Potential to the East
Projected growth in Asia attracts investors.
The United States isn’t the only multifamily market that appeals to investors. In fact, the Asian market has become the apple of many investors’ eyes.
“Asian countries have a huge lack of rental housing,” says Bernhard Köhler, CEO of European Property Consulting in Switzerland. “In the Indian market, for example, you have 32 percent of the people in the middle class. That will increase to 50 percent in the next nine years. These people are asking for more quality housing.”
China is also experiencing monumental growth. “There is a program where the Chinese are building 704 new cities,” Köhler says. “You have to build houses, streets, stations, airports, and whatever. That’s the market for the future.” A lot of players already are investing in the residential sector of Asian markets, he says. “These are more or less development deals where you develop an apartment building with a local partner and then you sell it to private individuals.” Heavyweight institutional investors have noticed the potential, too. Jim Hurley, portfolio manager for the California State Teachers’ Retirement System, says his institution is intrigued by the potential of Asia.
