Global living A city by city guide CBRE Residential 2–3 Global living
Contents
Introduction 4–5 City by city at a glance 6–7 How do residential markets compare? 8–11
Europe Barcelona, Spain 14–15 Berlin, Germany 16–17 Dublin, Ireland 18–19 Edinburgh, United Kingdom 20–21 Frankfurt, Germany 22–23 Lisbon, Portugal 24–25 London, United Kingdom 26–27 Madrid, Spain 28–29 Manchester, United Kingdom 30–31 Milan, Italy 32–33 Moscow, Russia 34–35 Paris, France 36–37 Rome, Italy 38–39
Americas Chicago, United States 42–43 Los Angeles, United States 44–45 Miami, United States 46–47 New York, United States 48–49 Toronto, Canada 50–51 Vancouver, Canada 52–53
Asia Pacific Bangkok, Thailand 56–57 Beijing, China 58–59 Hong Kong, China 60–61 Mumbai, India 62–63 Shanghai, China 64–65 Singapore, Singapore 66–67 Sydney, Australia 68–69 Tokyo, Japan 70–71
Middle East, Africa and Turkey Abu Dhabi, UAE 74–75 Cape Town, South Africa 76–77 Dubai, UAE 78–79 Istanbul, Turkey 80–81 Johannesburg, South Africa 82–83 Venice, Italy CBRE Residential 4–5 Global living
Introduction
Our world is changing faster than ever before. The population is growing by the minute, global travel means nowhere is more than 24 hours away, and the internet means everyone is connected, all of the time. The homes we live in are also changing to reflect this; we’re building taller skyscrapers, redeveloping major industrial sites, and finding clever new ways to integrate technology into our homes.
Globalisation has meant our property markets are more integrated than ever before. Best practice in architecture, design and interiors is being shared around the world, and migration means people are sharing culture and ways of living with new audiences. But our major cities haven’t lost what makes them distinctive and special.
In this report we celebrate the unique characteristics of the world’s major cities, and pull out insightful information. From Shanghai to Paris, New York to Tokyo and London to Madrid, we have criss-crossed the globe to bring you a snapshot of the property markets in 31 global cities, chosen for their world prominence, promise and interest.
Some of our findings may surprise you, but the overall thread running through these pages is one of markets that are intertwined and yet individualistic; symbiotic and yet inter- dependent. The global crisis of 2007/8 affected us all and yet some markets have bounced back even stronger, while others have been less resilient.
Unexpected findings are scattered throughout these pages: Dublin has the highest house price growth at 22%, Singapore has the highest property price by Capital Value at £570,000. However, when viewed on a pound per square foot basis it came fifth (with £519psf). Moscow has the highest proportion of owner occupiers, and Istanbul and South Africa have much cheaper property markets. Next to these, are the more expected findings: London has the highest rents at £2,080 pcm and Hong Kong property has the highest price per square foot.
As the world’s population expands and the overall international economy continues to recover, it will be interesting to see how things pan out, around our ever-changing globe. We hope you find this report enlightening, inspiring and interesting.
Jennet Siebrits Head of Residential Research New York, United States CBRE Residential 6–7 Global living
City by city Manchester Edinburgh London Berlin Istanbul £150,021 £268,318 £525,837 £156,255 £61,935 A quick glance at the main £772pcm £942pcm £2,080pcm £405pcm £387pcm Dublin residential markets £200,000 Dubai £851pcm Madrid Frankfurt Moscow £348,969 £161,533 £230,516 £130,725 £1,485pcm n/a £835pcm £440pcm
New York Beijing £432,243 £235,621 £1,529pcm £498pcm
Shanghai Chicago £232,686 £120,128 £567pcm £1,045pcm
Tokyo Vancouver £264,401 £339,416 £993pcm £1,036pcm
Los Angeles £344,102 £1,616pcm
Miami Hong Kong £182,243 £507,992 £1,163pcm £1,344pcm Toronto £277,123 £966pcm Mumbai Sydney £188,775 £370,359 £959pcm £1,185pcm
Lisbon Abu Dhabi £145,797 £313,878 £453pcm Paris £1,698pcm £366,950 £1,143pcm Asia Pacific Rome Europe £185,425 Bangkok £139,847 Middle East, Africa and Turkey £731pcm £466pcm Americas Barcelona £162,443 n/a Milan £195,282 £651pcm
Singapore £570,000 Average home price Cape Town Johannesburg £1,650pcm £91,296 £67,515 Average monthly rent £530pcm £454pcm CBRE Residential 8–9 Global living
How does global Top ten highest value Top ten lowest value Top ten share of owner occupiers Top ten highest house price growth residential real estate compare? Average property price Average property price Share of owner Average annual (£ psf) (£ psf) occupiers (%) house price growth (%)
So how do the residential 1 Hong Kong 908 1 Istanbul 72 1 Singapore 90.0 1 Dublin 21.6 markets in these cities 2 London 657 2 Johannesburg 78 2 Moscow 85.0 2 Hong Kong 20.0 compare with each 3 New York 540 3 Cape Town 106 3 Beijing 70.7 3 Edinburgh 20.0 other? Which city has the 4 Paris 524 4 Lisbon 124 4 Dublin 70.0 4 Sydney 16.8 most expensive housing? 5 Singapore 519 5 Chicago 150 5 Rome 69.3 5 Berlin 15.6 6 Tokyo 447 6 Madrid 157 6 Sydney 65.2 6 Istanbul 15.0 Which city had the 7 Los Angeles 430 7 Barcelona 159 7 Hong Kong 65.0 7 Shanghai 14.0 strongest growth last year? 8 Milan 349 8 Sydney 165 8 Chicago 64.1 8 Beijing 12.4 Which has the highest 9 Rome 336 9 Bangkok 168 9 Milan 63.4 9 Cape Town 12.1 share of owner occupiers 10 Edinburgh 328 10 Berlin 182 10 Miami 60.7 10 Abu Dhabi 12.0 and who pays the highest rents? Before we provide an Hong Kong is synonymous with high For best value for money, go to the city Reflecting the city’s wealth, Singapore has Dublin had the highest rate of house price property prices and, despite measures to where east meets west: Istanbul, which 90% owner occupiers. Moscow comes in a growth last year at 21.6%. However, over in-depth focus on the cities cool the market, prices increased by 13.5% despite 15% prices rises last year, has the close second. This is less to do with wealth, the last month or so, growth has stabilised. themselves the next few last year. Average prices are now around cheapest house prices in our sample of rather it reflects the fact that the rental sector Edinburgh recorded the second highest £508,000, which at £908psf is the highest cities. South Africa also offers good value is not very well developed. This, coupled house prices growth last year of 20%. pages provides an easy, level across our sample of cities. However, housing, with properties in Johannesburg with the expensive rents, drives people into This partly reflects a market bounce at a glance comparison. prices can go much higher, with prime and Cape Town averaging at £78psf and the owner occupier market. Interestingly, back following the lull in the market in the properties averaging nearer £1.6 million and £106psf respectively. Moscovites unable to afford to live in run up to the Scottish referendum. prices of around £3.4 million more common Moscow city centre, are more likely to buy at the very high end. Prices are underpinned Although Sydney has the fifth highest capital and travel several hours into work rather by a very constrained supply backdrop. Over value, at £367,648, its unit sizes are relatively than rent in the centre. the last decade on average around 110,000 large and so on a per square foot basis it is units have been built, yet population has relatively affordable at £165psf. increased by half a million residents. Both the Spanish cities of Barcelona and Although Singapore has the highest capital Madrid are relatively affordable. This is value at £570,000, its property size is fairly unsurprising; Spain suffered badly during large at 1,100 sq ft, which compares with the global financial crisis, with its housing nearer 800 square foot in Hong Kong market hit hard. In fact, property values London and the US cities. As a result, its remain around 40% lower than they were at average price per square foot is £519, the start of the crisis in 2007. coming in fifth in the most expensive places to buy property.
Singapore CBRE Residential 10–11 Global living
Top ten average rents Top ten average rental growth Top ten average yield
Average monthly rent Average rental growth Average yield (£) (%) (%)
1 London 2,080 1 Edinburgh 19.0 1 Chicago 10.4 2 Abu Dhabi 1,698 2 Abu Dhabi 12.0 2 Johannesburg 9.7 3 Singapore 1,650 3 Istanbul 12.0 3 Cape Town 7.9 4 Los Angeles 1,616 4 Sydney 8.3 4 Miami 7.6 5 New York 1,521 5 Tokyo 7.6 5 Abu Dhabi 7.0 6 Dubai 1,485 6 Dublin 7.5 6 Manchester 6.6 7 Hong Kong 1,344 7 Dubai 7.0 7 Dubai 6.5 8 Sydney 1,258 8 Berlin 5.7 8 Los Angeles 5.6 9 Miami 1,163 9 Los Angeles 5.6 9 New York 5.1 10 Paris 1,143 10 Shanghai 5.1 10 Dublin 5.0
There has been a massive resurgence in Edinburgh experienced the largest increase Chicago with its huge multifamily the rental market in London, with a 75% in rents over the year. The huge student housing sector has the highest yield. increase in the number of renters over the population in Edinburgh underpins the rental The other US cities have a much lower last decade; there were an additional sector and 22% of the population rent. yield of between 5 and 6%. 247,000 households privately renting in the A strong and growing economy and earnings last year alone. This increased demand has 20% above average, is driving a buoyant pushed up rents, which now average £2,080 housing market. Reflecting this strength, per month; the highest across our cities. the first build-to-rent scheme in Scotland is underway. Abu Dhabi has the second highest rents at £1,698. It also had the second strongest growth in rents of 12% last year.
London, United Kingdom CBRE Residential 12–13 Global living
Europe
Edinburgh
Dublin Moscow Manchester Berlin London Frankfurt
Paris Milan
Madrid Barcelona Rome Lisbon
Riomaggiore, Italy CBRE Residential 14–15 Global living
Cosmopolitan, bursting with life and made Prior to the crash in 2008, Barcelona was Barcelona up of splashes of bold, brash modern colour ranked as the fourth most economically and Art Nouveau against Gothic cathedrals, powerful city (by GDP) in the EU, and 35th in Barcelona is home to 1.6 million people and the world with a GDP amounting to £126 From Picasso to urban attracts almost 7.5 million tourists on an billion. However, Spain suffered alongside street art, vibrant markets annual basis. In fact, tourism accounts for the rest of the world during the global 14% of the city’s economy, with people financial crisis, with its housing market being Barcelona Spain to outdoor film screenings, drawn by the nightlife, beaches, sunshine hit hard. In fact, property values remain and cultural spirit. Its maze-like Gothic around 40% lower than they were at the start fine dining to hidden tapas Quarter, with 14th century Santa Maria del of the crisis in 2007. bars and city beaches to the Mar rising up against the sea, the buzzing GDP growth last year 2014 (%) 1.2 1.4 restaurant scene which is anchored by the Expected GDP growth 2015 (%) 3.7 3.3 running of the bulls, central Boqueria market, the Old Town’s Average property price Barcelona Cathedral and Gaudi’s unfinished Barcelona is one of the Unemployment rate (%) 19.6 23.1 world’s leading tourist church of the Sagrada Familia, all contribute to the city’s popularity. Average earnings (£) 17,201 16,098 centres. Added to this, its £162,443 Tourism aside, Barcelona is a leading Inflation rate (%) 0.1 -0.2 property market has been economic, trade fair and cultural centre, That said, things are finally on the up; named as one to watch for with its influence in commerce, education, average prices experienced growth of 0.6% Base interest rate (%) 0.05 0.05 entertainment, media, fashion, science over the last year bringing much needed investors in 2015. and the arts all combining to make it one stability to the Barcelona market and current Average age 42.2 42.4 of the world’s major global cities. values to £162,443. In fact, it is expected that 2015 will be the most significant year of Current population (000s) 1,602 46,771 recovery for the property market in Barcelona Expected GDP growth in 2015 since 2007. This growth mirrors the overall Expected population growth (%) n/a -2.60 economy, having experienced 1.2% GDP % growth over the past year and expecting Number of households (000s) 684 18,253 a further growth of 3.7% in GDP over the FOR 3.7 coming year. Average property price (£) SALE 162,443 98,222 Average property price (£ per sq ft) 159 96 However, despite Barcelona’s tourist draw, For this reason, now is a wonderful it is a reasonably affordable city by Spanish opportunity for investment in Barcelona, House price growth annual (%) 0.6 -0.1 standards, with a cappuccino setting you with two out of five prime market purchases back £1.21, a beer would cost £1.76 in in the city during 2014 bought for Average annual property transactions last decade (000s) 10 343 comparison with Madrid’s £2.15 and with investment use. Comparatively, in 2013, a meal out costing £28.20. the main sales driver was for use as a Property transactions last year (000s) 13 347 primary or secondary residence. Value of housing stock (£bn) 111 1,793
Share of owner occupiers (%) n/a 78
Share of private renters (%) n/a 14.9
Average yield (%) n/a n/a
TO Average rent (£ pcm) LET n/a n/a
Annual growth in rent (%) n/a n/a
Average annual private housebuilding last decade 5,190 56,654
Cappuccino (£) 1.21 1.14
Beer – 0.5 litre (£) 1.76 1.44
Milk – 1 litre (£) 0.61 0.56
Three-course meal for two, mid-range restaurant (£) 28.20 28.71
Monthly public transport pass (£) 37.18 29.42
Petrol – 1 litre (£) 0.94 0.93
1 minute of prepaid mobile tariff (£) 0.08 0.09 CBRE Residential 16–17 Global living
As Germany’s capital city, Berlin is home to Although the for sale housing market is Berlin 3.54 million people. Although the city has not markedly smaller than the rental market, with yet quite overcome all the effects of its only 15% of the population being owner division and the upheavals after German occupiers, it has also been booming. There 25 years after the fall of reunification, it is, in ever more ways, were over 23,900 transactions last year, the Berlin Wall, the city catching up with other major European cities. which is a fairly high proportion given the low Berlin is a national and international centre share of owner occupation. Over the past Berlin Germany is now known for its of politics, culture and academia. And in year prices for apartments have increased by tourism the city ranks third place in Europe, 15.6% in Berlin. The Institut der Deutschen vibrant cultural and behind London and Paris. As a result, this Wirtschaft has reported that new build artistic spirit. Its housing once poor city is attracting more and more apartment prices in Berlin rose by 79% GDP growth last year 2014 (%) 1.6 1.6 people from other regions; its low rents and between 2007 and the start of 2014. Despite Expected GDP growth 2015 (%) 2.6 2.4 market is experiencing edgy nature has attracted artists from across these rises, prices in Berlin remain below the the globe, but now the affluence of the average in Frankfurt. unprecedented growth, Unemployment rate (%) 9.6 4.9 with average values for residents is expanding. It is no wonder, given the current buoyant Average earnings (£) n/a n/a apartment buildings climate, that the Berlin skyline is littered Predicted GDP next year with construction cranes. Enormous capital Inflation rate (%) 0.1 0.1 having increased by 21% projects such as a much-delayed new over the last year alone. airport are in progress, along with a Base interest rate (%) 0.05 0.05 % multitude of more modest commercial and 2.6 residential projects. This city certainly offers Average age 42.3 43.3 an exciting and affordable opportunity The economy, the employment market for savvy investors. Current population (000s) 3,537 82,336 and incomes in Berlin are growing. The unemployment rate in the federal state Expected population growth (%) 1.69 -0.62 is still high (9.6%), but the employment Average price for condo apartments market in Berlin is developing better than Number of households (000s) 1,962 40,143
anywhere else in Germany. FOR Average property price (£) SALE 156,255 117,421 With 81.2% of the population choosing to £156,255 Average property price (£ per sq ft) 182 130 rent privately, it is understandable that low rents have proven a great draw. However, Berlin may not still be dirt cheap, the way it House price growth annual (%) 15.6 n/a as with everything, things change and by was in 2007, but when looked at in direct Berlin standards, rents are now high, comparison with Frankfurt, with rents of £835 Average annual property transactions last decade (000s) n/a n/a having increased by 5.7% last year alone. per month or indeed London with rents of This compares with 3.6% across Germany. £2,080 per month, it becomes clear that Property transactions last year (000s) 23.9 n/a But despite recent growth, rents are still Berlin remains an extremely affordable city affordable at around £405 per month. overall. Added to which, a cappuccino in Value of housing stock (£bn) 307 4,714 Of course, as with all big cities, prices do Berlin will cost you £1.77, a beer will cost you range quite considerably from £338pcm in £2.15, a litre of milk only 49p, a meal out for Share of owner occupiers (%) 15 43.3 parts of Spandau or Marzahn-Hellersdorf two £28.71 and a monthly public transport to £531pcm in the more desirable parts of pass just £57, making Berlin cheaper than Share of private renters (%) 81.2 51.3 Mitte and Friedrichshain-Kreuzberg. many of its European counterparts. Average yield (%) 4.4 n/a
TO Average rent (£ pcm) LET 405 322
Annual growth in rent (%) 5.7 3.6
Average annual private housebuilding last decade 3,505 185,866
Cappuccino (£) 1.77 1.80
Beer – 0.5 litre (£) 2.15 2.15
Milk – 1 litre (£) 0.49 0.52
Three-course meal for two, mid-range restaurant (£) 28.71 28.71
Monthly public transport pass (£) 56.51 46.38
Petrol – 1 litre (£) 1.03 1.03
1 minute of prepaid mobile tariff (£) 0.07 0.07 CBRE Residential 18–19 Global living
