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Asian real estate investment back in vogue for 2016

April 27, 2016Article by Ray Withers

Asia is definitely back in vogue in 2016. Foreign investment in many ASEAN real estate markets is enjoying a serious renaissance this year. My heritage means I feel a particular affinity for Asian markets, so it’s great to see them on the rise once again and investors flocking to South East Asia’s real estate sector.

Driving demographics

There is a whole host of reasons why South East Asian real estate is looking so attractive at the moment and favourable demographics certainly come into play. The Association of Southeast Asian Nations (ASEAN) is made up of ten member countries, with a total population of around 620 million people. There’s a burgeoning middle class and a young, fresh labour pool that’s bursting with talent and keen to embrace the very latest that modern technology can offer in terms of remote working, freelancing and entrepreneurial possibilities.

Favourable finances

ASEAN finances are also pointing to a bright future. The combined GDP of $2.2 trillion in 2012 has been projected by many economists as likely to double by 2020, while the five core countries (Thailand, Singapore, Indonesia, Malaysia and the Philippines) have experienced growth as fast as any other global region in the five years leading up to 2014.

The result has been a keen level of interest in investing in the ASEAN countries. The hotel investment market is booming (JLL is predicting transaction volumes of $8.5 billion in 2016) and the real estate sector is following.

Internal investment

The Philippines is a great example of another ASEAN trend right now – internal investment giving rise to international confidence. Infrastructure programmes are underway in order for the country to help maintain its investment grade rating, the Department of Budget and Management has reported. In nearly three decades to 2009, average infrastructure spending was just over 2% of GDP, but in 2016 that figure is set to reach an impressive 5%.

Whichever way you look at South East Asia – and at the Philippines in particular – the time is ripe for investment in real estate. And of course Property Frontiers will be at the forefront of high end residential real estate there – I’ll be revealing further details of our new opportunity there very soon, so watch this space!

For more information about investing in residential real estate around the world, contact Property Frontiers or call +44 1865 202 700.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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