The UK, US and German property markets are enjoying an increase in house prices, according to a new report.
The Economist House Price Index, which provides a snapshot of the world’s real estate markets, paints a largely positive picture of the planet’s property: of the 26 markets studied, prices are rising in 21 of them, at a median pace of 4.7 per cent per year.
“Data such as this is key when it comes to knowing where to invest,” comments Ray Withers, CEO of specialist property investment company Property Frontiers.
“It’s encouraging to see that the UK, the US and Germany are all enjoying sustained price rises. It shows how sensible our clients have been in investing in buy-to-let properties in those countries.”
House prices in the UK have been rising since Q2 2009, albeit with a few bumps along the way, according to the Economist’s report. Nationally, they’ve risen by 11.5 per cent in Britain between then and Q4 2014. The new-found confidence in the market has seen construction pick up pace, with the latest Markit/CIPS UK construction PMI reporting rising output across all parts of the industry in September 2015 – the 28th month in a row that the sector has been creating jobs.
One area of the UK that is firmly on buy-to-let investors’ maps is Manchester, and in particular Salford Quays. The area is booming and developments like Custom Quay, where the 60 one and two bedroom duplex apartments are available for investment from £127,000 with 8.4 per cent expected yield, are attracting investors keen to be a part of the city’s bright future.
Germany is another country that has seen prices rise. According to the Economist’s House Price Index report, home values in Germany were largely immune to the global financial crisis that started in 2006/07. In fact, prices there have remained fairly stable since the mid-1990s. It is only since around Q1 2009 that they have begun to rise steeply. Between then and Q4 2014, house prices shot up by 22.8 per cent in Germany, delighting those who had already invested in property there and causing other investors to pay cities like Berlin some serious attention.