Five Top Countries for Long Term Real Estate Investment
September 1, 2009
Five countries top the list for substantial long term real estate investment pay-out, according to NuWire Investor. Albania, Brazil, Panama, the Philippines and Tunisia made the list based on three factors: a growing economy, a stable investment environment and being a great place to vacation. The economic growth and stability of these five destinations pushes up house prices and increases internal demand for housing and second homes, which provide the exit strategy.
Albania is transitioning into an industrialized nation Loans from international banks are aiding its infrastructure projects and economic reforms. The country is on track to join the European Union in 2014, which will boost the economy. Property values in Albanian cities, especially the capital Tirana, are forecast to grow exponentially: 5- to 10-fold in the next 7 to 10 years.
Brazil is predicted be the fifth largest economy in the world in the next 5-10 years. Property, however, is currently a lot less expensive than in the world’s other leading economies. Property will grow in value until prices are similar to those in the other major economies. Growth will then slow to the established market average of 10% per annum. Brazil is among the world’s five largest food exporters and the second largest exporter of meat. In addition, its services, hospitality, construction, tourism and health tourism sectors are growing rapidly.
Panama has an annual growth rate of 3 percent at a time when most other countries are in recession. The economy is primarily fueled by its strong and fast growing services sector, especially the services for the Panama Canal whose capacity is being tripled. The economy will continue to grow and, upon completion of the canal’s expansion in 2014, accelerate. Property is likely to be worth 2 to 5 times its current value over the next 5, 10, 15 years.
Philippines leads the emerging markets of Asia. Its services sector continues to grow exponentially on the back of the outsourcing boom which has expanded due to the credit-crunch tightening the belts of global businesses. Worker remittances from Filipinos working abroad also continue to grow. The country’s economy is forecast to grow by over 4% this year according to the IMF.
Tunisia is one of the fastest growing emerging market economies, with massive growth in the agricultural sector and stable growth in the construction industry. According to the International Monetary Fund, its economy is expected to grow by more than 4 percent this year. Investors can buy property at the low prices of an emerging market, yet within a developed internal housing market of an established market.
Comments
One Response to “Five Top Countries for Long Term Real Estate Investment”
Got something to say?
There are some incredible opportunities out there. As noted, there are opportunities within the states however the current economic conditions seem to contribute to a distraction for all.
Next week, I will be attending the 2009 FIABCI-USA Fall Conference here in Denver, http://www.fiabci-usa.com/fallmeeting2009.html. I look forward to making new friends, networking and discovery of other International real estate trends. I’ll be reporting a synopsis on this event shortly thereafter.