Where next to invest? We profile the world’s top property hotspots, detailing everything an investor needs to know.
House prices in Dallas 11.6% year-on-year in 2016 (Zillow)
Rents in Dallas rose 3.9% year-on-year (Zillow)
Enquiries for Texan real estate rose 14% at the end of 2016 (TheMoveChannel.com)
Where is it?
One of the largest metropolitan areas in the USA, Dallas is currently the beating heart of the Texas housing market. Home to a large number of corporate headquarters, the city is a significant financial hub in the South of the USA.
Who lives there?
The Dallas area’s array of corporate headquarters includes such towering names as AT&T, American Airlines, Frito Lay and Dr. Pepper. As a result of that concentration of economic giants, the city is home to a thriving population of employees, businessmen and women and local residents. Combined with strong appeal for expats looking to relocate from South America, the city’s demographic fuels demand for both property and rented accommodation.
Texas is an increasingly popular hotspot among international property investors, accounting for 1 in every 12 enquiries for US real estate on the MoveChannel.com in 2016 – the fifth highest share of activity, behind Florida, New York, Michigan and South Carolina.
The state’s rise is driven by demand for Dallas property, which is attractive because of its economic strength: the city’s low unemployment rate helps to boost its population and therefore drive demand for rental accommodation.
While many areas in the US are popular for buy-to-let investors, though, Dallas has two major advantages. Texas has no state capital gains tax, which makes it more affordable for investors. Texan house prices are also much lower than other major cities. In 2016, property values in the Dallas-Fort Worth metropolitan area climbed 11.6 per cent year-on-year, according to Zillow, but they remain at $201,400, below the $402,700 recorded in New York and the $247,000 recorded in Miami-Fort Lauderdale, Florida.
Rents in Dallas, meanwhile, increased by 3.9 per cent compared to 2015.
The result is a lucrative buy-to-let market for domestic and international investors alike.
In the US overall, Chinese investors are the biggest group of foreign nationals buying real estate, but while Asian investors are a major force in Texas, the state is overwhelmingly a favourite among Latin American buyers. According to the Texas Association of Realtors, around one-third of international investors come from Latin America, just ahead of those from Asia. European buyers make up around one in 10 buyers, while Indian buyers are also a notable presence, with one in every five Indian investors who bought a home in the US last year specifically purchasing in Texas.
Overseas demand is focused on holiday homes and expats relocating to a strong area for employment, as well as a welcoming, multi-cultural destination. However, a growing number of international buyers are also buying for investment purposes, as the Dallas buy-to-let market proves significantly rewarding.
“Low unemployment and high demand for housing makes Dallas the new buy-to-let favourite for international buyers of US real estate.”
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