Investing in Asian real estate holds great promise for non-Asian institutional investors. But while there are great rewards, the risks also are great. However, many have overcome their fears of investing in the region, and allocations to Asian real estate by European and North American investors have been going up.
From the Current Issue
It has been observed that physical infrastructure provides society a way to “manage chaos” by channeling people’s movements, eliminating the daily search for drinking water, facilitating the movement and delivery of food and supplies, facilitating communications, and generally structuring people’s lives so that they can be economically productive and live comfortably, even when in close quarters in cities. Substantial institutional capital has been raised during the past several years for infrastructure investment funds.
International investors have begun scrambling to take positions in the “lucky country” due significantly to the fact that Australia, in the past year and a half, has taken prizes for a number of economic world feats and firsts that have made headlines around the world.
Earlier in 2009, when the numbers from one of the Bank of Japan’s tankan reports were encouraging regarding Japan’s economy, I rejoiced in the hope Japan had started pulling out of its seemingly never-ending recession. However, as the year progressed, the reported economic statistics slipped again and the old demon of deflation was officially back in Japan.