Sorry I didn’t come up with the quantitative analysis of index tracking in “hidden emerging markets” as promised. It seemed like doing quantitative analysis by myself is one hell of a job. Don’t worry!! I’ll not disappoint you and finish up with that project pretty soon.
However, my latest concern in real estate/housing boom in Nepal. Currently, this has been a hot topic in Nepal. Everyone, has been investing money in Real Estate establishment. By real estate, I mean lately there has been a huge investment in the apartments and condos construction and marketing. Many construction companies have been investing in construction of such apartment and business complexes in main city areas, which initially was the job of individual investors.
These construction companies are constantly looking for individual or institutional investors as banks in Nepal have currently decided to limit/restrict loans to such construction companies. Also with rise in housing prices and pretty good marketing strategies in selling such apartment or business complexes, I think the its a best time to invest in Real estate in Nepal. Also such construction companies are mostly privately traded and have little or no knowledge of trading publicly or selling out shares (IPO) in public stock exchange, such companies are looking for wealthy foreign investors to increase their production.
However, one should understand that, with exponential increasing building and apartment constructions, housing and real estate are building up a small economic bubble. So if Foreign investors are looking to benefit from investing in Real Estate in Nepal, its better not to look for long term investment. I’d suggest maximum of 5 years and then take the profit and leave investment in that area before the housing bubble bursts.
Sorry for this short post but I’d just like to share the news after a small research in the Real Estate market in Nepal.