Move the BRICs out of the way, now it’s time for property investors to add some MINT to their property investment portfolio.
Investors
have long been familiar with the term BRICs, which economist Jim
O’Neill coined to refer to the emerging economies of Brazil, Russia,
India and China. Now, O’Neill has sparked further interest from the
international investment community with his identification of the MINT
economies.
The MINT countries include Mexico, Indonesia,
Nigeria and Turkey, all of which have favourable demographics and
interesting economic prospects when considered over the next two
decades, according to O’Neill.
According to Ray Withers, the
Chief Executive Officer of award-winning international property
investment agency Property Frontiers, these frontier markets are likely
to produce some exciting investment opportunities over the years ahead.
He outlined the appeals of each market for PropertyGuru readers.
Mexico
Close
to the U.S. but commanding far lower wage rates, Mexico has the
opportunity to build a booming economy based on the production and
supply of a variety of goods. With politicians hungry to reform and
build their country, ‘made in Mexico’ could soon become synonymous with
well-made but low-cost products the world over. The country is already
drawing considerable investment interest away from Brazil.
Indonesia
With
rapid urbanisation, extensive coal deposits and a healthy focus on the
country’s economic prospects, Indonesia has begun to interest investors
greatly. O’Neill predicts that by 2050 Indonesia will rank seventh for
GDP, building on its firm foundation of a mixed private and state
economy. As the fourth most populous country in the world, with a
workforce looking to the future, Indonesia is clearly one to watch.
Nigeria
Nigeria
is the MINT country that seems to be causing the biggest stir
currently. Though the stakes are high, given the political landscape, it
has a huge, young population that represents a massive opportunity for
growth over the coming decades. It’s pending GDP re-basing may well
confirm it as the biggest economy in Africa, moving ahead of South
Africa and positioning it as the continent’s economic powerhouse.
Turkey
As
the true crossroads between the eastern and western world, Turkey
occupies an incredible position of power, which has previously been
largely under-appreciated. Now, though, Turkey is racing ahead of many
countries to put itself on the map as one of the most exciting
investment prospects available. With faster growth than China last year
and some rapidly rising global brands, Turkey was the third fastest
growing economy in the world.
Withers added: “In keeping with
our ethos of breaking boundaries and embracing new frontiers, we have
been taking a close look at the MINT countries for some time now. We are
actively exploring a number of property investments in Mexico,
Indonesia, Nigeria and Turkey but welcome developers or partners with
opportunities to get in touch with us too.”
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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