The Savills World Residential Investability Ranking looks at a range of demographic and economic factors to come up with a definitive list of countries with the best property markets to invest into.
“Right now the country is seeing some of its strongest ever demand coupled with sky-high prices.”
The UK came in fourth this year, just behind the US, UAE and Singapore. One of the reasons the UK was rated so highly was because of its impressive housing market. Right now the country is seeing some of its strongest ever demand coupled with sky-high prices.
Yolande Barnes, director of Savills World Research, noted how the highest rated countries show signs of “a growing population, growing affluence and limited housing or land supply converge” all of which help boost the property market.
As this ranking only looks at investing into property for its capital appreciation (as opposed to its potential as a buy-to-let investment) past and future house prices are crucial to producing this list.
Over the past five years the UK property market has already seen prices rise by 20%, making the country one of the most steadily growing nations on a global scale. And this rate of growth is only set to increase.
According to RICS (The Royal Institution of Chartered Surveyors) house prices are going to rise by 6% in 2015. In real terms this means adding £16,000 to the 2014’s £272,000 average house price. IHS Global Insight paints an even more impressive picture of 7% in 2015 and 6% in 2016.
Ultimately, such a stable background coupled with such high forecasts means many are attracted to the UK housing market for capital gains alone. With the addition of buy-to-let, and the returns it can produce, the UK proves itself as an even more lucrative country for residential investments.
The popularity of buy-to-let investment properties have been increasing massively over the past year- July 2015 saw a 33% increase in the amount of buy-to-let loans from July 2014. Uninspired by the low yields and volatility of other investment opportunities, people are increasingly choosing the tangible brick and mortar option.
For more information on buy-to-let opportunities around the UK click here.