The capital of the Republic of Ireland and Ireland is a nation of home owners, with Dublin located on the River Liffey, Dublin boasts 70% owner occupiers and average property a vibrant arts scene awash with buskers, prices of £142,553. In line with an improving theatres, artists and academics. Visually economic backdrop, the housing market Home to Oscar Wilde, mind blowing and home to the medieval has been steadily recovering. Last year, James Joyce, Bono and architecture of St Patrick’s Cathedral and national house prices increased by the 13th century Dublin Castle, it is clear to see fastest rate for seven years, growing by Dublin Ireland Guinness, Dublin is where its literary aristocracy drew their 16.6%. Dublin outperformed, with even inspiration. Indeed, one could not fail to higher growth of 21.6% (the fastest rate of inarguably a city of colour, be inspired by a city like this. The vibrant growth in our sample cities). This took the life and poetry. But more nightlife and cultural quarter of Temple Bar current average property price to £200,000. GDP growth last year 2014 (%) 4.5 4.8 is home to the Irish Film Institute and a However, latest data shows that house Expected GDP growth 2015 (%) 2.9 3.4 than that, it is also regarded wide range of restaurants and bars, while prices have held steady over the last few its strong university contingent promises months in Dublin, particularly in the as the Silicon Valley of Unemployment rate (%) 9.1 10.4 Europe being home to any visitor to this fair city a fascinating most-expensive markets in the city’s south. conversation or two with a stranger This reflects new lending caps brought in Average earnings (£) 29,787 24,823 Google, Facebook, Twitter, over a Guinness. by the Central Bank in February. Inflation rate (%) 1.2 1.1 Amazon, Dropbox, Despite recent rises, prices are still well LinkedIn and Paypal. House price growth below their peak levels of 2007; Dublin Base interest rate (%) 0.05 0.05 residential property is still around 38% lower than at the peak. In addition, the overall level Average age 35.7 35.4 % of activity in the market remains fairly muted 21.6 compared with pre-crash levels with around Current population (000s) 1,269 4,668 10,000 sales last year (which is around 2% of Aside from its rather magical reputation, all stock). This reflects ongoing mortgage Expected population growth (%) 5.34 9.41 Dublin is also a city economically on the up. restrictions, a legacy from the financial crisis. In 2014, it experienced GDP growth of 4.5%. Number of households (000s) 468 1,649
The average annual earnings in Dublin are FOR £29,787 and although its cost of living is Owner occupiers Average property price (£) SALE 200,000 142,550 lower than London, transport and eating out Average property price (£ per sq ft) 244 174 are fairly expensive; a monthly transport pass costs £86 and a meal for two is £43. % 70 House price growth annual (%) 21.6 16.6 There are 1.269 million residents in Dublin, Average annual property transactions last decade (000s) n/a n/a which is over a quarter of the total Irish The rental market too is strong, with 19% of population. And the population is expected the population choosing to rent privately and Property transactions last year (000s) 10 40 to grow by over 5% over the next decade. annual growth in rental values over the last There are nearly 1.7 million households in year of 7.5%. That uplift brings current Value of housing stock (£bn) 94 235 Ireland of which 28%, or just under half a average rents in the city to £851 per month million, are in Dublin. Typically about 10,000 with a 5% average yield. Yields across Share of owner occupiers (%) 70 70 new homes are built each year in Dublin, Ireland as a whole are higher at 7%, with which adds around 2% to stock. However, rents of £567 per month following 2.5% Share of private renters (%) 19 19 over the last few years, this level has not growth last year. been reached with only approximately 3,500 Average yield (%) 5.0 7.0
new houses developed in Dublin last year TO and a similar volume of development Average rent (£ pcm) LET 851 567 anticipated again in 2015. Annual growth in rent (%) 7.5 2.5
Average annual private housebuilding last decade 10,000 60,000
Cappuccino (£) 2.03 1.97
Beer – 0.5 litre (£) 3.59 3.23
Milk – 1 litre (£) 0.75 0.77
Three-course meal for two, mid-range restaurant (£) 43.06 35.88
Monthly public transport pass (£) 86.12 66.02
Petrol – 1 litre (£) 1.03 1.02
1 minute of prepaid mobile tariff (£) 0.20 0.17 CBRE Residential 20–21 Global living
Stepping into Edinburgh is like stepping into With a strong and growing economy and Edinburgh the pages of a history book, from the earnings 20% above average, the wider Medieval old town and the Georgian new housing market is just as buoyant. Activity town, to the hidden city under the Royal Mile. has picked up and last year transactions Edinburgh, the Scottish Every year it comes alive with an array of totalled 11,373, which is 25% higher than the capital and the most world-renowned festivals, and an estimated ten year average. House prices rose by 20% 4.2 million people flocking to the city to last year (compared with 12% across Edinburgh Scotland haunted city in the uk, be entertained. In fact, Edinburgh holds Scotland) and are now at £268,000; 50% the world’s largest arts festival and the above the Scottish average. We expect this is most famous for its longest running film festival. Generating strength to continue given the forecast 8% history: world renowned an estimated £261 million every year, growth in population over the next five years. GDP growth last year 2014 (%) 2.1 3.1 these festivals are an important part of the Expected GDP growth 2015 (%) 2.6 2.5 festivals, museums and Scottish economy. Haymarket, Gorgie, Dalry and Shandon are popular areas for first time buyers, mainly cathedrals. But these days Unemployment rate (%) 4.6 5.5 the most exciting thing comprised of one and two bedroom Rental growth apartments with affordable house prices. Average earnings (£) 42,174 34,999 is the rate of its house New Town, Murrayfield and West End are full of beautiful Georgian terraced houses and Inflation rate (%) 0.2 0.2 price growth! % villas, the majority of these have been 19 subdivided into elegant apartments or Base interest rate (%) 0.5 0.5 offices, some of which have private gardens. In 2004 Edinburgh became the world’s High house prices reflect popularity with Average age 38.5 40.3 first UNESCO City of Literature, and young professionals as well as the location many famous authors including Robert of a few minutes’ walk to the city centre and Current population (000s) 486 5,346 Louis Stevenson and J. K. Rowling have Princes Street. lived there. Expected population growth (%) 10.1 4.1
Edinburgh is well known as a centre of Average house prices Number of households (000s) 231 2,420
education and, founded in 1583, the FOR University of Edinburgh is now one of four Average property price (£) SALE 268,318 179,791 in the city. There is a huge student Average property price (£ per sq ft) 328 220 population of more than 105,000 students, £268,318 which underpins the rental sector. But it’s not House price growth annual (%) 20 12 just students; 22% of the population rent. The luxury new build market in central A huge surge in demand led to a 19% Edinburgh has taken off. Last year there were Average annual property transactions last decade (000s) 9 83.3 increase in rents last year. Partly reflecting 66 house sales of over £1 million, which is this strength, the first build-to-rent scheme almost half of all Scottish properties in this Property transactions last year (000s) 11.4 93.6 in Scotland is underway. price range. Value of housing stock (£bn) 62 435
Share of owner occupiers (%) 60 62
Share of private renters (%) 19 12
Average yield (%) 4.2 4.4
TO Average rent (£ pcm) LET 942 664
Annual growth in rent (%) 19 16
Average annual private housebuilding last decade 1,080 14,648
Cappuccino (£) 2.37 2.41
Beer – 0.5 litre (£) 3.50 3.20
Milk – 1 litre (£) 0.89 0.90
Three-course meal for two, mid-range restaurant (£) 40.00 45.00
Monthly public transport pass (£) 51.00 55.00
Petrol – 1 litre (£) 1.17 1.17
1 minute of prepaid mobile tariff (£) 0.07 0.11 CBRE Residential 22–23 Global living
As Germany’s financial hub and indeed the Around 77% of the population are private Frankfurt largest financial centre in continental Europe, renters. Rental growth was fairly subdued at Frankfurt is home to the European Central 2.3% last year in Frankfurt, when compared Bank, Deutsche Bundesbank and several with 3.6% across Germany and 5.7% in On the surface, Frankfurt large commercial banks. It also houses the Berlin. However, average rents in the city are can seem a bit cold and Frankfurt Stock Exchange, which is one of significantly higher than the rest of Germany; the world’s largest stock exchanges by at £835 per month they are 159% higher than Frankfurt Germany strait-laced, but it would be market capitalization and accounts for as the national average of £322 per month and much as 90% of the turnover in the German double Berlin’s £405pcm. a mistake to let appearances market. The economy overall is strong, with fool you. This mecca of the city expecting to experience 2.5% GDP Despite the differing level of rents, yields GDP growth last year 2014 (%) 1.1 1.6 growth over the coming year, broadly in line in Frankfurt are similar at 4.1%, which Expected GDP growth 2015 (%) 2.5 2.4 business with its big city with the nation’s expected 2.4% and Berlin’s compares with 4.4% in Berlin. expected 2.6%. Unemployment in Frankfurt skyline of skyscrapers and Unemployment rate (%) 5.2 4.9 high rises, is also home to is, at 5.2%, much lower than in Berlin. Expected population growth Average earnings (£) n/a n/a the magical charm of an With its world city status and centrality within over next decade both Europe and Germany, Frankfurt Inflation rate (%) 0.1 0.1 old world Christmas is a major transport hub. In fact, Frankfurt % market, hidden cider Airport is one of the busiest international Base interest rate (%) 0.05 0.05 airports by passenger traffic and home to 4.7 taverns and a property Lufthansa, Germany’s flag carrier and the Average age 40.8 43.3 market that is going from largest airline in Europe. In addition, the The sales market accounts for a significantly Dom-Römer Project continues to revitalise slimmer share of the market (20%), but is Current population (000s) 707 82,336 strength to strength. the old town, after much of it was destroyed also robust, with around 4,400 sales last during the last world war. year. Average apartment prices are currently Expected population growth (%) 4.7 -0.62 £230,516. This is 47% higher than Berlin’s average of £156,255 and double than the Number of households (000s) 380 40,143
Number of households German average of £117,421. FOR Average property price (£) SALE 230,516 117,421 In terms of cost of living, Frankfurt edges above Berlin, as a cappuccino will cost you Average property price (£ per sq ft) 241 130 380,200 £2.06, compared with £1.77 in Berlin. House price growth annual (%) n/a n/a Similarly a meal for two will cost you £36, Frankfurt is currently home to 707,000 over £6 more expensive than in Berlin. Average annual property transactions last decade (000s) n/a n/a people, around 20% the size of Berlin, but it However, petrol is cheaper at 99p a litre. has a younger population than Germany as a Overall, Frankfurt has long been seen as a Property transactions last year (000s) 4.4 n/a whole with an average age of 40.8. While the place of business, not pleasure. But that may population of Germany is expected to remain all be changing. Value of housing stock (£bn) 88 4,714 broadly constant over the next decade, Frankfurt is expected to grow by 4.7% or an Share of owner occupiers (%) 20.1 43.3 additional 33,000 residents. Share of private renters (%) 77.1 51.3
Average yield (%) 4.1 n/a
TO Average rent (£ pcm) LET 835 322
Annual growth in rent (%) 2.3 3.6
Average annual private housebuilding last decade 2,321 185,866
Cappuccino (£) 2.06 1.80
Beer – 0.5 litre (£) 2.51 2.15
Milk – 1 litre (£) 0.57 0.52
Three-course meal for two, mid-range restaurant (£) 35.88 28.71
Monthly public transport pass (£) 59.56 46.38
Petrol – 1 litre (£) 0.99 1.03
1 minute of prepaid mobile tariff (£) 0.07 0.07 CBRE Residential 24–25 Global living
While Greater Lisbon has a population Transaction levels remain low, however, Lisbon of 2.77 million, the capital city itself has with around 7,000 sales last year, compared 509,312 residents. Lisbon is a popular tourist with the ten year average of 11,000. This destination with a long history dating back mirrors the picture at the national level, Although Portugal is 300,000 years. In fact, it is one of the oldest where sales remain 45% below average. best known for the cities in the world, predating other European House building is much lower in Lisbon than capitals such as London, Paris and Rome across the nation; last year there were Lisbon Portugal Algarve, Lisbon is a hidden by centuries. around 835 new properties built each year adding just 0.26% to stock. In contrast gem with its beguiling Recognised as a global city because of its around 42,300 new units are built each year charm, gentle pace, mix importance in finance, commerce, media, across Portugal adding 0.71% stock. GDP growth last year 2014 (%) 0.9 0.9 entertainment, arts, education, tourism and Expected GDP growth 2015 (%) 1.8 1.7 of traditional and international trade, it has a growing financial sector and one of the largest container Owner occupiers contemporary architecture Unemployment rate (%) 13.2 13.1 and warm, sunny climate. ports on Europe’s Atlantic coast. It is blessed with a host of attractions from the old quarter Average earnings (£) 11,853 9,324 to the riverbank promenade, the Lisbon % Cathedral to the Monument to the 73 Inflation rate (%) -0.4 -0.4 Discoveries. Portugal as a whole welcomes well over 8 million visitors every year. In recent years several changes and Base interest rate (%) 0.05 0.05 incentives have been introduced, both Overall, the cost of living in the city is low legal and fiscal, which have had a positive Average age 62.0 37.9 by European standards with a cappuccino impact on the Portuguese residential market. costing under a pound, a beer costing These include the Special Regime for Current population (000s) 509 10,388 £1.08 and a meal for two costing £21.53. Non-Habitual Residents in 2009; the Reform of the Urban Lease Law, (2006 and Expected population growth (%) -1.86 -2.88 2012); the creation of a Residence Permit Average house price for Investment Activity (‘Golden Visa’); Number of households (000s) 324 5,925
and a new Urban Renovation Regime FOR (both in 2012). Average property price (£) SALE 145,797 89,287
£145,797 The current activity in the residential market Average property price (£ per sq ft) 124 76 is highly driven by the demand from foreign House price growth annual (%) n/a 2.2 Following three years of recession, the investors, which make up 22% of all sales, austerity-battered economy of Portugal finally this reflects the tax incentives and the Average annual property transactions last decade (000s) 11 154 started to pick up in 2014 with GDP growth of Golden Visa program. The largest group 0.9% and predicted growth of 1.8% in 2015. of overseas buyers are from the UK (23%), Property transactions last year (000s) 7 84 Unemployment too has dropped by 2% China (18%) and France (16%). over the past 12 months and now stands Value of housing stock (£bn) 47.2 529.0 at 13.2% having reached a peak of 17.7% 27% of the Lisbon population live in private in early 2013. rental properties. Current rents in Lisbon Share of owner occupiers (%) 73.0 74.5 are £453 per month, which compares In line with this general trend, the property with the Portuguese average of £278 per Share of private renters (%) 27.0 25.5 market is starting to show signs of recovery month. This means that the Lisbon rental too with average house prices now at premium is exactly the same as the price Average yield (%) n/a n/a
£145,797. This follows house prices growth premium at 63%. TO of around 2.2%, the first rises in Portugal Average rent (£ pcm) LET 453 278 in five years. Property prices in Lisbon are 63% higher than across Portugal as a Annual growth in rent (%) n/a n/a whole, with national prices of £89,287. Average annual private housebuilding last decade 852 42,294
Cappuccino (£) 0.94 0.79
Beer – 0.5 litre (£) 1.08 1.08
Milk – 1 litre (£) 0.44 0.44
Three-course meal for two, mid-range restaurant (£) 21.53 21.53
Monthly public transport pass (£) 25.84 25.58
Petrol – 1 litre (£) 1.06 1.05
1 minute of prepaid mobile tariff (£) 0.10 0.11 CBRE Residential 26–27 Global living
London has a history dating back over 2,000 Following the financial crisis, the central London years, originally established in AD 40 by the London property market rebounded quickly, Romans. Over its time it has experienced with residential prices increasing by 86% plague, devastating fire, civil war, aerial since the trough in 2009. In contrast, the Samuel Johnson once said, bombardment, and terrorist attacks. But post-recession market lethargy was more “when a man is tired of despite this, London has grown to become protracted across London as a whole, with one of the most significant financial and lower growth of 63% over the same period. London United Kingdom London, he is tired of life”, cultural capitals of the world. However, this divergence in price growth has narrowed, with a pick-up in the Outer London and with all the history and It is now a vibrant, cosmopolitan city. With market. As a result, overall prices in London culture London has to offer, 8.7 million residents, 37% of whom were increased by 14.8% in 2014. The rate of GDP growth last year 2014 (%) 3.5 2.6 born overseas, London has a diverse range growth has subsequently slowed, with the Expected GDP growth 2015 (%) 4.0 2.8 he was right. With its of peoples and cultures; more than 300 latest data showing a rise of 9.1% over the languages are spoken here. It is home to year; prices now stand at £525,837. numerous art galleries, Unemployment rate (%) 6.0 5.3 museums, Big Ben, 15% of the nation’s population, yet is made However, this masks a wide variation in up of just 1.2% of the land mass and, is a prices, with properties in central London Average earnings (£) 48,908 37,028 Portobello Market, pubs relatively youthful city; the average age in costing over double at around £1.2 million. London is 33 compared with 39 nationally. Inflation rate (%) 0.2 0.2 dating back to the 1600s, The population is also relatively wealthy with Buoyed by the favourable economic Buckingham Palace and wages 32% higher than the national average. backdrop, continued low interest rates and Base interest rate (%) 0.5 0.5 government initiatives such as help-to-buy, the Thames, it’s not there was a resurgence in domestic demand Average age 33 39 surprising London had Average earnings last year. As a result, activity was particularly strong last year with 127,000 transactions, Current population (000s) 8,706 65,170 house price growth of which compares with a ten year average 14.8% last year. £48,908 of 118,000. Expected population growth (%) 13.7 6.2 The new build market has been particularly Number of households (000s) 3,266 26,442
