Overseas Property Investment in Emerging Markets – There’s Life in the Old Dog Yet
Posted by sblb on May 19, 2009
From 2007 through till the second half of last year, overseas property investment was all the rage. Emerging markets were the focus, and off plan property the favourite, because it offered the biggest returns.
The credit crunch burst more than one bubble; it burst the overseas property investment can’t fail bubble as well as housing bubbles around the world. Now, the speculators are gone and you hardly hear a peep about overseas property investment unless it’s negative.
Yet, around the world in most of the emerging markets most recommended last year, the property markets are still going strong, and prices are likely to grow this year, even if not by as much as was expected.
There are more, but I think two of the best examples are Morocco, and the Philippines:
The African Bank for Development has just forecast 5.4% growth for Morocco this year, down from 5.8% last year, on the back of massive growth in agriculture due to near perfect rainfall levels since last year, and steady growth in the construction industry. A growing construction industry means a vibrant property market with a strong potential for growing prices this year.
The Philippines economy is also continuing to grow this year, primarily on the back of massive growth in worker remittances. A growing economy is a necessary part of a healthy property market, and while Philippines property may not grow by as much as that of Morocco, if at all, the potential is there for a massive bounce into next year.
