In general, we can say that a large number of investors have not considered the periphery as an interesting area to invest in housing and have focused their investments in assets in the big city for their biggest gains. Typically, the housing boom begins and ends in the big city rather than in the periphery and continuing at the periphery when it has completed the first location. When the boom is ending in the big city and housing prices are achieved by very high, having almost reached its maximum, it is recommended the sale to acquire assets in the far periphery (except when there is excess supply).
In developed countries, in recent decades, the volatility of housing prices in areas emblematic of the great city has been well above the more modest areas or the periphery. In the first location, the price of housing has risen above average in boom periods and decreased to a greater extent than the overall market in a downturn. This is due to increased demand because of investment in these areas during periods of growth and almost absence of it in the early stages of recession. It is therefore advisable when the asset swap market in the big city shows signs of exhaustion.
Another aspect is the return value through rent. In the early stages of boom in the big city, the houses located on the periphery have a significantly higher rental returns through the emblematic areas located at the first location. In 2005 in Spain the difference was about 50%.
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