Why Invest in Cities?

City Property

For the true property investor, where the only reminder that they own property overseas is an ever-burgeoning bank balance not a permatan and bulging holiday wardrobe, cities across the globe are proving to be the wise choice.  For security and significant long-term profitability is not to be found on the beaches of Brazil or the ski slopes of Pamporovo, but in the world’s urban metropolises. Introducing GEM Cities - your exclusive City Property Specialist.

According to UN figures almost half the world’s population, around 3.3 billion people, live in towns and cities today, a figure that is set to balloon to 5 billion by 2030.  Demand for city property has never been higher, but this will only accelerate in decades to come as people turn their back on rurality to find employment, education and a better standard of living amongst the bright lights.

A property investment in a city provides that essential component – an ‘exit strategy’.  Whilst classic lifestyle holiday homes may return good rental income for a few weeks’ peak season and enjoy steady capital appreciation in the best locations, city property delivers relentlessly.

City property will always have an end-user.  Whether you’re buying to let, or buying to sell, market forces will near-guarantee success.  City Property has a healthy supply of tenants from businessmen on overseas secondments to student populations to emerging middle classes keen to improve their living accommodation.  Most will be long-term prospects, on months-long or indeed annual contracts, thus keeping those mortgage payments covered.  And not on a seasonal basis, but all year round.

Lucrative long-term rentals have another upside and that’s reduced maintenance costs.  A week-long tenant will not necessarily pay your property the respect it deserves and cleaning staff and management teams will have to be kept waiting in the wings to return it to a pristine state, of course at a fee.  Long-term occupants are more likely to treat your home as their home and reduce those unwanted financial outgoings.

Similarly, pick an up-and-coming city dedicated to attracting foreign investment from multinational companies and to improving infrastructure from road networks to international airports and you’ll inevitably find a waiting list of buyers keen to get on the property ladder and as a result, the keys to your home.  This will in turn fuel some quite considerable capital appreciation.

Additionally cities do not suffer from the fashion-led trends of holiday resorts.  Where the French Riviera may give way to the Amalfi coastline according to the whims of travel magazines, cities have longevity in the marketplace.  Similarly, as global economies falter and ordinary families tighten their belts when it comes to holidaying overseas, cities remain unaffected.

So if you’re prepared to take your heart out of the equation and base your property investment decisions solely on the head, consider a city property and prepare yourself for some of the biggest profits in the industry.