Situated south of the Tropic of Capricorn, South Africa enjoys a pleasant Mediterranean climate with sunny days for most of the year. With it’s picturesque culture, its numerous local wine estates and laid back lifestyle, South Africa is not only one of the top tourist destinations in the world, but also one of the countries that attracts the most real estate investments and real estate rental deals more often each year in the world.

South Africa is a haven for property rental in both the long term and short term sector because of the economical rate asked for prime properties. There is no doubt that since the announcement of the 2010 Fifa World Cup hosted in South Africa, the property rental market has boomed. Thousands of Fifa World Cup fans are expected in each of the South African cities and the locals have already caught on - by investing in prime South African properties now so that they can be rented to foreigners when the 2010 Fifa Worldcup arrives. More on Renting Property in South Africa

Gazing into our crystal ball, this is a list of likely overseas property investment markets that should do well in 2008.

1. Thailand

Thailand has a two things going for it at the moment:

• Weak currency. Even against the dollar, the baht is weak.
• Weak property prices. The upcoming Thai elections and insecurity over the US sub-prime mortgage crash are causing a drop in prices, that make a very attractive proposition.

2. Morocco

Morocco is still a very undeveloped market and as far as we’re concerned, it looks very much like the Spain of a few years ago.

• Property prices are very attractive compared to the E.U.
• The low cost of living makes a luxury lifestyle a real possibility
• The property boom is at the beginning of it’s cycle
• Rental properties are experiencing 85% occupancy during the season
• Capital growth is in excess of 15% year on year
• Airfares, yacht club mooring fees and golf memberships are comparable to Spain thirty years ago

3. Abu Dhabi

Abu Dhabi seems intent on avoiding the mistakes made in Dubai, and is very much at the beginning of it’s upswing.

4. The Dominican Republic

There are a number of interesting new developments in the Dominican republic that bear a closer look. Once again, this is a very undeveloped emerging market that has a long way to go before prices come into line with the rest of the world.

5. Brazil

According to the Association of International Property Professionals (AIPP), Brazil is “fast becoming one of the property world’s talking points.” The property market in Brazil currently sits on the brink of a boom period; investment growth is inevitable, especially in locations by the sea and in north east Brazil. Many areas are being transformed into top class resorts with supporting infrastructures to boost the tourist industry.

6. India

India’s property market is booming. The difference is that India’s was long out of bounds to institutional investors, particularly foreigners. That changed recently with drastic alterations to the foreign investment rules.

7. Romania

Romania is now in 2nd place to Latvia as the fastest growing economy in Central Europe. Production & Manufacturing has moved down the road to Romania, Bulgaria, Czech Republic, Hungary, Slovakia, and these are all likely good investments in 2008.

8. Montenegro

Real estate in Montenegro is undervalued; the country has entered into a period of reform designed to bring economic growth and foreign investment, Montenegrins are aligning for EU accession, albeit with a few hurdles to manage yet, but, the country is beginning to attract growing overseas tourism interest.

9. Turkey

Due to recent changes in the Turkish martgage laws, Turkey look set for a sizable boom.

10. England……….nah, just kidding. The U.S.A takes the number ten spot. Although we see a way to go before the sub-prime mortgage crisis settles down, look to the States for some good investment opportunities in 2008.

Photo Credits:

1. Thailand
2. Morocco
3. Abu Dhabi
4. Dominican Republic
5. Brazil
6. India
7. Romania
8. Montenegro
9. Turkey
10. USA

Resources:

• Channel 4
• A brief look at a similar theme from the British TV channel
• Property showrooms
• Worldwide property investment advice and sales
• MSN money
• Liz Pullian Weston’s opinion
• Doing Business 2008 report
• Downloadable report from the World Bank and IFC
• The Global Property Group
  
• Worldwide Investment properties
• Bargain Network Homes: FREE 7-day trial plus $25 Wal-Mart gift card
• American Homes from $10,000

In comparison to other regions of the world the African continent still remains under developed in regards to Information Technology. This is only to be expected due to poverty and lack of developed infrastructure in the region. Having said that, large I.T corporations view Africa as an emerging market, which has led to a dramatic increase in the amount of investment flooding into the continent. Africa’s growth potential is considered huge as they have a population of approximately 680,000,000 making up 10% of the world’s overall population.

African based firms are now enhancing their technical capabilities in terms of manufacturing, marketing, and product quality in order to remain competitive with the rest of the world. Information Technology plays a strategic role in the long-term survival of any firm. It is now considered a necessity for businesses to have a sound online presence that works alongside their offline business model. While many people in world enjoy easy access to information through the Internet, hundreds of millions of people in Africa as of yet do not have this luxury. The technological divide is not a problem in itself, but rather a symptom of a deeper, more important divide of income, development, and literacy. Fighting poverty is more than transferring money to the poor or direct job creation for the poor; it is providing tools that will empower people to be more independent. More on The Digital Rise of Africa

See also:

Part 1

Part 2

Part 3