Overseas Property: Where Would I Invest Part 4 - India

Many of you will wonder why I'm recommending India given the recent terrorist attacks. But when it comes to rising demand for affordable housing, and demand outstripping supply, very few places can compete with India.

The Indian economy continues to grow, falling from the dizzy heights of last year to an expected and very respectable 4.4% this year; its services sector remains extremely vibrant with strong growth in areas like graphic design as the world outsources to India's small but talented companies to keep costs low.

As the economy continues to grow, and the millions of Indian university graduates continue to take jobs and start businesses, India's middle class continues to grow and with it the demand for affordable housing. Demand which has been largely ignored in the past as developers focussed on luxury developments aimed at international investors, prestige and the wealthy.

Now, the developers still standing are brushing themselves off with the knowledge that: international investors are great while they last but not to be relied on. They are seeing the opportunity that lies in the greatly undersupplied demand for affordable housing. An opportunity for developers is an opportunity for investors.

Affordable to India's middle class is even more affordable to us, and I would certainly put money into affordable housing in India's growing centres of commerce and industry -- possibly in the areas around the Special Economic Zones, but just as likely in a city centre, many of the new entrepreneurs are working from basements in Mumbai etc.