In many emerging countries online property searches are overtaking more traditional methods of looking for a home to buy or rent, such as newspaper classifieds and word of mouth, new research has found.
A new report covering 16 countries in Asia, Africa, the Middle East and Latin America says that these markets are likely to be the main engine of global property growth.
Real estate agents surveyed by online property firm Lamudi are overwhelmingly positive about the prospects for growth over the next 12 months. The firm says that optimism prevails in each market, reflecting strong growth in the property sectors of emerging countries.
It points out that foreign investment in emerging markets property is increasing. Economic growth, infrastructure development and an improving standard of living are driving the increase in investment. Countries including Indonesia, Jordan, Morocco and Colombia, have emerged as up and coming investment hubs.
It also points out that demographic changes are having a dramatic impact on local property markets. Many markets, particularly in Africa and Asia, are benefiting from a young population base and a growing middle class, which will underpin future growth in real estate.
The report features a series of in-depth interviews with key figures from the property industry of each country. The Global Head of Residential Research at leading property consultancy firm Knight Frank, Liam Bailey, was also interviewed about key trends in international real estate.
‘While developed and mature real estate markets are often in the spotlight, real estate in the emerging world receives much less attention from both researchers and the media,’ said Lamudi managing director Paul Hermann.
‘However, over the coming years the developing world is expected to be the main engine of global growth. Lamudi’s research provides a completely original perspective of property markets in the emerging world at a time when these regions are increasingly coming into focus,’ he added.
According to the research the high end property segment in Southeast Asia, Latin America, the Middle East and Africa is growing, and is forecast to continue this expansion in the coming decade.
Over the past two years, house prices in Jakarta have grown by 184% fuelled by Indonesia’s fast growing middle class and the increasing demand for high end property in the city. Furthermore, capital cities Manila and Yangon have also been highlighted by experts as cities with property markets to watch, in terms of residential, industrial and commercial real estate.