1、Global living 2016A city by city review23CBRE Residential Global living 2016IntroductionGlobal forces are constantly at work changing our cities and shaping our lives.The homes we live in,invest in,purchase and rent,and the motivations for doing so,are being manipulated and modified by these global
2、changes and influences.In this,our second annual Global Living report,we examine the housing market of 35 of the world cities.Many of these cities are traditional global centres that have been on the world stage for some time,but others are just rising in prominence and promise.In this report,we foc
3、us on how the residential property market in each of our global cities has performed over the last 12 months,analysing each citys individual story.What has been the standout achievement in each city?Have prices changed dramatically,have rents moved up or down,or have certain areas within the city be
4、come suddenly popular with locals or those from overseas?Again this year,some surprising narratives have been found:Istanbul and Vancouver have had the highest property price growth at 25%and 22%respectively,Bangalore(in our report for the first time)has made it into the top three for rental growth
5、at nearly 10%,and Singapore,topping the list of the most expensive city in which to buy a property actually suffered property price decline last year of 3.1%,one of only six of our 35 cities to do so.Urbanisation of the worlds major cities continues unabated,and with this will come the need and desi
6、re for more housing,be it renting or buying.This report gives some insight into how this is manifesting itself in our ever-changing world and we hope you find it illuminating and informative.Jennet SiebritsHead of Residential Research45CBRE Residential Global living 2016City by cityA quick glance at
7、 the main residential marketsLos Angeles$567,700$2,544pcmVancouver$373,450$890pcmToronto$268,499$930pcmChicago$196,200$1,650pcmNew York$726,000$2,422pcmMontreal$197,197$572pcmDublin$356,923$1,563pcmMadrid$161,223$903pcmManchester$175,351$1,045pcmLondon$550,632$2,810pcmBarcelona$148,296$777pcmParis$3
8、51,981$1,280pcmFrankfurt$302,167$959pcmBerlin$236,581$643pcmIstanbul$137,614$754pcmMoscow$179,200$750pcmRome$349,650$2,497pcmMiami$232,800$1,868pcmLisbon$192,996$717pcmCape Town$122,812$921pcmJohannesburg$104,886$678pcmSydney$518,251$1,665pcmSingapore$850,260$2,960pcmBeijing$628,974 n/aBangkok$159,5
9、00$531pcmAbu Dhabi$445,500$2,559pcmDoha n/a n/aMumbai$306,000$825pcmBangalore$270,750$780pcmDubai$453,600$2,317pcmEdinburgh$249,460$1,453pcmHong Kong$840,230$1,960pcmShanghai$772,869 n/aAverage home price(apartments only)Average monthly rent,per calendar month(pcm)Asia PacificEuropeMiddle East,Afric
10、a and TurkeyAmericasMilan$299,561$2,286pcm67CBRE Residential Global living 2016With 25%annual home price inflation,Istanbul comes out as the city with the highest annual growth.Demand has been very strong from both domestic buyers and more recently,foreign buyers particularly from the Middle East wh
11、o view Istanbul and Turkey as a safe harbour for wealth.Second on the list is Vancouver,a city which has experienced exceptionally high demand for housing over the last 12 months,with overseas investors in particular,willing to pay ever-higher prices for what is seen as a secure investment in a stab
12、le political and economic environment.Once again this year,Hong Kong has come out on top with the highest values per square foot(psf)at over$1,500.As more and more people continue to crowd into this market and the small land mass,Hong Kongs property sizes,at circa 560 square feet,are one of the smal
13、lest of all of our global cities researched.Compare this with second place Singapore,whos average property value of$920 psf is nearly 40%lower than Hong Kong,but where the average unit size is almost double,at 980 square feet.For the second year in a row,Chicago tops our list with the highest averag
14、e yields.Again,the large multi-family housing sector in this city is largely responsible.Two of the other three US cities in our global list also make the top ten,with Miami and NYC posting average yields of 9.6%and 7.5%respectively.Possibly reflecting a market bounce back after a rapid decline in r
15、ents post-2007,Madrid has come out on top with the highest annual rental growth of 11%.Istanbul recorded the second highest at 10%,partly a result of strong economic growth last year although with annual inflation of over 7.5%,real rental growth is not as sharp.Nearly all of the top ten cities with
16、the highest average rents posted rates over$2,000 pcm.Singapore,at$2,960 pcm,comes out on top as the most expensive city in which to rent.This is followed by London,just 5%cheaper than Singapore,while Abu Dhabi and Los Angeles round out the top spots with average rents of over$2,500 pcm.Johannesburg
17、 and Istanbul again vie for top spot this year for the global city with the best value average property prices.At$122 psf and$128 psf respectively,these property values are one tenth that of the most expensive value for money,Hong Kong.Global residential property markets:a comparisonBefore we begin
