Strong economic growth, low interest rates and a continued housing boom make Latin America, far more appealing than other regions, according to a new report from Global Property Guide. Low valuations and under-valued currencies add to the investment opportunities there.
Peru, Panama and Brazil lead the next wave of residential growth in Latin America. Factors such as rapid GDP growth, good yields, relatively low taxes, reasonably priced real estate, and reasonable round-trip costs put Panama on Global Property Guides’ list of recommended locations to buy property, despite its history of corrupt government. Even countries like Chile and Colombia provide better odds for appreciation than more established markets, the report concludes.
Overall, the report sees stronger markets around the world. Nineteen out of the 36 countries tracked posted gains in the first quarter of 2010, led by Hong Kong, Singapore and cities in Australia. In most countries experiencing declines, the pace is slowing. Notable exceptions are Ireland, Bulgaria and Thailand.
Although Asia’s valuations are skyrocketing, GPG considers the region as over-valued. In Europe, property markets have not sufficiently adjusted from their 15-year rise. The United States offers opportunities, but deals might be limited to the areas hardest hit by the financial crisis, such as Florida, Las Vegas and California.
