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Emerging markets seen as the best option for overseas property investors

Location, budget, flight data, occupancy rates, rental yields, are just some of the important pieces of information needed according to a thread on the totallyproperty.com emerging property markets forum that looks at Tunisia.

While many developers and investors are pouring into other North African countries including Egypt and Morocco, Tunisia offers the same climate but the property market is very new.

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Indeed it is perhaps too new as finding the kind of data mentioned above is difficult, as the thread indicates. There are no prices, no decent pictures and no decent websites according to one post on the thread.

The scant information that is available does give an indication that it will become a growing market for those willing to take a risk. The fact that it is a French speaking country is mentioned several times as a negative rather than a plus. However a number of Dubai based developers are investing in the country.

For those who have actually visited Tunisia the outlook is promising. Sidi Bou Said and Port el Kantaui are both mentioned as worth looking at.

But like all emerging markets care needs to be taken. Forum member OPH mentions two projects. Le Voilier which is still pre-release and is not backed by any due diligence or in any position for reservations at the moment. 'The better option is the Dunes Golf and Spa which has full due diligence, predicted rental yields of between 10-14% and prices from just 20,000GBP (approx 26,000€),' he writes.

The latest figures show that British first time buyers are increasingly looking abroad to buy as they can't afford to buy in the UK. In many articles Calabria, on the toe of Southern Italy is often mentioned as an emerging market, a bargain place to buy as prices are low, living costs are low and there is the opportunity to get in before everyone discovers it.

But as many investors or would-be investors know you can't rely on the marketing blurb. Some concerns are raised on the Channel 4 overseas forum. These centre on Calabria being a 'backwater', having a very small rental season and 'a winter ghost development'. On the plus side prices are 30% cheaper than popular areas like Spain and there are nearby mountains for ski-ing.

The discussion also shows the importance of visiting property before buying. One development has a road and a train line between it and the sea. Now this might not bother people if trains are infrequent, but noise could be an issue when it comes to renting. 

Overall general opinion is that this is an emerging market and as such there is still a lot of investment needed especially in terms of infrastructure and transport. Indeed there is a petition on the Calabriahomes.com forum aimed at persuading the low cost airlines to increase the number of flights to this part of Italy.

Egypt is also often mentioned as an emerging market with good potential. And according to a post on the propertyshowrooms.com forum there are still developments that are so new not many people know about them yet.

One mentioned is the Zafarana Beach Resort. There apparently isn't much to see at the moment but one poster says there is a lot of development going on, prices are low and it should be very popular in five years time. The area is described as good for diving so there is rental potential.

Romania is another country where bargains can be found if you look outside the capital Bucharest, according to a post on the propertysecrets.net forum. Prices of €30,000 and €50,000 can be found Cluj, Transylvania, according to poster Liamvalencia. He describes it as 'a beautiful places, full of culture, mountains nearby, lakes etc. And booming industry and universities'.

For those who already have investments the effects of the credit crunch make a popular talking point. A thread on the same forum shows that in some areas investors have property that is now worth less than they paid for it a few years ago.

For example flats in the suburbs of Madrid which sold for €180,000 in 2005 are now for sale at €120,000. And prices in Bucharest are also going down.

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