Global Real Estate & Investment News from Propertyshowrooms.com

Brisbane a hot tip for Australian property investors

Mon, 21 May 2012 00:00:00 GMT

Brisbane has been highlighted as a good place to buy real estate.

Residex has advised investors to consider purchasing property in Brisbane following the decision by the Reserve Bank of Australia to reduce interest rates by 0.5 per cent at its May Board Meeting.

The independent provider of real estate information in Australia said that, despite this, conditions in the housing sector are continuing to improve.

Chief executive officer and founder of Residex John Edwards said Brisbane's property, in particular, is faring well.

"It seems to us that by September, or perhaps even a little earlier, we will be able to report growth in this market again," Mr Edwards stated.

He remarked that rental yields for houses in this city are 5.1 per cent, adding Brisbane's market is "worth exploring for bargains and future quality returns".

His comments follow results from the Rismark Home Value Index, which revealed earlier this month that small rental increases were recorded in Brisbane between April 2011 and the same month in 2012.

'Remember the fundamentals' when buying land in Brazil

Mon, 21 May 2012 00:00:00 GMT

Investors who are considering purchasing land in Brazil need to remember the fundamentals of the real estate market when deciding on a plot.

This is the advice of DLT Property managing director Dean Thomas, who explained because Brazil is such a large country, it can be hard to know where to begin when you start searching for a suitable location for a Brazilian real estate investment.

He recommended focusing on "a popular domestic and international tourism destination which is easily accessible by road, air and sea". Mr Thomas added any beachfront property is desirable, as it will hold its value.

Purchasers should also make sure they research the local market to ensure they do not pay over the odds for their plot, with Mr Thomas reminding buyers that, although Brazilian land may seem cheap compared to other international destinations, it is important to pay a "competitive rate for the local market".

It appears investors are keen to enter the Brazilian property market, with TheMoveChannel revealing developments in the north-eastern state of Rio Grande do Norte received the most enquiries in April.

Growing tourism industry aiding Cape Verde property market

Wed, 16 May 2012 00:00:00 GMT

The expansion of Cape Verde's tourism industry is having a positive impact on its real estate sector.

According to Adam Cornwell, managing director of Feltrim International, there are numerous reasons why the island nation off the coast of west Africa appeals to holidaymakers, which is, in turn, boosting demand for places to stay.

Mr Cornwell described Cape Verde as a "credible winter sun alternative to the Canary Islands but far more affordable". He added the number of tourists arriving in the nation is expected to reach one million by 2015, which he commented is "fantastic news for emerging market property investors".

There are also opportunities to purchase completed Cape Verde real estate, rather than having to buy off-plan, which makes it a good choice for more cautious buyers, he stated.

Earlier this month, TheMoveChannel revealed enquiries for property in Cape Verde climbed in April, with the destination moving up by three places to become the tenth most popular destination among potential buyers.

Dubai property prices on the rise

Wed, 16 May 2012 00:00:00 GMT

The value of prime residential real estate in Dubai has risen in the first three months of 2012.

In the latest Knight Frank Prime Global Cities Index, the destination in the United Arab Emirates (UAE) experienced a four per cent climb in property values in the first quarter - higher than any other city included in the study.

However, values are only 0.3 per cent higher year-on-year, although it is still the best-performing Middle Eastern location included in the survey.

On average, the price of prime properties around the world slid by 0.4 per cent in the three months from January to March, with the firm noting investors will continue to focus on places that have "low political risk, transparent legal systems, good security and ideally [...] a high-net-worth-individual-friendly tax regime".

Dubai recently announced it will introduce new legislation to protect foreign real estate investors, including a law that prevents developers selling properties before at least 20 per cent of a scheme has been constructed.

Spanish house prices continue to fall

Tue, 15 May 2012 00:00:00 GMT

The value of residential property in Spain has dropped in the last year, a new report has revealed.

Tinsa's IMIE General Index was 12.5 per cent lower in April 2012 than it had been 12 months earlier.

Spain's major cities were found to be a big contributor to this decline, as they showed a year-on-year slump of 13.7 per cent.

However, towns along the Mediterranean coastline also fared badly throughout this period.

