Lamudi names top cities for investors in emerging markets

Cities in Asia lead the pack, with Manila securing the top two spots as the most attractive investment markets in the region.

Global property platform Lamudi has unveiled its inaugural list of the most coveted cities for investors in emerging markets. The leading real estate website, which operates exclusively in 22 countries in Asia, Africa, Latin America and the Middle East, has picked the top investment opportunities in these regions based on market trends for the past six months.

Cities in Asia lead the pack, but there remains plenty of investment potential across other emerging regions. Jakarta tops of the list as the most sought-after city for emerging market investors, on the back of the country’s strong economic performance and a booming luxury real estate sector. Manila, Mexico City, Marrakech and Dhaka round out the top five list.

Kian Moini, Co-Founder and Managing Director of Lamudi, said: “Investors searching for new opportunities in emerging markets should look to one of these cities. Countries right across the regions where Lamudi operates are experiencing a boom in real estate, fuelled by a growing middle class and strong economic performance.

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.”

Lamudi’s top five most-coveted cities for property investors are:

1. Jakarta, Indonesia - Jakarta’s property market has emerged as one of the strongest in the world. Prices continue to rise, with values jumping by 30 to 40 per cent annually over the last three years. The city has become a magnet for luxury property investors as prices climb in its high-end residential sector. It remains to be seen if this year's election will impact the investment environment.
2. Manila, Philippines - As the country’s economy gains speed, more investors have turned their attention to the Philippines’ capital. Issues of governance and transparency have improved, while the city is increasingly attracting multinational companies for outsourced services, according to one recent report. Manila is considered favourable to investors because it has a young demographic, as well as a similar workforce culture to the west. Its residential, retail and office sectors all present strong investment prospects.
3. Mexico City, Mexico - Investors see signs of change in Mexico, with drug-related violence and crime on the decline and businesses benefiting from reforms enacted since 2012. Foreign property investors are attracted to Mexico 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 - With strong growth prospects, relative political stability and a favourable environment for foreigners, Marrakech was recently named by Financial Times property experts as a top investment pick for 2014. Tourism to the country is increasing and transaction costs for those buying or selling a property remain low, adding to positive investment sentiment.
5. Dhaka, Bangladesh - Ten years ago, Bangladesh’s capital would not have got a look in among investors. But things are changing: even global investment banking firm Goldman Sachs once listed Bangladesh as one of its “next 11” emerging markets to watch. 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. 

Source: Lamudi

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