Investors are pouring money into the overseas property sector, according to one of the U.K.'s overseas property investment specialists, which it says is a sign that they remain confident in the long-term prospect of returns from the real estate market.
Almost $20bn (£10.2bn) of real estate funds are to be launched this week as equity raising for property investment shows no sign of slowing.
Most of the money is going to emerging economy countries, in particular Asian and eastern European markets.
Liam Bailey, head of international research for overseas property specialists David Stanley Redfern Ltd said: “This is yet more proof that the credit crunch is having a positive effect on emerging markets and on property investment therein. The credit crunch tightening company purse strings is intensifying growth in business sectors in emerging markets, both from businesses relocating to more cost effective emerging market locations, and consumables being bought cheaper from suppliers in emerging markets.
“Emerging market tourism may well also be boosted if the credit crunch worsens, as people look for ever-more-affordable holidays.
“That said, it is little wonder confidence is not falling in real estate investment in emerging markets, because as research and possibility turns into fact, confidence is actually growing.”
As part of its portfolio David Stanley Redfern Ltd has property in eastern European countries such as Albania and Montenegro, Asian property hotspots such as Cambodia, Malaysia, and the Philippines; South American markets such as Nicaragua, Panama and Costa Rica; as well as other emerging markets in the Caribbean and more established markets where value is still to be had.
David Stanley Redfern Ltd claims to only sell property that is capable of making substantial returns, be it over the short term, or the mid-long term.
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