London is well known as a leading financial strong, with off-plan sales at a historic high. FOR centre, but it also has strengths in the arts, This renewed confidence is reflected in the Average property price (£) SALE 525,837 195,166 commerce, education, entertainment, development market; last year there were Average property price (£ per sq ft) 657 239 fashion, healthcare, media, professional 14,555 residential units completed in services, research and development, and London, this is the highest level since the House price growth annual (%) 9.1 4.6 tourism. London’s 43 universities form the financial crisis. largest concentration of higher education Average annual property transactions last decade (000s) 118 1,269 institutes in Europe. All of this contributes to making London the lively and multi-cultural Price growth Property transactions last year (000s) 127 1,226 city that it is and ensures it continues to attract workers from the country and world Value of housing stock (£bn) 1,717 5,161 over; London’s population increased by % around a million over the last decade and 9.1 Share of owner occupiers (%) 50 65.2 has a similar increase forecast going forward; all of whom need somewhere to live. The size of the private rental sector has Share of private renters (%) 30 18 increased markedly over the past few years, The London economy has recovered with 247,000 new rental households last year Average yield (%) 4.7 5.6
strongly post-recession, with above trend alone. There are now around 1 million TO GDP growth of 3.5% last year. We expect privately rented households across London, Average rent (£ pcm) LET 2,080 1,340 growth of around 4% next year. which accounts for 30% of the city’s total homes. Rents increased by 4.9% last year Annual growth in rent (%) 4.9 4.7 and now average £2,080 pcm for a two bedroom flat. Average annual private housebuilding last decade 19,973 176,000
Cappuccino (£) 2.55 2.41
Beer – 0.5 litre (£) 4.00 3.20
Milk – 1 litre (£) 0.89 0.90
Three-course meal for two, mid-range restaurant (£) 50.00 45.00
Monthly public transport pass (£) 130.00 55.00
Petrol – 1 litre (£) 1.18 1.17
1 minute of prepaid mobile tariff (£) 0.12 0.11 CBRE Residential 28–29 Global living
Situated on the Manzanares River and in the Earnings are 16% higher than the national Madrid centre of the country, the capital of Spain is average at £18,600 per annum. Overall, it an unexpectedly green city. In fact its largest seems that after the difficulty of the past few park, Casa de Campo, spans 1,700 hectares years the pendulum is finally set to swing A city of elegant boulevards and is five times the size of New York’s back in Madrid’s favour. and rich repositories of Central Park. In addition, it boasts a lively nightlife and dining experience. Between the While the Spanish market remains muted Madrid Spain European art, Madrid is a tapas restaurants of Cava Baja, the warm following the crash of 2008, average property dipping chocolate and churros of many a prices are finally rising for the first time since metropolis of sophistication charming café, the vintage bars of Malasaña then; prices in Madrid increased by 0.7% last and beauty. But beyond this and the all night parties of Triball, it really year. Activity in Madrid has also picked up, GDP growth last year 2014 (%) 1.0 1.4 does offer something for everyone. with 29,904 transactions last year, 28% up on Expected GDP growth 2015 (%) 3.8 3.3 initial veneer of refinement the ten year average. lies a vibrant culture of Unemployment rate (%) 17.8 23.1 street art and gritty taverns Average age Average residential property prices in Madrid are currently around £162,000, which is 60% Average earnings (£) 18,592 16,098 that have survived for higher than the Spanish average of £98,500. Inflation rate (%) 0.1 -0.2 generations and a 41.1 In Madrid, both national and international residential market that companies are interested in investing and Base interest rate (%) 0.05 0.05 Gran Via (The Great Way) is an ornate and developing exclusive residential housing. finally looks set to thrive. upscale shopping street located in central The areas of Salamanca, Retiro and Average age 41.1 42.4 Madrid, widely known as the Spanish Chamberi are the preferred districts for this, Broadway. It leads from Calle de Alcalá to owing to their location and service level. Current population (000s) 3,165 46,771 Plaza de España and is home to an array of There are a few iconic mixed-use projects shops, bars and many theatres, which have in the historic city centre, which will Expected population growth (%) -0.43 -2.60 been replacing the cinema offer of the street. transform the area. It also houses the impressive Telefónica Number of households (000s) 1,321 18,253
building, with its blue lit clock that defines the FOR Madrid skyline from dusk ‘til dawn. Other Rate of owner occupation in Spain Average property price (£) SALE 161,533 98,222 landmarks in the city include the Prado Average property price (£ per sq ft) 157 96 Museum, the Retiro park and the baroque Royal Palace. % 78 House price growth annual (%) 0.7 -0.1 The province of Madrid has 6.454 million Average annual property transactions last decade (000s) 23 343 residents, which accounts for 14% of Spain’s Suburban residential development has population. In Madrid City itself, there are also re-activated, although for the moment Property transactions last year (000s) 30 347 3.2 million residents. This translates through this is limited to above average and high to 1.32 million households; 78% of which are income areas, concentrated in the north Value of housing stock (£bn) 213 1,793 owner occupied. and north-west of the city of Madrid. Share of owner occupiers (%) n/a 78 In the aftermath of the financial crunch, We expect over the course of the next Madrid suffered a continuous economic few years, as the economic backdrop Share of private renters (%) n/a 14.9 downturn just like Spain as a whole, and improves and wider recovery fully embeds unemployment reached 20% at the worst that residential activity will resume in the rest Average yield (%) n/a n/a
moment of the crisis in 2013. However, of the province too. As a result we think TO Madrid’s economy is finally recovering from Madrid is again an exciting investment Average rent (£ pcm) LET n/a n/a the post financial crisis downturn, with an opportunity, with significant room for growth. expected 3.8% increase in GDP over the Annual growth in rent (%) n/a n/a coming year. This is higher than the national projection of 3.3%. Average annual private housebuilding last decade 10,374 56,654
Cappuccino (£) 1.25 1.14
Beer – 0.5 litre (£) 2.15 1.44
Milk – 1 litre (£) 0.61 0.56
Three-course meal for two, mid-range restaurant (£) 28.71 28.71
Monthly public transport pass (£) 39.18 29.42
Petrol – 1 litre (£) 0.93 0.93
1 minute of prepaid mobile tariff (£) 0.09 0.09 CBRE Residential 30–31 Global living
Manchester is nothing, if not cool. It saw a This rental market is boosted by the very Manchester massive revival in the 1990s as the birthplace high share of young people in the city, with of Brit Pop being home to bands such as 34% of the population aged between 20 Oasis and The Stone Roses. And with and 34. As a result there is a huge focus on Undeniably cool, Manchester United in their corner it is easy build-to-rent schemes with large scale Manchester is also a to see why it has always been dubbed the developers investing in schemes such as ‘Northern Capital’. Economically it is the Angel Gardens, St John’s Gardens and Manchester United Kingdom European business fastest growing British economy outside of Kampus at Aytoun Street. This is reflected London, with a GDP of £28 billion which is in the fact that – following a dearth of capital often thought expected to grow by an above average 3.2% development – the planning pipeline is finally of as England’s second this year. It is also home to 2,000 foreign thickening up, with 53 residential schemes GDP growth last year 2014 (%) 4.5 2.6 enterprises. Manchester has four universities, being granted planning permission in the Expected GDP growth 2015 (%) 3.2 2.8 city. It is a vibrant with the second highest number of students last two years. in the UK, many of whom choose to remain multicultural city Unemployment rate (%) 10 5.3 where students and in Manchester as graduates. Share of private renters Average earnings (£) 30,198 37,028 professionals of all Manchester’s history and heritage make it an undeniably fascinating city. Its cosmopolitan Inflation rate (%) 0.2 0.2 backgrounds quickly drive of diverse dining, craft beers, vintage % feel right at home. shopping and dancing provide for a modern 28 Base interest rate (%) 0.5 0.5 hedonism, which is easily identified as one of Manchester’s most cherished characteristics. Manchester has a small share of owner Average age 33.2 39 Added to that, it has a low cost of living and occupiers, which while usual for a city centre a good quality of life, with a house on a is especially low at 39%. Although broadly Current population (000s) 514,513 65,170 single salary within the reach of many in line with the regional average, average residents – an unattainable aspiration in house prices in Manchester increased last Expected population growth (%) 6.0 6.2 other big cities. year by 3% and are now at £150,021, 42% lower than the national average. As local Number of households (000s) 205 26,442
salaries are £30,198, which is not that far FOR Expected GDP growth over ten years below the national average of £36,825, Average property price (£) SALE 150,021 195,166 first time buyers may find Manchester a reasonably easy place to take their first Average property price (£ per sq ft) 214 239 % steps onto the property ladder. 31 House price growth annual (%) 3.0 4.6 Although activity has picked up following Average annual property transactions last decade (000s) 8 1,269 Manchester has a large rental sector with the pre-financial crisis downturn it remains 28% of households privately renting, which muted. Last year there were 7,000 Property transactions last year (000s) 7 1,226 compares with the national average of 18%. transactions, 11% lower than the long Reflecting the attractiveness of the city, rents term average. Value of housing stock (£bn) 31 5,161 are higher than average at £772pcm. This follows 3% growth last year and provides a Share of owner occupiers (%) 39 65.2 resulting yield of 6.6%. Share of private renters (%) 28 18
Average yield (%) 6.6 5.6
TO Average rent (£ pcm) LET 772 1,340
Annual growth in rent (%) 3.0 4.7
Average annual private housebuilding last decade 3,628 176,000
Cappuccino (£) 2.75 2.41
Beer – 0.5 litre (£) 3.75 3.20
Milk – 1 litre (£) 0.90 0.90
Three-course meal for two, mid-range restaurant (£) 45.00 45.00
Monthly public transport pass (£) 100 55.00
Petrol – 1 litre (£) 1.17 1.17
1 minute of prepaid mobile tariff (£) 0.11 0.11 CBRE Residential 32–33 Global living
Widely known for fashion and coffee, Milan Current average property prices in Milan are Milan is also one of the world’s major financial £195,282, 52% higher than Italy’s average of and business centres, and the economic £128,340 and 5% higher than Rome’s heart of Italy; its influence in fashion, £185,425. These averages follow an Home to Valentino, commerce, business, banking, design, overarching drop in values over the past Gucci, Versace, Armani, trade and industry have made it one of the year: 1.0% in Milan, 1.4% in Rome and 4.4% world’s premier cities. In addition, it is home in Italy overall. It is expected that prices will Milan Italy Dolce & Gabbana, Prada to the Italian Stock Exchange, Borsa Italiana, continue to fall in a limited way throughout and in 2014 the wider Milan province had 2015. However, a timid recovery with some and Quadrilatero della a GDP of £109 billion, generating 9.9% of price growth is expected in 2016. Moda, one of the leading the national GDP. GDP growth last year 2014 (%) 0.2 -0.4 This coincides with a slight increase in Expected GDP growth 2015 (%) 1.0 0.5 shopping districts in the transaction levels (albeit transactions Share of owner occupiers remain around 20% of their long term world, Milan is one of the Unemployment rate (%) 8.0 12.7 world’s most prominent average), with UK and US investors seeing an ideal opportunity to acquire a second Average earnings (£) n/a n/a fashion capitals. % home; challenging market conditions 63 and currency shifts making it far more Inflation rate (%) -0.4 -0.4 possible than before. As with the rest of Italy, Milan’s economy Base interest rate (%) 0.05 0.05 has been struggling to shake off the Eurozone recession and debt crisis. Number of households Average age 44.1 43.9 However, it is showing minor signs of recovery, with positive economic growth last Current population (000s) 1,337 60,142 year of 0.2%. This is expected to increase by a further 1% over the coming year. 730,530 Expected population growth (%) 2.54 0.87 In addition, the city has a relatively low unemployment rate of 8%, which compares Similarly, the rental market in Milan saw a Number of households (000s) 731 25,792
with 12.7% for both Rome and Italy overall. 1% fall in average rents over the past year, FOR which is similar to the rental fall in Rome, Average property price (£) SALE 195,282 128,340 Milan city has a population of 1.3 million but smaller than nationally. This brings Average property price (£ per sq ft) 349 150 (although more than double this at 3.2 million average rental values in Milan to £651 per in the wider metropolitan area) and this is month, 12% higher than the national average House price growth annual (%) -1.0 -4.4 predicted to increase by a further 2.5% over of £583 and 12% lower than those in Rome. the coming decade. Comparatively, Italy has Because of the higher capital values, rental Average annual property transactions last decade (000s) 20 654 expected population growth of 0.9% over the yields are lower in Milan at 4%, compared coming decade. In terms of cost of living, with just under 5% in Rome and almost Property transactions last year (000s) 16 421 Milan is quite expensive by Italian standards, 5.5% in Italy overall. with a beer costing around £3.60, compared Value of housing stock (£bn) 143 3,310 with £2.87 nationally. A meal for two will cost you £43 which is 20% higher than the Italian Share of owner occupiers (%) 63.4 71.9 average of £36. Share of private renters (%) n/a n/a
Average yield (%) 4.0 5.5
TO Average rent (£ pcm) LET 651 583
Annual growth in rent (%) -1.0 -2.3
Average annual private housebuilding last decade n/a n/a
Cappuccino (£) 1.01 0.95
Beer – 0.5 litre (£) 3.59 2.87
Milk – 1 litre (£) 0.95 0.88
Three-course meal for two, mid-range restaurant (£) 43.06 35.88
Monthly public transport pass (£) 25.12 25.12
Petrol – 1 litre (£) 1.13 1.15
1 minute of prepaid mobile tariff (£) 0.09 0.12 CBRE Residential 34–35 Global living
With its thriving night life, fashionable Despite this general stagnation of the overall Moscow restaurants, unique architecture and a wide economy, the property market is remarkably array of museums, theatres and exhibitions, stable with average capital values of Moscow is Russia’s cosmopolitan capital £130,725 following growth of 8.5% last year. Moscow Kremlin, and home to 12.1 million people. Situated Transactions too are robust, with 162,000 Red Square, St Basil’s on the Moskva River, it is an historic and transactions recorded over the last year in decidedly green city made up of 40% comparison with the decade’s average of Moscow Russia Cathedral with its greenery. A major political, economic, 115,000. This stability extends to the rental cultural, and scientific centre, it is recognised market which is on a general upward trend, colourful onion-shaped as a pre-eminent world city and until 2009 albeit a gentle one, with 3.5% growth over domes and Lenin’s it had more billionaires than New York. the last year bringing average rents to £440 GDP growth last year 2014 (%) 0.1 0.6 per month and average yields to 4%. Mausoleum can all be Expected GDP growth 2015 (%) -2.8 -2.8 Unemployment rate One of the most active parts of the property found in Moscow, Russia’s Unemployment rate (%) 1.9 5.4 symbolic heart. market in recent times has been construction, with Russia building 912,000 Average earnings (£) 7,920 3,960 % apartments in 2013, more than at any other 1.9 time since 1989. As might be expected, Inflation rate (%) 16.3 16.0 growing supply and a slowing economy have With one of the largest municipal economies resulted in Moscow’s resale apartment prices Base interest rate (%) 11.5 11.5 in Europe, it accounts for around one fifth of falling by 2.1% during the year to Q1 2014 Russian GDP. It is the undisputed financial (an 8% fall when adjusted for inflation). Average age 28 48 centre of Russia and is home to the country’s Prices of ‘used’ Moscow housing fell more largest banks and companies. Primary than all other Russian cities in 2013. Current population (000s) 12,124 146,270 industries in the city include the chemical, metallurgy, food, textile, furniture, energy Expected population growth (%) 2.9 0 production, software development and Owner occupiers machinery industries. Number of households (000s) 4,400 55,000
FOR Russia as a whole is one of the world’s % Average property price (£) SALE 130,725 32,536 largest oil producers; oil and gas accounting 85 Average property price (£ per sq ft) 225 56 for 70% of its export incomes. As a result it has suffered terribly from the recent fall in oil In terms of cost of living, Moscow is not House price growth annual (%) 8.5 5.5 prices, which at the start of this year fell to that expensive with a cappuccino only below $50 a barrel; a six-year low. As a costing you £1.99, a beer setting you back Average annual property transactions last decade (000s) 115,000 3,945,000 result, the value of the Rouble almost halved, only £1.19 (in comparison with the Russian despite a dramatic hike in interest rates to average of 86p and London’s £4.00), Property transactions last year (000s) 162,000 4,487,000 16.3%. Russia loses about $2bn in revenues a litre of petrol being 45p and a litre of for every dollar fall in the oil price, and the milk costing you only 71p. Value of housing stock (£bn) 575 1,789 economy has slowed markedly, with a fall in GDP of 2.8% expected in 2015. Share of owner occupiers (%) 85.0 95.0
Share of private renters (%) 15.0 5.0
Average yield (%) 4.0 5.0
TO Average rent (£ pcm) LET 440 121
Annual growth in rent (%) 3.5 0.0
Average annual private housebuilding last decade 57,407 1,153,703
Cappuccino (£) 1.99 1.57
Beer – 0.5 litre (£) 1.19 0.86
Milk – 1 litre (£) 0.71 0.60
Three-course meal for two, mid-range restaurant (£) 28.92 22.99
Monthly public transport pass (£) 22.63 17.46
Petrol – 1 litre (£) 0.45 0.42
1 minute of prepaid mobile tariff (£) 0.02 0.02 CBRE Residential 36–37 Global living
