In the past, investing in emerging markets has been a huge gamble, and the potential for an increase in high returns has been offset by far greater risk. However, the risks attached to investing in certain emerging markets are dissipating, or at least becoming less of a concern for investors.
Research by the Investment Property Forum found that global investment levels reached more than $700bn in 2014, with emerging and frontier markets contributing a record $70bn. Since 2004, there has been a net increase in the importance of emerging markets, with the developed world share declining around 7% in the same time.
This makes 2017 the perfect time to invest in emerging markets. Here are three exotic destinations that boast some of the most enticing real estate investment opportunities:
The Caribbean summons up images of a far off land with rum, sun and sand, yet this collection of islands is also a goldmine of property investment opportunities.
The small island idyll of Grenada was recently voted one of the top ten places in the world to own property. This is due partly to the glorious way of life the island offers, and the success of the citizenship by investment programme launched by the government in 2013. An investment of $350,000 can earn foreign nationals all of the benefits of being a citizen, including security, healthcare and greater mobility when it comes to international travel.
There are several different property investment opportunities, ranging from luxury villas to eco-friendly resorts. Because of the growth of the Caribbean tourism industry, demand is rising for tourist housing facilities and high returns are more than likely.
United Arab Emirates (UAE)
The UAE is a nation of expats and as such is multicultural business hub. Not only does this mean that English is widely spoken, it also means foreigners are more than able to invest in the local real estate market.
It can be difficult to obtain UAE citizenship; it is usually only granted if you are married to a citizen for at least 10 years or if your father had citizenship. However, foreigners buying property automatically obtain three years citizenship in the UAE.
Most property investors in the UAE focus on the two largest cities, Abu Dhabi and Dubai. Unlike the Caribbean, Dubai isn’t popular with retirees but with young business people looking to benefit from the ample business opportunities, zero rate of income tax and the Emirate’s growing construction, tourism and financial services sectors.
Mauritius, isolated in the Indian ocean 2,000km from the coast of Africa, is a tropical paradise. Beyond the white sand beaches and pleasant climate, the country enjoys political stability and there are no significant barriers in regards to languages—the Mauritian population are largely bilingual in English and French. It’s hardly surprising then, that holidaymakers flock to the idyllic resorts that populate the island nation.
However, Mauritius also ranks among the most attractive countries for investment in real estate abroad. The country has been shifting its economy traditionally focused on sugar, textiles and tourism towards high-end real estate, offshore banking and medical tourism.
The island attracts foreign nationals to settle on the island by offering a permanent residency scheme (PRS). However, there are caveats foreigners must purchase property costing at least $500,000. The property must also be at least 100 metres away from the sea. Furthermore, obtaining permanent residence does not always gives you the right to work in the country, this requires a separate application.