What makes the hottest property markets such a worth while investment?
Last year, the real estate markets in Dubai, Hong Kong and Brazil were named as the world's "hottest" destinations to invest in, according to property investment specialist The Overseas Investor. Labels like that can be a useful way of quickly singling out markets that have a lot to offer investors, but that alone isn't enough to base an investment on.
Wise investors will seek to understand just what makes each market hot before deciding which they want to place their money in.
Dubai is one of the world's richest cities, and has been experiencing a high-profile boom for quite a while now. Both property and stocks in the city are currently soaring.
Dubai is the perfect location for medium- or long-term property investments, and despite the fact its boom has been sustained for some time now, investment continues to flow in and, despite high volumes of construction, many experts still believe that the city can't succeed in meeting demand.
Some experts advise a word of caution, believing a correction will be due. But this is expected to be far less severe and better-managed than the previous one so, combined with the fact there is expected to be significant growth beforehand, it does not by any means form a deal breaker on investment.
Hong Kong is definitely one of the world's property hotspots, especially when it comes to high-profile properties. Indeed, it is not surprising that Forbes named it one of the hottest investment regions, because it is difficult to think of a positive feature that Hong Kong doesn't have.
The wealthy have flocked towards the city and its reputation as a strong place for luxury property. This reputation is perhaps best embodied by Swire Pacific's Opus project, where a single unit fetched a sale price of $58.7 million.
Driven partly but not entirely by this top end of the market, Hong Kong has experienced compelling levels of success. Even during the global financial crisis, between 2008 and 2013, property values grew by 120%. The market has been slowing down recently, but high net-worth buyers continue to drive it forward.
Brazil is a place that promises to reward those who are willing to play the long game and exercise patience. The recent World Cup gave a boost to an already attractive market, creating jobs and driving an increase in construction.
The star investment type of Brazil's real estate market is undoubtedly beachfront land for development on the north-eastern coast of the country. Demand from foreign investors has already doubled the price of this type of land, with three out of every ten properties now ending up in the hands of an international buyer. Forecasts suggest that this factor will continue to push strong value growth. Investors who get in early therefore stand to benefit significantly.
It does not look likely that the local economy will falter in the near future. However, there are no cast-iron guarantees and, should this happen, strong levels of foreign activity in the market will likely do a lot to minimise damage.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.