This is all a bit overrated - what you posted above.
65% cheap labour in the country? Disagree...
Super rich housing for 100 000 $ for studio? Prices are higher in most of the big world cities!..
As well the fact that all the gastarbeiters as you say rent the same houses but live together, sharing the accomodation...

Putting all that apart, there a few world-known huge companies relocating head quarters here from the states, moreover, as someone said you should see how many residence visa approvals Immigration gives each month - you will get convinced that demand on property will exceed the supply at least for 4 years more... You just need to source the local newspapers like Gulf News and Property Weekly, and brouse the web for some different independant sources - and see it all yourself!

You might want to consider North Cyprus. I have bought several properties there and the capital appreciation is also good. With the prices in the North half the price of property in the South, coupled with intense international pressure to solve the conflict ongoing from 1974, this area may very well see a capital appreciation of 100% in the next two years.

Spain is out and so is Italy. Other options may be Malaysia and Panama. Stay away from areas that are based on only tourism because the market tends to shoot downwards in a hurry once the trend in tourism goes elsewhere.

I suggest staying away from any Islamic countries whose governments are unstable and are under constant threat of radical militants -- and Egypt is such a country. Once the aging Mubarek dies and is no longer president -- the Christain hating clerics are going to have their militants take over the regime.

Countries like Turkey, North Cyprus and Israel are good investments in this area and are among the world's emerging markets.

Anyone investing in Egypt should think three time -- and then again -- before doing so!

Can't say I know a lot about Eygpt, but if you're considering North Cyprus then please tread carefully. Land disputes arising from the "Cyprus Issue" are a real problem in that area and unless there is traceability on what you are buying all the way back to pre-1974 then walk away (anything that has this tends to be more pricey anyway). I visit Cyprus at least once a year and have friends who have lived in the North (and are involved in a long-runnig dispute over a property there) and as much as I love the place I wouldn't put my cash there - North or South - at the moment.
If you are prepared to accept that much risk, there must be places that could offer better returns anyway?

Israel? You call that a good market to invest in? Who will hold the property title deeds?

I am surprised no one has mentioned the "ermerging" caribbean markets.
Caribbean has established tourism, giving really good rental incomes and there is still some really good value there, if you buy in the right areas.
You also have hundreds of millions of holidaying Americans on ther door step for resales which is when most people take the real profit.
On top of this some of these countries are activily encouraging overseas buyers and overseas investment making exit strategies and the tax positioning attractive for any capital gains made.

Not to mention the holidays! All in all good returns for medium to low risk
Funnily enough i can suggest a few specific places if anyone wants to hear more!
Mark

Which places do you think are the best ones to invest in. It is a loaded gun question as you know the answers already.

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I'm interested in your suggestion of North Cyprus.

By North, you mean the Turkish side, right?

Do many tourists go there and is there much demand from local people? What rental yield do you achieve on your properties there?

A friend who lives in St Marteen said it is become overdeveloped so oversupply is one concern I would have in the Caribbean. The slowdown in the US may also contribute to lower demand.

Having said that, suggestions of specific places would be very welcome Mark!

You may know, but I don't!

In fact, nobody knows for sure because we are trying to guess the future. There are risks wherever you invest, so the task is to minimise that risk by doing research. There are lots of experienced investors on this forum, so hopefully they can contribute valuable insights.