How to find the next international property hotspot What is it that makes one destination a property hotspot whilst another will never enjoy the benefits of a booming property market? The simple answer is supply and demand. But whilst supply and demand are market drivers in themselves, it is the market drivers that affect supply and demand that need to be understood to successfully assess whether a destination or property market is on its way up and have hotspot potential. Here are some of the most important market drivers.
Location
Infrastructure
This is possibly the single most important factor to consider before making any property investment. The location of a property is directly linked to the return on investment you can expect from both capital growth and rental yields. Comparing current property and rental prices in the immediate and surrounding areas of any proposed investment will provide first-hand knowledge of pricing. If possible, pay a visit to the area to better understand it. Needless to say that if the investment is primarily for summer holiday makers then the climate needs to be warm and sunny. If the investment is primarily for skiers then good prolonged snow fall is needed.
Investments in infrastructure are one of the best signs of an emerging property hotspot. Government investment into an area is in particular a big plus because it tends to attract money, as well as work and infrastructure improvements. New airports, roads and rail links, as well as expansion of existing services and amenities, are strong signs of economic growth and commitment by the local authorities.
Accessibility and transport links Accessibility always help to open up new areas to tourists and investors. Affordable and reliable transport links, new low-cost airline routes, new and upgraded airports, roads and rail lines
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