Mongolia and Grenada tipped as property investment hot spots
Property investors seeking the next emerging real estate market for investment might like to look at places as diverse as Mongolia, Africa, Brazil and Grenada in the Caribbean, according to a new report.
But they also might find good investments in solid property markets in the United Kingdom and the United States, says the Global Property Markets 2014 report from investment agency Property Frontiers.
With one of the fastest growing economies in the world and 2013 seeing laws revised in order to make the country more attractive to foreign investors, Mongolia is described one of the most exciting investment prospects for the year ahead.
‘Mongolia has rocketed from being a largely nomadic and relatively unknown country, at least in investment terms, to being a key hotspot due to the discovery of its incredible mineral reserves, worth an estimated US$1.5 trillion,’ the report says.
‘The wealth generated by the mining industry has flowed rapidly through the country, with the result that demand for high end accommodation and western style luxury shopping and leisure facilities has increased at an incredible pace. This will be an exciting country to watch as developers try to keep up with the Mongolian population's demands,’ it points out.
The World Travel and Tourism Council has flagged Grenada as likely to be the fastest growing Caribbean market in the decade to 2021 and the report points out that tax exemptions and citizenship schemes have made investing in Grenada an extremely interesting prospect and 2014 is predicted to be a bumper year for the spice island in terms of attracting foreign investment.
‘Tourism in Grenada is set to expand swiftly, with five star hotels, yacht clubs and marinas under development as the country makes the most of its delightful natural resources. Lifestyle as well as financial investments are worth considering, such as hotel complexes with offer personal use as well as rental income,’ it adds.
Brazil is expected to be one of the most popular countries in which to invest in 2014 and the following years. The country will host the FIFA World Cup there in 2014, followed by the Olympic and Paralympic Games in 2016.
‘Already a fast growing economy with thriving banking and retail sectors, as well as a strong tourism industry, the sporting events have added even more excitement to Brazil as an investment prospect,’ the report says.
‘The north eastern region of Natal has been highlighted as a particular hotspot, with the world's seventh largest airport due to open there in 2014. Given the lack of restrictions on property ownership by foreign investors, Brazil is one of the most compelling prospects around the globe for 2014,’ it adds.
The report says that Africa is emerging from years of instability into a period of dynamic growth, creating widespread opportunities for investors. ‘Underexploited mineral and agricultural wealth, combined with a young, expanding population, is leading to some interesting predictions for this huge continent,’ it explains.
‘Increased wealth, urbanisation and the immigration of foreign executives are placing a strain on the property markets of many African cities, creating high yield rental property prospects. At the same time, a number of ethical, alternative agricultural investment structures are emerging, in support of the growing population,’ it adds.
As economic recovery takes hold in the US, unemployment has fallen to its lowest level in five years, dropping to 7% in November 2013, according to the US Labour Bureau and at the same time, the National Association of Realtors has reported a 12.8% year on year rise in house prices in October 2013.
These serious, positive economic shifts make the USA one of 2014's hottest investment prospects, according to Property Frontiers' chief executive, Ray Withers. ‘The US is definitely a key investment prediction for 2014. There's an awful lot of exciting news coming out of the country at the moment, with figures looking more positive every month. Foreign investment will help speed the recovery along, at the same time as providing some excellent returns for those investing there,’ he said.
Topping Property Frontiers' list for 2014 investment hotspots is the UK and in particular London and the surrounding area. Housing company Rightmove reported London's house prices as rising by 10.2% from September to October 2013, the largest increase in over a decade.