In the heart of the US state of Tennessee lies the city of Nashville, known internationally as ‘Music City.’ It is now drawing increasing numbers of famous personalities from the entertainment industry. Many real estate buyers are opting to relocate to Nashville for its suburban appeal and due to its relatively moderate prices. “The city is currently undergoing something of a transformation with new luxury project developments. Well-known corporations and business entrepreneurs with innovative business concepts are also moving here,” says Jessalyn Wanlim, Real Estate Agent at Engel & Völkers in Nashville. One example of this is the US superstar Justin Timberlake, who has enriched the southern city’s cultural and culinary status with the opening of a first-class fine dining restaurant. The company Oracle also believes in the potential of the city, and is planning to build a tech campus that is set to further boost Nashville’s appeal with young professionals. “The rise in demand for homes and the high level of new construction activity are a reflection of the huge potential for development in Nashville. They also open up exciting new opportunities for capital investors,” says Neal Clayton, License Partner Engel & Völkers Tennessee, who forecasts a constant prices for the remainder of 2022.
A very large influx of US nationals from cities such as Chicago, New York and Los Angeles are fueling the increased demand for residential real estate in Nashville. More and more families are opting for a permanent move to the city on the Cumberland River, thanks to the rise of remote working and the flexibility of work location that this brings. Compared to the previous year, the average price for real estate has increased by 21 percent to 615,300 US dollars (approx. 604,800 euros). There is particularly high demand for detached family homes with interiors spanning 3,000 square feet (approx. 278 square metres) and large gardens that offer ample space to accommodate a large extended family. The majority of clients are looking for high-end retreats and havens of tranquility set in natural surroundings where they can escape the hectic pace of their day-to-day working life.
This high demand is reflected in property prices in premium suburban locations that are still close to the city centre. The small town of Belle Mead is well-known for its historic site and winery of the same name, and it has a reputation for being home to residents with above-average incomes. In 2022, houses here cost an average of approx. 2.5 million US dollars (approx. 2.46 million euros), marking a 43 percent price rise over the previous year. Prices for freehold apartments have risen by 57 percent, now selling for an average of 630,000 US dollars (approx. 619,300 euros).
In neighboring Forest Hills and in Oak Hill, houses sell for an average of 1.75 million US dollars (approx. 1.72 million euros). There has been a particularly sharp rise in prices for freehold apartments in these two locations: Selling for 695,000 US dollars (around 683,200 euros) on average, this marks a 144 percent rise over the previous year.
The sought-after Green Hills neighbourhood is located in the southwest of Nashville. It is somewhat busier with its shopping centre and range of different entertainment outlets, but is nevertheless a very family-friendly place to live. House prices have risen here by 27 percent, and now sell for an average of 1.5 million US dollars (approx. 1.47 million euros). Freehold apartments, having seen a slight appreciation in value of 6.4 percent, are now priced at an average of 333,000 US dollars (approx. 327,300 euros).
“Nashville has a great deal to offer, with many advantages. That’s why celebrities from creative industries are flocking here, along with more and more prospective buyers from other states looking to relocate their primary residence here,” says Jessalyn Wanlim, adding: “The relatively low cost of living, combined with a high per capita income, allows for a high standard of living and better working conditions than in other state capitals.” The investments being made by large corporations from the technology and healthcare sectors are a contributing factor in the upturn in the real estate market. The sharp rise in popularity means that the prices of detached houses and apartments are also expected to increase in the future.
Jessalyn Wanlim, real estate agent and star of the Netflix series “Workin’ Moms”, joined Engel & Völkers in Nashville in May 2022 and is specialised in the brokerage of premium real estate.