ORLANDO, Fla. – Nov. 8, 2016 – Sometimes global shifts can rock the real estate industry worldwide, such as the Brexit vote that caused British investors to pull back due to a falling pound this summer and fall. Other signs are subtler.
As Carla Rayman told attendees at a session analyzing shifts in the global real estate market during the recent 2016 Realtors® Conference & Expo in Orlando, some trends are even quite sweet.
"Look for the macaroons and market to the French," Rayman advised. One of the ways French citizens find to emigrate is by opening shops featuring the delicious pastries their country is famous for creating. "That's one of the franchises they use to move."
Her business partner and co-presenter, Patricia Tan, said that many of the macaroon shops popping up in the United States might be traceable to policies that have moved politically left that are driving up French income taxes. "It doesn't necessarily have to be radical, violent change" that influences immigration and foreign investment, she told attendees. "You need to watch for those little changes."
Rayman and Tan created a list of noteworthy trends in politics, tourism and global economics that could impact local international real estate investments.
9 global real estate trends
- Violence and other security issues in Ukraine, Turkey and the Middle East are causing residents to look outside the region for a new home.
- Softer shifts – mostly due to political changes – are driving real estate investment out of the Philippines, Venezuela, Brazil and Argentina.
- Vancouver expects a 10 percent drop in real estate sales next year due to a new 15 percent sales tax on foreign buyers.
- High unemployment motivated young people in Spain to look abroad, and now the same thing is happening with young Greeks.
- The strength of the dollar means many Canadians might be looking to cash out on their vacation homes in the United States. The idea is that they'll rent for the next few years and come back to buy again when the loonie is more competitive with its southern neighbor.
- One of the best ways to predict which countries will increasingly feed your local market: See where tourists are coming from and take note when airlines add new direct flights from other countries.
- Eco-tourism was a big driver for foreign visitors, but it's waning. Next up might be "marijuana tourism" for U.S. states that have legalized the drug.
- Blackstone Group is selling a big portion of its investments in hotels and getting back into multifamily. You'll see more hotel deals in 2017 – but due to all the building happening now, an oversupply might lead to a cooling in 2018.
- Foreign investment focus may soon shift from New York and Los Angeles to smaller cities and towns that boast attractive events such as large wine, art and film festivals.
Source: Meg White, Realtor® Magazine
© 2016 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.