will be distributed across multiple user accounts. Common areas converted to solar could save thousands or millions each year, and revenue from the sale of excess energy can lead to a quick ROI and future revenue growth. Most importantly, many residents should be attracted to units with cost-saving amenities and "green" initiatives. Embrace transformation for the new multifamily paradigm. There's no crystal ball to affirm my predictions, but I'm certain these and other transformative technologies will reshape our work and leisure lifestyles—not to mention the multifamily living experience—in ways we can't even begin to imagine. Multifamily owners and operators should plan now for the future and integrate these trends in some manner over the next three to five years. Those who make the leap should gain a competitive edge. Start building community into your properties while providing the kind of cutting-edge advancements and amenities that residents are seeking. Happy long-term residents (and a healthy bottom line) should be your reward.   Report analyzes transaction volume, debt availability and asset pricing and identifies opportunities in the Americas, Asia, Europe. Hines, the global real estate investment, development and property manager, released its global outlook titled, “2023: Navigating Through the Labyrinth” today. Following the turbulence in 2022, opportunities will abound this year due to repricing, continued outperformance of high-quality office assets, and deflation in some key sectors. Global Chief Investment Officer David Steinbach said, “In a period of global economic discord, transaction volume will be unlocked with debt availability and the reset of pricing levels more in line with expected fundamentals. Successful acquisitions and developments in the new year will also focus on high quality assets that meet customer demands for simplicity and flexibility. We expect to see more accretive opportunities emerge in 2023.” Looking at global trends, the report reveals that mostly industrial and for-rent residential markets continued to have solid fundamentals. Retail fundamentals saw recovery from the damage caused by lockdowns, but high inflation in many markets is cutting into discretionary spending and is disrupting continued recovery. While short-term rates are expected to fall and long-term rates to remain sticky, the report outlines a few key areas as signs for investors to pivot strategies, including improvement in transaction volume, rising availability of traditional debt, and cost-averaging down (i.e., deploying capital patiently during a market disruption). Sectors in Our Sights Utilizing proprietary research tools to analyze market data, the report provides sector insights for the Americas, Asia, and Europe and suggests how real estate investment strategies should evolve this year: Americas Investors are still recalibrating their portfolios, as they have seen downturns on both the equity and fixed-income sides of their ledgers. Tenants have been reviewing their growth plans for the year ahead and pausing on new activity, however, there is potential for opportunities during the second half of the year, including:
Against the backdrop of this year’s macroeconomic and political headlines, the rebalancing of real estate product types has largely played out. Trends have indicated that the real estate industry’s main sectors may converge further. Opportunities exist in:
As we look at strategies for 2023, the ‘beds and sheds revolution’ of recent years has played out. There is no longer a standout winning sector. Our ability to understand nuances of quality within a product type has become more important than just picking the right general bucket. Opportunities will include:
Click here to read the report and watch a video from David Steinbach, global chief investment officer at Hines. About Hines Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 28 countries. We manage a $92.3B¹ portfolio of high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 634 properties totaling over 225 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media. ¹Includes both the global Hines organization as well as RIA AUM as of June 30, 2022.   The last few years have witnes-sed a series of crises in the real estate market in general, but specifically in rental property. The COVID-19 pandemic, the hottest residential market in decades, and the recent rise in mortgage interest rates have all impacted the industry and affected the ways in which investors think and act. Nevertheless, things seem to be stabilizing in real estate at the moment, sending positive signals to all who consider investing in rental properties in the coming months.
With that in mind, let’s take a look at the five most important trends expected in 2023. 1. Recovery of the Short-Term Rental IndustryAlthough the pandemic had a major debilitating effect on the vacation rental industry, the slowdown was relatively short, and the market has already started recovering. The recovery is expected to continue during the remaining months of 2022. By 2023, short-term rentals are expected to have reestablished their position as the more profitable rental strategy when compared to traditional, long-term rentals. The most encouraging sign is the return to travel, the monthly travel expenditure in the U.S. surpassed the pre-pandemic level (April 2019) for the first time, by 3%. Short-term rentals are directly related to traveling. This means that as more people resume traveling, the demand for Airbnb-style rental properties will increase, allowing for higher daily rates and pushing up return on investment. If you are interested in this rental property strategy, you should focus on markets with strong Airbnb demand. According to nationwide analysis conducted by Mashvisor, a real estate data analytics company, these cities boasted the highest Airbnb occupancy rates in the U.S. market in the summer of 2022: Portland, Oregon (67.5%); Seattle, Washington (67.4%); Tucson, Arizona (67.3%); and San Francisco, California (66.9%). 2. Stronger Demand in Secondary and Tertiary MarketsThe second 2023 trend in the rental property investing industry is the continued growth of small, rural markets. The pandemic and the consequent switch to remote working across numerous industries affected the real estate market in major ways. One of the most significant changes to keep in mind as an investor is the massive move from primary markets like New York, Los Angeles, Boston, and Chicago to secondary and tertiary markets. Because work-from-home policies are expected to remain in many businesses, the trend to smaller markets is forecast to continue into 2023 and beyond. Many professionals and families prefer the peace, comfort, and security small towns and rural areas offer. Although some people might choose to buy a home, others will decide to rent, creating an opportunity for investors. For those considering investing in a long-term rental property, smaller markets will offer more demand and higher return. Importantly, such locations come with lower property prices, which makes them affordable even for new investors. 