Five top cities for real estate investors in emerging markets
Global property platform Lamudi has unveiled its inaugural list of the most coveted cities for investors in emerging markets.
The leading real estate website, which operates exclusively in 22 countries in Asia, Africa, Latin America and the Middle East, has picked the top investment opportunities in these regions based on market trends for the past six months.
Cities in Asia lead the pack, but there remains plenty of investment potential across other emerging regions.
Jakarta tops of the list as the most sought-after city for emerging market investors, on the back of the country’s strong economic performance and a booming luxury real estate sector. Manila, Mexico City, Marrakech and Dhaka round out the top five list.
Aneesa Arshad, Managing Director of Lamudi East Africa said: “Investors searching for new opportunities in emerging markets should look to these cities as well as the many rapidly developing cities across Africa.
“Countries across Africa are experiencing a boom in real estate, fuelled by a growing middle class and strong economic performance.
“Lamudi is working at the forefront of e- and m-commerce development for the real estate market, and we are confident that African cities will continue to become more and more attractive to investors from around the world.”
Lamudi’s top five most-coveted cities for property investors are:
1 Jakarta, Indonesia: www.lamudi.co.id
Jakarta’s property market has emerged as one of the strongest in the world. Prices continue to rise, with values jumping by 30 to 40 per cent annually over the last three years.
The city has become a magnet for luxury property investors as prices climb in its high-end residential sector. It remains to be seen if this year's election will impact the investment environment.
2 Manila, Philippines: www.lamudi.com.ph
As the country’s economy gains speed, more investors have turned their attention to the Philippines’ capital. Issues of governance and transparency have improved, while the city is increasingly attracting multinational companies for outsourced services, according to one recent report.
Manila is considered favourable to investors because it has a young demographic, as well as a similar workforce culture to the west. Its residential, retail and office sectors all present strong investment prospects.
3 Mexico City, Mexico: www.lamudi.com.mx
Investors see signs of change in Mexico, with drug-related violence and crime on the decline and businesses benefiting from reforms enacted since 2012.
Foreign property investors are attracted to Mexico City because they can get better value for money than in developing markets, while remaining in close proximity to the United States.
4 Marrakech, Morocco: www.lamudi.ma
With strong growth prospects, relative political stability and a favourable environment for foreigners, Marrakech was recently named by Financial Times property experts as a top investment pick for 2014.
Tourism to the country is increasing and transaction costs for those buying or selling a property remain low, adding to positive investment sentiment.
5 Dhaka, Bangladesh: www.lamudi.com.bd
Ten years ago, Bangladesh’s capital would not have got a look in among investors. But things are changing: even global investment banking firm Goldman Sachs once listed Bangladesh as one of its “next 11” emerging markets to watch.
These days the country’s property market is on an upward swing, with prices soaring and an increasing number of high-end apartment blocks being built throughout the city.
5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly
Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.
Here, Business Chief talks to Janthana about her leadership style and skills.
What do you do, in a nutshell?
I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.
How would you describe your leadership style?
I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.
What’s the best leadership advice you’ve received?
Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.
How do you see leadership changing in a COVID world?
I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.
They say ‘from every crisis comes opportunity’, what opportunities do you see?
The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless.
What advice would you give to your younger self just starting out in the industry?
Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.