Investment opportunities abroad

● The next property hot spots after the UK and Portugal may be Berlin and Bangkok, according to experts.

Ian Edwards, partner and Africa regional manager of Austen Morris Associates, says his company has identified several cities with excellent investment potential with apartments in the à200,000 (R3.2m) to à400,000 price bracket, which can typically be bought using a 50% bond. These include properties in Manchester, Birmingham, Berlin, Lisbon and Bangkok.

In Manchester, urban land values are up 24% in the past year and house inflation is about 8%, with rent forecast to rise 22% by 2022, says Edwards. Birmingham, named the top UK property investment location four years in a row by PwC, has a booming population, big infrastructure spend and a sound economy.

Sovereign Trust chairman Tim Mertens says the UK has a stable, strong economy, a strong land registry system and continuous demand from tenants.

He says Portugal has one of the best residency and citizenship programmes and has good developments in Lisbon and in northern areas such as Porto.

Chris Immelman, MD of Pam Golding International, says Lisbon has proven to be a fantastic investment over the past three years and “there are areas that still offer good opportunities”.

Edwards says Berlin is a booming city where property prices have grown at 6% on average since 2006.

Immelman says property prices in the German capital are half that of Munich, Frankfurt and Hamburg and it is the city of choice in which to work for graduates.

Edwards says there is a strong demand from local and foreign buyers for property in Bangkok, Thailand.

According to the Global Real Estate Outlook 2018, house prices in Bangkok increased by 16% annually, and the latest Global Property Guide shows the city offering healthy rental yields of between 5% and 8%.