18、the city by city analysis,these comparison pages provide an easy at-a-glance assessment of how these cities stack up against each other.Annual apartment price growth(%)16Istanbul25.02Vancouver22.337Shanghai21.244Sydney11.55London11.5610 Cape Town11.075Berlin10.68Miami10.599Beijing7.510Lisbon7.4Avera
19、ge apartment price($psf)11Hong Kong1,501.8825Singapore919.8233New York907.5042London734.1854Paris541.516Shanghai511.277Beijing469.388Frankfurt401.009Bangkok370.45107Los Angeles367.00Average yield(%)11Chicago10.124Miami9.63Milan9.242Johannesburg9.05Rome8.663Cape Town8.079New York7.586Manchester7.295A
20、bu Dhabi7.010Edinburgh6.9Average annual rental growth(%)1Madrid11.023Istanbul10.03Bangalore9.846Dublin9.35Manchester8.76Lisbon8.37Miami5.489Los Angeles4.29Vancouver4.110New York3.9Average monthly rent($pcm)13Singapore2,96021London2,81032Abu Dhabi2,55844Los Angeles2,5445Rome2,49765New York2,4227Milan
21、2,28686Dubai2,16097Hong Kong1,960109Miami1,868Average apartment price($psf)12Johannesburg121.7921Istanbul127.853Bangalore142.5043Cape Town142.6055Chicago143.0067Barcelona148.307Miami155.0084Lisbon157.6996Madrid161.2210Montreal164.33Top ten cities with highest annual apartment price growthTop ten cit
22、ies with highest valuesTop ten cities with highest average yieldTop ten cities with highest average annual rental growthTop ten cities with highest average monthly rentTop ten cities with lowest valuesGrey numbers=position last year89CBRE Residential Global living 2016EdinburghDublinLondonManchester
23、BerlinMoscowParisRomeMilanFrankfurtMadridBarcelonaLisbonEurope1011CBRE Residential Global living 2016FORSALETOLETFor Barcelona,the effect of hosting the 1992 Olympics was not just increased international tourists,but the physicality of the city changed and transformed.Neighbourhoods were redeveloped
24、,there was an intense focus on modern design,transportation and infrastructure were enhanced and the city was at once old and new,historic and modern.What was once a thriving port city that had turned its back to the sea was fast becoming a prospering tourist mecca embracing its seaside position and
25、 taking advantage of its rich arts and cultural history.In 2009 Barcelona was ranked one of the worlds most successful cities as a brand.In the same year it was ranked fourth best of European cities for business.The economic crisis however gripped Spain and by 2011 and the entire country saw its hou
26、sing market effectively crash.Barcelonas property market took a sharp turn and,even with inflation included,house prices dropped by around 50%during the worst of the downturn.A larger decline than the other major Spanish cities.The economic recovery began in earnest in 2014 and has been gaining in m
27、omentum.Following 2014s GDP growth of 1.2%,2015 saw growth of a much more robust 3.3%,slightly above the national average growth of 3.2%last year.This years growth is anticipated to be slightly lower at 2.8%but this is largely a reflection of a weakening global economy.The strengthening economic pic
28、ture across Spain and Barcelona has given rise to strong house price growth over the year.With average prices in Barcelona now$148,296,this reflects growth of 5.9%last year.2015 also saw a strong volume of residential transactions,with the number of sales reaching 36,950;this is slightly above the l
29、ong-term average of 36,049.Property remains undervalued here following the sharp post crisis declines.This,coupled with Barcelonas strong and respected international reputation,means property here is an attractive asset for the foreign investor.Areas such as Ciutat Vella and Eixample often see some
30、of the strongest home price inflation,as a result of being so popular with overseas buyers.Contrary to home price growth,2015 saw virtually no rental growth in Barcelona.With average rents of around$863 pcm,this is unchanged from one year prior.Such little growth is partly down to low demand,as Barc
31、elonas share of renters as a proportion of all households is under 20%.BarcelonaLong periods of agreeably warm weather,a Mediterranean seaside location unrivalled by most other large European cities,full of history and all the traditional culture of a European metropolis,Spains second city rose to i
32、nternational prominence after hosting the 1992 Olympics and has never looked back.Average annual salary$30,730Average age42 GDP growth last year 2015(%)3.33.2Expected GDP growth 2016(%)2.83Unemployment rate(%)17.520.9Average earnings($USD)30,73028,499Inflation rate(%)-0.5-0.5Base interest rate(%)00A
33、verage age4242Current population5,400,000 46,400,000 Average annual population growth next decade(%)-0.3-0.2Number of households2,100,000 18,000,000 Average property price($USD)148,296114,330Average prime prices($USD)n/an/aAverage price per square foot($USD)148.3114.3House price growth annual(%)5.94
