In the real estate investment world, risk is just part of the game. While the United States has dug somewhat out of the financial issues it was facing—especially in the real estate investment market—the rest of the world is still trying to find its footing. Surprisingly, the fact that the rest of the world is still trying to gain a more standard footing is the reason why investing overseas is attractive again.
Getting in on the ground floor is a big plus when talking about making some serious cash by attempting to corner the market. While there are certainly some trends in the United States that make the real estate investment market attractive right here, going to new shores can mean better portfolios in the long run.
One spot that many people might not think of as a mecca for real estate investment is India. One of the biggest factors for bringing this country into the financial spotlight is an improving economy. There have also been some political changes over the last few years that have made investment in this country a lot more attractive than it was just a year or two ago.
Big time companies such as Morgan Stanley and the Blackstone Group are eying areas of the country such as Mumbai as places to invest their money again. That doesn’t mean that those firms are going in whole hog, it seems likely all investors are going to be a little more cautious than they might have been pre-2008, but companies are indeed coming back. From 2005-2008 those same companies were loading millions of dollars into India and saw quite a few losses when the economy collapsed. This is one of the reasons the market is so attractive now, because companies have been slow to come back, making that market quite a bit more balanced than it was during that three year period of explosion.
In total, real estate investors and private equity firms have put in more than $675 million into Indian real estate in the first half of this year. That only seems like it is going to continue to go up.
Europe is busy digging itself out of its own recession and just like India, it appears the real estate investment market is one of the biggest ways they are doing that digging. The big difference between the two markets is that in India, corporate investment is a big deal. In Europe, retail property investment is quite a bit more popular. One report puts retail property investment as spiking by more than 86 percent in the second quarter of this year.
The investment in retail centers are taking place in some of Europe’s bigger cities, including London and Paris as well as smaller areas that are considered growing markets in the region. One thing that seems clear is that the real estate investment boom has been almost uniformly spread out across the European Union. Spain saw more than $1 billion in the Q2, but Ireland and Hungary also saw very big growth for their regions.
While investing overseas is getting more and more attractive in a way people haven’t seen since the collapse in 2008, treading lightly and making sure you know what you are doing is still going to be key to any long term success. Making sure you have done your homework, and maybe even consider upgrading your education with a certification from IMCA, which offers both conferences and educational programs related to investment strategies.
Seeing people running to these markets shouldn’t mean going without big time investments. The lack of education and investigation was a big part of the problem that caused the global economic collapse in the first place. Most people understand this, but there can be some resistance to learning from the past when big time dollar signs are being waved in people’s faces.