Property Markets to Invest in During 2008

A massive change in the value of the dollar, combined with soaring building costs is changing the face of the international property investment markets. We highlighted a few likely markets recently in “The Top Ten Property Investment Hotspots for 2008,” but thought another look around the world’s investment property markets was in order. Ahmed believes the Panama property bubble is about to burst, but my feeling is there are a few more good years to be had from this market and properties such as the Trump Ocean Club under construction in Panama City will be a good earner. My feeling is the Hotel/Condo arena is the way to go in emerging markets. And with a few exceptions down in Florida, anything with “The Donald’s” name on it is a good bet. Of course, when we talk about Panama real estate, we are talking about Panama City only. The rest of the country has yet to see the sort of infra structure needed to support these sort of developments.

So, apart from Panama, where are a few other likely investment opportunities?

Northern France.

I know, not what you might have expected, but the introduction of a new high-speed rail service from St Pancras station in London to Paris and Lille will encourage more and more Brits to buy homes in northern France and commute to work in London. Not exactly the environmentally conscious approach we would all like to see, but the simple fact is, where the Brits go, property prices rise accordingly. Don’t expect massive jumps here, but a good 8-10 percent rise in 2008 is likely, I feel.

India

Particularly The Mumbai Property Market. Global real estate majors such as Dubai World, the Trump Organisation, Smart City of Dubai, Kishimoto Gordon Dalaya, Khuyool Investments, Bonyan Holding, Plus Properties, ABG Group and Al Fara’s Properties are descending on the Indian real estate market with an investment of around $20-25 billion in the next 12-18 months. According to a recent report by CB Richard Ellis, and international commercial property consultants, commercial office prices have risen 55% in the last year, pushing Mumbai office space up to the second most expensive in the world, behind London.

The United States of America

For British investors with pounds to spend, the USA is looking more and more attractive. With subprime crisis nowhere near resolved, and the dollar continuing to be weak, I see a lot of Brits buying property in the USA over the next year or two. Once again, no massive rises on the horizon, but with prices effectively 30-50% lower than last year, it would be silly to ignore this market. With Foreclosure Deals in the states are available for as little as ten thousand dollars, it’s hard to resist.