3. Growing Interest in Long-Term Airbnb RentalsAnother important trend the global pandemic stimulated is the emergence of a hybrid rental strategy that combines the benefits of investing in short-term and long-term rentals. As traveling nurses and other traveling professionals need temporary housing in various locations, we have seen a rise in long-term Airbnb rentals, also known as furnished apartments. From an investor’s perspective, this rental strategy provides higher rental income than traditional rental properties and more predictability and stability in terms of occupancy than vacation rentals. The combined result is optimized return on investment. As many people continue to work remotely, some will choose to travel to new locations for extended periods, which will further drive the growth of monthly furnished rentals in 2023. 4. Rise in Fractional Rental Property InvestingYet another major trend in recent years is fractional investing within the real estate industry. Technology has dictated this move rather than the pandemic. Real estate crowdfunding platforms like Fundrise, Realty Mogul, and Crowdstreet have allowed small-scale investors to own fractions of residential, commer-cial, and industrial properties together with other investors. The benefits this rental property investing strategy offers are numerous; being affordable and passive are the most important. As technology continues to advance in real estate, fractional investing is expected to accelerate in 2023 and beyond. 5. Technological AdvancementsFinally, we cannot talk about 2023 trends in rental property investing without discussing the role technology will play. High-tech will continue to be a main driving force in all aspects of the industry and all stages of the investor journey: from identifying profitable investment opportunities, to purchasing income properties, to renting out and managing both short-term and long-term rental properties. We can expect existing proptech companies to grow and new ones to appear in the next couple of years to meet all investor needs, making the real estate investing process even more seamless and profitable. In 2023, the rental market is expected to remain as dynamic as it has always been. There will be numerous lucrative opportunities for investing as long as investors analyze the market, use reliable data, and follow recent developments and forecasts. The five trends outlined here should help you make confident and profitable investment decisions. Daniela Andreevska is vice president of content at Mashvisor, a real estate analytics tool that helps real estate investors quickly find traditional and Airbnb investment properties. A research process that usually takes three months can now be accomplished in 15 minutes. CATEGORY: Article, Market & Trends TAGS: Trends KEY POINTS
 Residential villas on the waterside of the Palm Jumeirah in Dubai on Feb. 24, 2022. Russians were always among the top 10 nationalities investing in Dubai property, according to Tahir Majithia, managing partner at Dubai-based Prime Capital real estate. Christopher Pike/Bloomberg via Getty Images Wealthy investors betting on luxury real estate would do best by putting their money in Dubai or Miami next year, according to a new report.
In a ranking 25 of the world’s top luxury, or “prime,” real estate markets, Dubai topped the list, with prices expected to increase 13.5% in 2023, according to real estate consultancy Knight Frank. Miami ranked second, with prices expected to increase 5%. Dublin, Lisbon and Los Angeles followed, with 4% expected increases. The worst performers next year are expected to be Seoul and London, with prices expected to drop 3% for both. New York ranked in the middle of the pack, at 13, with prices expected to increase 2% next year. Still, even the strongest luxury markets are expected to cool next year, as interest rates rise and economies slow down, according to Knight Frank. Across the 25 cities, Knight Frank expects prices to rise by an average of 2% in 2023, revised down from the 2.7% Knight Frank projected six months ago. The revision suggests that the global wealthy, seemingly immune from inflation and economic slowdowns, are holding off on big real-estate purchases or becoming more discerning on price given rising interest rates. “Although prime markets are more insulated to the fallout from higher mortgage costs, they’re not immune,” the report said. “The transition from a seller’s to a buyer’s market is already underway across most prime residential markets.” Dubai saw prices soar by 50% in 2022, so the price increases for 2023 mark a substantial slowdown. Dubai has seen a surge in wealthy residents over the past year, driven largely by Russians looking for a safe harbor for their wealth, yachts and real estate amidst Western sanctions over the war in Ukraine. Prices for Dubai single family homes rose 13% in October, while overall sales volume jumped 73% over the previous year. Miami also remains a popular haven for the wealthy, given its low tax rates and growing number of financial firms locating their headquarters or offices in South Florida. Although New York’s expected 2% increase next year is down from 2022, many brokers forecast declining prices next year, especially in Manhattan. Knight Frank said New York will benefit from overseas buyers who are “seeking more, rather than less, exposure to the U.S. dollar as the Federal Reserve ramps up rates.” Singapore is the only Asian city in the top 10 and one of only four cities whose forecast has climbed in the past six months, according to the report. Singapore is benefitting from wealth flight from China, as rich Chinese citizens move their money – and often their families – to the island to avoid strict Covid lockdowns and a slowing economy. Cash will be king across the 25 markets, as buyers willing to pay all-cash will be more attractive to sellers, Knight Frank said. Political and economic volatility in many countries will also lead to a flight to safety in real estate, “pushing buyers to mature and transparent luxury markets.” |
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