Of all the success stories to emerge from the American real estate market in the past few years, Las Vegas has one of the most inspiring – and encouraging. The famed Nevada city was badly affected by the nation-wide recession, but since 2012, prices have been steadily climbing and are now up by an impressive 26.7% since last year. High-end properties in particular are a major driving force behind the market’s regeneration, and the number of properties valued at more than $1 million has doubled over the last two years. Local realtors’ associations are increasingly reporting a general sense of confidence that the increase in prices is not a short-term recovery, but a sign of stable and sustained growth that will continue for years to come. Las Vegas is in the Top 3 US cities searched by international consumers in April 2014, mostly by people in Canada, Germany, Italy, the Philippines, Singapore and New Zealand.
Demand and supply
In a convincing sign that the economic downturn has been successfully reversed, today’s investors will benefit from the postponement of housing projects during the collapse. Due to a rise in foreclosures and a lack of buyers, new condominiums built during the property boom between 2004 and 2007 were left empty, and many other building projects across the city were put on hold. Now, many of the condos have been purchased and the construction of housing communities has been reinitiated. In the years it will take before these new-built properties arrive on the market, prime inventory remains relatively limited. With buyers rapidly returning to the city, prices are inevitably rising.
The city of the future
Over the next ten years there should be around 45,000 new homes constructed throughout the valley. Some of these purpose built communities have been in planning stages for years, but should now see completion within the decade. In sought-after neighbourhoods such as Henderson, these developments will boast their own schools, running trails and even innovative lifestyle centres, all designed to attract affluent buyers.
A sense of optimism
Although the property market is showing impressive signs of recovery, the prices have not yet climbed back up to pre-recession levels. Between 2006 and 2012, property prices plummeted by more than 60%, which leaves ample room for continued growth despite the recent steady rise in prices. With Vegas property set to increase in value year on year, now is a sensible time to invest, while properties are still relatively affordable. International buyers, who have traditionally played a significant role in the Las Vegas market, are also returning to the city, swayed once again by its global reputation and reasonable prices.
A popular destination
There are several factors that make Las Vegas an appealing location for property investment. The state of Nevada has no income tax, and the city itself has a pleasant climate and is conveniently located close to an international airport. Las Vegas stands to benefit from the next wave of commercial building projects as well as residential ones, with a retail park and 20,000-seat arena among several new developments. The population and employment levels are both rising with house prices, with construction a major source of work.
To play your part in the rebirth of Las Vegas and add Nevada to your property portfolio, contact Engel & Völkers. With a shop based in Henderson and a wealth of international experience, our real estate agents are perfectly placed to guide you through your search.