This is a quote from the chief market strategist at Bank of America on the FT's site yesterday - 8th Jan 2008.
Well, I kind of want to say 'told you so'! And aren't you glad you have invested in these markets before the rest of the FT reading public?
But what is really interesting is that it is now becoming public knowledge that China and India have mesmerised investors into missing the opportunities in central Eastern Europe.
Why is that?
From BRICS to 'BRICEES'
Well, one possible (but false) explanation for why investors might have missed central Eastern Europe is because the opportunity isn't as good - but I don't believe this and nor does the Chief Market Strategist of Bank of America based on his recent article.
I believe that investors missed central Eastern Europe because it is a complex and diverse region and isn't as easy to prononuce as India or China.
As I argued in my recent End of Term Performance Report - the term BRICS (Brazil, Russia, India and China) has missed out the other most exciting (but also most stable and secure) region of central and Eastern Europe.
Hence, I propose that we should now talk about Brickies (BRICEES) and not just BRICS! (This also seems the most appropriate name given that we are interesting in property in this region).
It is much easier, for instance, to talk India - than it is to talk about the 12 new countries that have joined the EU in the past 3 years - along with as many languages and nearly as many currencies (Cyprus, Malta and Slovenia have now all successfully adopted the Euro).
Yet, this diversity is exactly why the region offers such opportunity. Whilst the Baltics have done their bit on property price growth for now - the focus has shifted to Romania and Bulgaria.
However, just as Czech Republic began a second wave of property growth last year, so Slovakia is re-entering the property price growth curve and will be followed by a second wave in Poland - in about 12 months.
The good news - is that many investors still haven't figured out where central Eastern Europe is - nor have they managed to stick any money there yet.
Hence, whilst these markets certainly registered excellent growth and are experiencing increased interest from fund investors - the region remains relatively untouched by foreign investors!
This would suggest that there is plenty more growth to come! But that you do need to know your Bucharests from your Budapests! And that is the sustainable advantage that Property Secrets can offer.
ps. One last quote from yesterday's article 'Europe’s got its own China next door'
NEIL LEWIS ON TUE 8TH JANUARY AT 17:29 GMT