Real estate investors are extremely optimistic about the property outlook and total returns available in developing markets in Asia and Latin America compared to Europe, according to a latest survey.
About 100 participants at the 2010 Thomson Reuters Global Property Outlook conference were polled about their sentiments in terms of total market returns over the next five years.
Developing Asia, which is home to economic giants India and China, was the top pick on the survey with nearly 43 percent of votes, while 18 percent of respondents preferred Latin America.
“When you get into these emerging markets, you are very much buying into the story of the country,” said Tony McGough, property consultant at DTZ. “If you think Brazil or China is going to carry on motoring ahead, then investing in real estate there will give you exposure to that growth as well, and that is also the risk that you are taking.”
Governments across Asian nations have implemented measures aimed at cooling the property market, but the region is still seen as offering investors with the most attractive properties globally.
When asked about their total returns expectation for developing Asia next year, 76 percent of participants expected returns at 10 percent or higher, while 53 percent also expected double-digit returns from developed markets in Asia.