10 urban property hotspots to watch

Williamsburg, Brooklyn
Daniel Grill | Getty Images
Williamsburg, Brooklyn

From Sydney's Barangaroo to Singapore's Tiong Bharu, residential property investors are looking to up-and-coming urban hotspots for strong returns.

"As prices have risen in some target markets, the opportunity for developers to attract buyers to alternative markets within the same cities, or even alternative city markets is a trend we expect to see expand in 2015," said Liam Bailey, head of research at real estate consultancy Knight Frank.

"While the ever popular global hubs are set to take the lion's share of this investment, we also think 2015 will see a growing appetite for alternative markets and more speculative plays from investors," he said.

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Knight Frank's Global Cities 2015 Report outlines 10 urban markets around the world for investors to monitor.

Williamsburg, a hipster neighborhood in Brooklyn, New York was first on the list.

"While not a surprise 'tip', Williamsburg is after all the epitome of the gentrification model," Knight Frank said.

Tokyo's Kachidoki Bay-Area, which the consultancy calls "as big an opportunity as you can find" in Asia's most populous city, is another market to watch.

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In Australia, there are great expectations for Barangaroo a large-scale urban development located north-west of Sydney's city center, where over 1,000 residential apartments are slated to be built over the next ten years.

The plush 16th Arrondissement of Paris is also on the radar. "If you want a safe but buzzing area this is it. Development opportunities are small scale and subject to intense competition," the consultancy said.

Capetown's central business district, where new residential developments are emerging, is a space to watch.

Also in Africa, Nairobi's affluent suburbs Runda and Gigiri could present opportunities with several retail and leisure developments in the pipeline.

In Asia's financial capital Hong Kong it flagged Kowloon West, where infrastructure investments are helping to transform the neighborhood into upscale residential area.

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Meanwhile, Singapore's charming, old neighborhood of Tiong Bahru is gaining in popularity among the city's young professionals, offering potential investment opportunities.

While values have risen strongly in London's Victoria Park, there could be further scope for growth with the city's tech scene pushing demand, the consultancy said.

Finally, keep an eye on Dubai's Business Bay, due to its proximity to the city center and good connectivity to major arterial roads.