With so much attention absorbed in prime property markets, it is easy to forget that not so long ago, emerging markets were de rigueur
- By Lucy Scott
Investors are rightly taking the view that it is unnecessary to look at wilder climes when they can scoop up incredible bargains in low-risk, core markets. But this downturn has reinforced, not weakened, the case for a diversified portfolio, especially now that more rational pricing has been introduced in many markets.
On these pages this month, there are countless examples of investors that agree with this view and that are still backing opportunities where they see long-term growth potential. Henderson Global Investors, Helios Properties and Sam Zell are all pushing into uncharted territory.
And as the Urban Land Institute argues (p28-29), demographic changes are under way that mean Asia is expected to provide most of this century’s global workforce, while population declines in Europe spell trouble for the growth of the region’s labour pool. The effect this will have on occupancy levels and property values could be far reaching.
Yes, the teething problems in places such as China and Russia are many, but investing there should still generate returns in the long run.
The trick is to go into a market as part of a diversification strategy, rather than just seeking the top rate of return and a quick exit.
You can’t afford not to
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