From start to finish, 2016 was certainly an interesting year. Whilst these are uncertain times, there’s reason for optimism. The knee-jerk reactions of 2016 seem to be behind us; major stock exchanges have long since bounced back following the shocks of the Brexit vote and US presidential election and there’s a strong sense of “business as usual” in the markets.

As volatility tends to translate to investment risk, property represents an opportunity to diversify investment portfolios to manage these threats. Property can help an investor mitigate their exposure to a number of events including geopolitical or economic volatility in their home market, and foreign exchange fluctuations. One could argue that this type of diversification is now more important than ever, but really this has always been the case, and this year is likely to be no different.

We’ve earmarked a few key international hotspots for UAE property investors to consider that show true value, investment growth, and potential.

UK

The steady upward performance of the UK property market over the past decade illustrates the stability of property over more traditional, and often more volatile, assets such as stocks or commodities. In the wake of the financial crisis, London property dipped less and rebounded more quickly than other asset classes.

The market subsequently recorded steady average price growth to surpass its previous high point as early as 2012.

Six months on from the Brexit vote, there are signs that a new normal has taken hold. But for many sectors, it’s still business as usual, certainly in terms of residential property. A chronic housing shortage was recently flagged by the Confederation of British Industry (CBI), which is actively driving up demand and prices in London.

As a spokesman for Juwai, China’s biggest international property portal, explained after the Brexit dust started to settle, and following a 40 per cent spike in sales enquiries, “the UK looks like the same old safe haven as ever — but cheaper”.

Outer London along with key regional hubs such as Manchester and Liverpool look set to form the heart of our UK strategy for 2017. Foreign investment into the “northern powerhouses” according to the UK Government has increased by 127 per cent in the last two years.

In particular, Manchester is currently the strongest UK market outside London with the greatest economic growth when compared to the rest of northern England. It currently offers rental yields of 6.8 per cent, the highest in the UK.

Berlin

If you’ve been to Berlin recently, it is easy to see why more and more people are moving there as the city has benefited greatly from a period of strong economic growth. In a city where renting is considered the norm, Berlin has also established itself as the start-up capital of Germany with a new one set up every 20 hours.

New businesses bring people, and the according to BBU, 400,000 new residents are expected by 2030, a strong indicator for residential property. This upswing also been evident in apartment rents, with prices last year rising on average by 10.1 per cent.

This vibrant city is ranked number 1 in Europe for investment prospects, number 1 for capital value increases, and number 2 for rental increases, according to PwC and the Urban Land Institute.

Chicago

The Windy City has cemented its status as one of America’s most important financial hubs and a leading centre for technology industries. With over 31 Fortune 500 companies headquartered there, Chicago is the third-largest city in the US with a Gross Metropolitan Product of $630 billion (Dh2.3 trillion) in 2015. It remains a top choice for investors seeking good value within the US as prices remain below their pre-recession peak, allowing plenty of room for capital growth. Average yields are as high as 7.9 per cent, making Chicago one of the most desirable real estate investment markets in the US.

Despite all this, prices still remain 17 per cent below their peak according to Case Shiller HPI.

It goes without saying that the last 12 months have been dramatic. Short term uncertainty can create opportunities, such as when FX rates fluctuate in investors favour, making property investment more attractive and creating a new wave of investors and capital flows.

With many investors seemingly sidelined in 2016, this year is likely to see those same investors return, buoyed by improving fundamentals and a fear of missing the right priced opportunity.

The writer is Director of IP Global.