With the US property market stagnating, the UK property market on the verge of a negative correction and all the traditional second home locations that Brits and Americans invest in suffering as a direct result, in which property markets are still is it worth investing?
There are six markets that have managed to remain attractive to investors – these six markets are called “emerging” which basically equates to the fact that they are not oversold or overdone and offer real estate investors great potential for short, medium or appreciation. of long-term capital, as well as strong rental returns stemming 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%, almost 3% higher than the world average increase, and also, for the next ten years, this rate of intensity of increase is expected to remain sustainable.
Brazil is being heavily and widely marketed as an accessible, tropical, and exotic location with significantly reduced crime rates, a booming economy, and high tourist interest. British and American interest has increased as a result, as has that of continental Europeans, and it seems that as fast as Brazil’s star is growing, investment in the nation’s property market is picking up pace.
There is strong potential for capital appreciation at least in the medium term, and rental income is exceptionally good with returns throughout the year in the most popular vacation spots.
2) Croatia
Croatia is a stunningly beautiful nation in Europe – think of it as an untouched Italy with property prices at least half the price! The nation is about to join the EU, which will bring significant investment and allow the country to prosper economically.
Croatia is already becoming a popular vacation spot and its stunningly 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 major cities, but those looking to Croatia generally commit to long-term steady increases in prices and increased demand and yields for rentals.
3) Malaysia
The short-term potential in Malaysia has been affected by the US market situation, but over the longer term, all the fundamentals hold for exceptional returns. The Malaysian government is also very astute and is doing everything it can to encourage not only international investment flows into the real estate market, but it is also doing everything it can to promote the national interest in buying real estate.
In addition to this, Malaysia is touting its virtues as a vacation spot and a place to retire and live tax free; As stated and evidently, 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% increase in property investment transactions driven largely by british, irish and russian investors… starting prices remain unbelievably low, investment in improving the nation is intense and there is no going back: Montenegro has exceptional long-term potential for capital growth and demand for rent.
5) Morocco
The Moroccan government 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 commits to do everything possible to increase the number of visitors of 2 million. a year to 10 million a year by 2010.
In the first three quarters of last year, tourism numbers were up nearly 10% over the prior year’s numbers, average spending per tourist was up more than 25%, and by the end of last year there was overall growth of 12% compared to the previous one. the figures for the year, so as you can see the vision is on target.
Part of realizing the vision also lies in creating resorts across the country where investors can buy residential real estate and benefit from the growing number of tourists looking for a place to stay, with the full commitment of the government. with the development of the nation. through tourism and real estate gives investors great confidence in Morocco.
6) Panama
And lastly, if your local currency is anything other than the US dollar, you literally have “quids in” in Panama right now. Property prices in Panama are exceptionally low thanks to the weakness of the US dollar and the potential for these prices to go up and up is 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 a property in Panama, you can invest today if you want fantastic growth potential in the very long term.