The index recorded a 14.3 per cent drop in house prices in the area - nearly two per cent higher than the national average.

This was the biggest decline in any segment of the Spanish property market throughout the year to April 2012.

Nevertheless, the fall in prices could potentially tempt some overseas property buyers to consider investing in the European country.

Marc Da-Silva, founder of the PropertyJournalist website, recently suggested that now could be a good time to buy a residence in the eurozone, as exchange rates between the UK and the euro are looking quite favourable for investors.

New-build market gathers pace in Thailand

Tue, 15 May 2012 00:00:00 GMT

Demand for new-build property in Thailand is pushing up prices in the country, with growth particularly strong in the north, north-east and south.

This is according to the Thai Home Construction Association, which noted prices in these areas have risen by between 15 and 20 per cent in the opening three months of 2012, Property Wire reports.

The surge is partially due to wealthier Bangkok residents looking to buy a second home outside of the capital, where growth in the first quarter of the year was marginal.

Potential buyers have to make quick decisions in order to secure a purchase and the surge in demand has also resulted in a labour shortage, with president of the association Sitiporn Suwanasut noting this is a particular concern in the Bangkok area.

Many provincial workers who had relocated to the capital went home during the floods last year and have yet to return, he observed.

Foreign investors keen to buy property in Thailand may want to look towards the south of the country and destinations such as Koh Samui and Phuket, as Property Report notes these are proving popular with tourists.

Eurozone property 'looking increasingly attractive'

Mon, 14 May 2012 00:00:00 GMT

Investors who have the funds available to purchase a property in Spain or elsewhere in the eurozone have been advised now is a good time to buy.

Marc Da-Silva, founder of the PropertyJournalist website and editorial director of International Estate Agent Today, explained the pound has gained ground against the euro, making the continent a top target for British buyers.

"I really expect the pound to improve further. The eurozone looks extremely fragile at the moment [... and] this is only going to continue to have an adverse impact on the euro," he asserted.

Earlier this week (May 9th), the pound hit a three-and-a-half-year high against the euro, with commentators citing the French and Greek elections as the main catalysts for the jump.

It is currently possible to gain more than 1.20 euros to the pound, with some analysts expecting sterling to strengthen further due to the uncertainty caused by leadership changes in some eurozone countries.

Portuguese property market 'showing signs of improvement'

Fri, 11 May 2012 00:00:00 GMT

The property market in Portugal is looking more attractive to investors thanks to higher loan-to-value (LTV) mortgages now being offered by the country's banks.

Managing director at estate agency Infinito Real Stephen Anderson pointed out it is possible to obtain a 100 per cent LTV loan on repossessed homes being sold by the nation's financial institutions.

He added Portuguese real estate offers good prospects from an investment perspective, with rental yields of around five per cent available. "A stronger exchange rate versus a year ago also means that prices are even more affordable, with a 20 per cent gain to be had on sterling to euros," Mr Anderson stated.

Last month, the Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey highlighted the strength of the lettings sector in the country.

The research noted an increasing number of households are being forced to rent as they are unable to afford to buy a property, which has helped boost the rental market.

Spain 'needs to establish a new REITs regime'

Thu, 10 May 2012 00:00:00 GMT

The Spanish government needs to introduce measures to set up a competitive real estate investment trust (REIT) regime.

Chief executive of the European Public Real Estate Association Philip Charls explained to Property Magazine International that a well developed REITs scheme can be a powerful tool for attracting international investment.

He stressed the only way for the nation's government to generate strong interest in Spain's property sector is to "understand how other countries have achieved this goal with a dynamic and efficient REIT structure".

Mr Charls added the reason why investors are drawn to REITs in other destinations - such as the UK, France and the US - is because they are "a widely understood, transparent and well-managed corporate model".

With investment demand for Spanish real estate assets well into negative territory in the first quarter of this year and expected to remain flat over the three months from April to June, according to the Royal Institution of Chartered Surveyors' Global Commercial Property Survey, the country's government may want to consider new ways of making it more attractive to international financiers.

Australian mining towns 'top target for property investment'

Wed, 9 May 2012 00:00:00 GMT

The cost of buying properties in Australia's mining towns is making them a popular target among investors.

