Economies in Asia are better placed for the real estate recovery process than their western counterparts, it has been suggested. As such, investor demand in the region is expected to increase over the coming years.
That is according to Aviva Investors, which believes that the reliance on debt at a government, personal and corporate level in the west has contributed to a weakening of the economic positions in the past decade.
Ian Hally, chief executive for Asia Pacific real estate at Aviva Investors, said: "Real estate is a key asset class for long-term investors
, but questions have been asked recently about whether there is any value left following this year's rally in the UK."
As a result, he said, many investors have started "looking east beyond their home borders".
The comments come after a survey by the hedge fund manager found that the Asia Pacific region is favoured by investors. According to the study, three-quarters of those questioned were looking to add to their portfolios in the coming three years - with 60 per cent keen to boost their exposure in the Asia Pacific region.
- Monday 29 November 2010