{"id":1004277836,"date":"2018-11-07T05:47:47","date_gmt":"2018-11-07T13:47:47","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004277836"},"modified":"2022-12-08T17:21:02","modified_gmt":"2022-12-09T01:21:02","slug":"risky-business-report-ranks-global-investment-hazards","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/risky-business-report-ranks-global-investment-hazards\/","title":{"rendered":"Risky Business: Report Ranks Global Investment Hazards"},"content":{"rendered":"

By Gail Kalinoski<\/em><\/p>\n

\"Wolfgang<\/a>

Wolfgang Kubatzki, managing director, Scope Investor Services<\/p><\/div>\n

Australia, the U.S., the Netherlands, Germany and Switzerland are the five least risky investment markets and Argentina and Venezuela are the most risky among 52 countries analyzed by Scope Investor Services. Rounding out the top 10 least risky investment markets were the United Kingdom, New Zealand, Canada, Norway and Sweden. Joining those South American countries on the most risky list are Turkey, Brazil, India and Russia.<\/p>\n

Scope Investor Services, part of Scope and Scope Ratings, Europe\u2019s leading credit rating agency, looked at 52 countries to assess potential risks of real estate markets: three North American, 29 European, six Latin American, 12 Asian, as well as Australia and New Zealand. The Scope Global Real Estate Market Monitor (GREMM) supports asset allocation decisions, as well as risk management processes. In a report entitled, Global Real Estate Investment: Opportunities and Risks in the Late Stage of the Cycle,<\/em> Scope Investor Services and the Scope GREMM note investment capital<\/a> is becoming more global in its search for returns and diversification. It also states there is a need for a standardized set of indicators to make sense of opportunities, as risk and return expectations have become critical.<\/p>\n

\u201cReal estate investors, after nine years of strong and often double-digit returns, face a daunting task: How and where to invest large amounts of new capital while guarding against a market correction, if not recession, in 18 to 24 months\u2019 time,\u201d<\/em> Wolfgang Kubatzki, managing director at Scope Investor Services and author of the report, said in a prepared statement. \u201cDiscerning investors, of course, look at more than country risk, explaining why plenty of money can flow to relatively more risky destinations.\u201d<\/em><\/p>\n

\"Manfred<\/a>

Manfred Binsfeld, director, Scope Investor Services<\/p><\/div>\n

For the immediate cyclical outlook, the report notes the real estate market is facing several demand-side factors including tight labor markets, rising incomes and population growth. It points out that oversupply is not a widespread problem, but is being seen in some cities outside Europe and North America such as Sao Paulo, Jakarta and Shanghai. Construction activity has been modest in most markets, while others are near their peak in the development cycle.<\/p>\n

\u201cThe key may be to take a long-term structural view of the property market, while avoiding home-country bias, particularly for investors who aren\u2019t satisfied with the idea of switching into cash or paying down debt despite the uncertainty ahead,\u201d<\/em> Manfred Binsfeld, director at Scope Investor Services and the report\u2019s analyst, said in prepared remarks.<\/p>\n

Binsfeld pointed to four trends:<\/p>\n