125: Commercial investment attractiveness of cities around the world
03-17-2007
PropertyInvesting.net team
This special report illustrates an economic model that is used to predict future capital price movements and leasehold commercial demand in some key countries around the globe. The analysis is subjective and based on a PropertyInvesting.net’s views on a mix of GDP growth, jobs growth, land shortage, services business growth and current commercial prices (mix of rental yields an capital prices) and political risk. There is a good deal of background economic research that has gone into the analysis and predictive knowledge – our track record in property price predictions is good – we are confident the model delivers valuable insights to you as a visitor to our website. The model theory is predicated on the assumption that commercial property prices and leasehold prices will rise fastest in countries with:
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high jobs growth in the services sectors
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intense land and building supply shortages
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high exposure to services and hi-tech business sectors
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high exposure to government and other sectors
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low exposure to political risk
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high yield compared with global averages
If you do not believe in this general theory, suggest you move on and do not use this analysis. The model is simple and is an effective tool to use as guidance prior to detailed research on specific investment areas and types of commercial property in a chosen country. The model can be used as an early screening tool to weed out a country on a low commercial growth path and from those on a high growth path.
It is also important to then consider areas within the city area that will benefit from positive change – an example is – Kings Cross in NE
If you have any comments on the economic model and analysis, please contact us a enquiries@propertyinvesting.net.
