The rise of emerging markets such as the BRIC countries (Brazil, Russia, India, China) have the potential to greatly affect your international investments. “The Rise of the Rest” comprises of the billions of people in emerging countries who will gain significant wealth and influence in the coming decades. It is estimated that 86% of the world population will be living in emerging markets by 2050 (IBM).

One of the potential outcomes of the rise of the rest, is the growth in the number of people who are able to afford second homes and retirement homes in places like Mexico. This could mean increased demand for the Mexico real estate ocean front market in the future. China, whose growth has been about 10% for the past decade is projected to soon surpass the US in GDP to become the number one economy in the world. As the cumulative wealth grows in these emerging countries, many new millionaires will result from the rise in wealth and some will be interested in retiring to a nice beach front property in a sunny climate. Mexico is also considered an emerging market, and as more Mexican citizens rise to an income bracket to be able to move to a more desirable location in Mexico it should also increase competition for the limited supply of homes. The rise of emerging markets should also increase worldwide travel and thus demand for the rental market as was discussed in the previous post, What the Tourism Time Bomb Means to Mexico Real Estate. Here is a very interesting video on global trends.

[youtube=http://www.youtube.com/watch?v=pMcfrLYDm2U]