Real estate investment is associated with a large number of investments like the cash flow the person get in the form of monthly income. One can also avail the advantages of tax benefits as the government gives tax rebates to reward the property owners. It also helps in diversifying your portfolio with other investments like stocks and bonds where asset allocation is well documented. However, in most of the cities, the prices of the property are still higher because the supply of houses is far less than demand from the people. The massive income that is formed by the banks in the form of loans adds to its cost and many other factors. Here is a list of the world's most expensive cities for real estate, using data from the World Economic Forum.
Most Expensive Cities For Real Estate
Hong Kong is rated as the most expensive city in the matter of real estate prices, as a skilled worker would have to work and save for 22 years just to be able to afford a 650 sq foot apartment. Hong Kong has a booming economy, which is making wealthy people invest in the property here and even its lower interest rates serve the purpose. The rich corporate and the foreign nationals from China, Russia, Japan and other Asian buyers are the prospective buyers.
London is a progressive metropolitan city, so most of the luxury property seekers have turned towards the estate property here. Even the tax exemption and lower bank loan interest rates have attracted buyers to the capital city, and the well-known billionaires from many foreign countries are buying their property here. It would take the average skilled worker 15 years of work to save up for an apartment in the city.
Paris, the City of Light, is one of the world's most expensive places to own real estate in. According to the Paris Property Group, the average price by square meter in the city is 8,017 euros. Another factor that may be driving its expensive real estate is the fact that Paris is one of the most famous and most visited cities in the world.
The city-state of Singapore has some of the world's highest prices for real estate. Due to this, it is quite normal for Singaporeans to live in public housing. In fact, the concept of public housing is very different here than throughout much of America and Europe, in that it is not stigmatized and is seen as a normal part of life. Some of the most important industries in this wealthy city include finance, electronicals, and petroleum.
Future Trends in Real Estate
In some places, it is possible that real estate prices may fall in the future. For instance, the market in Hong Kong will see a fall by 5% to 10% because of the deteriorating local economy of the country. Although this may ring economic alarm bells, there are some people who would welcome such a downturn if it would mean a decrease in housing prices. In other places such as London, the future generations with moderate income may not be able to afford the housing options if the market remains occupied for the rich only.
The Most Expensive Cities In The World For Real Estate
|Years Required to Work to Afford 650 Sq Feet