International property - a solid investment?

“May you live in interesting times”, so goes the supposed Chinese anti-proverb. The implication being that ‘interesting’ is the direct opposite of stable, harmonious and peaceful. And indeed these are interesting times. Political upsets on both sides of the Atlantic have rocked stock markets and funds. Meanwhile, disputes in the Middle East and the emergence of US shale have led to fluctuations in global energy prices, with knock on effects for domestic economies around the world.

And with enquiries ongoing into possible ties between President Trump and the Russian state, and Brexit negotiations about to begin in earnest in Europe and the UK, the uncertainty shows no signs of abating. Elsewhere, tensions continue to rise in the Middle East as both the Saudis and Iran accuse each other of being the weak link in the fight against global terrorism.

Another often misattributed piece of Chinese wisdom however states that crisis and opportunity are but two sides of the same coin. So, where does the savvy investor look to grow their wealth in these interesting times?

One investment which brings long-term growth, regardless of political and economic fluctuations, is property, and luxury property in particular is becoming a key investment option for high-net worth individuals from across the world.

Recent data from Christies International Real Estate reveals that the luxury property market is currently at record levels and, for the first time, the world’s top ten reported property sales were all priced above $100 million. And with property investment funds promising double digit returns on luxury investments, combined with a dwindling number of dividend paying shares available to would be investors, it’s easy to see why the market is booming in an era where interest rates and returns on savings around the world remain subdued.

The question for most investors is not therefore, should I invest in luxury property, but rather, where to begin? With everywhere from Toronto to Hong Kong pitching itself as the next luxury property hotspot, where can an investor learn about the market?

A good place to begin would be the Luxury Property Show this October at the Olympia Conference Centre, London. The show, now in its tenth year, consistently attracts the movers and shakers from the luxury property world who can help guide an investor to making the right choice. Likewise, attending the show can save an investor countless hours and air-miles as they’ll be able to get detailed insights into potential properties ranging from mountain and lake retreats in Northern Europe to luxury loft apartments in New York, via beachfront homes in Dubai.

Alongside insights into luxury properties and property markets around the world, the show also gives potential investors unparalleled opportunities for networking with fellow investors and property consortiums as well as access to a full programme of seminars aimed at seasoned investors, as well as those who are new to the market.

“The luxury property market has enjoyed significant growth in recent years as investors have used property as a hedge against global risk and uncertainty,” said Eddie Sikora, Director, the Luxury Property Show. “Beyond this however, investing in luxury property is a statement, and a symbol of prestige and success, hence we have seen an unprecedented number of sales over the last year topping the $100 million mark.

“Nevertheless, it’s a complicated market. Investors need to consider not just all the usual things that come with purchasing a property, but also other key questions such as ‘where is the next property hotspot’ and ‘what geo-political dynamics could impact the investment over the medium and long-term’. With many investors now coming to see key western markets such as London and New York as being saturated, these questions are ever more important for potential investors.”