There are few places in the world that evoke The Paris property market is dominated by Paris the same romance as the city of lights. renters with only 33% of residents being With its cobbled streets, gold statues and owner occupiers. Average rents are around beautiful architecture, it is punctured only £1,140 per month, having dipped by 0.8% Charming cafés, shopping by the Seine; yes, Paris is as special as a over the year. Yields are low at 2.5%, at Les Galleries Lafayette, city can get. And it is precisely this magic furthermore proposed rental caps came into that has always allowed it to demand play as of August 1st and could affect 1 in 5 Paris France le Louvre, the Eiffel tower, such high property prices. rental properties. This will impact rental returns on some investment properties. coffee out of bowls, wine at Paris forms the economic epicentre of lunch time, taxi drivers that France and while the Paris-Ile-de-France GDP growth last year 2014 (%) 0.7 0.4 Region’s 11.9 million people (2.3 million in Number of residents Expected GDP growth 2015 (%) 1.4 1.2 know more about Paris) only make up around 19% of the national population, it is responsible for 30% philosophy and art history million Unemployment rate (%) 8.5 10.2 than you do, and a property of its wealth; it is the country’s banking and financial centre and is home to at least 2.3 Average earnings (£) n/a 24,460 market that is attracting 29 companies in the Fortune Global 500. Tourism is another key aspect of the city, Although the wider housing market has been Inflation rate (%) 0.3 0.3 more international interest with attractions like the Louvre welcoming subdued compared with long term trends, than it has in 15 years: 9 million visitors each year, the Eiffel tower sales have picked up, increasing by 12% Base interest rate (%) 0.05 0.05 welcoming 7 million and the city as a whole with around 28,600 sales in the second hand that’s Paris. attracts 32 million tourists. market last year. This partly reflects the Average age n/a 40.9 all-time low level of interest rates. However, In terms of cost of living, Paris is up there there has also been a surge in overseas Current population (000s) 2,293 66,403 with New York and London as one of the investors and Paris is now attracting more most expensive cities to live in. For example, overseas buyers than it has in the last 15 Expected population growth (%) 2.5 4.0 a cappuccino costs £2.50 and a beer £4.31. years (at around 20% of all prime buyers). A meal out is £36, and a public transport Number of households (000s) 1,043 27,348
pass will set you back £50 per month. Despite the pick-up in sales, prices fell FOR slightly last year (by 2.8%). However, prices Average property price (£) SALE 366,950 105,100 remain high at £367,000, which translates to Average property price (£ per sq ft) 524 150 Average capital value £525 psf, which is not far below London prices. Prices in Paris are over three times House price growth annual (%) -2.8 -2.2 the national average, which is £105,000. Average annual property transactions last decade (000s) 32 714 £366,950 The level of housebuilding in the city is very low at around 3,000 units per year. Overall Property transactions last year (000s) 29 691 Along with much of Europe, the French this means just 0.3% is added each year to economy suffered in the post-financial the housing stock. This compares with 1.6% Value of housing stock (£bn) 383 2,874 crisis period. However, it has been steadily nationally. It is this lack of supply which led to recovering, and the economy is expected such high property prices and will keep Share of owner occupiers (%) 33 57 to grow by 1.2% this year. Paris is expected attracting investors. to outperform with forecast GDP growth of Share of private renters (%) n/a n/a 1.4% for 2015. Average yield (%) 3.0 3.8
TO Average rent (£ pcm) LET 1,143 567
Annual growth in rent (%) -1 -1.5
Average annual private housebuilding last decade 3,043 418,000
Cappuccino (£) 2.50 1.82
Beer – 0.5 litre (£) 4.31 3.59
Milk – 1 litre (£) 0.67 0.68
Three-course meal for two, mid-range restaurant (£) 35.88 35.88
Monthly public transport pass (£) 50.23 34.02
Petrol – 1 litre (£) 1.06 0.99
1 minute of prepaid mobile tariff (£) 0.11 0.15 CBRE Residential 38–39 Global living
A sprawling, cosmopolitan city with nearly The unfavourable economic backdrop Rome 3,000 years of globally influential art, has fed through to the housing market architecture and culture on display, Rome which has been underperforming since is home to 2.7 million people (with 4.2 million the financial crisis. Roman ruins, architecture, people in the wider metropolitan area) with ‘la dolce vita’ and the that number expected to grow a further 4.5% Current average property prices in Rome over the next decade. It is Italy’s capital city are 44% higher than the Italian average Rome Italy Vatican: Rome is certainly and contains the ancient ruins of the Roman at £185,425, but this follows a 1.4% fall Empire such as the Colosseum. It is also over the past year. It is expected that not lacking in style or home to the Vatican City, headquarters of the prices will continue to fall in a limited way history. And with the Euro Roman Catholic Church, and masterpieces throughout 2015. However, a timid recovery GDP growth last year 2014 (%) -0.1 -0.4 such as Michelangelo’s Sistine Chapel with some price growth is expected in 2016. Expected GDP growth 2015 (%) 0.5 0.5 still weaker than other frescoes in the Vatican Museums. This coincides with a slight increase in transaction levels, with UK and US investors currencies, now is the time Unemployment rate (%) 12.7 12.7 to snap up a property in the Rome is home to Italy’s Public Administration seeing an ideal opportunity to acquire a and hosts a number of major international second home; challenging market conditions Average earnings (£) n/a n/a Italian capital. and worldwide political and cultural and currency shifts making it far more organisations such as the International possible than before. Inflation rate (%) -0.4 -0.4 Fund for Agricultural Development (IFAD), World Food Programme (WFT), and the Base interest rate (%) 0.05 0.05 NATO Defence College. It is of course Owner occupiers a massive tourist destination, attracting Average age 43.4 43.9 around 30 million tourists each year. % Current population (000s) 2,872 60,142 Italy is not cheap for all these tourists 69.3 though; a beer is pricey at £3.41, a meal Expected population growth (%) 4.50 0.87 for two will set you back £36, a litre of petrol The prime residential market has will cost you £1.18 and a litre of milk will outperformed in Rome and has rebounded Number of households (000s) 1,369 25,792
cost you £1.01. In contrast a cappuccino, quicker than the wider market. This is FOR the Italian staple, is remarkably affordable reflective of a number of things, but Average property price (£) SALE 185,425 128,340 in Rome at only 82p. particularly that the financial and mortgage restrictions are felt more sharply at the Average property price (£ per sq ft) 336 150 lower end of the market. In contrast, House price growth annual (%) -1.4 -4.4 Number of households more wealthy buyers are able to access the market more readily, allowing this Average annual property transactions last decade (000s) 32 654 million cohort to carry on less affected. Property transactions last year (000s) 27 421 1.37 Although property prices in Rome are lower than Milan, it has higher rents of £731 Value of housing stock (£bn) 254 3,310 Italy has been struggling to shake off per month (12% higher than Milan’s the Eurozone recession and debt crisis. £651 per month). Both markets experienced Share of owner occupiers (%) 69.3 71.9 However, the economy is showing minor a marginal 1% fall last year. As a result, signs of recovery, with positive GDP the rental yield is higher in Rome at just Share of private renters (%) n/a n/a growth expected next year of 0.5%. under 5%, compared with 4% in Milan. Average yield (%) n/a 5.5
TO Average rent (£ pcm) LET 731 583
Annual growth in rent (%) -1.0 -2.3
Average annual private housebuilding last decade n/a n/a
Cappuccino (£) 0.82 0.95
Beer – 0.5 litre (£) 3.41 2.87
Milk – 1 litre (£) 1.01 0.88
Three-course meal for two, mid-range restaurant (£) 35.88 35.88
Monthly public transport pass (£) 25.12 25.12
Petrol – 1 litre (£) 1.18 1.15
1 minute of prepaid mobile tariff (£) 0.12 0.12 CBRE Residential 40–41 Global living
Americas
Vancouver
Chicago Toronto
New York
Los Angeles Miami
New York, United States CBRE Residential 42–43 Global living
Situated on Lake Michigan in Illinois and As with many countries, the US property Chicago one of the largest cities in the US, Chicago market suffered in the wake of the 2008 is home to 2.72 million people (with over financial crisis greatly. Average property 9 million in the wider metropolitan area). prices tumbled in Chicago, hitting their Home to the Chicago Bears, The population is expected to grow by lowest point in 2012. Average home prices an iconic skyline of bold around 4% over the next decade. Renowned have subsequently rebounded in the wider for its museums and expansive collections, metropolitan area and having grown by 1.2% Chicago United States architecture and a wide its cultural scene takes in visual arts, film, over the last year, are currently £120,128. theatre, improvisational comedy, and music Which, while still well below the previous array of music, the Windy of many genres. Drawn by this array of peak, is marginally higher than the national City’s property market is cultural activity, Chicago welcomed average of £114,827. It is expected that GDP growth last year 2014 (%) 1.9 2.4 50.2 million international and domestic Chicago will experience further 1.7% growth Expected GDP growth 2015 (%) 2.1 2.2 just finding its feet. visitors in 2014. over the next year to 2016. This partly reflects an acceleration in activity with 140,000 Unemployment rate (%) 6.2 5.7 residential transactions occurring last year Owner occupiers up 5% up on its ten year average. Average earnings (£) 30,684 28,078
The rate of housebuilding is fairly high in Inflation rate (%) 0.0 0.0 % Chicago when compared with other 64 metropolitan areas. Over the last decade an Base interest rate (%) 0.25 0.25 average of 12,500 single family units have It is an international hub for finance, been built each year, which will increase the Average age 35.7 37.3 commerce, industry, technology, overall housing stock by 0.4%; double the telecommunications and transportation. In rate in Miami and Los Angeles. Current population (000s) 2,719 321,300 fact, O’Hare International Airport is the busiest in the world. The economy is picking Expected population growth (%) 4.1 8.3 up, with low unemployment of 6.2% and Average rental yield GDP growth of 1.9% over the last year, with Number of households (000s) 3,525 120,880
an expected further growth of 2.1% over the FOR next year. In 2012, Chicago was reported as % Average property price (£) SALE 120,128 114,872 having the third largest gross metropolitan 10.4 Average property price (£ per sq ft) 150 135 product in the US at £366 billion in 2012. The rental market in Chicago is strong, House price growth annual (%) 1.2 3.0 In terms of the cost of living, a cappuccino in largely supplied by multi-family housing Chicago will set you back £2.27 (cheaper operators. Average rents fell marginally Average annual property transactions last decade (000s) 133 4,426 than the national average of £2.40), a beer (by 0.4%) last year and are currently £1,045 £2.56, a litre of milk 65p, a litre of petrol 55p per month. This is 18% higher than the Property transactions last year (000s) 140 4,330 and a mid-range meal for two £38.47. national average of £882 per month. Value of housing stock (£bn) 369 14,528
Share of owner occupiers (%) 64.1 63.5
Share of private renters (%) 35.9 36.5
Average yield (%) 10.4 9.2
TO Average rent (£ pcm) LET 1,045 882
Annual growth in rent (%) -0.4 4.3
Average annual private housebuilding last decade 12,525 846,000
Cappuccino (£) 2.27 2.40
Beer – 0.5 litre (£) 2.56 2.26
Milk – 1 litre (£) 0.65 0.65
Three-course meal for two, mid-range restaurant (£) 38.47 29.02
Monthly public transport pass (£) 64.11 39.98
Petrol – 1 litre (£) 0.55 0.49
1 minute of prepaid mobile tariff (£) 0.12 0.10 CBRE Residential 44–45 Global living
Being home to Hollywood, Los Angeles is As economics 101 teaches us, this huge Los Angeles famed as the centre of the US film and TV supply and demand imbalance has pushed industry, but it is so much more than that, up property prices. Following a four year with an exceptionally diversified economy. post-crash market hiatus, prices in Los The Hollywood sign, Known for its creativity and technological Angeles have risen sharply, rising nearly 30% beaches, the walk of fame, innovation, industry clusters range from since 2011, with 5.1% growth last year. aerospace, entertainment and fashion to Average property values for the metropolitan Los Angeles United States celebrities, cosmetic biomedical services, logistics and tourism. area now stand at £344,102, 20% behind Yet only 150 years ago, Los Angeles was those of its east coast sibling New York. surgery, traffic jams, glitz, a sleepy pueblo surrounded by rolling However, there are areas with much higher glamour and above all, ranch lands. Today, it’s the third largest values, including Beverly Hills and Bel Air. GDP growth last year 2014 (%) 2.4 2.4 metropolitan economy in the world, with Although activity has picked up, transactions Expected GDP growth 2015 (%) 1.9 2.2 sunshine; all of these spring a wider population of 17.7 million and a remain lower than the ten year average, GDP of over $700 billion. The city itself has totalling 88,000 last year. to mind when you think Unemployment rate (%) 6.6 5.7 of Los Angeles. But, there a population of 3.8 million. Los Angeles has one of the largest renter Average earnings (£) 30,374 28,078 is another aspect to the populations in the US, with 51.7% of the Average age population renting. This is unsurprising for Inflation rate (%) 0.0 0.0 US city that is much a market with high rent controls. However, overlooked – a housing even with these controls, private rents are Base interest rate (%) 0.25 0.25 higher than in New York having risen by 5.6% market supply and demand 35 over the year to £1,600 per month. Average age 35.0 37.3 imbalance that is driving The housing market has under gone similar Current population (000s) 3,884 321,300 prices higher than ever. transformation. Previously a sprawling city Owner occupiers with unregulated growth, the introduction of Expected population growth (%) 7.22 8.3 strict zoning laws in the 60s seriously restricted construction; 80% of the city is now % Number of households (000s) 4,350 120,880 designated as single family residential. Even 48.3 FOR in areas designated for growth, developers Average property price (£) SALE 344,102 114,872 are faced with massive local resistance. Rent Average earnings are 18% lower than in Average property price (£ per sq ft) 430 135 control laws passed in 1978 mean that the New York at £30,373 per annum. However, majority of the city’s 800,581 multifamily units Los Angeles is cheaper than New York and House price growth annual (%) 5.1 3.0 are rent-controlled. This further discourages London, with a meal out costing £35 developers. Over the last decade only compared with around £50 in New York and Average annual property transactions last decade (000s) 91 4,426 around 7,700 units have been built on London. A beer is also cheaper at just over average each year. To put this into context, £3, it is a similar story for coffees and milk. Property transactions last year (000s) 88 4,330 this number is similar to Miami, a city around half its size (by population and households). Value of housing stock (£bn) 1,202 14,528
Share of owner occupiers (%) 48.3 63.5
Share of private renters (%) 51.7 36.5
Average yield (%) 5.6 9.2
TO Average rent (£ pcm) LET 1,616 882
Annual growth in rent (%) 5.6 4.3
Average annual private housebuilding last decade 7,674 846,000
Cappuccino (£) 2.51 2.40
Beer – 0.5 litre (£) 3.22 2.26
Milk – 1 litre (£) 0.63 0.65
Three-course meal for two, mid-range restaurant (£) 35.46 29.02
Monthly public transport pass (£) 64.48 39.98
Petrol – 1 litre (£) 0.60 0.49
1 minute of prepaid mobile tariff (£) 0.07 0.10 CBRE Residential 46–47 Global living
Situated at Florida’s south eastern tip, this Somewhat overpriced hotspots such as Miami ‘gateway to Latin America’ is defined by the Miami Beach, Coral Gables and Brickell are turquoise waters of Biscayne Bay, the still going strong, but are now seeing new colourful art deco buildings of glamorous competition from the outlying areas of North White sand, turquoise South Beach, and the strong Cuban Miami, Edgewater, Little Havana, the Upper waters, cigar shops, electric influence evident in the cafes and cigar East Side, Little River and Doral, which have shops of Little Havana. It is awash with recently gained popularity with savvy Miami United States nightlife and fantastic surfside hotels and trendsetting nightclubs. investors looking for more affordable land. Being a major television production centre it restaurants; a place that houses the headquarters to many Spanish When taken in conjunction with the city’s feels like a resort but has the language production studios, including Sony average earnings of £28,239, it becomes GDP growth last year 2014 (%) 3.1 2.4 Music Latin and Universal Music Latin clear that the Miami property market is not Expected GDP growth 2015 (%) 3.0 2.2 vibrant cultural life of a big Entertainment. In 2012 it was named an affordable for local buyers. In fact, it is Alpha city and its skyline is rated third most estimated that the current price point of city – that’s Miami. And Unemployment rate (%) 6.1 5.7 with prices and rents way beautiful in the country, behind only the much development is out of reach for about iconic vistas of New York and Chicago. 90% of South Floridians, hence these luxury Average earnings (£) 28,239 28,078 above the national average, condos tend to target foreign and out of town buyers. It is also worth noting that some Inflation rate (%) 0.0 0.0 the real estate market is just Owner occupiers luxury condo developers have been requiring as bright as the sunshine. 50% deposits for units, much larger than Base interest rate (%) 0.25 0.25 is typically required, this can be a barrier % to local homebuyers. Traditionally Miami Average age 38.9 37.3 60.7 is a magnet for wealthy retirees looking for winter sun. Current population (000s) 2,663 321,300 But that’s not all: Miami is also a major leader in finance, commerce, culture, media and the With this inability to buy, the rental market in Expected population growth (%) 20.7 8.3 arts, with Downtown Miami home to the the city is strong, with 39% of the population largest concentration of international banks renting privately. Average rents are £1,163 Number of households (000s) 2,268 120,880
