Big cities such as New York, London and Paris are now more attractive than ever to international real estate investors. The big three cities all show good house prices stoked by demand from overseas buyers
A survey reveals that nearly 30 percent of international investors who say that they are currently seriously considering “acquisitions outside of their domestic markets over the next year,” put New York is “at the top or near the top of their list,” according to Ross Moore, chief economist at Colliers International.
Interest in London from international buyers has meant that it has become virtually immune to the anticipated house price falls in the UK. Yolande Barnes, head of residential research at Savills, said: “Unlike the doomsters, we are not forecasting a deep double dip and there will be tiers of the market – like grade A prime London properties – that may escape the downturn virtually unscathed.”
French government data show strong price increases in Q2 2010 in Paris and its vicinities. The average price of existing apartments rose to €6,680 per sq. m., up by 10.2% y-o-y according to Notaires – INSEE (National Institute for Statistic and Economic Studies).
For the Paris region (formally, Ile-de-France), composed mainly of Paris metropolitan area , the average price rose 7.87% y-o-y to €4,700 in Q2 2010. The sharp increases in Paris house prices while prices in the rest of the country indicate the strong shift in housing demand from the countryside to the capital.
