Which Prime Residential Markets Will Lead the Way in 2023?

SHARE:

After a volatile 2022 for prime residential markets, which locations are the best bets for property investors in the new year?

The last six months have been tough for property investors. The previously unstoppable real estate market finally came face to face with reality. A toxic combination of a cost of living crisis, inflation and foreign wars put the economies of the world’s richest nations on red alert. Finally, after defying gravity throughout the pandemic, residential markets fell back to earth with a bump.

Even so, residential markets still have plenty of opportunities for savvy investors who can spot a growth opportunity. Some are emerging markets—others are existing favourites that still have room for growth.

Florida

Sun, sea, and a booming economy; Florida has everything. Thanks to its wide spaces and warm climate, its economy survived the pandemic relatively intact. In 2022 Florida’s gross product reached $1 trillion and its economy is predicted to grow at a steady but healthy rate of 2.5% over the next few years. At a time when the rest of the world is struggling with a looming recession, that’s not to be sniffed at.

The state has also benefitted from the boom in digital technology and remote work. As professionals become more footloose, they are prioritising quality of life. Industries which allow people to work from anywhere, such as technology, have seen professionals and businesses heading to the sunshine state in their droves.

The property market is feeling the benefits. In December, property prices were up 5.8% compared to the same period last year.

Manchester

Thanks to a rotating door policy at Number 10 and some eccentric policymaking, the UK property market has experienced more turmoil than most. As mortgage rates surged, the property market stuttered and stalled. Japanese financial holdings company, Nomura, predicts UK property prices are predicted to fall by around 4.7% in 2023 with property taking a hit in most housing markets.

In such an environment 2023 seems like a good idea to stay out of the market, but there are a few things to consider. Firstly, people have been predicting doom for the property market for years. Before the pandemic, experts predicted the market to crash by almost 50%. Instead, house prices boomed by record numbers. There is every reason to think it will defy gravity again. The economic environment may be turbulent but demand is still outstripping supply. A dip in prices will bring new buyers rushing in looking to get a relative bargain.

That’s especially true in areas outside of London, with Manchester leading the way. In recent years, Britain’s second city has experienced an economic renaissance, and people of all ages are flooding into Manchester. Property in the centre has become like gold dust with even previously unfashionable outer-lying neighbourhoods becoming sought-after property hotspots.

Lisbon, Portugal

Portugal is the darling of the European property scene. A combination of gorgeous weather and a favourable property market has seen demand grow from all over the world. From people looking for a second home to those looking for a more pleasant place to work, Portugal has seen a flood of people looking to relocate.

Schemes such as the Portugal Golden Visa have played their part. Although that is being scaled back to focus on other less popular areas of the property market, other programs such as the new digital nomad visa—which is encouraging freelancers to come and live in the country—continue to make it an attractive proposition for affluent, upwardly mobile people.


Contact us today to discuss global investment opportunities.

residential markets