Top 10 Real Estate Destinations in the World

OverviewWhen you have those extra bucks and are looking to invest in a second or third property, outside your country, the first thought which comes to the mind is how should one shortlist the appropriate Country/location/city to invest in. Of-course there is unmanageable data available in the cyber space suggesting locations, giving out property indexes and doing some crystal gazing for you in the future. Factors like having relatives/close friends staying in a particular part of the world or a place you have visited and liked as a tourist may swing your decision making cycle, but then these are probably once in a lifetime decisions, which demand/warrant a personalised in-depth analysis before taking the final call. We have shortlisted a few factors which should be taken into consideration while making a decision. We have purposely not assigned any weightage or priority to these factors as that’s a matter of personal choice, as well is dictated by the fact whether the property is being bought for the sole purpose of investment or personal use at some point in time. Therefore the prioritisation needs to be carried out at the investor’s end.

Political Stability - Financial Standing - Ease of Business

• Political Stability. What form of governance does the country/state follow. For example whether it’s a democracy, or does it have a communist setup, or probably is still stuck up with the old anarchical system. In addition, consider the regional stability as well.  For example, investing in Ukraine at this time would amount to foolhardiness.

• Financial Standing. Does the country hold the status of a developed, developing or an under developed nation. What has been the GDP growth and the per capita income in the past few years and the predictions for the future. For example, investing in a developing country with a growing GDP and per capita income would be a wise bet as it would be low on investment and high on returns (of-course all the other factors need to be considered).

• Ease of Business. How easy or difficult it is to setup a business entity in the area is probably one of the most important factor which contributes towards the real estate index. The role of the state in providing infrastructural support is of considerable significance.

Demography - Language - Reachability.

• Demography.  Consider the demographic profile to include religious alignments, literacy rate of the area and the average age of resident population. These factors are especially important if one is planning for a second home.

• Language. May seem to be a trivial matter but could be of significant importance if one is looking at setting up an enterprise. Use of a universally acceptable language (example English) always adds to the real estate value.

• Reachability. What is the international connectivity available in terms of flights, sea and land. Take into consideration inter and intra connectivity through railways and roadways. For example, Europe has a fantastic combination of air and land connectivity.

Climate - Natural Calamities - Property Index.

• Climate. Climate is one of the most important factors, consider whether it’s a temperate or a tropical setup, the temperature variations whether moderate or extreme and off-course what’s to your liking.

• Natural Calamities. Go through the history of natural calamities in that area, though these are unpredicted but it’s worth considering the seismic classification, nearness to sea/oceans etc.

• Property Index. A high property index should not be the only factor for consideration, it is imperative to analyses whether an area is over-valued (the balloon can burst anytime), has peaked (investment would be high and return on investment would be low) or is it yet to peak/is under-valued (probably the best investment).

support@propchill.com