34、.2Average annual property transactions last decade36,049 427,142 Property transactions last year36,950 354,132 Share of owner occupiers(%)n/a78.0Share of private renters(%)19.815.4Average yield(%)6.34.6Average monthly rent($USD)863n/aAnnual annual rental growth(%)00.1Average annual private housebuil
35、ding last decade8,033 74,716 Mid-range meal for two($USD)44.4042.18Cappuccino($USD)1.861.74Milk 1 gallon($USD)3.513.27Cinema ticket($USD)8.888.88Fitness club membership($USD)51.7042.10Gasoline 1 gallon($USD)5.185.03Basic utility package($USD)143.41132.82Pair of jeans($USD)92.3582.38BarcelonaSpain121
36、3CBRE Residential Global living 2016FORSALETOLETBerlinGermany GDP growth last year 2015(%)2.81.5Expected GDP growth 2016(%)1.81.7Unemployment rate(%)10.76.4Average earnings($USD)19,53722,763Inflation rate(%)n/a0.3Base interest rate(%)00Average age4243Current population3,469,849 81,197,537 Average an
37、nual population growth next decade(%)3.3-2.83Number of households1,963,200 40,200,000 Average property price($USD)236,581166,623Average prime prices($USD)377,789318,359Average price per square foot($USD)314221House price growth annual(%)10.68.8Average annual property transactions last decaden/an/aPr
38、operty transactions last year23,084 n/aShare of owner occupiers(%)15.043.3Share of private renters(%)81.251.3Average yield(%)3.43.7Average monthly rent($USD)644495Annual annual rental growth(%)1.5-0.5Average annual private housebuilding last decade3,880 182,679 Mid-range meal for two($USD)44.4044.40
39、Cappuccino($USD)2.642.82Milk 1 gallon($USD)3.033.02Cinema ticket($USD)11.1011.10Fitness club membership($USD)26.9234.38Gasoline 1 gallon($USD)5.655.65Basic utility package($USD)244.38240.06Pair of jeans($USD)81.4784.57Berlin is a world metropolis of different cultures,politics,media,and science.The
40、city has seen many changes over the last two decades and modern Berlin has flourished over that time,with a population of 3.5 million and an economy which grew at 2.8%last year.Employment levels have also thrived recently and the city now boasts an unemployment rate of 10.7%,its lowest level in over
41、 24 years.Recently,the citys economy has centred on innovations and start-ups and the service sector including a range of creative industries,research facilities,media,IT and communication.At just 15%,Berlin has one of the lowest levels of owner-occupation rates in Germany and the lowest of all the
42、major cities researched.However,this has increased from 10%since the fall of the Berlin Wall,and is expected to continue rising.Indeed Berlins sales market is experiencing strong growth at the moment,with 11.2%price growth between 2013 and 2015,pushing median asking prices for a condo apartment to$3
43、14 per square foot,or an average of$236,581.Private and institutional investors have been active,this reflects the continuing growth of the citys population and economic strength,and thus increasing incomes,which entices the investor with quick returns.In addition,owner occupiers are finding that mo
44、nthly mortgage repayments,with historically low interest rates,are often lower than rents.Development activity in Berlin continues apace,with 240 schemes being developed in 2015,totalling 22,000 units,averaging around 92 units each.Of the total units around 62%were condominium style apartments,with
45、the remainder being detached,semi-detached or terraced housing.Of the units built,38%were destined for the rental market.With such a huge proportion of people renting in the city,the rental market is a much larger sector in Berlin than the sales market.It is also one of the most affordable in German
46、y,with a median asking rent of just over$100 psf,equivalent to circa$644 pcm.Last year saw rental growth of circa 1.5%across the city,much lower than 2014s growth of 5.7%.This deceleration in growth is not considered to be due to the recently enacted Mietpreisbremse(capping of rents on re-letting),b
47、ut rather more likely down to a threshold being reached in terms of ability and willingness to pay,particularly in some of the lower-priced submarkets.Berlins reputation as an affordable city is not just confined to the property market,but extends to everyday cost of living as well.With a mid-range
48、meal for two coming in at around$44 in Berlin,this is 15%below Frankfurts average of$52 and 33%less than what you would expect to pay in London.Similarly,a monthly gym membership in Berlin would set you back around$27 per month,compared with$45 in Frankfurt.BerlinBerlins notorious love of the arts a
49、nd innovation and its welcome adoption of all things creative,cultural and cutting edge,has long made it a trendsetting city.From its remarkable museums and memorials to its many markets,Berlin is a cosmopolitan community that has something for everyone.GDP growth in 20152.8%Share of renters81%1415C
50、BRE Residential Global living 2016FORSALETOLETThe Dublin region is the economic heartland of Ireland and the area was the epicentre of rapid economic expansion during the Celtic Tiger period in the mid-2000s.Companies such as Microsoft,Google,Amazon,eBay,PayPal,Accenture and Pfizer were attracted to
