Overseas Property Investments

A report by Real Capital Analytics underscores the surge in overseas property investments. Globalization has completely changed the dynamics of the industry and overseas property investments are seen as the new mantra for growth.

Reiterating the trend towards overseas property investment, the report states that the largest commercial property transaction in 2007 involved the westward movement of Middle East money targeting a Las Vegas land deal. The second largest overseas property investment involved the eastward movement of US money into a European office building. China, another hot destination for overseas property investment, posted more than $1 billion in commercial property sales in thirteen cities.

An analysis of the financial information behind overseas property investment reveals the increasing impact of complex financial engineering in global property markets. Real estate is now recognized as a mature asset-class for investors. Most notable is the new level of transparency expected by those seeking overseas property investments. Though there is still much to be desired, today’s overseas property investment is backed by access to far more data sources. Ultimately, this increased transparency will help investors manage risk and encourage more overseas property investment.

Emerging markets grab share of overseas property investments

Prospects of the current US and UK markets remain rather uncertain. Moving equity into property investments overseas, especially Asia, have helped mitigate low returns in the US and UK. Asia accounted for 17% of total real estate investments in the US, Europe and Asia in 2007. Its share of overseas property investment is rapidly growing, and it is predicted that at the current rate Asian property investment sales could even surpass those in the US and Europe in 2008. Eastern Europe is another popular destination for overseas property investment. In fact Bulgaria has shown how a new market could become an established destination for overseas property investment. 6% of British overseas property investment was directed there in 2007.