VNRE - Viet Nam would be among the top five emerging real estate markets for investment this year, according to the Association of Foreign Investors in Real Estate (FIRE) based in the US.
Brazil, China and India dominate the market (in that order), but Viet Nam, unranked in 2010, jumped to the fourth position. Mexico ranked fifth, losing last year's position to Viet Nam. Russia, which has been amongst the top five for the last two years, dropped to the tenth place.
Peter Ryder, general director of Indochina Capital, which currently has several real estate projects under construction in Viet Nam, said the recent rise in investment in Viet Nam was due to the rapid growth of the country's real estate market and the open regulations that allow the participation of foreign investors.
"Viet Nam's entry at number four in the survey actively demonstrates investors' belief in the attractive demographics of the country and its stable growth environment from an investment perspective," said Richard Emerson, head of investment, Savills Viet Nam Ltd Company's Ha Noi Branch.
"Based on such statistics, those surveyed clearly anticipate that the country will provide potentially higher returns than those available in other emerging markets such as Russia and Turkey, both of whom have fallen out of this year's top five ranking," he said.
Meanwhile, Marc Townsend, CB Richard Ellis Viet Nam Ltd's managing director, said the survey showed a trend that Viet Nam was being viewed more and more as an attractive option for investment.
"This is in line with our experience, having seen increased interest in the country from foreign investors in recent times, as lower than average investment returns in more developed markets force investors to move up the risk curve in order to achieve results," Emerson said.
"Viet Nam should benefit from inclusion in the survey, as it will further help promote the country as a valid investment destination. Positive international perception of the country as a result of the survey can only assist in driving FDI in the future."
Last year, the real estate sector received the largest registered FDI at US$6.8 billion (S$8.7 billion), according to a report on FDI for 2010 from the Ministry of Planning and Investment.
Source: Viêt Nam News/ Asia News Network