5 of the Top Emerging Overseas Real Estate Markets
When Guggenheim Investments launched an Emerging Markets Real Estate ETF last September, the AlphaShares index was the first of its kind to exclusively monitor securities pegged to real estate in developing countries. Six months later, we're taking a look at how some of the index's top markets are doing, with additional research data from Cushman & Wakefield, Bloomberg and Forbes.
Leading fund: Growthpoint Properties LTD
Business capital: Johannesburg
Guggenheim Emerging Markets Real Estate ETF rank: 6
Leading fund yield as of February 23, 2015: 3.07%
C&W Transparency ranking: Excellent (5 out of possible 5)
C&W Risk ranking: 2 out of 42 emerging markets (1 indicating the least risk)
Cons: Availability is higher than analysts would like. And consumer debt has crept steadily upward over the past decade.
Leading fund: Emaar Properties
Business capital: Dubai
Guggenheim Emerging Markets Real Estate ETF rank: 1
Leading fund yield as of February 23, 2015: 5.26%
C&W Transparency ranking: Good (3 out of possible 5)
C&W Risk ranking: 9 out of 42 emerging markets (1 indicating the least risk)
Cons: Western corporations continue to shutter offices in Dubai, a trend that began during the financial crisis. Just last fall, both UBS and Standard Life left the frothy desert boomtown.
Financial capital: Jakarta
Assets as of February 23, 2015: $605.5M
C&W Transparency ranking: Good (3 out of possible 5)
C&W Risk ranking: 5 out of 42 emerging markets (1 indicating the least risk)
Cons: Supply has recently begun to catch up with demand, diminishing rent growth. Infrastructure is still behind the times in the sprawling megalopolis, and land is in short supply.
Leading fund: Ayala Land
Business capital: Makati
Guggenheim Emerging Markets Real Estate ETF rank: 5
Leading fund yield as of February 23, 2015: 3.10%
C&W Transparency ranking: Good (3 out of possible 5)
C&W Risk ranking: 14 out of 42 emerging markets (1 indicating the least risk)
Cons: The country's economy and office rents are heavily dependent on the outsourcing sector, although it's projected to remain healthy of the next couple years.
Business capital: Bangkok
C&W Transparency ranking: Very good (4 out of possible 5)
C&W Risk ranking: 11 out of 42 emerging markets (1 indicating the least risk)
Cons: Political instability has roiled the country for much of the past decade, pitting Bangkok elites against rural workers and resulting in a military coup last year.
