Jana Korpova-Harris, Director at the Luxury Property Show, which returns to Olympia London on 31st October and 1st November, offers her advice on how to identify up and coming areas to buy property overseas.
Tourism across the world is increasing at a rapid rate and shows no sign of slowing down. The number of international arrivals hit 1.2 billion last year and this number is set to increase to 1.8 billion by 2030. As international travel continues to rise, new tourist hotspots are appearing which bring economic benefits to the regions experiencing this trend, including an uplift in property prices. For investors, purchasing foreign real estate can reap rich rewards if the investment is made wisely. Acquiring property in an up and coming area is a great way to achieve maximum return on investment as purchase prices are lower than those in tourist hotspots and the property value will only increase as the area becomes more popular. Here are some key signals to look out for to help identify where the next tourist hub will be.
Anyone considering purchasing a property abroad must pay close attention to where new airports are being built or new flight routes are being opened. This generally indicates that the location is seeing large investment or increased popularity, which will only serve to make the area more attractive to tourists and property investors.
For example, the Costa Del Sol has been a popular holiday destination for decades, made even more popular in recent years by the extension of Malaga airport. The new extension allows for more flights to take off and more tourists to visit the destination each year.
Similarly, the less well-known Spanish destination of Costa Blanca, to the west of the Costa Del Sol, has recently benefitted from its new airport opening in 2017. This has allowed for more travel routes to open-up, making tourism in the region more accessible. Property prices in Costa Blanca still remain lower than those along the Costa Del Sol because, historically, the area was less convenient to reach and underdeveloped in comparison. Even with the addition of the new airport, there are still fewer flights to the region. However, as more flight routes open up and the destination becomes more popular with tourists, property prices are likely to increase. The key is to invest before this happens.
The difficulty is that not all local news in these up and coming regions makes it to an international platform. So, a sophisticated investor needs to spend time researching. One way to stay up to date with the news from a country is to subscribe to updates, such as the Spain Buying Guide by Property Guides. These local insights are a great way to keep up to date with developments abroad that you may not have been able to find within the UK media.
It is also wise to speak to local developers and estate agents, as they have the best knowledge of what is being built, opened and which airlines may be planning new routes to nearby airports.
New leisure facilities, such as shopping centres, are another great indicator of up and coming areas. London’s Shepherd’s Bush is the perfect example of this. The West End district underwent significant redevelopment which caused property prices to skyrocket. One of the first signs of this investment was the arrival of the Westfield White City shopping centre in 2008. Those who bought property in the area before the development are now enjoying the benefits of living in one of London’s most multicultural and exclusive boroughs.
A similar theme could be seen with the opening of the new Elizabeth Line Crossrail project, which will connect East London to Heathrow and Reading by 40 stops through London and the Home Counties. Expected to serve 200 million people each year, the new development will increase infrastructure in the surrounding areas near the line, making them more accessible and appealing to buyers.
New state-of-the-art hotels appearing in more ‘off the grid’ locations are another fantastic indicator of up and coming trendy areas. Dubai perfectly demonstrates this trend. During the ‘90s, the number of Brits that holidayed in the United Arab Emirates was less than 100,000, according to the Office for National Statistics. However, since the turn of the century, Dubai has completed much of its construction developments which began in the latter half of the 20th century. These are home to some of the most luxurious hotels in the world. The City of Gold now features Michelin star restaurants, state-of-the-art leisure facilities and prestige shopping centres. This now makes it a favoured travel destination, with over half a million Brits visiting Dubai in the first half of this year, according to Dubai’s Department of Tourism.
Identifying key indicators of up and coming areas does mean spending some time researching the developments taking place in any areas of interest. This can take longer than if you were to buy a property in a current hotspot, but those who do invest their time are rewarded with fantastic opportunities in perfect locations.
If you are considering investing in a second home or simply want to explore what options are available, The Luxury Property Show will offer the unrivalled opportunity to meet agents and developers from all over the world who can offer further insight and expert knowledge on the developments impacting up and coming destinations across the globe.
For more information, visit www.theluxurypropertyshow.com.