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Jakarta, Manila on list of sought-after cities for emerging market
Publication Date : 01-05-2014
The city of Manila joins the list of the most sought-after cities for emerging market investors, a leading retail website said.
Global property platform Lamudi (lamudi.com) said that cities in Asia lead the pack of the most coveted cities for investors, but there is also potential across emerging regions.
The website, which operates in 22 countries in Asia, Africa, Latin America and Middle East, based the list on market trends for the past six months.
Jakarta tops the list as the most sought-after city, followed by Manila, Mexico City, Marrakech and Dhaka.
“Cities in the Philippines and Indonesia have particularly strong prospects, cementing southeast Asia’s place as one of the world’s emerging property hotspots. The region will continue to attract interest as these countries address issues like transparency and governance, creating an even more favourable investment environment,” said Kian Moini, co-founder and managing director of Lamudi.
The top five most-coveted cities for property investors are:
1. Jakarta, Indonesia:
Jakarta has become “a magnet for luxury property investors” as prices rise in its high-end residential sector, thus its property market has
become one of the strongest in the world. Whether this year’s elections will impact the investment environment has yet to be seen.
2. Manila, Philippines:
The Philippines has caught the investors attention as the country’s economy gains speed. Lamudi cites that Manila has a young demographic that makes it favourable to investors. It also has a similar workforce culture to the west. “Its residential, retail and office sectors all present strong investment prospects,” Lamudi says.
3. Mexico City, Mexico:
As drug violence and crime decrease and businesses improve since the reforms in 2012, investors are optimistic in Mexico. Lamudi says that investors are attracted to the city because “they can get better value for money than in developing markets while remaining in close proximity to the United States.”
4. Marrakech, Morocco:
The city was recently named as the top investment pick for 2014 by Financial Times due to “strong growth prospects, relative political stability and favorable environment for foreigners.” Lamudi cites that the tourism to the country is increasing and transaction costs for those buying or selling a property remain low.
5. Dhaka, Bangladesh:
Bangladesh was never attractive to investors 10 years ago but things are looking good. Global investment banking firm Goldman Sachs once included Bangladesh as one of the “next 11″ emerging markets to look out for. “These days the country’s property market is on an upward swing, with prices soaring and an increasing number of high-end apartment blocks being built throughout the city,” Lamudi says.