in the United States. It has a strong economy per month, 32% higher than the national FOR with GDP growth of 3.1% over the last year average of £819 per month. This follows an Average property price (£) SALE 182,243 114,872 and expected growth of 3.0% over the increase of 3.5% in rents over the past year. Average property price (£ per sq ft) 228 135 coming year. Comparatively, the US expects growth of 2.2% over the coming year. House price growth annual (%) 5.1 3.0 Value of housing stock The property market is equally strong, with Average annual property transactions last decade (000s) 61 4,426 current average property prices of £182,243, which is 59% higher than the national Property transactions last year (000s) 72 4,330 average of £114,872. Prices have been £2.96bn boosted by a period of constrained supply Value of housing stock (£bn) 296 14,528 and increased by 16% in 2013. However, Overall, the Miami property market is the recent pick up in development, has incredibly strong. It is likely to continue in the Share of owner occupiers (%) 60.7 63.5 resulted in a more sustainable level of price same vein, not least given the astonishing growth, with prices increasing by 5.1% last 21% expected increase in population over Share of private renters (%) 39.3 36.5 year. This is despite an above average level the next decade, which will add in excess of of transactions last year, with 72,000 sales, a half a million residents. Average yield (%) 7.6 9.2
18% higher than the ten year average. TO Average rent (£ pcm) LET 1,163 882
Annual growth in rent (%) 3.5 4.3
Average annual private housebuilding last decade 7,436 846,000
Cappuccino (£) 2.35 2.40
Beer – 0.5 litre (£) 2.58 2.26
Milk – 1 litre (£) 0.66 0.65
Three-course meal for two, mid-range restaurant (£) 38.69 29.02
Monthly public transport pass (£) 72.54 39.98
Petrol – 1 litre (£) 0.48 0.49
1 minute of prepaid mobile tariff (£) 0.16 0.10 CBRE Residential 48–49 Global living
Built on a grid system and made up of five 48% of New Yorkers rent, with the average New York boroughs (Manhattan, the Bronx, Brooklyn, rent across all five boroughs in New York City Queens and Staten Island), New York City is a ‘reasonable’ £1,521pcm (around 25% home to almost 8.5 million people (with 20 lower than London). However, this is a Central Park, the Empire million in the metropolitan area) – many of staggering 42% higher than the national State Building, the Statue them there to chase a dream, be it creative average of £881 per month. And of course or corporate. This makes for the electrifying, this average masks huge variety, with rents New York United States of Liberty, Broadway, fast paced and vibrant culture that originally in Manhattan far in excess of this at around led Frank Sinatra to refer to New York as the £2,632 pcm. bagels, hotdogs, The ‘city that never sleeps’. Yankees and the elusive The property market is more or less at its GDP growth last year 2014 (%) 2.2 2.4 pre-crash strength and last year there were Expected GDP growth 2015 (%) 1.6 2.2 American dream: New Owner occupiers 135,000 transactions, which is broadly in line with its ten year average level. Average York City is synonymous Unemployment rate (%) 6.0 5.7 with it all. And with a % house prices are currently £432,243, which is nearly four times higher than the national Average earnings (£) 36,989 28,078 strong rental market 51.6 average of £115,000. This follows growth of 2.4% over the last year. However, as Inflation rate (%) 0.0 0.0 and average home prices With the largest regional economy in the with rentals, prices do vary considerably nearly four times higher United States, anchored by Wall Street in across the city, with Manhattan average Base interest rate (%) 0.25 0.25 Lower Manhattan, New York City is one of the prices currently closer to £1.6 million for than the national average, world’s premier financial centres. It is home a condominium. Average age 37.4 37.3 it’s no wonder everyone to the world’s largest stock exchanges, the New York Stock Exchange and NASDAQ, as Current population (000s) 8,491 321,300 wants to take a bite out of well as a host of market leaders in law, Population the big apple. accountancy, advertising, entertainment and Expected population growth (%) 4.1 8.3 high technology. million Number of households (000s) 7,184 120,880 Thus, it is easy to understand the city’s 8.5 FOR allure, a draw that has led 99% of all Average property price (£) SALE 432,243 114,872 Manhattan apartments to be occupied However, it’s not just property that is costly; Average property price (£ per sq ft) 540 135 with a current vacancy rate of only 1.07%, New York is one of, if not the, most expensive the lowest in three years. This lack of cities in the world. A cappuccino will cost House price growth annual (%) 2.4 3.0 supply and high prices on the island has you £2.73, a beer nearly £4, a mid-range led to a significant ‘Manhattanization’ of meal for two will cost around £50 and a Average annual property transactions last decade (000s) 138 4,426 many communities outside Manhattan monthly public transport pass £74.96. And all such as Brooklyn. As a result, there have this with an average salary in New York of Property transactions last year (000s) 135 4,330 been a number of luxury high rise £36,989 on which you have to pay a city developments being built in Brooklyn and income tax as well as the state income tax. Value of housing stock (£bn) 1,529 14,528 Queens. In addition, formerly down-and-out But it seems many will deal with the high neighbourhoods within Manhattan, such price of living. At the end of the day New York Share of owner occupiers (%) 51.6 63.5 as the Meatpacking area and Hell’s Kitchen will always be the place where dreams can have been, or are being, significantly come true; after all, if you can make it there Share of private renters (%) 48.4 36.5 upgraded. Areas like these, once a shoddy you can make it anywhere. second choice, are now destination Average yield (%) 5.1 9.2
hot spots. TO Average rent (£ pcm) LET 1,521 882
Annual growth in rent (%) 2.3 4.3
Average annual private housebuilding last decade 10,684 846,000
Cappuccino (£) 2.73 2.40
Beer – 0.5 litre (£) 3.87 2.26
Milk – 1 litre (£) 0.83 0.65
Three-course meal for two, mid-range restaurant (£) 48.36 29.02
Monthly public transport pass (£) 74.96 39.98
Petrol – 1 litre (£) 0.55 0.49
1 minute of prepaid mobile tariff (£) 0.10 0.10 CBRE Residential 50–51 Global living
The capital of Ontario, the Greater Toronto As an international centre of business, Toronto area, is home to 6.17 million people, which finance, arts and culture, it is also the is approximately 17% of the total Canadian headquarters of Canada’s major national population. It is a sprawling, cosmopolitan broadcasters and a hub of film and television A dynamic and exciting city built along Lake Ontario’s northwestern activity. Additionally, it is home to the Toronto metropolis made up of shore. Classified as an Alpha city, it is the Stock Exchange, the headquarters of most populous city in Canada and one of Canada’s ‘big five’ largest banks and many Toronto Canada skyscrapers, the iconic the largest in North America. Around 50% huge national and multinational corporations, of Toronto’s residents were born outside of making it the financial heart of Canada. CN tower, an abundance of Canada and the area has over 200 distinct GDP growth last year 2014 (%) 3.1 2.5 green space and the largest ethnic groups. In addition, while English The city experienced healthy GDP growth of is the most widely spoken language, there 3.1% last year and is expected to experience Expected GDP growth 2015 (%) 3.0 2.2 underground shopping are over 160 different languages spoken further growth of 3% in the coming year. centre in the world, there is in the city. Average earnings are fairly high at £25,781 Unemployment rate (%) 7.5 6.8 much more to this chilly per annum, 10% higher than Vancouver. Despite the higher earnings, property prices Average earnings (£) 25,781 23,578 city than just maple syrup Average age are lower in Toronto averaging £277,123, compared with £339,416 in Vancouver. In Inflation rate (%) 1.0 1.0 and ice hockey rinks. addition, prices rose slightly more sharply in Vancouver at 10.3% over the last year, in Base interest rate (%) 0.5 0.5 39.2 contrast to 8.9% growth in Toronto. Growth of 9.6% is expected this year in Toronto. Average age 39.2 39.9 Toronto has 2,231 high-rise buildings city wide, the second in any North American city Current population (000s) 6,170 35,749 after New York. The tallest structure in Private renters Toronto is the CN Tower, which at 1,814 ft Expected population growth (%) 13.0 11.3 was the tallest free-standing structure on land from 1975 until 2007. However, it is not % Number of households (000s) 1,989 12,437 generally considered a high-rise building as 46.6 FOR Average property price (£) it does not have successive floors that can SALE 277,123 222,333 be occupied. The tallest habitable building in Approximately 55% of Toronto’s residents are Average property price (£ per sq ft) 213 139 the city is First Canadian Place (978 ft) in owner occupiers, helping to produce 93,000 Toronto’s Financial District. Aura is, at 78 home sales last year. However, the level of House price growth annual (%) 8.9 68.4 storeys, the highest residential building in housebuilding is relatively low, with just Canada. There are currently 303 high-rise under 34,000 new units built each year. Average annual property transactions last decade (000s) n/a n/a buildings under construction, proposed or However, increasingly development is mostly approved for construction in the city. concentrated in the downtown core in Property transactions last year (000s) 92 487 numerous condo developments in and Consistently rated as one of the world’s around the central business district. Value of housing stock (£bn) 551 2,765 most liveable cities, Toronto is ironically one of the more expensive in Canada. A beer The rental market is strong, with 46.6% of the Share of owner occupiers (%) 54.4 68.4 will cost you £3.17 in comparison with the population made up of private renters. national average of £2.56 and a meal for Following a 2.3% increase over the past year, Share of private renters (%) 46.6 31.2 two will cost you £34.14 (17% higher than average rents are around £966 per month. the national average). This means renting is relatively good value Average yield (%) 2.7 2.4
here, with Toronto number ten on the list of TO most affordable places to rent a property. Average rent (£ pcm) LET 966 729
Annual growth in rent (%) 2.3 2.0
Average annual private housebuilding last decade 33,743 180,989
Cappuccino (£) 1.75 1.82
Beer – 0.5 litre (£) 3.17 2.56
Milk – 1 litre (£) 1.08 1.02
Three-course meal for two, mid-range restaurant (£) 34.14 29.27
Monthly public transport pass (£) 68.77 43.41
Petrol – 1 litre (£) 0.54 0.56
1 minute of prepaid mobile tariff (£) 0.13 0.14 CBRE Residential 52–53 Global living
Located on the Pacific Rim, Vancouver is a Prices in the Vancouver region’s housing Vancouver west coast seaport in Canada, home to 2.5 market increased by 10.3% over the last million people and one of the most densely year, and the first half of 2015 has been populated downtown cores in Northern particularly buoyant. This reflects strong Nicknamed ‘Rain City’, America. It is a major tourist destination, demand coming partly from migration from the ‘Wet Coast’ and with over a million people passing through elsewhere in Canada and the United the city every year on cruise ship vacations. States, encouraged by strong economic Vancouver Canada ‘Raincouver’, Vancouver But, it is not just the water; it boasts growth. Vancouver enjoyed 3.6% GDP mountains, forests and parklands, together growth over the last year and expects a is a vibrant city – bursting with a vibrant artistic scene. This raw beauty further 2.3% growth over the coming year. GDP growth last year 2014 (%) 3.6 2.5 with natural beauty and has made it a popular filming location and In the first quarter of 2015, the sales price seen it nicknamed ‘Hollywood North’ of single-family detached homes in Expected GDP growth 2015 (%) 2.3 2.2 a thriving creative alongside Toronto. It has also become Vancouver hit a record breaching the community. Besides, where increasingly important in terms of software $1 million CAD mark. Unemployment rate (%) 5.6 6.8 else on the planet can you development, video game development, animation and biotechnology. Average earnings (£) 23,524 23,578 ski, golf, hike and surf all Average full time earnings Specific points of interest in the city include Inflation rate (%) 1.0 1.0 on the same day? Stanley Park (one of the most famous parks in the world), Granville Island, Grouse Base interest rate (%) 0.5 0.5 Mountain and the 137 metre Capilano £23,524 suspension bridge. Or, you can head to Average age 39.7 39.9 one of the city’s oldest neighbourhoods, Vancouver has also become attractive Gastown, for a hit of historic architecture, for buyers from Asia Pacific countries, Current population (000s) 2,512 35,749 galleries, fine dining and fashion boutiques. particularly China. British Columbia gained It is often touted as the culinary capital about 40,000 immigrants in 2014. This Expected population growth (%) 16.0 11.3 of Canada. continued influx from overseas and low interest rates will boost Vancouver’s Number of households (000s) 817 12,437 housing market this year. Looking further Average property price (£) FOR Owner occupiers out, Vancouver’s population is expected SALE 339,416 222,333 to increase by 16% or 400,000 over the Average property price (£ per sq ft) 261 139 % next decade. House price growth annual (%) 10.3 68.4 48.1 An average 17,000 units per annum were built over the last decade. This adds around Average annual property transactions last decade (000s) n/a n/a Although earnings are 10% lower in 2.1% to the housing stock. Last year there Vancouver than Toronto, this is somewhat were 39,000 transactions, which is a fairly Property transactions last year (000s) 39 487 balanced by the general cost of living, high proportion given there are less than with a beer in Vancouver being £2.68 (in 50% owner occupiers in Vancouver. Value of housing stock (£bn) 277 2,765 comparison with Toronto’s £3.17) and a meal out for two is 14% cheaper at £29. However, The rental sector houses 52% of the Share of owner occupiers (%) 48.1 68.4 housing is significantly more expensive with population. As with homes prices, rents average property prices of £399,426, 76% are higher than Toronto at £1,036 per Share of private renters (%) 51.9 31.2 higher than Toronto’s £277,123. month (compared with £966). However, in both cities rental growth was muted at Average yield (%) 2.4 2.4
2.9% in Vancouver. TO Average rent (£ pcm) LET 1,036 729
Annual growth in rent (%) 2.9 2.0
Average annual private housebuilding last decade 17,268 180,989
Cappuccino (£) 2.07 1.82
Beer – 0.5 litre (£) 2.68 2.56
Milk – 1 litre (£) 0.97 1.02
Three-course meal for two, mid-range restaurant (£) 29.27 29.27
Monthly public transport pass (£) 56.68 43.41
Petrol – 1 litre (£) 0.62 0.56
1 minute of prepaid mobile tariff (£) 0.19 0.14 CBRE Residential 54–55 Global living
Asia Pacific
Beijing
Tokyo
Shanghai
Hong Kong
Mumbai
Bangkok
Singapore
Sydney
Tokyo, Japan CBRE Residential 56–57 Global living
After massive growth in the 1960s and 1980s, The luxury market is performing particularly Bangkok Bangkok is now a major regional force in well with off-plan condominium prices up business, health care as well as an 30% over the year and resales of existing international hub for transport and an stock up 6%. Following these rises the The Venice of the East, emerging regional centre for fashion and average price of a property is now £139,850. Bangkok is awash with the entertainment. It is home to an estimated 12 million of the nation’s 67 million people, Bangkok Thailand romance of the Orient: with the average age of its residents being Number of households 37.5. Known for its cultural landmarks, ornate shrines, a vibrant temples and culinary experience it is one of street life and the boats that the world’s top tourist destinations, second GDP growth last year 2014 (%) 1.1 0.7 only to London in terms of international 2,950,000 Expected GDP growth 2015 (%) 2.8 3.9 travel its tree lined network visitors according to the 2015 MasterCard Global Destination Cities Index with arrivals One feature of the Bangkok condominium of river and canals. It is a Unemployment rate (%) 1.1 1.1 colourful city, full of life, up 24% over the last year alone. market is that the prices of older units do not rise at the same rate as newly-launched Average earnings (£) 412 241 whose property market has In terms of cost of living, Bangkok is very projects; in some cases, they do not move affordable; it will cost you £1.29 for a at all. This is because most Thai purchasers Inflation rate (%) 0.4 0.4 shown great stability cappuccino, only £1.23 for a beer, £13 for a prefer the better quality new stock. against the odds of recent meal for two and £27 for a monthly transport Condominiums were first built en masse in Base interest rate (%) 1.50 1.50 pass. Overall, Bangkok is a city that offers 1989. Between then and the Asian financial political turbulence. not only beauty, but vast opportunity, its crisis in 1997, over 29,000 units were Average age 37.5 42.0 relatively low prices and good standard of completed in downtown Bangkok. Many living making it very attractive and affordable were built by inexperienced developers and Current population (000s) 12,000 67,418 by international standards. the buildings were not well designed, both in terms of layout and specification. Some had Expected population growth (%) 6.2 6.2 poor entrance lobbies, sometimes located in Expected population growth the centre of the ground floor car park, Number of households (000s) 2,950 20,200
over next decade common corridors were badly decorated, FOR and unit layout designs were inefficient. Average property price (£) SALE 139,847 n/a Improving these buildings has been difficult % Average property price (£ per sq ft) 168 n/a 6.2 and so they remain unpopular. House price growth annual (%) 3.4 n/a Underpinned by a return to economic The Thai economy has been weak over the stability, the residential property market offers Average annual property transactions last decade (000s) 158 n/a last year, largely reflecting the slowing good prospects for capital gains with new domestic consumption and exports but it quality high-end and luxury projects in Property transactions last year (000s) 182 n/a has rebounded with 3% growth in GDP in exclusive locations ensuring maximised the first quarter of 2015. This is coupled with capital appreciation over the long-term. Value of housing stock (£bn) 413 n/a low unemployment of just 1.1%. Additionally, This is supported by the city’s robust economists anticipate that interest rates will residential construction activity; building Share of owner occupiers (%) 90 n/a remain low throughout 2015. This will benefit licenses were up by 11.9% in 2014. developers across the property market Share of private renters (%) n/a n/a which relies heavily upon lending, while The rental market is stable, with current also improving affordability to home buyers. downtown expatriate standard rents of Average yield (%) 4.0 n/a
