THE ADDRESS Magazine Summer 2014 - Page 326

stay without the need to extend through the Immigration Department. Switzerland’s property market is heating up and there are concerns about a property price bubble looming. So far there seems to be a strongly rising demand for property in the prime ski areas of Verbier and St. Moritz, where supply is short. Wealthy buyers look to target a new range of cities in which to invest Smart and wealthy property investors are taking time to look around at less obvious cities in their search for great investments, with Melbourne, Tel Aviv and Chicago set to outperform some of the traditional locales. A report produced by developers Candy & Candy, Savills World Research and Deutsche Asset & Wealth Management lists 12 world cities they see as having the potential to demonstrate strong residential property price growth in the near future. Price increases in these cities have been lower than those in the upper echelon, making them more attractive as places that could yield a good return. On the list can be found well-established global cities as well as those in emerging areas of the world. The list includes Tel Aviv at the top, followed by Melbourne, Miami, Chicago, Dublin, Panama City, Beirut, Istanbul, Cape Town, Jakarta, Lagos and Chennai in India. As real estate plays an important part of an increasing number of portfolios, Ultra High Net Worth Individuals (UHNWIs) are looking around and becoming bolder in their selections. In turn, property values and rents are likely to increase in more such cities around the globe. The report looks at the sort of characteristics that add value to this list of secondary cities, with English as a first or second language an important consideration for buyers. New technology centres, financial centres, favourable 326 conditions for international companies and a large, young and educated population also play as important factors. It was also found that for the present, Germany, Japan and the United States together account for 39% of all ultra high net worth direct real estate investment activity. And five cities account for 40% of all real estate holdings in this class: Hong Kong, London, Moscow, Singapore and New York. Ireland & Spain eyed by leading-edge investors once again Two countries where property values were heaviest-hit by the global economic downturn are now seen as offering excellent buying opportunities. As competition heats up in the race to accumulate prime assets in Europe’s major real estate markets, Ireland and Spain are recognized as places where the markets are recovering and value is to be found, according to a forecast published jointly by the Urban Land Institute and PwC. The report, “Emerging Trends in Real Estate Europe 2014”, finds 71% of respondents feel a shortage of suitable assets for acquisition will have at least a moderate impact on business this year. Nearly six in ten say prime property in Europe’s core markets is overpriced. Investors seem prepared to take on more risk as they search for returns. Dublin is one of the biggest beneficiaries of this new reality. Last year it was ranked No. 20 in city investment rankings while this year, it has gone up to No. 2. A combination of price and the country’s improved economic outlook have set the tone. Spain is another recovering market gaining wide attention. Of those surveyed, 67% identified good buying opportunities there. The acquisition of the Parque Principado mall in Oviedo by Intu and the Canadian Pension