Real Estate Industry Trends 2017: Build an International Property Portfolio

9 Mar 2017
In our interconnected world, trends come and go in the blink of an eye. If you're a sharp business owner, you'll ditch novel tendencies for those with stable growth and incorporate them into your ever-evolving business strategy.

21st-century technology, politics and economics have modified human behaviour on an unprecedented scale and directly affect the core of local and international businesses. Trend-wise; there's a rise in global employment, Millennials are becoming first-time buyers, ‘eco-friendly’ transformed from a buzzword to a sustainable way of life and investors will continue to grow their property portfolios offshore. If you want your real estate business to thrive, you must – to a greater and lesser extent – factor all of this into your business plan. Most importantly, trends indicate if you're seeking longevity, you need to build an international property portfolio for following the reasons:


  • Low Risks


Real estate investors are out to make the maximum amount of money with the lowest possible risk. Because the local property market is volatile, they're reluctant to put all their eggs in one basket. They know there's strength in diversity, so they purchase property abroad to minimise overall risk. For example, if the real estate market in one country doesn't do as well as anticipated, the shortfall is limited to that particular region and won't affect property investments elsewhere.


  • High Returns


In the real estate business, you know investors don't just want safe environments; they expect high returns. The pound's buying power is strong, and they're seeking opportunities with unlimited wealth expansion. This is why buy-to-let properties are high on investment agendas.


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Image Credit: Jessicaautumn


As the rent increases every year, their foreign property will make a monthly profit, which grows exponentially as soon as the full mortgage is paid.  A wisely chosen property automatically appreciates in value, adding to an already sound investment. Countries with regions invested in tourism are extraordinarily appealing to investors because there's a high rental demand.


Furthermore, if you're able to help clients buy prime property with prospects for future capital growth that's below the market price, they're more likely to cover the cost – if not all – of a property's costs with the rental income alone. Expanding your foreign property portfolio is an intelligent way to build your real estate business and offers high returns for you as well. You're able to attract new clients, provide existing ones with better investment opportunities and create an agency with global appeal.


  • Lifestyle Buyers


Investors seek profit but not all want a cold money-making piece of the real estate pie. When you build your real estate business, you need to think about the psychological appeal properties have. Some buyers are looking to purchase real estate for retirement and holiday purposes, and the warm environment they seek that can't be found in their home country. It’s good to know current trends forecast that Europe will become the crown jewel of foreign property investment.


Lifestyle buyers tend to prefer European coastal areas within short distances to airports. Those looking for holiday homes like the idea of hopping on a plane for a quick weekend getaway and usually only consider areas where there's a high demand for short-term rentals. They can then rent out their homes all year round and capitalise on tourism peak season.


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The second type of lifestyle buyers is retirees. They too enjoy being close to home, but this has more to do with family than high rental demand. For them, it's a great comfort knowing that visits to and from children and grandchildren are easy to arrange. They are also most likely to choose areas close to cities, in countries that offer excellent health care. Areas with vibrant expat communities where they can expand their social circles tend to be popular with this older target market.


Developing international property portfolios is a trend adopted by investors and real estate agents set to continue well into 2017 and beyond. Savvy agents who position themselves to better cater for investors will do especially well.


If you want to develop a top-notch real estate business, you will need to learn about other trends like Millennial buyers’ traits and the impact of technology on buyer behaviour. We propose downloading our ebook, Real Estate Industry Trends 2017 to become a foreign property trailblazer. If you want to sell appealing real estate with low risks and high returns, then look at our property in Calpe. It’s a great fit for retirees and holidaymakers alike.


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