This is the opinion of Brett Alegre-Wood, founder of Your Property Club and an investor himself, who explained "affordability is going up" in these settlements, which has resulted in "huge" demand for homes in these areas.

He added there are still viable opportunities to be found in large cities such as Melbourne and Sydney, but stressed it is important to take a long-term view when purchasing real estate in such areas.

According to the Housing Industry Association (HIA) and JELD-WEN Population and Residential Building Report published last month, Victoria is the place to watch.

Nine of the top 20 hotspots identified by the research were in the state, with Whittlesea North, Wyndham South and Cardinia - Pakenham taking second, third and fifth positions respectively.

The HIA figures are based on the value of the building work approved in these areas, as well as the population growth recorded.

Romania tipped as property investment hotspot

Wed, 9 May 2012 00:00:00 GMT

Investors are expected to turn their attention away from markets such as Ireland and Spain to focus instead on Romania and Bulgaria.

Speaking at the IPD/Property Investor Europe (PIE) Central and Eastern Europe (CEE) Conference, partner at Schoenherr Lawyers Denise Hamer explained many of the banks in Romania have large property portfolios they now need to sell off.

As a result, the value of real estate in Romania will fall and investors will be attracted to the opportunities in the country's market.

"It's going to be very dynamic and volatile, a very exciting investor atmosphere," Ms Hamer predicted.

Board member of S IMMO - an Austrian firm - Holger Schmidtmayr highlighted office properties in Romania's capital Bucharest as another area to watch over the coming months at the CEE-focused event.

There are also signs international companies have faith in the Romanian retail market, after last month's announcement a new shopping centre due to open in Ploisesti in November is already 70 per cent let.

The development has been financially backed by Carrefour Property and New Europe Property Investment and tenants confirmed at the complex include Carrefour, Lee Cooper, Zara and Office Shoes.

Transfer of banks' toxic assets 'won't be forced'

Mon, 7 May 2012 00:00:00 GMT

Spanish banks will not be forced to transfer their troubled property assets into holding companies.

Reuters reported on a statement issued by the country's economy ministry that explained the process of removing toxic Spanish real estate holdings from the banks' balance sheets will not be compulsory.

Last week, economy minister Luis de Guindos told Bloomberg the key to successfully attracting investors to these property assets will be "transparency and valuation". The government is hoping private investors will step in to run the asset management companies alongside the banks.

Mr De Guindos has since revealed the government is currently drawing up regulations that will provide a framework banks can use to begin the process of transferring some of their real estate holdings to these separate organisations.

According to Reuters, two of the country's largest financial institutions - Banco Santander and BBVA - have stated their opposition to the scheme, while some of the smaller lenders operating in the nation have also asserted they can manage their property portfolios without resorting to the new model proposed by the government.

Marrakech 'a popular location' for Moroccan property investment

Fri, 4 May 2012 00:00:00 GMT

Many investors in the Moroccan real estate market have been focusing their attention on Marrakech.

According to Nik Kapur, senior consultant at M2Morocco, the city's popularity as a tourist destination and its continued growth have made it a target for those with money to spend on overseas property.

He highlighted improvements being made to transport links - including a new train station and airport terminal - noting there has been a "steady increase" in the number of travellers arriving in Marrakech.

Approximately three million passengers pass through the city's airport every year, with airlines such as easyJet, British Airways and Iberia servicing the destination.

Mr Kapur pointed out the holiday market is a lucrative one for real estate investors who have homes in Marrakech.

"The lack of hotel rooms in the city centre means that there is strong demand for short-term rentals and our investors are achieving healthy yields, as well as expected future capital growth," he asserted.

Turkish property market 'attracting Middle Eastern buyers'

Thu, 3 May 2012 00:00:00 GMT

There is increasing interest in the Turkish real estate sector among buyers from the Middle East.

Reporting on comments made by the country's environment and urban development minister Erdogan Bayraktar, Today's Zaman revealed investors from nations such as Saudi Arabia, Iran and the United Arab Emirates (UAE) are all lining up to own property in Turkey.

