Real Estate Investments in High-Growth Markets
 
Real estate is an essential part of any diversified investment portfolio. Property investments in carefully chosen markets provide appreciation potential equal to the most aggressive equity investments, and are backed by hard assets that limit risk.  Rental real estate provides reliable income, often with yields greater than any but the riskiest bond investments.  
 
As with any investment, asset allocation is the key to effective real estate investing. Traditional property investments in the US, Western Europe, and East Asia have reached unsustainable peak values and in many cases are sliding down in value. Adderley Davis analysts regularly examine the potential of real estate markets in the fastest growing economies in the world, developing innovative investment instruments that allow clients to take advantage of the combination of security, income, and capital appreciation that only real estate can offer.

The United Arab Emirates
 
The UAE’s spectacular economic growth, superb standard of living, business-friendly environment, and unparalleled safety and security have generated one of the world's most impressive property booms. Real Estate values have soared in Dubai, the first city in the region to experience a true property boom, and rental yields are among the highest in the world, making Dubai residential properties significant generators of income. There is no bust in sight: Dubai’s population is increasing at a vertiginous rate, driven by selective immigration, and German real estate specialist Engel & Völkers projects that even including developments that are under construction and in the planning stage, there will be an average shortfall of 45,000 units a year through 2012.
 
Other cities in the UAE are showing potential equal to Dubai’s and in some cases greater.  Abu Dhabi, the oil rich national capital, and the spectacularly scenic northern Emirate of Ras al Khaimah have adopted incentive packages and economic policies similar to those that drove Dubai’s boom.  Both have drawn rapidly increasing foreign investment and both have rapidly expanding populations.  All of the conditions for a boom are present, and prices remain attractive, allowing investors to get in on the ground floor.
 
Adderley Davis has developed investment instruments enabling small to medium-capacity investors to take advantage of the remarkable potential offered by UAE real estate.
 
Other Underpriced Markets
 
Real estate investment opportunities equal to those in the UAE have been identified in several underpriced markets in Europe and Asia.
Southeastern Europe has emerged as one of the European continent’s leading economic growth drivers, showing real economic growth of 23 per cent in the last four years. Romania and Bulgaria are newly integrated into the EU, and combine European legal structures and investor protection with property prices that remain far below the rest of Europe.  These counties offer rapidly expanding economies with high demand for property with spectacular mountain and coastal scenery, a mild climate, low crime rates and modern developments coupled with an old-Europe charm that few Western European capitols retain.
 
In Asia, ADA has identified a compelling real estate investment opportunity in Thailand, a leading player in the burgeoning retirement and second home market. With the baby boom generation reaching retirement age, the number of people seeking to enjoy a balmy tropical climate and a standard of luxury that only the very rich can enjoy in western economies is expanding very rapidly.  Thailand offers quality infrastructure, top-quality health care, and a dazzling variety of leisure opportunities, and is already a favorite of leisure travelers.  This peaceful, investor-friendly Asian country is poised to seize a significant share of the market for retirement and second homes.  Recent political changes have temporarily depressed prices, but with the country rapidly returning to full democratic rule and buyer interest returning, this is a transient phenomenon offering an ideal entry point to one of the boom markets of the future.
 
Adderley Davis is continuously investigating new markets, in an effort to bring clients to the markets with both security and significant appreciation potential.