Property Frontiers Analysis Reveals Creative Opportunity - the end of Property Investment as we Know it
By Property Frontiers Ltd, PRNESunday, July 11, 2010
OXFORD, England, July 12, 2010 - Economic gloom and financial crisis produce a more creative and diverse
property market, according to customer research by Property Frontiers.
Analysis of our client base and market trends reveals that the international
property market is breaking up.
The 'break-up' is really the dispersal or diversifying of assets. The big
investment parcels traditionally bought by institutional investors are being
fractionalised to open them to the more active grass roots investor. Student
halls, for example, are being sold as individual rental apartments ('pods'),
hardwood plantations as individual parcels, hotels and upmarket real estate
as fractions or syndicates. This is the direction in which property
investment is moving inexorably.
There are three inter-connected causes of change:
1.) Economic downturn and banking crisis in the West
This sudden change has been psychological as well as economic. But it is
making investors more imaginative and encouraging them to cast their nets
more widely.
2.) Dispersal of global power
There is an increasing shift of economic (and increasingly political)
power from West to East and North to South. That points to wider
opportunities for the insightful investor.
3.) Investors' new priorities
Like most successful revolutions, this is led by the grassroots.
Investors are adapting to changed circumstances by developing a wider vision.
For property investment, the result is an ever-expanding frontier.
Geographically this means looking beyond more traditional markets. Turkey and
Brazil (two rising giants) are offering substantial rental yields. We are
exploring hitherto uncharted areas ranging from Mongolia to Ghana, Angola to
Sri Lanka. All these areas are rich in resources and are quickly sloughing
off past conflicts or dictatorships.
These changes in the property market are radical in the literal sense,
enabling the industry and investors alike to rethink their strategy from the
roots. They are democratising the market, bringing in swathes of
middle-income clients looking for exclusivity at an inclusive price. They are
also decentralising it, enabling investors to protect their assets better by
spreading them far and wide.
The property market is not in crisis, if we think beyond conventional
wisdom. Its changes are part of a wider shift of economic and political power
- and as such they open up an array of new possibilities.
For further comment or interviews, contact Aidan Rankin on
+44(0)1865-268561; ARankin@propertyfrontiers.com
Follow us on Twitter: twitter.com/propfrontiers
For further comment or interviews, contact Aidan Rankin on +44(0)1865-268561; ARankin at propertyfrontiers.com
Tags: England, July 12, Oxford, Property Frontiers Ltd, United Kingdom