Locating the Property Hotspots

By Overseas Property Live • December 2, 2008

Although many property markets are stagnating, there are some areas which still have great potential for investment. Although many property markets are stagnating, there are some areas which still have great potential for investment. In fact, according to a recently article in the Sunday Times, there are still a number of regions that are booming.

Asia is showing a great deal of economic growth, making it very popular with investors. The continent is home to 57% of the world’s population and its middle class is growing exponentially. In particular, Vietnam is demonstrating excellent investment potential due to rapid urbanisation, although the risk level may be higher than many investors are willing to accept. Malaysia is also showing a great deal of expansion, it is cheaper and the rules concerning foreign ownership are simpler than in many countries, lowering the risk level.

According to Knight Frank Bulgaria, Slovakia, Russia and the Czech Republic all recorded strong annual growth within Europe of more than 25% in the Q2 of this year.

In Latin America, Colombia is reported to be on the brink of being “the next big story”; however, problems with corruption and the country’s reputation for violence make it an investment destination which only the most hardy property investors should consider.

More attractive is Brazil, which has been a magnet for foreign investment magnet for several years. It has one of the most rapidly expanding middle classes in the world and it is also forecast to have a massive housing shortage in the years to come. The new middle class are looking for high quality, modern properties.

James Gonzalez, Market Analyst at Obelisk, believes the Sunday Times article is further proof that Obelisk is on the right track with its latest project in Brazil. “Obelisk’s Laguna Beach development has been attracting such great attention because it fits so perfectly into the needs of the modern Brazilian market. It is exactly the kind of development required by Brazil’s upper middle class who are looking for luxury second homes close to the sea. Such local demand maximises the possibility of resale when our clients are ready.”

News submitted by Alison Kane, Obelisk