Turkey and Brazil Property Powerful Investments in a Cautious World

Anyone buying or considering buying overseas property in this post-near-apocalyptic-crash period will be hearing about the changed landscape in overseas property investment. Whereas before the crash emerging markets were all the rage, with seeming impunity as to which emerging markets made good property investments, as long as they had been called emerging markets.

Now though, we are much pickier, and while emerging markets are still being recommended, so are established ones, the most important factor is not the market’s level of economic development, but its property investment potential, based on core fundamentals like supply and demand (who woulda thought it eh?).

Property in Brazil and Turkey are currently regarded as two of the best emerging market investments, and it is exactly because of those very fundamentals, supply and demand, or specifically in the case of Turkey and Brazil, demand outstripping supply.

That is demand for quality housing from the burgeoning and increasingly affluent middle classes in both those countries.

But there is one more thing that both have in common which is incredibly significant in their property boom now; young mortgage markets. During the boom both had very small mortgage markets, and this insulated them from the recent financial crisis. Now, with their banking systems strong, and their economies growing strongly, financing for property is much easier to come by than it is in most countries right now.

In Turkey consumer spending is going through the roof, and as people become more affluent they want better places to live be they buying or renting. The Turkish mortgage market is currently growing at 25% per year according to the central bank. Demand for Turkey property to rent and buy is far outstripping supply.

Brazil is a different story, in that the mortgage situation is more complicated, but to offset that, the demand for housing is even greater. In the last 8 years the Brazilian middle class has increased by 27 million, and there is a shortfall of quality housing estimated at 7 million and growing several months ago.

It is easy to see why investors are so keen to buy into property in Istanbul, Natal, and cities like it, where property is still undervalued compared to cities in established economies.

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Categories: Brazil Property / Property Invest / Turkey Property


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