Melbourne, tel-aviv and chicago highlighted as investment hotspots

Photo credit: Kev Whelan

Melbourne, Tel-Aviv and Chicago and nine other cities are showing strong residential price growth, according to the report by Candy & Candy, Savills World Research and Deutsche Asset & Wealth Management, and are set to out-perform the prime world cities in coming years.

Prices in these rising cities are generally much lower than in the world cities, notes The Candy GPS Report, which makes them more accessible and attractive to investors seeking strong yields.

The list ranges from well established cities, such as Australia's Melbourne, to developing economies, such as India's Chennai, that have a high number of ultra-high-net-worth residents.

“For many ultra-high-net-worth-individuals real estate has become a unique asset class, but investment to date has focused on prime property in the top tier world cities which have shown record market growth,” comments Nick Candy, CEO of Candy & Candy.

“Real estate will continue to play an important part in global investment with investors now looking beyond established safe havens and prime world cities.”

Yolande Barnes, Director of Savills World Research, who conducted the analysis, adds: “As prime real estate in many premier cities has become more fully valued, emboldened investors are now spreading their wings and looking for high yielding secondary properties in those cities as well as starting to consider the value of second-tier cities in counties with strengthening economies.

“This more adventurous approach is likely not only to provide higher income returns but also the opportunity for significant capital growth. Real estate values will grow as new cities all over the globe rise on fortune’s wheel. Property rents and values will rise in line with new and growing economic strength.”