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by • 22 January, 2009 • REAL ESTATEComments (0)1214

Emerging Market Property Panel: Knowledge @ Wharton

At a recent panel at UPenn’s Wharton School of Business with marquis names in real estate (Sam Zell ring a bell?), panelists discussed predictions on the development sectors of emerging countries, noting firstly that lumping “BRIC” countries into a single basket is a misstep for serious conversation, as they deserve to be analysed individually.

Said Ignatius Chithelen of Banyon Tree Capital, “You can’t view these markets as one single entity. Each one needs to be judged individually according to the underlying fundamentals.” Within the BRIC classification, for example, China stands apart “as the world’s banker,” he said, citing the country’s $4 trillion in reserves, its trade and budget surpluses, and its ability to allocate huge resources to infrastructure projects. “Today, [China] is the best-situated country.”

The conversation went on to cover theories of “coupling” and “decoupling,” when asked whether these emerging markets can continue their housing boom despite downturn in the US and Europe.  Panelists concurred that globalisation has “coupled” emerging and established markets, and BRIC countries are neither immune to nor operating independently from the flux of world markets.

Check out the write up at Knowledge.Wharton.Upenn.edu!

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