Despite the economic political backdrop, £1,300 per month after 3% growth over the TO Bangkok’s property market is performing last year and average yields of 4%. Average rent (£ pcm) LET 466 n/a well, with the number of transactions 15% higher last year than the ten year average. Annual growth in rent (%) 3.0 n/a
Average annual private housebuilding last decade 94,862 n/a
Cappuccino (£) 1.29 1.10
Beer – 0.5 litre (£) 1.23 1.04
Milk – 1 litre (£) 0.93 0.89
Three-course meal for two, mid-range restaurant (£) 13.28 9.96
Monthly public transport pass (£) 27 19
Petrol – 1 litre (£) 0.63 0.64
1 minute of prepaid mobile tariff (£) 0.02 0.03 CBRE Residential 58–59 Global living
As a city, Beijing dates back three millennia The Beijing property market was performing Beijing and has formed the political centre of the strongly in 2013, albeit more modestly than country for the past eight centuries. It is Shanghai, with 11% house price growth home to seven UNESCO World Heritage compared with 20% for Shanghai. The Known for its opulent Sites; the Forbidden City, Temple of Heaven, country wide boom in the housing market palaces, temples, gardens, Summer Palace, Ming Tombs, Zhoukoudian, led to the Government’s intervention which Great Wall, and the Grand Canal, and is includes lifting down payment requirements Beijing China tombs and for the Olympics, widely thought of as the educational and as well as introducing Home Purchase culture capital of China. Restrictions for prospective buyers. These Beijing is the nation’s interventions had the desired effect, and cultural, political and during 2014 demand for residential property GDP growth last year 2014 (%) 7.3 7.4 Number of households was muted; with price growth falling to 3.4%. educational epicentre. Expected GDP growth 2015 (%) 7.1 7.0 Towards the end of last year, the Government And for investment, it Unemployment rate (%) 4.1 4.1 has been a sure bet over introduced a series of stimulus policies to 8,624,000 combat the slowdown. The latest round Average earnings (£) 9,628 5,330 the last ten years. included interest rate cuts and lower down With a population of 22 million, it is the payment requirements. These have been Inflation rate (%) 1.5 1.5 nation’s second largest city after Shanghai. particularly successful, despite the ongoing The population is expected to increase by house purchase restrictions and have had Base interest rate (%) 5.10 5.10 a further 16% over the coming decade, a noticeable effect on sales volumes, which significantly higher than China’s predicted have reportedly increased by 25.6% over Average age n/a 35.2 population growth of 3%, which would add the quarter. As a result, prices have picked 3.6 million residents. up increasing by 12.4% over the past Current population (000s) 22,115 1,402,493 twelve months. Despite being the capital city, the cost of Expected population growth (%) 16.3 3.3 living in Beijing is cheaper than that of Shanghai. For example, a beer in Beijing will House price growth Number of households (000s) 8,624 371,789
cost you only 73p in comparison with £2.07 FOR in Shanghai; a meal out will cost you £15.56 Average property price (£) SALE 235,621 98,040 in Beijing, significantly cheaper than % Average property price (£ per sq ft) 243 101 Shanghai’s £25 and a litre of milk will cost 12.4 you 31% less in Beijing at £1.24. House price growth annual (%) 12.4 -3 Following this rise, data at time of going to Economically, the city is doing well. It is print suggest average property prices of Average annual property transactions last decade (000s) n/a 7,510 home to the headquarters of many of China’s around £236,000 in Beijing. This is three largest state-owned companies. It has low times the average price across China. Property transactions last year (000s) 137 11,046 unemployment of 4.1%, GDP growth of 7.3% over the last year and a further 7.1% The market share of renters is significantly Value of housing stock (£bn) 1,231 36,450 expected over the coming year. Although the slimmer than the owner occupation market. recent stock market crash sent shock waves That segment of the market experienced Share of owner occupiers (%) 70.7 90.0 across the country and the Government was average growth of 1.3% over the last year, quick to intervene, we are still of the view the bringing average rents to £498 per month. Share of private renters (%) n/a n/a economy is heading for a ‘soft landing’. Both rents and rental growth are lower than in Shanghai. Average yield (%) n/a n/a
TO Average rent (£ pcm) LET 498 n/a
Annual growth in rent (%) 1.3 n/a
Average annual private housebuilding last decade n/a 545,938
Cappuccino (£) 3.02 2.72
Beer – 0.5 litre (£) 0.73 0.62
Milk – 1 litre (£) 1.24 1.35
Three-course meal for two, mid-range restaurant (£) 15.56 12.45
Monthly public transport pass (£) 12.45 10.37
Petrol – 1 litre (£) 0.75 0.77
1 minute of prepaid mobile tariff (£) 0.05 0.03 CBRE Residential 60–61 Global living
Covering an area of just 426 square miles, Continued price growth has been supported Hong Kong about 70% the size of London, Hong Kong is by record low interest rates and also a surrounded by water on three sides with very constrained supply backdrop. Over mainland China sharing its northern border. the last decade on average just over 11,000 A vertical city of sky With a population of 7.3 million, it is one of units have been built per annum. This scrapers, shopping, the most densely populated cities in the suggests around 110,000 units, or less than world. Over 50% of the population live in the 4% have been added to the total housing Hong Kong China extravagant high teas, new territories, 30% in Kowloon and 17.5% stock. This compares with an additional half a chaotic night market on Hong Kong Island. a million residents. and innumerable bespoke The city’s service-oriented economy is GDP growth last year 2014 (%) 2.5 7.4 characterized by low taxation, almost free Owner occupiers Expected GDP growth 2015 (%) 2.8 7 tailors, Hong Kong is one port trade and its well established international financial market. The territory is of the top three global % Unemployment rate (%) 3.3 4.1 financial centres in the regarded as having one of the most unregulated economies, and the currency, 65 Average earnings (£) 16,434 5,330 world; and clearly they are the Hong Kong dollar, is the 13th most traded currency in the world. The economy Average prices are now around £508,000, Inflation rate (%) 4.4 1.5 doing something right, suffered hugely in 2009 as a result of the which at £908psf is the highest level across because despite its ongoing global financial turmoil and real our sample of cities. However, in some areas Base interest rate (%) 0.50 5.10 economic growth fell by 2.8%. However, the prices can go much higher, with prime renowned pollution this economic recovery is now well established properties averaging nearer £1.6 million and Average age 43.2 35.2 city boasts one of the with growth of 2.5% last year and forecast prices of around £3.4 million more common growth for 2015 of 2.7%. at the very high end. Despite the raft of Current population (000s) 7,264 1,402,493 longest life expectancies regulatory measures, the market remains on the planet. fundamentally strong, with many Expected population growth (%) n/a 3.3 Average house price commentators expecting further price rises this year. As Hong Kong attracts a substantial Number of households (000s) 2.452 371,789
amount of Chinese (as well as other FOR international buyers), the market is likely to Average property price (£) SALE 507,992 98,040 £508,000 be buoyed by the recent Chinese stock market crash, which may lead to investors Average property price (£ per sq ft) 908 101 Hong Kong is synonymous with high finding alternative homes, such as property, House price growth annual (%) 20 -3 property prices. Following several years of for their capital. double digit house price growth, the Average annual property transactions last decade (000s) 94 7,510 government introduced a series of measures Hong Kong investors are also active in many to cool the market. These included special other property markets, including London, Property transactions last year (000s) 64 11,046 Stamp Duty and various tightenings of Sydney and Melbourne. Last year around mortgage lending policies. In addition, with £1.1bn was spent was spent on overseas Value of housing stock (£bn) 135 36,450 the specific aim of cooling demand from property in exhibitions in Hong Kong. mainland China, the government introduced Share of owner occupiers (%) 65.0 90.0 buyers Stamp Duty of 15% for overseas Despite the high house prices, rents are, buyers in October 2012. As a result, at £1,344 per calendar month, lower than Share of private renters (%) n/a n/a purchases from mainland Chinese buyers New York and London. Housing costs aside, reduced substantially. However, while these Hong Kong has a lower cost of living than Average yield (%) 2.6 n/a
measures led to a sharp decline in sales New York and London. Public transportation, TO volume (which at 64,000 are around a third which is used by 90% of the population, is Average rent (£ pcm) LET 1,344 n/a below their ten year average), they were less significantly cheaper at under £40 for a successful at controlling prices, which have monthly pass. While in New York, this would Annual growth in rent (%) n/a n/a escalated; in 2014 prices increased by cost £75 and in London, £130. 13.5%, in the first five months of this year Average annual private housebuilding last decade 11,728 545,938 prices increased by 7.2%, with 20% year Cappuccino (£) 2.70 2.72 on year growth. Beer – 0.5 litre (£) 2.58 0.62
Milk – 1 litre (£) 1.74 1.35
Three-course meal for two, mid-range restaurant (£) 29.11 12.45
Monthly public transport pass (£) 37.43 10.37
Petrol – 1 litre (£) 1.36 0.77
1 minute of prepaid mobile tariff (£) 0.03 0.03 CBRE Residential 62–63 Global living
India’s largest city, Mumbai (formerly Along with the rest of India, Mumbai’s Mumbai Bombay) is home to 12,544,000 people, economy flourished post the 1991 yet this still accounts for just 1% of India’s liberalisation, the expansion of the finance population. Mumbai is a melting pot of many industry in the mid-nineties and the growth of The glitter of Bollywood, the communities and cultures. It is the financial, the IT, export, services industries in 2000s. looming Gateway of India, entertainment and commercial capital of These days, the general Indian economy is India and one of the world’s top ten centres robust; it is the world’s third-largest economy Mumbai India unforgettable open air of commerce. It is home to the Reserve and experienced 7.3% GDP growth over the Bank of India, the Bombay Stock Exchange, last year with a further 7.5% growth expected laundries and the sunsets the National Stock Exchange of India, the over the coming year. Mumbai being the GDP growth last year 2014 (%) 9.0 7.3 of Juhu beach; over six and Securities and Exchange Board of India financial capital is contributing significantly to and many other large national and this, with the parent state of Maharashtra Expected GDP growth 2015 (%) 8.2 7.5 a half decades since multi-national corporations. witnessing growth of 9% last year and 8.2% independence, Mumbai is over the coming year. Unemployment rate (%) 2.3 5.5 The city has a large presence of high-net- a cosmopolitan city with a worth individuals, who are a backbone for its Wealth in the country is growing at an Average earnings (£) 1,200 1,040 burgeoning economy and residential market. The city has often had unprecedented rate, with 42,921 people some of the most expensive property becoming millionaires in India in 2014, Inflation rate (%) 3.8 3.8 a sizeable middle class. transactions in the world – a recent case in a number which puts it on a par with the UK point being the sale of a sea-facing triplex and reflects a 17.1% growth in the number Base interest rate (%) 7.25 7.25 penthouse in South Mumbai’s Napean Sea of millionaires over the year. It is estimated Road for approximately £19.8 million. that India’s current number of 250,000 Average age 29 28 millionaires (up 27% to 2015) is expected to increase further to 437,000 by 2019 and Current population (000s) 12,544 1,269,000 Expected GDP growth 2015 potentially double again by 2023. Expected population growth (%) 1.1 1.2
% House price growth last year Number of households (000s) 334,000 1,868,000
8.2 FOR Average property price (£) SALE 188,776 275,510 Over the past decade or so, the city % Average property price (£ per sq ft) 189 153 has expanded towards the North. The 4.3 development of old industrial land has led House price growth annual (%) 4.3 1.7 to the emergence of new residential Despite this influx of millionaires, India hot-spots such as Malad, Goregaon, remains largely a developing economy and Average annual property transactions last decade (000s) 24 119 Kandivali and Borivali in Western Suburbs; as such its housing market is largely and Powai, Vikhroli, Bhandup and Mulund dominated by the middle value segment. Property transactions last year (000s) 26 148 in Eastern Suburbs. This trend has also Hence, despite select transactions that are been replicated in locations such as Thane amongst the most expensive in the world, Value of housing stock (£bn) 63.05 514.65 and the planned satellite city of Navi Mumbai. average prices across all major areas in During the 2003-2010 periods, defunct Mumbai are close to £188,776 and in India Share of owner occupiers (%) n/a n/a industries in Thane made way for large overall (inclusive of the cities of Delhi, integrated residential developments, while Mumbai and Bangalore) averaging £275,510. Share of private renters (%) n/a n/a in Navi Mumbai residential activity picked up in Vashi, Kharghar, Airoli and Nerul Although the rental market is strong, rents Average yield (%) n/a n/a
amongst others. fell slightly (by 1.8% last year) and now TO stand at £959 per month in key locations of Average rent (£ pcm) LET 959 837 Mumbai, this compares with a national average of £837 per month. Annual growth in rent (%) -1.8 -0.8 Average annual private housebuilding last decade 280,000 150,000
Cappuccino (£) 0.97 0.75
Beer – 0.5 litre (£) 1.08 0.98
Milk – 1 litre (£) 0.49 0.40
Three-course meal for two, mid-range restaurant (£) 7.88 4.91
Monthly public transport pass (£) 4.93 4.91
Petrol – 1 litre (£) 0.72 0.69
1 minute of prepaid mobile tariff (£) 0.01 0.01 CBRE Residential 64–65 Global living
Shanghai is one of the largest cities not only The Shanghai market was booming in 2013, Shanghai in China but also in the world. It is home to with 20% house price growth. This led to 24.3 million people, which is expected to the Government’s intervention with the increase by 13.3% over the next decade; ‘Seven Articles’ in November 2013. This Shanghai, with its that’s an additional 3.3 million people. increased down payment requirements for futuristic skyline, Shanghai is located on China’s central second home mortgages from 60% to 70%, coast, and is a major transport hub with and raised the purchasing qualifications of Shanghai China magnetic-levitation train, the world’s busiest container port. It is also non-local home buyers in order to slow down the undisputed financial hub of the Asia the strong house price growth. This had the towers and ponds of the Pacific and is home to the Shanghai Stock desired effect, with effectively no price Yuyuan Garden and the Exchange. Its three largest service industries growth in 2014 and 5.9% fewer sales (a total GDP growth last year 2014 (%) 7.4 7.4 are financial services, retail and real estate. of 161,059 first-hand residential units were Expected GDP growth 2015 (%) 6.8 7 colonial buildings that sold in 2014). line the Bund waterfront Unemployment rate (%) 4.2 4.1 promenade is, despite its Number of households Although the first quarter of 2015 remained fairly muted, at the end of March the People’s Average earnings (£) 9,411 5,330 long history, a city of Bank of China lowered the minimum down payment for both first-time buyers and Inflation rate (%) 1.5 1.5 tomorrow. Its property 9,740,000 upgraders, before reducing the benchmark market has proven itself to interest rate in both May and June. Despite Base interest rate (%) 5.10 5.10 Although its cost of living is higher than the continued house purchase restrictions be somewhat bullet proof as Beijing, it is still less expensive than many at the city level, these policy changes Average age 36.6 35.2 both the population and cities, including Hong Kong, London, Sydney stimulated demand and sales volumes and Paris. Public transport is good value at picked up. Latest data suggests there has Current population (000s) 24,300 1,402,493 house prices keep growing. just over £20 a month and eating out is been a 14% surge in prices over the year around half the price of London, at £25, for a to Q2 2015 in Shanghai, taking them to Expected population growth (%) 13.3 3.3 meal out for two. However, a coffee will set around £232,686. you back a whopping £3.05. Number of households (000s) 9,740 371,789
FOR Over the last two decades it has been one Rental growth Average property price (£) SALE 232,686 98,040 of the fastest developing cities in the world. Average property price (£ per sq ft) 240 101 Between the early nineties and 2011 it experienced double-digit economic growth % House price growth annual (%) 14 -3 almost every year (the exception being 5.1 during the global financial crisis of 2008 and Average annual property transactions last decade (000s) n/a 7,510 2009). Although GDP growth has slowed to Shanghai has a strong rental market. Last 7.0% last year, it is still high by the world’s year rents grew by 5.1%, taking them to £567 Property transactions last year (000s) 206 11,046 standards, and its total GDP is now higher per month. This segment of the market than that of the United Arab Emirates. GDP caters to the strong expat community within Value of housing stock (£bn) 1,949 36,450 is expected to increase by a further 6.8% in the city and those that cannot afford to buy the coming year. their own home as yet. Share of owner occupiers (%) 67.9 90.0
Share of private renters (%) n/a n/a
Average yield (%) n/a n/a
TO Average rent (£ pcm) LET 567 n/a
Annual growth in rent (%) 5.1 n/a
Average annual private housebuilding last decade n/a 545,938
Cappuccino (£) 3.05 2.72
Beer – 0.5 litre (£) 2.07 0.62
Milk – 1 litre (£) 1.81 1.35
Three-course meal for two, mid-range restaurant (£) 24.89 12.45
Monthly public transport pass (£) 20.74 10.37
Petrol – 1 litre (£) 0.75 0.77
