House Prices Increased in Colombia in 2010

The housing market in Colombia was especially strong in 2010 which is partly due to the burgeoning economy and partly because of the peaceful transition to a new president. It's expected that house prices will continue to increase this year and Colombia's investment rating was upgraded in March to investment-grade.

The average house price rose by 9.25% in 2010 with the average price of a new apartment increasing by 9.57%, and the price of new homes increased by 5.69%. Three cities in particular showed strong price increases last year, which were Bucaramanga with increases of 15.2% year-on-year, Bogota with increases of 10.5% and Barranquilla with increases of up to 8.6%.

Colombia has a housing deficit of around 2.4 million homes with 185,000 new homes being needed annually. There are signs that this demand is partially being met as housing approvals reached 153,903 last year, with this high level being partly accounted for by the reduction in construction costs.

The Colombian economy grew by 4.3% last year up from 1.5% in 2009. The growth during the last quarter of 2010 was especially strong, and as a result of this there was a 3.2% increase in the consumer price index during the first quarter of this year, but this is still within the central banks 2% to 4% target.

The country gained a new president in August 2010, Juan Manuel Santos, who succeeded Alvaro Uribe. Santos was formerly the Minister of defence and his main priorities include improving relations with Ecuador and Venezuela and reducing the high levels of unemployment.

Columbia can offer a luxury lifestyle for a bargain basement price

Colombia is increasingly drawing attention from property investors as it has much to recommend, particularly the city of Medellin. This city is now very safe, with a cosmopolitan atmosphere combined with perfect year-round weather. It has all the big city amenities you would expect such as a modern metro system, two airports and world-class shopping and restaurants, yet property prices here are still low. This is put down to the stain left by drug lord Pablo Escobar who died 12 years ago.

It is possible to buy a luxury apartment in a good neighbourhood for around $80,000, while a luxury penthouse can cost less than $150,000. The works out to around $79 per square foot which is incredibly low considering the beautiful location and quality of living offered in Medellin.

While prices here have remained fairly steady there is evidence that this may be changing as more international buyers are looking for somewhere new to invest. Many of these international buyers are drawn to the country by the good rental returns of between 5% and 11%, averaging at 7%.

Medellin city is committed to public architecture and has a number of beautifully designed libraries, schools and parks which have helped to turn around at some of the poorer neighbourhoods. The city, like the country as a whole has worked hard to reverse the previously negative image.

Brazil Property Investors Happy on Rentals Waiting for Growth

Brazil, known for being popular among tourists, has property investors highly interested in capitalizing on its low home prices and positive economic outlook for the next several years.

Property prices are falling and reports state that the prices may have already peaked in the largest city. In October of last year, home prices dropped 3.53 percent compared to September. Additionally, there was a 25.6 percent decrease in the number of homes sold.

Falling home prices are not keeping local and overseas investors away though. They are confident that the real estate market will turn and in the upcoming years their investments will be worth it.

In the meantime they will enjoy the residual income that fattens their wallets each month as the rental property remains stable and many are opting to rent these days due to the unstable economy around the world.

Brazil’s economy is strong and it is expected to continue to grow in 2011 and according to research by the Association of Foreign Investors in Real Estate Market (AFIRE), Brazil’s investment property market is one of the hottest places to invest right now.

Brazil has ranked fourth in a list of countries that are predicted to have a great chance of recover, coming in right behind the UK, China, and the USA.

Joao Crestana, president of Sao Paulo SECOVI, states that Brazil’s market is returning to normal following a period of time when supply just wasn’t in competition with demand. He looks for 2011 to be more equal and stable.

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Emerging Market Picks Part I: Latin America

After almost 2 whole years in the doldrums, emerging market property investment is picking up in support once again, thanks in no small part to the massive acclaim of Brazil, which has grown into one of the world's highest profile markets.

Thus, we have decided to conduct our first review of which emerging markets around the world, starting with Latin America. No, it's not just to get another tuppence worth in on Brazil, but because Latin America is very much becoming a centre for emerging market growth, with many hot markets and we wanted to lay out what markets we feel are offering the biggest potential for growth.

Brazil

We would love so much to have been different, to have been able to be controversial in saying Brazil wasn't one of the hottest emerging markets in Brazil, or the world, but we just can't do it. Brazil has so many strong sectors, as do many Latin American economies, but then Brazil has also discovered oil.

Brazilian agriculture is in the top 5 in the world, in terms of volume of production and head of cattle. Then you have the booming services sector, fuelled by leaps in budget aviation and technical and administrative outsourcing over recent years. Then you have the discovery of oil, which will add millions of dollars in revenues as it is tapped and exploited.

All this is fuelling phenomenal economic growth, which is increasing employment and affluence within the Brazilian population. As such the demand for affordable housing to buy and rent is growing massively. The north east, and especially cities like Natal and Sao Paulo have been found to be leading this growth in terms of percentages.

Availability can be a problem for foreigners, but we have just brought on the Edifício Dr. Geraldo Furtado development in Natal. The development is specifically targeted at the local market, which means low prices to foreign investors.

Panama

You don't hear much about Panama these days but that doesn't mean it lost all the growth potential it had in 2006, 07 and 08. While many markets crumbled at the hands of the crunch, and developments were postponed and cancelled, the construction boom in Panama continued, as the economy has continued to grow by around 5% per annum.

The economy is forecast by both the World Bank and International Monetary Fund to grow by over 4.5% this year (4.5% and 5% respectively).

Then there is the expansion of the Panama Canal. 5% of global shipping cargo passes through the canal, but it has grown outdated and too small for the larger super-freighters that now rule the seas. The multi-billion dollar expansion will add to Panama's economic growth.

Panama property is not the cheapest in the world, but it is very competitive. We have a development of luxury apartments in a resort on the Caribbean coast at prices starting from £55,000.