Report puts emerging markets real estate in the spotlight

Global property website Lamudi has released its first research report on real estate in the emerging markets with an overview of the property sector in 16 countries in Asia, Africa, the Middle East and Latin America.

The report, Real Estate in the Emerging Markets, is based on a series of online surveys conducted with house-hunters and real estate agents in each country, as well as onsite data from Lamudi’s network of websites. The research examines the habits of online property-seekers, while offering insights into the future of the property sector based on interviews and surveys with local property experts.Lamudi’s Global Co-Founder and Managing Director, Paul Philipp Hermann, said, “While developed and mature real estate markets are often in the spotlight, real estate in the emerging world receives much less attention from both researchers and the media.“However, over the coming years the developing world is expected to be the main engine of global growth.”Key findings from the report include:
  • In many countries, online property search is overtaking more traditional methods of looking for real estate to buy or rent, such as newspaper classifieds and word of mouth.
  • Optimism prevails in each market, reflecting strong growth in the property sectors of emerging countries. Real estate agents surveyed are overwhelmingly positive about the prospects for growth over the next 12 months.
  • Foreign investment in emerging markets property is increasing. Economic growth, infrastructure development and an improving standard of living are driving the increase in investment.
  • Countries including: Indonesia, Jordan, Morocco and Colombia, have emerged as up-and-coming investment hubs.
  • Demographic changes are having a dramatic impact on local property markets. Many markets, particularly in Africa and Asia, are benefiting from a young population base and a growing middle class, which will underpin future growth in real estate.

The 16 countries covered in the report are:Indonesia, the Philippines, Myanmar, Bangladesh, Pakistan, Sri Lanka, Jordan, Saudi Arabia, Nigeria, Kenya, Tanzania, Morocco, Ghana, Ivory Coast, Mexico and Colombia.The Lamudi report also says that markets in Asia, Latin America and the Middle East are experiencing booming real estate sectors, fuelled by a growing middle-class and strong economic performance. And, it continues, Southeast Asian cities are seeing the fastest increase in apartment, condominium and commercial property prices across Asia, according to property consultants Knight Frank. The company’s Prime Asia Development Land Index ­– analysing property prices across the continent – reveals that over the past two years, prime residential and office development prices in Asia increased by 50.4 per cent and 38.3 per cent respectively.The high-end property segment in Southeast Asia, Latin America, the Middle East and Africa is growing, and is forecast to continue this expansion in the coming decade. Over the past two years, house prices in Jakarta have grown by 184 per cent, fuelled by Indonesia’s fast-growing middle class and the increasing demand for high-end property in the city. Furthermore, capital cities Manila and Yangon have also been highlighted by experts as cities with property markets to watch, in terms of residential, industrial and commercial real estate.With a strong economy and improvement in areas like transparency and governance, more investors have turned their attention to the Philippines’ capital. Manila has a young demographic, receives a significant amount of capital from Filipinos working overseas and a similar workforce culture to the west. Its residential, retail and office sectors all have strong investment prospects. Global bank HSBC last year named Mexico the “the safest bet for investors in the region”.In a study of the top emerging markets from 2013, the bank chose Mexico ahead of Brazil and Argentina as Latin America’s investment hotspot. Investors see signs of change in Mexico, with drug-related violence and crime on the decline and businesses benefiting from reforms enacted since the 2012 elections. Foreign investors are attracted to Mexico due to perks such as value for money, which is more favourable than in the US and Europe, and appealing exchange rates.A number of countries, expected to become economic powerhouses of the future, have been grouped into the so-called MINT – Mexico, Indonesia, Nigeria and Turkey – and PINE countries – the Philippines, Indonesia, Nigeria and Ethiopia. The young populations, increasing wealth and economic stability and attractive geographical locations make these particularly good options for investment, infrastructure development, and construction.For more Re:locate Residential Property news and features click hereFor more Re:locate Commercial Property news and features click hereTo see the full report visit: Lamudi

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