Steady recovery in the global property markets is expected to be witnessed over the course of the year, with the US market offering the best return on investment (ROI) for individuals who decide to invest in property.
While overall recovery is expected to be a prolonged process, with an uncertain economic future for a number of destinations and the constant threat of inflation in many countries, there are plenty of opportunities for savvy investors.
Speaking to Investment International, Patrick Sumner, portfolio manager of Henderson Global Property Companies Limited, claimed that the US real estate market was benefiting from a rebound in fortune for Real Estate Investment Trusts (REITs).
"Most property companies around the world's REITs or otherwise, are in reasonable financial condition, having repaired their balance sheets, where necessary, with fresh equity," he told the news provider.
In particular, he highlighted the US as a "star performer", with the potential for investors to benefit from a 25 per cent return in sterling. Which, when compared to the UK (down nine per cent), is a remarkable turnaround.
"The US property market is much larger and more diverse than the UK's, but the economy is clearly recovering at a different pace. The investment market indicators show the same sort of performance as in the UK and tenant demand is similarly weak … the activity is driven more by reorganisation and a shortage of new office space than by any strong employment growth - so far," he added.
Last month, the US housing market was given a positive outlook
for the next few years by a group of economists, investors and market strategists. Housing analysts MacroMarkets have predicted that residential property prices in the country will begin a gradual recovery by next year and increase by 12.4 per cent between now and 2014.
Individuals who are looking for a good property investment deal may want to consider REITs
, with the trusts offering the potential of handsome returns without the complications that can occur through being a hands-on landlord.
And while recovery is a long way from the levels experienced before the economic crisis, the opportunity to capitalise on a recovering and growing housing market in the US
could signal a good time for investors to try to profit from the situation.
- Monday 07 June 2010