If you’re interested in investing in luxury real estate, it’s important to take a global view of the market. In fact, some of the most exciting opportunities today may be slightly off the beaten path. Keep an eye on these 4 cities, particularly if you’re planning to purchase rental property – they’re primed for growth and have plenty of available properties for interested investors.
In the last decade or so, Dubai has become the center of luxury development, home to such remarkable structures as the Burj Khalifa, Princess Tower, and the Dubai Frame. For those looking for residential properties for investment, however, it’s important to understand how individuals approach the apartment market.
First, Dubai is known for its high cost of living, and the added costs of purchasing a home in Dubai can be out of reach for many individuals. Second, many wealthy individuals seeking luxury accommodations travel back and forth to Dubai on business or leisure, which can make foreigner-owned apartments especially popular. Investing in apartments that appeal to part-time residents and travelers can be a very profitable approach.
New York’s Economic Edge
New York has always been associated with luxury accommodations, but because the city’s status is so long established, it can sometimes be hard for investors to break into the market. The city is home to a vibrant and vital economy, and according to the ManhattanMiami, New York is responsible for 10% of the United States entire GDP. Investors interested in purchasing property in prime areas, then, should work with a real estate agent experienced with the city’s market and who regularly works with high net worth and ultra-high net worth individuals. To put it simply, New York isn’t a city for new or casual investors.
Toronto’s Take Off
Toronto isn’t known for the sort of luxury market you’ll find in New York or Dubai, but it’s still home to a thriving real estate sector. In particular, Toronto has a strong luxury condo market, along with its neighboring cities like Mississauga (check condo options here), despite slowdowns in other parts of the market related to administrative changes. It’s also a tough market to break into for international investors, since most of the new regulations and taxes aim to limit non-resident investment, so be prepared to navigate significant bureaucracy if you want a shot at this market. It may be worth it when you consider lower prices and decreased competition.
Opportunities In Orlando
Orlando is a surprising player in the luxury real estate market, particularly because of its proximity to amusement parks and beaches – vacation destinations, as well as its large population of retirees. Despite those unusual traits, though, rents in Orlando keep rising, unemployment is low, and overall population and job growth are on an upward swing. For these reasons, Orlando can be a good starter market for investors who don’t have the type of money it takes to break into New York or other major markets.
Most major cities have at least a small luxury market, but it’s the bigger cities that really offer investors opportunities to grow and compete. Whether you’re interested in purchasing properties in a nearby city, then, or you’re willing to look far afield, the best thing you can do is keep an open mind. You want a market that plays to your skills and your budget, not just one where others have carved out a niche. Ultimately, charting your own path is a key part of investment success.