The alternative investment advocacy group claims that real estate is still a popular alternative asset class to those who are shying away from equities while the economy remains volatile. In Europe, investors who were putting their cash into property in Ireland and Spain have now moved their investments to Bulgaria and Romania.
AAA is basing its analysis on a speech from Denise Hamer of Schoenherr Lawyers, who spoke at the recent IPD/Property Investor Europe (PIE) Central and Eastern Europe (CEE) Conference. He talked about how the emphasis for investors has returned to Eastern Europe, where economies like Romania and Bulgaria are set to emerge as the better bets in terms of investment.
Mr Hamer said that it was an exciting time for real estate investor in these regions: "It's going to be very dynamic and volatile, a very exciting investor atmosphere.”
Signs such as the news that a new shopping centre in Romania’s Ploisesti is already 70 per cent let, suggest that real estate is in demand in the former Eastern bloc country.
Returns could be particularly good on real estate assets bought in the capital Bucharest, which is slowly seeing tourism return and signs of prosperity emerge.
AAA’s analysis partner, Anthony Johnson, said that real estate and other alternative asset classes offer investors the chance to diversify their portfolios against risk. “These kinds of assets - including wine, art, timber, commodities and precious metals - are not as closely correlated with equities as other more traditional asset classes. As a result, when equity markets lose value, these asset classes hold their value.”
AAA particularly supports ethical investment opportunities, such as the forestry plantation projects that Greenwood Management and other firms run in developing countries like Brazil. These projects offer people the chance to buy up a tangible section of plantation and reap the rewards on an ongoing basis.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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