Which Real Estate Markets are Still Worth Investing in?
With the US real estate market stagnating, the British property market on the brink of a negative correction and all traditional second home locations that Brits and Americans invest in suffering as a direct result, which real estate markets are still worth investing in?
There are six markets that have managed to remain attractive to investors - these six markets are all termed 'emerging' which basically equates to the fact that they are not over sold and over blown and they offer property investors some serious potential for short, medium or long term capital appreciation as well as strong rental yields derived largely from expanding tourism markets.
1) Brazil
According to the World Travel and Tourism Council, tourism demand in Brazil in 2007 is growing at a rate of 7.2% which is almost 3% higher than the global average increase, and what's more, for the next ten years this rate of increase intensity is expected to remain sustainable.
Brazil is being heavily and broadly marketed as an accessible, tropical and exotic location with significantly reduced crime rates, a booming economy and masses of tourism interest. As a result British and American interest has surged as has that of mainland Europeans and it seems that as fast as Brazil's star is rising, so investment into the nation's real estate market is gaining pace.
Strong capital appreciation potential exists at least for the medium term, and rental income is exceptionally good with year round returns possible in the most popular holiday hotspots.
2) Croatia
Croatia is a stunningly beautiful nation in Europe - think of it like an untouched Italy with property prices at least half the price! The nation is poised on the brink of EU entry which will bring significant investment and allow the country to prosper economically speaking.
Croatia is already becoming a popular holiday hotspot and it's breathtakingly beautiful coastline is only topped by the hundreds of islands the country has off its shores. There is room for short term capital appreciation in coastal resorts and in the main cities but those looking to Croatia are generally committing to long term steady increases in prices and increasing rental demand and yield.
3) Malaysia
The short term potential in Malaysia has taken a knock following on from the US market situation but long term, all the fundamentals remain in place for exceptional profitability. The government of Malaysia are also very astute and do all they can to encourage not only international inward flows of investment into the property market, they are doing what they can to promote domestic interest in buying real estate as well.
On top of this Malaysia is promoting its virtues as a holiday location and a place to retire and live tax free - as stated and as evident, the fundamentals are exceptional for solid long term gains.
4) Montenegro
The World Travel and Tourism Council last year tipped Montenegro to become the fastest growing travel and tourism economy in the world and since then there has been a 400% rise in property investment transactions driven largely by British, Irish and Russian investors....starting prices are still incredibly low, investment into the improvement of the nation is intense and there are no two ways about it - Montenegro has exceptional long term potential for capital growth and rental demand.
5) Morocco
The government of Morocco has a stated and defined vision for the nation over the next decade - this vision is for development and economic progress in Morocco and as part of the vision the government is committed to doing everything it can to increase visitor numbers from 2 million a year to 10 million a year by 2010.
In the first three quarters of last year tourism numbers were up almost 10% on the previous year's figures, average spend per tourist was up over 25%, and by the end of last year there had been an overall growth of 12% on the previous year's figures - so as you can see the vision is on target.
Part of the realization of the vision is also in the creation of resorts across the country into which investors can buy residential real estate and profit from the growing number so tourists looking for somewhere to stay - having the government's complete commitment to the development of the nation through tourism and real estate gives investors massive confidence in Morocco.
6) Panama
And finally, if your home currency is anything other than the US dollar you are quite literally 'quids in' in Panama right now. Property prices in Panama are exceptionally low thanks to the weak US dollar and the potential for these prices to rise and rise are based on the expansion of the canal and the promotion of the destination as a desirable place to live, work, invest and even retire. And because anyone can get a mortgage to buy property in Panama you can invest today if you want fantastic, very long term potential for growth.
There are six markets that have managed to remain attractive to investors - these six markets are all termed 'emerging' which basically equates to the fact that they are not over sold and over blown and they offer property investors some serious potential for short, medium or long term capital appreciation as well as strong rental yields derived largely from expanding tourism markets.
1) Brazil
According to the World Travel and Tourism Council, tourism demand in Brazil in 2007 is growing at a rate of 7.2% which is almost 3% higher than the global average increase, and what's more, for the next ten years this rate of increase intensity is expected to remain sustainable.
Brazil is being heavily and broadly marketed as an accessible, tropical and exotic location with significantly reduced crime rates, a booming economy and masses of tourism interest. As a result British and American interest has surged as has that of mainland Europeans and it seems that as fast as Brazil's star is rising, so investment into the nation's real estate market is gaining pace.
Strong capital appreciation potential exists at least for the medium term, and rental income is exceptionally good with year round returns possible in the most popular holiday hotspots.
2) Croatia
Croatia is a stunningly beautiful nation in Europe - think of it like an untouched Italy with property prices at least half the price! The nation is poised on the brink of EU entry which will bring significant investment and allow the country to prosper economically speaking.
Croatia is already becoming a popular holiday hotspot and it's breathtakingly beautiful coastline is only topped by the hundreds of islands the country has off its shores. There is room for short term capital appreciation in coastal resorts and in the main cities but those looking to Croatia are generally committing to long term steady increases in prices and increasing rental demand and yield.
3) Malaysia
The short term potential in Malaysia has taken a knock following on from the US market situation but long term, all the fundamentals remain in place for exceptional profitability. The government of Malaysia are also very astute and do all they can to encourage not only international inward flows of investment into the property market, they are doing what they can to promote domestic interest in buying real estate as well.
On top of this Malaysia is promoting its virtues as a holiday location and a place to retire and live tax free - as stated and as evident, the fundamentals are exceptional for solid long term gains.
4) Montenegro
The World Travel and Tourism Council last year tipped Montenegro to become the fastest growing travel and tourism economy in the world and since then there has been a 400% rise in property investment transactions driven largely by British, Irish and Russian investors....starting prices are still incredibly low, investment into the improvement of the nation is intense and there are no two ways about it - Montenegro has exceptional long term potential for capital growth and rental demand.
5) Morocco
The government of Morocco has a stated and defined vision for the nation over the next decade - this vision is for development and economic progress in Morocco and as part of the vision the government is committed to doing everything it can to increase visitor numbers from 2 million a year to 10 million a year by 2010.
In the first three quarters of last year tourism numbers were up almost 10% on the previous year's figures, average spend per tourist was up over 25%, and by the end of last year there had been an overall growth of 12% on the previous year's figures - so as you can see the vision is on target.
Part of the realization of the vision is also in the creation of resorts across the country into which investors can buy residential real estate and profit from the growing number so tourists looking for somewhere to stay - having the government's complete commitment to the development of the nation through tourism and real estate gives investors massive confidence in Morocco.
6) Panama
And finally, if your home currency is anything other than the US dollar you are quite literally 'quids in' in Panama right now. Property prices in Panama are exceptionally low thanks to the weak US dollar and the potential for these prices to rise and rise are based on the expansion of the canal and the promotion of the destination as a desirable place to live, work, invest and even retire. And because anyone can get a mortgage to buy property in Panama you can invest today if you want fantastic, very long term potential for growth.
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