kuala Lumpur in the Forbes Top 10 List of Emerging Markets
3:26 AM
水兴浪 Gavin Tee
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Forbes recently released a list of top emerging world real estate markets that is based on in depth studies. By looking at inflation rates, access to lending opportunities, economic expansion and strength of individual property rights they were able to filter out promising markets worldwide.
Despite the worldwide softening of certain markets, due to drying up of credit funds, Forbes has found some promising locations that are poised to explode within the next 5 years.
High on the list is a city that might come as a huge surprise to some. Tel Aviv while having struggled in the late 90s and early 2000s has seen a recent climb in prices. Predictors expect this to rise further due to a great economic year in 2007.
Kuala Lumpur is another hot runner for expansive growth. With low inflation, a strong global trade and strong property prices, local builders are finding it hard to keep up with the current demand. As news of this spreads, this will unlikely change fast.
Purposely discounting developing markets because of their often high volatility, countries such as the Baltic states Estonia and Latvia were scraped off the list. While enjoying great growth in 2006 in both of these countries, depreciation of property went down by 7% and 14 % respectively last year.
Emerging countries were defined as those who are in transition from developing to advanced such as Brazil, Russia, China (often referred to as BRIC) and India.
One strong factor that was considered was the fact that unless there was satisfying loan access for investors, the country got eliminated. The market simply breaks down if people can’t find lenders and those few who can afford to pay cash are not enough to keep the market strong.
Perhaps the biggest surprise are the following four destinations. Chile, Jordan, Aman and Santiago.
While inflation hasn’t been out of context with growth, the real estate market is providing greater value because of economic expansion.
While these last four markets aren’t set to explode within the next 12 month, they are predicted to do very well within the next 5 years.
This provides a perfect investment planning opportunity for investors who crave new opportunities.
source : OP-Mall in Prediction
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