The world's emerging markets will provide significant commercial real estate opportunities in the early 21st century, according to an article published by PricewaterhouseCoopers.
Investors will be able to succeed despite the information gaps that inherently exist for emerging real estate markets.
The article, called "Emerging Markets and Real Estate: The Next Frontier," appears in the Fall 1998 edition of PwC's "Global Real Estate Now." It is authored by Steven Laposa and Kenneth Burd.
Laposa and Burd identify four major trends that they say collectively will help emerging market real estate investors.
Globalization of real estate services providers. With the cross-border expansions and mergers of commercial real estate brokers, data reporting and other processes will become more standardized.
Public Ownership. U.S. public real estate companies are expanding into emerging markets and over 1,100 non-U.S. real estate companies are now publicly held.
Increased real estate market information arising from current crises. The authors predict an explosion of data resulting from the Asian crisis resulting from disclosures and/or securitization of bad loans.
Technological advances. Advances in space imagery from satellites and aerial photography will provide additional research analysis tools.
Also featured in "Global Real Estate Now":
"Looking Eastward: General Considerations About the Asian Real Estate Market," by R. Craig Batson. The author discusses three important issues that should be addressed by those intending to bargain-hunt in hard-hit Asian countries: government/market stability, ownership/transfer restrictions and tax laws.
"Real Estate in Germany and Berlin: An Overview," by Dr. Helmut Trappmann and Nils Schraut. The authors provide analysis of Berlin's real estate market, in advance of anticipated taxation changes and other new issues likely to appear with the new national government.
PricewaterhouseCoopers refers to the US firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.
Published: October 30, 1998
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