Guidant Financial Group Blog

Forbes magazine recently published its top 10 Real Estate Markets. Investors may want to take notice of some of these markets—near or far—as many of them provide opportunities for substantial returns. The top 10 are:

1. Washington D.C.
2. London
3. New York City
4. Tokyo
5. Shanghai
6. San Francisco
7. Los Angeles
8. Paris
9. Houston
10. Singapore

Washington D.C. ranks number one because burgeoning government programs are expected to draw large numbers of workers to the city and surrounding areas, creating higher demand for all types of residential real estate and a boom in service industries.

New York's density was widely believed to guard the metropolis from major downturns in residential property sales, but some neighborhoods have seen a three-quarter drop in sales activity, according to the article. This drop could bring bargains in the near future as the local market recovers from the financial crisis that has stricken Wall Street.

Like most California cities, San Francisco and Los Angeles have seen significant drops in housing prices. The former is also on the verge of a major commercial property glut, which could present bargains for long-term investors, while L.A. is seeing more sales activity in recent months, hinting that the market may be at least nearing its bottom.

Lastly among American cities, Houston is one of only a handful that saw prices rise overall from 2006 to 2009, and this growth is expected to continue because of the city's low business costs, which could attract corporate relocations and thus new residents.

As fears continue to rise concerning the fate of the stock market, more and more IRA holders are considering self-directed IRAs over traditional investments. These real estate markets may provide the right opportunities for investors to weather recent downturns and see returns much larger than they might have expected even in the boom years.

Read the article, which focuses on the D.C. property market, on the Forbes website here.