10 top locations to invest in international property in 2022

As the global property market begins to normalise, estate agents’ network Luxury Portfolio International identifies some of the best places to invest in this year.

After spending so much time cooped up at home, it’s hardly surprising that people are heeding the call of new horizons, whether it is the prospect of relaxing on a beach, gazing across majestic mountain vistas or enjoying the thrills of London, New York and LA.

Luxury property buyers are taking a serious look at the top international locations to invest in 2022.

Based on a study of more than 4,500 wealthy property owners and investors, The State of Luxury Real Estate, by global estate agents’ network Luxury Portfolio International (LPI), found that ‘buyer demands have not changed on the basics: location, quality, and well-run, family friendly places to live’.

Remote working and Covid-related lifestyle changes continue to influence the buying process, but people ‘are not, in general, making hasty decisions like they may have a year ago’.

Many are motivated by the desire to transition financial gains to real property assets as investments, others by their wish for a better place to live, a better location or a house that better meets their changing needs.

There is, however, a surprising ‘fear of missing out’ at the moment, fuelled by concerns over the potential rise in interest rates or house prices. Partly because of this, many buyers have an imminent time-frame — they want to invest in international property within this year, leading researchers to predict growth across all regions and particularly in Europe and Asia.

Interestingly, despite the rise in remote working and technology making distance less material, a little more than half of the buyers are looking to invest in city locations and more than three quarters are looking to be within commuting range of one — particularly those hailing from the Asia- Pacific region. With this in mind, here’s LPI’s pick of where to invest in international property in 2022.

Where to invest in international property across the world in 2022

1. Berlin, Germany

Over the past four decades, Berlin has transformed: the grim grey atmosphere of the Communist era is a faded memory and the city has become a cosmopolitan hub with a vibrant culture and an equally buzzy nightlife, which draws hip, young designers and savvy tech entrepreneurs alike. Europe should see some of the highest property prices increases this year and Berlin is expected to lead the pack. The German city has been relatively under-priced when compared to its economic performance until now and the gap with other European powerhouses should begin to narrow in 2022.

2. Seoul, South Korea

Ten years ago, the South Korean capital’s affluent, trendy Gangnam district, with its swanky boutiques and fabulous restaurants, became a household name worldwide thanks to K-pop singer Psy, who immortalised it in a song and video. Now its fame is compounded by the investment appeal of its properties, whose market had a very positive year in 2021. With luxury homes few and far between, the trend is expected to continue in 2022.

3. London, UK

Whether it’s the theatres, the art galleries, the world-class food, some of the world’s most exciting new buildings or the traditional appeal of the change of the guard at Buckingham Palace, London has it all. Which is probably why the much touted demise of the British capital, announced on the back of the rise in remote working, has proven unfounded and the city looks set to bounce back this year, especially now that international buyers are making their return.

4. Singapore

With a number of millionaires that defies its diminutive size, Singapore feels like one of the buzziest, busiest cities on earth—the perfect place to live for those who want to be at the pulsating heart of the global economy. The property market is generally robust in a country where people abound and space is scarce, and Singapore saw good growth last year, with more expected in 2022.

5. Milan, Italy

Milan is imbued with style — after all, it’s Italy’s capital of fashion — and this extends to its magnificent buildings, which are a mix of the very ancient (the 1,600-year-old Basilica di Sant’Ambrogio) and the cutting-edge contemporary (Boeri Studio’s Vertical Forest towers, one of Europe’s largest and most spectacular regeneration projects). But the city is also Italy’s financial capital and its property market has awoken from the Covid slumber, with strong growth expected for 2022.

6. Madrid, Spain

Spain’s capital is often overshadowed by Barcelona, but undeservedly so. The architecture is majestic, the food is fabulous and El Prado and Reina Sofia museums are two of the world’s best (think Goya for the former and Picasso for the latter). The home of Spain’s Royal Palace saw some steady price rises last year, with more expected in 2022.

7. New York City, New York

Never bet against the appeal of the Big Apple, whether it’s because of the mellow brownstones, the soaring skyscrapers, the dizzying concentration of some of the world’s best restaurants, galleries, museums and bars or the stately Hudson. Like London, New York was expected to be on the way down as people left it during the early days of Covid for pastures greener and more spacious. But the tide has turned, buyers have returned and property prices have followed suit, with lively growth forecast for 2022.

8. Los Angeles, California

It has Hollywood, the golden beaches, great weather, sweeping views and even vampire tours. Now, further adding to LA’s appeal are rock-solid property prices, which saw a year of unbridled growth in 2021, fuelled in part by the reduction in Covid restrictions. Expectations for 2022 remain rosy.

9. Dubai, United Arab Emirates

More is more in Dubai, a city known for its unabashed opulence. After all, where else would you find a state-of-the-art sky slope despite the blazing heat or a lush garden in the middle of the desert? And now the local property market is even hotter than the weather. Growth in the second half of last year reached dizzying heights, helped in part by a well-established vaccination programme, but also by international buyers’ appetite for local homes. Prices are expected to keep rising, albeit perhaps in a more measured manner.

10. Sydney, Australia

The harbour, the Opera House, the sunset cruises — what’s not to like about Sydney? Property buyers worldwide have woken up to the appeal of the Australian city, which performed solidly in 2021. Prices look set to continue rising this year.