Almost eight years on from the global financial crisis that plunged property markets across the globe into a downward spiral, recovery is the latest order of business in 2015, but what does that even look like? More importantly, will investors follow strong yields or pricing trends?
Quick snapshot of sales prices and investor yield globally
United Kingdom: Average residential sales prices range from £165,471 in Manchester to £530,753 in London, with respective returns for investors of 8% in Manchester and 4.5% in London.
Across Europe: Average residential sales price in Paris is currently £428,264, with annual returns as low as 4%.
USA: Average residential sales prices range from £27,389 in Detroit to £774,350 in New York, with respective annual returns of 30% (not a typo) and 5-6%.
China: Average residential sales price in Beijing is currently £40,864, with annuals returns of 4.5%.
Australia: Average residential sales price in Sydney is currently £367,327, annual returns for Sydney have dropped to 5.3%.
Africa: Average residential sales price in Cape Town, South Africa is currently £49,018, annual returns have peaked at 20%, however, the huge surge in prices there over the past 12 months (up to 50% hike) is driving those yields downwards.
It is important to point that the prices above (all converted to pounds sterling) are average for the individual cities and are not comparing like with like between different cites, for example, while there is a huge difference between the average prices in Beijing and Los Angeles, the price per square foot is actually on par as the average home size in Los Angeles is almost nine times larger than the average home in Beijing.
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