"A large, young, well-educated population and the associated presence of new tech industries adds to the attractiveness of these cities"
The recovery in residential real estate markets that has taken place in many areas of the globe since 2008 has been concentrated in top tier cities and in prime markets. These have been the investments of choice for those seeking real estate investments. With many world city prime markets now looking fully valued, the question is: which cities will show growth next? Investors have already been spreading their wings away from the established safe havens and looking at alternatives, both in secondary markets and second tier cities. Growth in Dubai over the last year, for example, has been phenomenal – its importance in the Middle Eastern region and its high profile has enabled it to now fully enter the league of high-performing world cities.
We have identified 12 cities around the globe that don’t have world city status but which we see as rising second tier cities with the potential to show strong residential property price growth as global investors seek alternative locations. They range from well known and very well established cities such as Melbourne, Australia to little known but interesting centres in developing economies such as Chennai, India that have a high number of ultra-high-net- worth residents.