Where are the best places to invest in property in 2011? There are many different reasons why someone might want to invest into a particular area. Areas where housing is cheap but likely to rise, or on the up but still with room for further growth are two reasons. Developing countries, countries that are growing in wealth, places with many employment opportunities and places people would like to move to are amongst the areas that property investors should look at.

Below are some countries that have the potential to be good property investments:

Australia

The Australian economic recovery is ahead of most other countries, according to some a full year ahead. Whereas in much of Europe unemployment is on the rise, in Australia it is falling, meaning more potential buyers. The population is also rising and Australia is always a popular place to live. The Asian population in the country is growing and with Asian’s generally getting wealthier, they are likely to have more money to spend over the coming years. House prices are rising again with a boom expected over the next three years. The major cities appear to be the best buys, with Adelaide and Melbourne the pick of the bunch.

Brazil

Brazil has a fast growing economy, and that coupled with a shortage of good quality homes means a likely rise in prices. Due to the lack of quality housing, Brazil could also be a prime location for property developers looking to build homes. The best places to buy for investment are some of the beautiful beach locations, where prices could treble over the next ten years.

Croatia

This is somewhere where many foreign investors have been buying up property in recent years. There are some lovely seaside areas that are in high demand. Croatia has long been talked about as an area for growth and to an extent much of the growth has already happened. It is not over yet though, and there are still opportunities in the country.

Germany

Germany has a low home ownership rate, the lowest in Europe. There are two advantages to this; prices are not as high as the rest of Europe and as so many rent, buying to let is a good option. Certain regulations are set to change that will make it easier for German’s to buy meaning a likely boom.

Ireland

Due to its financial problems, Ireland may not seem the obvious place to invest your money right now. However, this does mean lower asking prices. And the Irish love to own their homes, with one of the highest ownership rates in Europe. This means that when the finances of the country improve there will be a surge in demand.

Malaysia

Malaysia could be the next Singapore with it becoming more of a business hub. And with more business comes the demand for housing. Getting in ahead of this (or in its early stages) gives the maximum potential for growth. Many going to Malaysia to work for a short time will be looking to rent property, which means the buy to let opportunities are good, while the numbers looking to buy are likely to grow.

Norway

Unlike much of Europe the Norwegian housing market seems to have moved on from its low point. There are starting to be strong signs that prices are beginning to rise again so investing now, before the major rises in prices, could be the best time. The economy hasn’t suffered as much as in most countries and the average person is better placed to buy.

Poland

Its entrance into the EU has made Poland a more attractive proposition. Business is growing rapidly with more international businesses starting to use it as a base. Jobs will go with this and homes will be in demand, meaning a rise in prices. It is still relatively cheap to buy.

Portugal

Despite being a popular holiday destination for the rest of Europe living costs in Portugal are very low. This makes it an attractive option for people who would consider living there. Despite its economic problems, property in Portugal has been rising in price. So once the economy picks up a boom is possible. In terms of the number of other Europeans moving there the same could happen in Portugal as has in Spain in recent times.

Romania

In many ways Romania is in a similar position to Poland, with joining the EU a help. House prices are very cheap at present and some have predicted Romania could be the best property investment (in terms of the percentage increase) in Europe.

South Africa

South Africa is becoming a more popular place to live. Although there is still poverty, the numbers in poverty are falling. In the long run, therefore, more people will want to buy. It is important to buy in the right area, something that is important anywhere but in particular in South Africa.

Spain

Spain has seen a boom in recent times, but it might not be over yet. The numbers looking to buy is still increasing (especially amongst foreigners). It will cost more to buy that it did a few years ago, but it could still be a wise investment. The best thing to look for is seaside areas that are still relatively untouched.

AND ONE TO LOOK OUT FOR.....

Kuwait

Kuwait is one of the growing states of the Middle East. It may not have grown to the extent of Dubai but it has potential. The problem for investors is that non-Kuwaiti’s are not currently allowed to buy in the country. But that doesn’t mean this will be the case forever. If the rules change, get in quick. There will be a fast boom. Because buying property is closed to foreigners prices are low. So, if and when it is allowed, buying immediately could be the best property investment in the world.

Andrew Marshall (c)