Infrastructure, particularly in India and China, could prove to be a good investment, director at The Motley Fool (fool.co.uk) David Kuo has claimed. He explained that as both nations have seen their economies grow, investors have become more familiar with them and are now more happy to plough their money into projects in Asia.
Bamboo scaffolding around skyscrapers in construction in Tsuen Wan, Hong Kong
Mr Kuo admitted that there are still risks in terms of the investment opportunities, but stressed that when these are balanced by the potential returns "it doesn't really look that bad". Infrastructure, in particular, is one area that could prove to be very lucrative.
"I think any kind of infrastructure in these countries would be a good bet for investors," he commented, explaining that both China and India have a lot that needs doing in this respect. "What these two countries really need to do is get their infrastructure right," Mr Kuo stated. Projects for water works, sewage systems, roads and power plants are among the things that investors should look out for, he advised.
Meanwhile, investors who have previously preferred to put their money into UK markets are increasingly looking further afield to improve their returns. And while infrastructure schemes may be Mr Kuo's tip, they are not the only option.
The Knight Frank Global House Price Index for the first quarter of the year noted that both India and China have experienced substantial house price growth in recent months. India was ranked second in the list of 50 nations, with its residential property values registering a 21.9 per cent rise in 12 months.
China recorded an 8.4 per cent increase in its real estate values over the same period of time, with head of residential research at the organisation Liam Bailey commenting that growth in the market is now "more sustainable". He revealed that many Asian governments have taken measures to curb inflation in property markets and that these have been "largely successful".
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