News
Emerging economies experience property boom
Friday 06 June 2008
Property prices in emerging economies such as Brazil and Russia may "rise further" as a "commodities boom" and increased lending opportunities provide a stable base for growth.
That is according to an article in yesterday's Guardian (June 5th) by Sebastian Tong, who stated that demand for property is high in emerging markets due to salary increases and "growing urbanisation".
Property investment in countries such as Brazil, Russia, India and China, collectively known as BRICs, is not affected by the liquidity squeeze seen in the West.
Jonathan Garner, head of emerging markets strategy at Morgan Stanley, explained: "The credit crunch has very limited relevance to many emerging markets. Not only are the banks in good shape, you've also got households that are not overextended."
The ratio of household debt to gross domestic product in Brazil, Russia, India and China range between five to ten per cent, compared to over 100 per cent in the U.K.
Mr Garner said banks have been advising investors "to own land, buy into real estate brokers, construction firms and property developers".
That is according to an article in yesterday's Guardian (June 5th) by Sebastian Tong, who stated that demand for property is high in emerging markets due to salary increases and "growing urbanisation".
Property investment in countries such as Brazil, Russia, India and China, collectively known as BRICs, is not affected by the liquidity squeeze seen in the West.
Jonathan Garner, head of emerging markets strategy at Morgan Stanley, explained: "The credit crunch has very limited relevance to many emerging markets. Not only are the banks in good shape, you've also got households that are not overextended."
The ratio of household debt to gross domestic product in Brazil, Russia, India and China range between five to ten per cent, compared to over 100 per cent in the U.K.
Mr Garner said banks have been advising investors "to own land, buy into real estate brokers, construction firms and property developers".
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