An article in the Financial Times in December 2008 gave the heads up for Brits looking to invest in property in 2009. Titled “New year, new investment?” it looks at the 10 best locations to buy property in 2009. The article points out that while we are still in the grips of a recession with falling property prices, this can actually be viewed as a good period to be looking for investment property, providing investors also look at the potential for medium and long term growth and not just bargain basement prices.
Top of the Financial Times property investment list for 2009 is London. With prices having fallen 20% overseas buyers can also take advantage of sterlings slide to further discount purchase prices. Bayswater and Fitzrovia are recommended as up and coming areas and worth a look if you are interested in buying property in London.
The next location for investing in property in 2009 is Paris. To date property in Paris has been spared the price drops seen in London and remains a city with an under supply of new quality housing. Demand from domestic and international buyers and renters remains strong.
Property in New York hit the third spot for those looking to invest in real estate in 2009. Sales volumes dropped 15% in 2008 and prices dropped during the second and third quarters of 2008 but the real estate market in New York is predicted to be the most resilient in North America during 2009 and beyond.
In 2006 Montenegro split from Serbia and came onto the radar of overseas property investors. Despite only being of interest for a short period of time, property in Montenegro is ranked at number 4 in the FT’s list of property for 2009. The relatively small coastline offers little chance of major development so the chances of the Montenegran property market becoming overdeveloped are small. Montenegro also plans to join the European Union in the future which will also add a boost to prices.
The Spanish property crash hasn’t yet affected the main luxury market in the Balearics and property in Majorca is much in demand with domestic and overseas investors. Recent road improvements and better access from the low cost airlines helped put real estate in Majorca at number 5 in 2009’s list of property investment opportunities.
Number 6 is a cheaper alternative to the French and Swiss Alps. The Austrian Tyrol offers reliable snow and lower property prices than its French and Swiss counterparts and prices are still rising, between mid 2007 to mid 2008 new development values rose by 0.8%.
Southern Cyprus is a good location to consider investing in, in 2009. Property prices in Cyprus have remained relatively stable but sales volumes are way down which should enable you to bargain hard with developers. Property in Cyprus is listed at number 7.
Property in Costa Rica enters at number 8 on investment locations for 2009. Offering a tropical climate, political stability and attractive prices, real estate in Costa Rica may well be good a investment for 2009.
With its booming tourist sector and the fact that Istanbul is due to be the European Capital of culture in 2010 property in Turkey continues to be of interest to people wanting to invest in a second home. If the country manages to join the European Union, further price increases can be expected in the Turkish real estate market and it’s marked at number 9 for property investment opportunities in 2009.
The final location according to the Financial Times article is Cambridge in the UK. The city has recently allowed controlled expansion on green belt land and with 30,000 new jobs expected to be created in the next 10 years and a population growth of 44% over the next 50 years, property in Cambridge should give long term growth.
