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Movements seen in unexpected property markets

In terms of growth and returns, several property markets have soared above the rest. Australia, China, India and parts of South-East Asia are all emerging as property markets with big potential for growth. At the top of the list are Australia and Singapore. Singapore actually beats Australia in a two-year outlook. This is primarily due to the economy. Australia's strong, resource-based economy has helped it to pull ahead of Hong Kong and Japan.

Doug Herzbrun, global head of research at CBRE Investors expects that by 2020 investment grade real estate in these countries is expected to grow by as much as 5 times. Compare this to areas hit by the global credit crunch like the US and Britain. The US has seen a considerably weak investment property market as investors are finding it difficult to sell. Areas that already have a sound infrastructure like Australia and Singapore make for big opportunities as these markets continue to shape up.

An emerging market that would require considerable risk yet offers the possibility of great returns can be found in Kosovo. Last week Kosovo declared independence from Serbia, and investors were quick to seek out opportunities. Currently investment in Balkan property is a risk because it is too soon to tell what direction Kosovo's independence will take it. The chance exists, but is highly unlikely that another Balkan war could erupt. There is a greater chance, though, that investment properties will increase in value as the tourist market grows.

A great example of what is possible in a situation like this is Montenegro. The country declared its independence in 2006 and has seen both tourism and property markets skyrocketing. The very same growth is possible with Kosovo. Currently, it is only possible to buy properties privately, but it shouldn't be long before real estate companies are able to make it easier to invest in the area.

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