Wednesday, July 26, 2006

Top ten indicators of emerging markets

To help potential investors in their quest to identify emerging hotspots, experts from the Property Investor Show (22 to 24 September, ExCeL London) have put together a list of top ten indicators to look out for:

1. An expanding economy and increase in tourism – Countries with an expanding economy will witness an increase in tourism and popularity, leading to high rental demand and increasing the returns on capital invested.

2. Political stability – It is important for investors to research the political environment of the country they are planning on investing in, especially if there has been a history of war and instability.

3. Government and private investment in the area – Investment encourages improvements in the local infrastructure and amenities and brings money into the area, pushing house prices upwards.

4. Improvements in local transport links – Accessibility is a major factor with new or expanded airports and upgraded roads and railways increasing the inward movement to an area.

5. House-buying process simplified for foreigners – Keeping abreast of legal issued surrounding foreigners’ access to the housing market or removal of purchasing restrictions allows investors to move in and take advantage of the lower property prices before everyone else jumps on the bandwagon.

6. Large companies relocating to the area – This brings instant investments and often causes employees to relocate to the area. Corporate lets, for example in Sofia, the capital of Bulgaria, are a good opportunity for investors.

7. Planned entry to the European Union – This brings the expectation of inward investment and the easing of restrictions on the movement of capital and trade. Many of the new EU member states such as Cyprus have not disappointed.

8. Large scale leisure facilities being constructed – Ski runs, golf courses and hotels increase property prices and push up demand for second homes.

9. Low cost flight routes opening up – Cheap charter flights that fly directly into an area increase the demand for holiday homes and rented accommodation.

10. Hosting an international sporting event – Major events on the sporting calendar such as the Olympic Games or golf tournaments encourage development and regeneration and attract tourists to the area, boosting house prices.

Trisha Mason, Founder and Managing Director of VEF French Property comments: “Identifying hotspots needs a lot of market knowledge as prices are obviously governed in most places more by the local property buyer than by the overseas property buyer. You need to know about proposed transport links, about company investment in the area, what trends are occurring within the market and to understand the culture of the country. By the time hotspots have hit the media they are old news. There are still some places where property values remain low and where there is a good opportunity to see strong capital growth within five years but there are not many and they are guarded jealously, so you have to act fast to keep ahead.”

Nick Clark, Managing Director of the Show comments: “Seasoned investors are constantly on the look out for the next property hotspots and with increasing numbers of people now choosing to invest in overseas property, any advice that can put them one step ahead of the masses, giving increased capital gain, is a particular advantage. The experts at the Property Investor Show will be able to help point out the next big thing in property investment, and will be holding seminars advising how to identify emerging hotspots.”

Over 100 overseas property companies operating in a range of markets will be on hand at the Property Investor Show in September to give expert advice. Exhibitors will include VEF French Property, Florida Countryside, Brazil Property Services and MacAnthony Realty. The show will also be host to trade associations, estate agents, developers, mortgage and finance specialists from the UK and a comprehensive programme of expert-led seminars focusing on different industry issues, giving visitors all the information they need to successfully invest in property.

Further details on the Property Investor Shows are available at www.propertyinvestor.co.uk.

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