Evaluating International Real Estate Investment
For those seeking investment opportunities in real estate, it can be worth looking elsewhere in the world rather than focusing only on the UK.
The new emerging markets in Africa and the Middle East are providing plenty of opportunities to invest in property.
Why international real estate?
It is in international and emerging markets that the demand for real estate is at its biggest. There is huge demand for both public and private buildings, as emerging markets look to develop and strengthen their infrastructure to improve the quality of life in their individual countries, with public amenities such as shopping malls and leisure centres, as well as building affordable accommodation for their people.
Put simply, international real estate is a quickly growing sector and investors can expect to make a huge return on their investment over the next decade.
The Middle East is one such region that is enjoying huge growth in the real estate sector. Falling oil prices have caused the Middle East to look elsewhere to make money, and consequently it is doing its best to attract foreign businesses to operate there.
The region is also experiencing significant population growth that is fuelling the demand for residential and retail buildings. The increasing prosperity of the region is attracting higher numbers of foreign visitors, all of whom need to be catered for, and many of them expect luxury apartments rather than budget accommodation.
The Middle East’s emergence as a global market is evidenced by the activities of high profile investors who are keen to diversify their interests in a number of sectors, as with the M1 Group purchase of Façonnable, an ailing fashion label that has enjoyed a resurgence with their input.
The acquisition of this French company shows that Middle East companies are now becoming key players in not only their own markets, but in European markets as well.
Africa presents the same opportunities to potential investors, especially sub-Saharan Africa. Africa is experiencing rapidly growing populations, who will demand affordable homes and modern offices to work in.
Other regions, such as Mexico, are also worth looking at, for they are enjoying a surge in tourism, which is driving the building of suitable accommodation such as hotels and holiday apartments.
There are several advantages to investing in international real estate. The first is having complete control over investment, with people able to buy, sell or rent at their own convenience. It also means it is possible to diversify an investment portfolio by generating cash flow in a different currency.
Property is a hard asset in comparison to money, which is a soft asset, and will hold its value regardless of exchange rates. Real estate can serve multiple functions, such as being a home for oneself or for others, or the land surrounding it being used for agricultural or forestry purposes.
The real estate market is a sector that is enjoying huge returns on investment at the moment and the best opportunities lie not in the home market but in the international arena. Look further afield and invest in the real estate sector of emerging markets.
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