A recent study on global markets indicates that investors searching for the next wave of residential development should look to Peru, Panama, and Brazil.
According to the latest recommendations from the Global Property Guide, which monitors markets around the world, Latin America is much more attractive than other regions due to strong economic growth, low interest rates, and a continuing housing boom. sales qatar
The site's research, which focuses on rental yields, is less complimentary of Europe, where "land markets have not adequately adjusted from their 15-year increase." Despite the fact that Asia's property values are skyrocketing, GPG claims the area is still "over-valued," with the exception of Malaysia and riot-torn Thailand.
Globally, the GPG sees economies that are bigger. In the first quarter of 2010, 19 of the 36 countries studied saw gains, driven by Hong Kong, Singapore, and Australian cities. Except for Ireland, Bulgaria, and Thailand, which are in "extreme crisis," the rate of declines is slowing in most countries with decreases, according to the site's quarterly report.
GPG, on the other hand, steers clear of Asia and other hot markets in its mid-year recommendations, opting instead to concentrate on Latin America's opportunities. Also countries like Chile and Colombia, which have low valuations, rising economies, and undervalued currencies, have a better chance of appreciating than more developed markets, according to the study.
The report concludes that "rapid GDP growth, good yields, lowish taxes, reasonably priced real estate, and fair round-trip costs make it hard not to place Panama on our list of recommended locations buying land, despite its history of corrupt government."
In Europe, on the other hand, it's "too early in the cycle" to buy, while Turkey and Hungary are mentioned as potential markets. Except for the already sky-high markets, Asia has far too many uncertainties.
"Looking at Asia does not yield a multitude of investment ideas," the report says, "because each choice has a drawback, either in terms of yields or costs and taxes."
In the United States, there are prospects, but they could be limited to the places hardest hit by the financial crisis, such as Florida, Las Vegas, and California.
"Don't invest in areas of the world that have just come out of the housing boom," the study advises outside of the United States.
"Prices will fall (in real terms) as interest rates increase in countries where prices have not risen," the study predicts. "There's no need to rush when rates have dropped.
Recoveries in the housing market usually begin slowly."