1 minute of prepaid mobile tariff (£) 0.02 0.03 CBRE Residential 66–67 Global living
With its globalised and diverse economy, This has fed through to prices, which fell by Singapore cosmopolitan reputation, and consistently 4% last year. We don’t expect year on year high international rankings in regards to price falls to be sustained, but Singapore is standard of living, education, healthcare likely to have a new lower growth market Towering sky scrapers, and economy, Singapore is quite a city. than before. However, prices remain high a ferris wheel and a boat It has one of the highest per capita incomes with average property prices at £570,000. (averaging £3,142 monthly household Although this is the highest in our sample Singapore of top of a hotel, all set income) in the world and more millionaires cities, this partly reflects a large unit size of per capita. Despite having a young 1,100 sq ft. As a result, the price per square against water in the heart population, with an average age of just 39, foot is £519; 25% lower than London. Prices of the central business it has a life expectancy of 83 years old for prime property are higher at an average GDP growth last year 2014 (%) 2.9 which is second only behind Japan. of £762,000. Expected GDP growth 2015 (%) 2.9 district: that is the famous Additionally, it is currently the only Asian country with a top AAA rating from all three Singapore investors are also active in many Singaporean skyline. Unemployment rate (%) 2.7 Otherwise known as the major credit rating agencies. This partly other overseas markets; we estimate around reflects its robust economic backdrop £850 million was spent last year in local Average earnings (£) 37,716 Lion City, Singapore is with low unemployment of only 2.7%, exhibitions on overseas property in London, no inflation and a healthy increase in GDP Melbourne and Sydney. Inflation rate (%) -0.4 one of the world’s major of 2.9% over the last year, with the same commercial hubs, the expected for next year. Being home to 5.4 million people, with the Base interest rate (%) 0.33 third highest population density in the world fourth-largest financial (7,987 people per sq km), it stands to reason Average age 39 centre on the planet and Average age that the vast majority of stock is high rise apartments which make up 77% of all stock. Current population (000s) 5,470 has a property market In fact, there are currently around 4,300 to match. towers in Singapore making it a city that Expected population growth (%) 1.3 39 sprawls upwards as opposed to outwards. In contrast, only 23% of the market is made Number of households (000s) 1,200
The attractiveness of Singapore as a place up of landed property. FOR to live and its strong economy has hugely Average property price (£) SALE 570,000 impacted its housing market, which over the Average property price (£ per sq ft) 519 last decade, up until last year was increasing Average rent by on average 8% per annum. With House price growth annual (%) -4.4 increasing concerns of a bubble developing, the Government intervened. In January Average annual property transactions last decade (000s) 28 2013 an Additional Buyer’s Stamp Duty £1,650 pcm was introduced, which affected Singapore Property transactions last year (000s) 13 Citizens owning more than one property. The rental market is significantly smaller than Then, in June 2013, the Monetary Authority the sales market; properties currently attract Value of housing stock (£bn) 237 of Singapore introduced the Total Debt average rents of £1,650 per month, this Servicing Ratio framework for all property follows 5% growth last year. Prime rents are Share of owner occupiers (%) 90 loans. This effectively limits total mortgage higher at £2,095 per month as Singapore has repayment commitments to 60% of income a large and increasing expat community that Share of private renters (%) n/a and has increased the due diligence that currently makes up 38% of the population. banks have to make on borrowers. Within Average yield (%) 3.0
weeks mortgage approvals and transaction Overall the population is expected to grow by TO levels dropped by half, with around 12,800 13.6% over the next decade alone. Clearly Average rent (£ pcm) LET 1,650 sales last year, compared with a ten year this will translate to increased demand for average of 27,500. housing stock which will continue to put Annual growth in rent (%) 5.0 pressure on prices. Average annual private housebuilding last decade 108,000
Cappuccino (£) 2.53
Beer – 0.5 litre (£) 3.34
Milk – 1 litre (£) 1.35
Three-course meal for two, mid-range restaurant (£) 23.85
Monthly public transport pass (£) 46.67
Petrol – 1 litre (£) 1.00
1 minute of prepaid mobile tariff (£) 0.09 CBRE Residential 68–69 Global living
Sydney is Australia’s most recognisable city. However, this demand is not being sated and Sydney With a population of 4.9 million people, it is a chronic long-term undersupply of housing home to 20% of the nation’s population and means that prices are being driven up it is growing rapidly; over the next decade rapidly. This is particularly marked in Sydney, Sunshine, Bondi Beach, the population is projected to increase by with only around 24,000 units built annually Darling Harbour and the 14.4%. Known the world over for the sail-like over the last decade. However, undersupply architecture of its harbour front Opera is gradually being addressed, with 39,114 Sydney Australia world famous Opera House House, it is built upon the world’s largest dwelling approvals in 2013-14. natural harbour and spans west to the iconic – Sydney has no shortage Blue Mountains. The average price of an apartment in of postcard material. Australia is £210,063 having increased by GDP growth last year 2014 (%) 2.6 2.7 5.3% last year. However, prices in Sydney Expected GDP growth 2015 (%) 3.0 2.8 And with a buoyant Owner occupiers increased by 12.9% and are 38% higher than the national average at £289,420. Houses are housing market to match, Unemployment rate (%) 4.9 6.0 we expect to hear a lot more % significantly higher at £445,876, which gives a blended average of £370,359. This is the Average earnings (£) 46,134 41,972 from this city on the other 65.2 fifth highest across our sample cities. However, as property in Australia tends to Inflation rate (%) 1.6 1.3 side of the globe. But it is more than just a place of beauty; it be much larger than in many other countries, is an advanced market economy and widely it represents a much better rate on a pound Base interest rate (%) 2.0 2.0 thought of as one of Asia Pacific’s leading per sq foot basis at £165psf, compared financial hubs, with many banks having their with London’s £660psf. Like London, the Average age 36.0 37.0 Australian offices located there. In fact, the market strength has attracted significant gross regional product of Sydney was £162 international investor activity and sales are Current population (000s) 4,899 23,999 billion in 2013, making it a larger economy up 2.7% over the year; last year residential than either Denmark, Singapore or Hong transactions totalled 93,989, above the Expected population growth (%) 14.44 17.84 Kong. And the economy is growing, with an long run average of 80,350. increase in GDP last year of 2.6% and an Number of households (000s) 1,521 7,760
expected increase of 3.0% over the coming FOR year, which is higher than the projected Current rental yield Average property price (£) SALE 289,420 210,063 increase for Australia as a whole of 2.8%. Average property price (£ per sq ft) 129 87 The city has a low unemployment rate of % House price growth annual (%) 12.9 5.3 just 4.9% in comparison with the national 3.69 average of 6%. Average earnings are Average annual property transactions last decade (000s) 41 321 relatively high at £46,134 and its cost of Average rents in Sydney increased by 8.3% living is lower overall than many other major last year and are now £1,185 per month, over Property transactions last year (000s) 47 336 global cities, including New York, London 40% higher than national rents (which are and Hong Kong. For example, a cappuccino £833 per month). Over 30% of the population Value of housing stock (£bn) 533 4,020 is £1.82, a beer £2.88 and a litre of milk rent in Sydney, this will ensure demand 71p. A meal out will cost under £40 remains strong. In addition, the rental market Share of owner occupiers (%) 65.2 67.0 compared with around £50 in London. will continue to be boosted by net migration as this cohort tends to rent. Yields in Sydney Share of private renters (%) 31.6 29.6 The combination of strong economic are, at 3.69%, slightly lower than the growth, historically low interest rates and Australian average, reflecting the higher Average yield (%) 4.62 4.9
population increases are fuelling demand capital values. TO in the residential market. Average rent (£ pcm) LET 1,112 849
Annual growth in rent (%) 8.3 2.4
Average annual private housebuilding last decade 23,843 104,793
Cappuccino (£) 1.82 1.95
Beer – 0.5 litre (£) 2.88 2.88
Milk – 1 litre (£) 0.71 0.68
Three-course meal for two, mid-range restaurant (£) 38.42 38.55
Monthly public transport pass (£) 69.15 61.46
Petrol – 1 litre (£) 0.68 0.70
1 minute of prepaid mobile tariff (£) 0.28 0.28 CBRE Residential 70–71 Global living
A fantastic fusion of modernity and tradition, This fed through to the housing market Tokyo Tokyo is home to 13.3 million people, where house prices fell by 4% nationally and which accounts for around 10% of Japan’s almost 8% in the six major cities. total population. It is a place where shrines With its Kimonos, and stone lanterns are scattered amongst However, 2010 saw the market begin to Shibuya crossing, sushi, skyscrapers, hidden noodle shops rebound with encouraging increases in both punctuate the high end dining offering and sales volumes and prices. This was partly Tokyo Japan karaoke bars, bonsai, overcrowded streets are strangely quiet; helped by the enhanced mortgage tax it is a city of unexpected oppositions. breaks from 2009. The market was further sumo wrestling, neon-lit But it is precisely that tension between buoyed by the set of reflationary policies skyscrapers, cherry old and new, yin (in) and yang (yo), that introduced by Prime Minister Shinzo Abe GDP growth last year 2014 (%) -0.6 -0.1 makes it so fascinating. known as ‘Abenomics’ in 2012. These Expected GDP growth 2015 (%) 1.0 0.9 blossom trees, imperial included increased public infrastructure spending and aggressive quantitative easing palace and one of the Unemployment rate (%) 3.5 3.5 longest life expectancies Current population by the Bank of Japan, which led to a major devaluation of the Yen. Average earnings (£) 29,549 29,359 in the world, Tokyo is the Under half of Tokyo’s population are owner capital of Japan and 13, 297,586 Inflation rate (%) 0.3 0.3 occupiers. As it stands, average property anything but dull. prices in Tokyo are £264,401, following a Base interest rate (%) 0.10 0.10 In terms of cost of living, a cappuccino will 5.8% increase in property prices over the cost you £2.00, a beer will set you back last year. However, because properties are Average age n/a 46.1 £2.60 (in comparison with Japan’s £2.00) fairly small in Tokyo this translates through and a meal for two will cost you £26.30 to a fairly high £447 per sq ft, which is similar Current population (000s) 13,298 126,792 (in comparison with Japan’s £21.04), to Los Angeles. a litre of petrol will cost you 79p and a litre Expected population growth (%) 0.76 -2.84 of milk will cost you 96p. Owner occupiers Number of households (000s) 4,831 51,840
With the largest metropolitan economy in FOR the world, the Tokyo urban area had a total Average property price (£) SALE 264,401 n/a GDP of £1.2 trillion in 2012 and is home to % Average property price (£ per sq ft) 447 n/a 51 of the companies listed on the Global 44.6 500, almost twice that of the second place House price growth annual (%) 5.8 n/a city, Paris. It is a major international finance With a 37% proportion of the population centre and hosts the headquarters of several choosing to rent privately, there is a strong Average annual property transactions last decade (000s) n/a n/a of the world’s largest investment banks rental market. Rents increased by 7.6% last and insurance companies. In addition, year and average rents are now £993 per Property transactions last year (000s) n/a n/a it serves as an important hub for Japan’s month. Yields are 4.7%. publishing, transportation, electronics Value of housing stock (£bn) 12,774 n/a and broadcasting industries. There is a healthy level of construction in Tokyo, with an average 1.4 million units Share of owner occupiers (%) 44.6 61.1 Alongside the rest of the world, Japan’s built each year over the last decade. economy was seriously affected by the This is around double the rate across Share of private renters (%) 37 27 global financial crisis of 2008/9. Japan as a whole. Average yield (%) 4.7 n/a
TO Average rent (£ pcm) LET 993 n/a
Annual growth in rent (%) 7.6 n/a
Average annual private housebuilding last decade 1,454,162 9,871,162
Cappuccino (£) 2.00 1.95
Beer – 0.5 litre (£) 2.60 2.00
Milk – 1 litre (£) 0.97 0.96
Three-course meal for two, mid-range restaurant (£) 26.30 21.04
Monthly public transport pass (£) 49.97 47.34
Petrol – 1 litre (£) 0.79 0.79
1 minute of prepaid mobile tariff (£) 0.22 0.21 CBRE Residential 72–73 Global living
Middle East, Africa and Turkey
Istanbul
Doha Dubai Abu Dhabi
Johannesburg
Cape Town
Dubai, United Arab Emirates CBRE Residential 74–75 Global living
The capital of the UAE and situated off the The property market, having experienced Abu Dhabi mainland on an island in the Persian Gulf, significant property price growth of 31% in Abu Dhabi is a distinctly Arab city and makes 2013 and 24% in 2014, has begun to slow to up 87% of the country’s total area (albeit a more stable pace (partly as a result of With its old world camel only 30% of which is inhabited). Blessed lower oil prices). Over the past year, price market, souk-like outlets with clear blue skies and sparkling waters, growth slowed to 12%, in comparison with it is home is to 2,570,000 people. This Dubai’s -5%, bringing Abu Dhabi’s current Abu Dhabi UAE and ancient forts set number is expected to increase by 54% property prices to £313,878. Despite a larger over the next decade, which is an additional population than Dubai, there are fewer against ultra-modern 1.38 million people. households and there is much less malls, five star hotels and development, with on average 7,000 units GDP growth last year 2014 (%) 4.1 2.6 Expats consider Abu Dhabi a great family being built each year, which is less than Expected GDP growth 2015 (%) 3.0 2.8 the world’s fastest environment. It offers good integration a third the construction in Dubai. into the local community and benefits rollercoaster, Abu Dhabi is Unemployment rate (%) 2.0 n/a the largest of the emirates from tax free living. While perhaps not as cosmopolitan as its neighbouring Dubai, Average age Average earnings (£) n/a n/a and an intriguing mix of it is a very liveable city, so much so that it is easy to forget that just 50 years ago it Inflation rate (%) 3.2 2.6 old and new. was a fishing village with a few buildings and some barasti huts. 28 Base interest rate (%) 1.0 1.0
Everything is designed with families in mind; The rental market is strong, experiencing Average age 28 n/a amenities within all good quality residential 12% growth over the last year which takes developments include children’s play current rental values to £1,698 per month Current population (000s) 2,570 9,577 areas and paddling pools alongside the (14% higher than Dubai’s average of £1,485 pre-requisite swimming pools. per month) and current yields to 7%. At many Expected population growth (%) 54 19.9 high end developments (such as Saadiyat Beach Residences) there are significant Number of households (000s) 277 n/a
Rental growth over last year waiting lists for rental properties with voids FOR below 5%, which is just enough time to clean Average property price (£) SALE 313,878 n/a properties between tenancies. % Average property price (£ per sq ft) 243 n/a 12 This general upward trend is expected House price growth annual (%) 12 n/a to continue in line with an increase in Abu Dhabi has a strong economy, holding office space rental demand, as the Average annual property transactions last decade (000s) n/a n/a 9% of the world’s proven oil reserves, 5% of relocation of high end organisations will the world’s natural gas, 95% of the UAE’s translate to an increase in high end, Property transactions last year (000s) n/a n/a oil and 92% of the UAE’s gas. It has low luxury, residential demand. unemployment at 2%, experienced 4.1% Value of housing stock (£bn) 87 n/a GDP growth over the last year and it is forecast that it will experience a further 3% Share of owner occupiers (%) n/a n/a growth over the next year. Share of private renters (%) n/a n/a
Average yield (%) 7.0 n/a
TO Average rent (£ pcm) LET 1,698 n/a
Annual growth in rent (%) 12 n/a
Average annual private housebuilding last decade 7,000 n/a
Cappuccino (£) 2.77 2.73
Beer – 0.5 litre (£) 4.78 6.14
Milk – 1 litre (£) 1.10 1.01
Three-course meal for two, mid-range restaurant (£) 28.09 26.33
Monthly public transport pass (£) 14.04 35.11
Petrol – 1 litre (£) 0.31 0.31
1 minute of prepaid mobile tariff (£) 0.06 0.08 CBRE Residential 76–77 Global living
