In the 2020 World Investment Report last year, officials warned that the COVID-19 pandemic would heavily affect foreign direct investment, especially impacting developing countries harder. But as the pandemic progressed, the real estate market has shown rebounds in certain seasons.
Find out which countries are expected to (or already) have a jump in growth and that investors should invest in after the pandemic below.
Thailand has always been known as the heart of South-East Asia. In 2019, the country attracted 39.8 million international visitors! The numbers have since dropped drastically due to the pandemic; it hit Thailand hard as tourism is a big part of their GDP. The unemployment rate of low-skilled workers, informal and migrant workers in the tourism sector are high 6 months into the pandemic.
However, the government responded to the pandemic by coming out with policies to mitigate the impact of Covid-19 on the country. Thailand authorities saw this crisis as an opportunity - to further adapt digital innovation and transform its tourism sector into a low density and high-end tourism spot.
Other than the above, we expect a strong economic rebound after the pandemic due to Thailand's strategic location, which benefits from trade with other ASEAN countries and the welcoming government support to foreign investors.
As for real estate, the local property scene is still looking strong during the pandemic - the locals are still buying new developments. This shows confidence in the economic recovery, and we expect Bangkok to be in position for a huge market growth after the pandemic.
Once the country opens up, we expect a huge increase in demand on the rental market, especially on short term rental such as Airbnb operations. Thailand will definitely recover its tourism economy and foreign direct investment very soon after the pandemic is over.
The way the Australian government manages the pandemic has helped the economy bounce back fairly quickly. Since the pandemic's start, the government has taken prompt actions to minimize the spreading of infections and offered many economic stimulation packages to sustain local businesses.
Being one of the most multicultural countries globally, Australia can utilize that in making strong trading ties with various markets in the world. This country is also one of the most entrepreneur-friendly countries in the world - they offer a great environment for individuals to start a business, invest, and have a good lifestyle.
Australia’s position after the pandemic will definitely be stronger, as the low infection rates will provide a faster market recovery.
Stability often offers us a great sense of security in any investment. From the way the Australian government manages the pandemic, we can see that Australia is stable and full of opportunities to grow economically.
The Australian real estate market did not really slow down during the pandemic, as there are still foreigners buying into Australian real estate for study purposes or migration planning. We expect a rise in the rental market around universities or colleges once the borders open up for students. Besides that, the inflow of new immigrants will push up the real estate market too.
Dubai has always been one of the best places to invest in real estate due to its rapid growth and tax haven.
According to Bloomberg's vaccine tracker, UAE is one of the world's most vaccinated countries. From this news source, we can expect a speedy economic recovery from the UAE and that it will be opening up to visitors very soon.
Dubai Expo will be the key project to open up the Middle Eastern door for foreign investors. The success of the Dubai Expo will attract more foreign direct investors, bridge the global community, and put Dubai in the centre of international trade.
The real estate market did suffer due to the pandemic as the number of expats is over 80% of Dubai's population, especially in the residential rental market. This is because expats are returning to their home country, and fewer people travel into the nation.
Once the pandemic and the Dubai Expo are over, there will definitely be a bloom and speedy recovery on the real estate market. Despite the impact, Dubai real estate projects are one of the top ones in the world. They often offer a high return on investments, especially after the pricing adjustment period. We do see a robust and positive appreciation coming right after the pandemic recovery for Dubai.
Malaysia has always been a hot spot for tourism and investment due to its multi-language advantages and the low cost of living. The happening of the Covid-19 pandemic provided a great opportunity for foreign investors too.
As the Malaysian government introduced a series of economic stimulation packages throughout the pandemic, some policies are very beneficial to foreign investors to start a business or expand their current operations to Malaysia. European and US companies consider Malaysia one of the most favourable countries due to its growing market.
After the pandemic, we expect growth in foreign investment, especially in the business markets, since Malaysia has one of the easiest business registrations and low overhead costs in Asia. The multicultural background society also provides an edge to attract visitors for tourism purposes. For the past 10 years, we can see that around 25 million tourists visit Malaysia each year!
In the view of both the business and tourism sector, the coming years of Malaysia after the pandemic are on the positive side. The future completion of the One-Belt One-Road initiative will give an edge to Malaysia – The Covid-19 pandemic only acts as a delay in the future bloom of this nation.
For all its tragedy, the pandemic has been good for home prices - some countries have even seen a jump in growth! It is indeed a perfect opportunity to read up and place the right investments at the right countries.
This article is written by Danny Lo.
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