Emerging markets and developing economies
Posted by davidr on 4 th in Caribbean Investments, Cayman Islands property news, DSR, Investment Property, Land, News on 4th of November 2010How Emerging Property Markets Grow Throughout a Global Slowdown
As visitors from the developed countries spend their money on accommodation and their holiday spends in emerging markets, it develops the country’s economy and helps to spread affluence.
As tourism grows travel operators start looking at the country and/or sending scouts to investigate its potential, the number of flights to the country often increases and before you know it Trump tower and hotel chains are sprouting up, and employing all but top-level management – which are brought in from outside – from within the local population. The most responsible of these companies will pay more than they need to, both to keep the best staff, and to help regenerate the economy and alleviate poverty.
Even without promotion, new businesses like that and growth in local businesses through increasing Asian trade provides higher wages and more employment for members of the communities, more people obtain the opportunity to look at renting their own place, and then in a few years time the possibility of buying their own home, which will provide sales on the resale market for buyers now. This all brings massive regeneration into the community and the economy.
For the above reasons growth in the newer emerging markets is actually fuelled by a global slowdown. We were predicting this in January, but it is now getting to the point where this is being proven, by the likes of Standard Life’s research mentioned above.
