Investing in Emerging Markets: China, India and Brazil

Fall 2011, Vol. 36, No. 2
Abstract: Real estate in emerging markets, in general, can be characterized as “embryonic and growth oriented.” China, India and Brazil exhibit such characteristics as accelerating market growth, industry potential that substantially exceeds its current volume and a rapidly growing number of relatively unsophisticated real estate players. Entry into these markets tends to be easy but exiting the market can be more difficult with a weaker legal structure and fewer market players than developed countries. The article addresses both the opportunities and risks of investing in these markets, all of which have seen significant property appreciation, and benefit from large national economies and demand based on solid growth fundamentals.