It might not be South Africa’s most populous This wealth polarization is mirrored in the Cape Town city, with 4.2 million residents compared with property market with a wider divergence in Johannesburg’s 5.1 million but it is arguably property types and price ranges. And this its most beautiful; famed for its mountains, renders ‘averages’ somewhat unreliable. For Home to the majestic Table vineyards and sea views over the pristine example, the average rent in Cape Town is Mountain, the beauty of the beaches of Clifton and Camps Bay. For an £530 pcm, but in an affluent neighbourhood African city it has an unparalleled European this may rise to £1,548 per month. Yet with Cape Town South Africa icy Atlantic seaboard and feel, complete with cobbled streets, chic the average household income of £7,500 per cafes and fine dining. As a result it is a world annum most would clearly not be able to an array of trendy bars and class tourist destination with around 1.5 afford these rents, with the vast majority of restaurants, Cape Town million foreign arrivals each year; and it was renters (and buyers) operating from far GDP growth last year 2014 (%) 2.9 1.5 ranked the number one place to visit in the above the average salary. Expected GDP growth 2015 (%) 2.2 2.1 possesses what is widely New York Times ‘52 places to go’ in 2014. The rental market is strong in Cape Town, touted as an ‘equatorial Unemployment rate (%) 23.9 26.4 pull’ – once you’ve been with significant demand; 28% of the Owner occupiers population rent privately. As a result, there Average earnings (£) 7,433 6,649 there, you cannot help but are good investment opportunities with high gross yields of 7.9%. According to the latest Inflation rate (%) 4.8 4.8 return. And with strong % IPD Index the South African investment yields and healthy GDP 52.5 commercial property sector displayed a profit Base interest rate (%) 5.75 5.75 of 12.9% to investors. growth, why would you South Africa attracts Chinese, Russian Average age 26.0 28.0 want to resist? and American ex-patriots much like London does, drawn by the beauty, value for money Average house price growth Current population (000s) 4,230 54,359 and quality of life. For instance, a cappuccino will cost you 96p in Cape Town, while a Expected population growth (%) 11.7 5.9 beer will cost you only £1.14. A mid-range % meal for two will set you back around £18 12.1 Number of households (000s) 1,069 14,450 and petrol (as not everyone takes public FOR transport) will cost you 66p per litre. Prior to the 2008 crash, the South African Average property price (£) SALE 91,296 68,521 residential property market was experiencing Average property price (£ per sq ft) 106 80 Although difficulties remain, most notably unprecedented growth of up to 32% per with high unemployment, the Cape economy annum. However, the market was hit hard in House price growth annual (%) 12.1 6.5 is picking up with GDP growth of 2.9% over the downturn. It has started to recover with the past year, which is higher than across 6.5% house price growth nationally over the Average annual property transactions last decade (000s) n/a n/a South Africa as a whole. Growth of 2.2% is last year. Cape Town has outperformed predicted over the coming year. However, the national trends with growth of 12.1% over the Property transactions last year (000s) n/a n/a post-apartheid legacy that remains is an last year, which is almost in line with enduring discrepancy between supreme London’s 12.7%. As with the rental market Value of housing stock (£bn) n/a 221 wealth and poverty. This is not necessarily an the average purchase price (of £91,295) issue of race, with the black middle and masks a wide divergence in prices across Share of owner occupiers (%) 52.5 53.1 upper classes doubling to 14% between the city; currently, the average property price 1994 and 2008 nationally, but more an issue at the top end of the Atlantic Seaboard, Share of private renters (%) 28.0 25.0 of education, opportunity and social mobility. which includes the suburbs of Camps Bay, Clifton, Bantry Bay and Fresnaye, is about Average yield (%) 7.9 8.6
R31m (£1.6 million), up from R29m (£1.5 TO million) last year. Average rent (£ pcm) LET 530 345
Annual growth in rent (%) n/a n/a
Average annual private housebuilding last decade n/a n/a
Cappuccino (£) 0.96 0.96
Beer – 0.5 litre (£) 1.14 1.04
Milk – 1 litre (£) 0.62 0.62
Three-course meal for two, mid-range restaurant (£) 18.14 18.14
Monthly public transport pass (£) 14.04 18.14
Petrol – 1 litre (£) 0.66 0.68
1 minute of prepaid mobile tariff (£) 0.07 0.08 CBRE Residential 78–79 Global living
The most populous city in the UAE and home Dubai is currently one of the only areas in Dubai to 2.4 million people, Dubai is one of the the Middle East where non GCC nationals seven emirates and is located on the can both buy property and own land, a legal southeast coast of the Persian Gulf. Dubai right that allows significant international The epitome of luxury, serves as the gateway to the thriving market investment in the market and supports Dubai is known for its high of more than 2.5 billion consumers in the both sales and rentals. wider Middle East region, which explains Dubai UAE profile shopping, why thousands of the world’s top The market has been very buoyant, last year multinationals have a home in the city. there were 22,989 transactions 28% higher ultramodern skyline, It must have been a factor when awarding than their 10 year average of 17,922. electric nightlife, manmade Dubai the right to host Expo 2020. More than This demand and strong activity fed directly GDP growth last year 2014 (%) 4.6 2.6 140 airlines serve Dubai, sitting between through to apartment prices, which increased Expected GDP growth 2015 (%) 3.8 2.8 palm shaped islands, the the sister hubs of London and Singapore by 18.6% in the year up to Q4 2014. among others, it provides fast travel to world’s only seven star hotel Unemployment rate (%) 2.6 n/a and a thriving economy. most global destinations; so it’s no wonder Dubai is the home of choice for young Number of households Average earnings (£) n/a n/a professionals who list weekend travel as their most common hobby. Not that residents Inflation rate (%) 2.8 2.6 need to go anywhere; the emirate hosts more events, activities and shows that 385,000 Base interest rate (%) 1.0 1.0 one could enjoy in a lifetime. After two years of significant growth that saw Average age 27 n/a Lured by the opulent lifestyle and tax-free double digit house price increases since salaries, Dubai is an almost entirely expat 2012, Dubai’s property market experienced Current population (000s) 2,389 9,577 city, with 92% of the population made up a 5% drop in overall house prices over the of expats and migrant workers. If you live in past year. This means current values are Expected population growth (%) 50.0 19.9 Dubai you don’t have to venture out of the now just shy of £350,000 or £290 per sq ft. city to see and learn so much more about With subdued demand, and cautious Number of households (000s) 385 n/a
the world; a true cultural melting pot, the investor sentiment, continued modest price FOR plethora of backgrounds is prominent falls are expected throughout the year and Average property price (£) SALE 348,969 n/a around any restaurant table – some into 2016. However, while these drops apply Average property price (£ per sq ft) 290 n/a resembling UN meetings! to the overall market, they do not extend to luxury stock which experienced growth of House price growth annual (%) -5.0 n/a 3.6% over the year and prime stock which Expected ten year population growth experienced growth of 2.2%. Average annual property transactions last decade (000s) 17,922 n/a
There has been a significant amount of Property transactions last year (000s) 22,989 n/a % development recently with around 25,000 50 units built on average each year in Dubai. Value of housing stock (£bn) 134 n/a This trend is expected to continue. So it’s no surprise its population is Share of owner occupiers (%) n/a n/a expanding rapidly, with over 1 million more The rental market on the other hand is residents expected over the next decade. less volatile, with current rents being £1,485 Share of private renters (%) n/a n/a It also has a thriving and rapidly expanding per month (following growth of 7% over economy that, despite the fact it was built the last year). Average yield (%) 6.5 n/a
upon the back of the oil trade, is now based TO largely on hospitality, real estate, trade and Dubai certainly burned too brightly for a little Average rent (£ pcm) LET 1,485 n/a financial services. Last year the city while but it has learned many lessons and experienced GDP growth of 3.8% and is there is much to the city that will remain, long Annual growth in rent (%) 7.0 n/a expected to experience the same in the after the oil has run out. coming year. Average annual private housebuilding last decade 25,019 n/a
Cappuccino (£) 2.80 2.73
Beer – 0.5 litre (£) 6.14 6.14
Milk – 1 litre (£) 0.99 1.01
Three-course meal for two, mid-range restaurant (£) 26.33 26.33
Monthly public transport pass (£) 38.62 35.11
Petrol – 1 litre (£) 0.31 0.31
1 minute of prepaid mobile tariff (£) 0.09 0.08 CBRE Residential 80–81 Global living
Istanbul Considered truly a global city, Istanbul is The rental market enjoyed similar growth of the largest city in Turkey and forms the 12% in rents taking them to £387 per month. economic, cultural and historic heart of the Demand for housing is only set to increase in There is only one place in nation. It is home to 14.4 million of the line with population growth. the world where you can country’s 77 million residents. And it’s growing, with its population expected to 61% of the population are currently owner Istanbul Turkey stand on a bridge with increase by 16.3% over the next decade. occupiers. However, this is expected to The Bosphorus strait and the mythic fog that increase as developments in the mortgage Europe on one side and often engulfs it truly is the place where East market (including competition among banks Asia the other – that place meets West; to the East stands Asia, and just and declining interest rates) will make GDP growth last year 2014 (%) n/a 2.9 1,560 metres across the bridge lies Europe. mortgage finance more accessible. is Istanbul and the strait Expected GDP growth 2015 (%) 3.2 3.2 Additional demand has also come from that bridge straddles is the Unemployment rate (%) 11.2 9.9 Bosphorus. With a history Owner occupiers overseas buyers, with foreign sales increasing over 55% between 2013 Average earnings (£) n/a n/a spanning back 3 millennia, % and 2014. The European second home holiday market tends to focus on the Inflation rate (%) 8.8 8.8 this city has grown to be the 60.6 south and the Arab sovereign states focus fifth largest city in the on the north (Marmara Sea Region – Base interest rate (%) 10.75 10.75 On the European side lies the commercial Istanbul/Bursa/Yalova). world, with an exciting and historical centre of the city, with its Average age 30.9 30.7 economy to match. Byzantine and Ottoman architecture, while a There has been a significant amount of third of the city’s population lives on the home building in Turkey with around half a Current population (000s) 14,377 77,696 Asian side. With its many bathhouses, its million homes built per annum over the last Grand Bazaar, Basilica Cistern and the decade. This partly reflects the current Expected population growth (%) 16.3 9.8 glittering Byzantine mosaics of Aya Sofya, housing stock, of which up to 60% needs to the raw history of the city is still evident. be replaced, being either illegal, built without Number of households (000s) 4,078 21,531
planning or ownership title or not built to FOR However, despite the rich tapestry of its modern standards. Average property price (£) SALE 61,935 51,612 history, Istanbul’s true economic growth Average property price (£ per sq ft) 72 60 didn’t begin until the 1950s in line with its industrialisation. It is now home to a number Average yield House price growth annual (%) 15 13 of multi-national companies and international banks, has three major shipping ports, Average annual property transactions last decade (000s) 171 760 four Free Trade Zones and two international % airports. The city also has 30% of the total 5 Property transactions last year (000s) 225 1,165 commercial firms of Turkey. Istanbul is growing by the day and expects GDP However, there is a surplus in new Value of housing stock (£bn) 253 1,111 growth of 3.2% over the coming year. housing development targeting consumers in the middle/upper income bracket. Share of owner occupiers (%) 60.6 63.7 The strength of the economy is spilling into The need to clear this oversupply should the housing market. There were 225,500 lead to some competitive pricing and Share of private renters (%) n/a n/a transactions last year, which is 30% higher incentives. In contrast, there is a lack of than the long term average. On the whole, housing supply in the low to middle income Average yield (%) 5.0 5.9
schemes with good access to public bracket, which presents an opportunity for TO transport or by main road arteries drive the renewed investment in this price bracket. Average rent (£ pcm) LET 387 323 highest sales rates. All of these influences when melded together Annual growth in rent (%) 12.0 9.0 This activity has fed through to price rises; suggest a housing market which is only last year Istanbul enjoyed 15% annual going one way… up. Average annual private housebuilding last decade n/a 445,419 house price growth, taking current prices Cappuccino (£) 1.55 1.47 to £61,935. Beer – 0.5 litre (£) 1.94 1.94
Milk – 1 litre (£) 0.61 0.58
Three-course meal for two, mid-range restaurant (£) 14.55 12.12
Monthly public transport pass (£) 41.22 36.37
Petrol – 1 litre (£) 1.14 1.15
1 minute of prepaid mobile tariff (£) 0.10 0.11 CBRE Residential 82–83 Global living
Johannesburg is home to 5.137 million The residential sales market is also strong, Johannesburg people and is expected to grow by an with Johannesburg having experienced a 7% astounding 13.5% over the next decade. house price growth over the last year, slightly It is the economic and financial hub of above the national average of 6.5%. The Slick, fast, busy, yet South Africa, producing 16% of the nation’s average property price, across all types, is luxurious, Johannesburg is gross domestic product and accounting for £67,515, which is in line with the South 40% of Gauteng’s economic activity. African average, but 25% lower than in Cape Johannesburg South Africa South Africa’s most Corporates based there include FirstRand, Town. However, this average masks a wide Absa and Standard Bank, and Nedcor, range; in order to buy an apartment in one of populous city and a leading which together control 80% of total banking the more desirable northern suburbs like financial centre. But with assets. In addition, the city is host to the Dunkeld, Hyde Park, Houghton, Illovo, GDP growth last year 2014 (%) 1.3 1.5 Johannesburg Securities Exchange (JSE) Inanda, Melrose, Sandhurst, Saxonwold and Expected GDP growth 2015 (%) 2.3 2.1 an ever growing rental which is the biggest exchange in Africa, Westcliff, it will cost you something more akin and the Receiver of Revenue is located to £150,000 to £300,000. market and yields that are Unemployment rate (%) 25.0 26.4 double those in London, it is in the central business district. However, Johannesburg is not all work and Average earnings (£) 8,095 6,649 also an investor’s dream. no play; in fact it is a shopping mecca and Expected ten year population growth home to almost every luxury brand available, Inflation rate (%) 4.8 4.8 with Johannesburg’s largest shopping centre being Sandton City. Beer is unbelievably Base interest rate (%) 5.75 5.75 % affordable at only £1.04 and a cappuccino 13.5 will only set you back £1.01. A litre of petrol Average age 25.0 28.0 will cost you 67p (cheaper than a litre It attracts a rather transient workforce; of milk which will cost you 69p) and a Current population (000s) 5,137 54,359 many of whom choose to rent privately as mid-range meal out for two will cost you opposed to buy as they don’t intend to live just over £23. Expected population growth (%) 13.5 5.9 there permanently. As a result, 37% of the population live in private rental property. Number of households (000s) 1,435 14,450
While average rents in Johannesburg are Average gross yield FOR reported as £454 per month, the huge Average property price (£) SALE 67,515 68,521 discrepancy in property type and wealth Average property price (£ per sq ft) 78 80 means that this masks wide discrepancy. % Rents for a two bed apartment in a desirable 9.74 House price growth annual (%) 7.0 6.5 neighbourhood will be nearer £1,550 per month, which are in line with rents in Cape Overall, while parts of the city are probably Average annual property transactions last decade (000s) n/a n/a Town. The strong rental market is driving not the most ideal place to raise a family, a high gross yield of 9.7%. In contrast, Johannesburg offers a world class lifestyle, Property transactions last year (000s) n/a n/a gross yields in South Africa are 8.6% and work options and investment opportunities. 7.9% in Cape Town. Value of housing stock (£bn) n/a 221
Share of owner occupiers (%) 46.0 53.1
Share of private renters (%) 37.0 25.0
Average yield (%) 9.7 8.6
TO Average rent (£ pcm) LET 454 345
Annual growth in rent (%) n/a n/a
Average annual private housebuilding last decade n/a n/a
Cappuccino (£) 1.01 0.96
Beer – 0.5 litre (£) 1.04 1.04
Milk – 1 litre (£) 0.69 0.62
Three-course meal for two, mid-range restaurant (£) 23.32 18.14
Monthly public transport pass (£) 29.80 18.14
Petrol – 1 litre (£) 0.67 0.68
1 minute of prepaid mobile tariff (£) 0.06 0.08 CBRE Residential 84–85 Global living
Research team Jennet Siebrits Phillippa Drysdale Nick Axford Head of Residential Research Residential Research Analyst Global Head of Research +44 20 7182 2066 +44 20 7182 2186 +44 20 7182 2876 [email protected] [email protected] [email protected]
Mark Collins Lisa Hollands Charles Leigh Chairman of Residential Managing Director Head of International Sales +44 20 7182 2264 +44 20 7182 2264 +44 20 7182 2288 [email protected] [email protected] [email protected]
Published 2015
Exchange rates 1 pound = US Dollar 1.56, Rand 19.3, AED 5.56, Hong Kong Dollar 12.05, Turkish Lire 4.17, Thai Baht 52.2, Yen 193.7, Chinese Yuan 9.66, Canadian Dollar 2.04, Russian Rouble 101
Sources ABSA Housing Review - Lightstone, Australian Bureau of Statistics Residex., Bank of Russia, BMR, cbrates.com, CBRE Research, Census 2011, Committee on Berlin Property Values Berlin, Consensus Forecast, Economic Survey of Maharashtra 2014-15, Euromonitor International, Federal Institute for Research on Building, Federal Statistical Office Germany, FNB - TPN, GDSP, German Federal Bank, Household Income and Expenditure Survey, Japanese Annual average salary of working household, Japan: National Census ho, Japan Statistics Bureau, MED, Ministry of the interior, moodys Zillow, MOSPI, Mosgorstat, National Association of REALTORS, numbeo.com, Oxford Economics, Qatar Statistics Authority, RBI, Rosstat data, Stats SA, SCAD, Thailand, Tokyo Metropolitan Government, Trading Economics, Urban Affairs and Spatial Development, US census, World Bank
Caveat The housing market data were obtained from various local sources. We have where possible provided data for the overall ‘for sale’ market. However, in some specified cases the data are limited to apartments or condos. As a result the data may not be fully comparable across cities.
Photography Shutterstock.com: p4: Vladimir Korostyshevskiy, p9: Neale Cousland, p14: Iakov Filimonov, p16: Boris-B, p18: Patricia Hofmeester, p28: Vinicius Tupinamba, p32: pcruciatti, p36: Rrrainbow, p38: lornet, p44: View Apart, p60: claudio zaccherini, p62: Pete Burana, p68: Visun Khankasem, p70: Perati Komson, p78: ISchmidt, p82: Gil.K. p84: Tupungato. iStockphoto.com: p11: Carolyn Woodcock.
Disclaimer CBRE Limited confirms that information contained herein, including projections, has been obtained from sources 2015 CBRE believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. ©2015
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