However, under current laws, it is not possible for foreign nationals from these -and other - locations to purchase a home in the country; something that is due to change if new rules are approved by parliament.

Mr Bayraktar commented: "The regulations contained in the bill are now even more important, because some buyers have already made down payments in provinces such as Istanbul and Bursa."

It is not only residential property that is attracting investment from overseas, with The National reporting recently on a flood of capital from the UAE into the Turkish hotel sector.

Rotana Hotels and the Viceroy Hotel Group have unveiled plans to construct resorts in Turkey, with the regional president of the latter Anton Bawab explaining the Turkish market has opened up and has therefore become more appealing to investors and developers alike.

Investment in Brazilian land 'an affordable option'

Wed, 2 May 2012 00:00:00 GMT

Buying land in an up and coming area of Brazil may prove to be a sensible investment for those keen to enter an overseas real estate market.

Managing director of DLT property Dean Thomas explained purchasing a plot of land offers a "low entry, affordable way" into the sector.

He highlighted the prospects for Brazilian property in the state of Rio Grande do Norte, where the tourism industry is developing and investment from businesses is flowing in.

Mr Thomas added this north-eastern region of the country is not as established as other locations - such as Rio de Janeiro and Sao Paulo - providing potential opportunities for investors.

Last month, Money Week cited data from Capital Economics, which showed property prices in Sao Paulo and Rio de Janeiro have climbed by 140 per cent since 2008.

The organisation's figures also revealed the value of real estate in the country's top seven districts increased by 25 per cent in 2011.

Banks' property assets 'to be bought by investors'

Wed, 2 May 2012 00:00:00 GMT

Investors are expected to purchase property assets from Spanish banks, with the government offering no financial assistance.

Bloomberg reported on comments made by Luis de Guindos, the country's economy minister, last week, who stated overseas buyers will be attracted to the real estate portfolios provided they are priced correctly.

According to figures published by the Bank of Spain in its April Financial Stability Report, the property portfolios held by the nation's banks are collectively worth €308 billion (£250.6 billion). Of this total, 60 per cent of assets - equating to €184 billion as of December 2011 - are considered to be "troubled".

Mr de Guindos explained the government intends to draw up rules that will enable the country's financial institutions to shift their Spanish property holdings into asset management companies that will be controlled alongside third-party investors.

"The key element is going to be transparency and valuation," he asserted, adding that, while the government will set out the guidelines, it will not offer any financial aid.

Is Natal's Zona Norte a hotspot for Brazilian property?

Fri, 27 Apr 2012 00:00:00 GMT

The rapidly expanding suburb of Zone Norte in Natal is offering huge opportunities for real estate investment in Brazil.

Natal is one of the fastest growing cities in the north-east of the country, with over 300,000 Brazilians moving there in recent years. As a result, property in the middle-class district of Zona Norte is in high demand, according to Obelisk International.

A mostly residential area, Zone Norte has seen a massive influx of middle-class citizens, which is the largest and fastest growing sector of Brazilian society.

The prospects of real estate in Zona Norte are also being boosted by its commercial growth, with the firm highlighting the large number of new businesses that have sprung up in the area since 2007

Dean Thomas, managing director of DLT property, a developer operating in north-east Brazil, recently said the country is an attractive market for real estate investors.

He cited "strong economic growth, a rapidly increasing middle class [and] increased consumer spending" as some of the reasons why people are considering investing in Brazilian property.

Advice offered to Morocco property buyers

Fri, 27 Apr 2012 00:00:00 GMT

The Moroccan property conveyance system is considered one of the safest in the whole of Africa and the Middle East.

This is according to Nik Kapur, senior consultant at M2 Morocco, who was offering advice for people thinking of investing in Moroccan property.

As well as a commendable conveyancing process, Mr Kapur also said mortgages are available to foreign buyers up to a maximum of 70 per cent loan-to-value. It is vital though, he added, to check that the land or property has a clear title before purchasing.

In further advice, he stated: "Making sure that your purchase cash is routed to Morocco through official channels will save you a lot of hassle with repatriating your profits when you eventually sell your property."

The recent Knight Frank Global House Price Index showed that property in Morocco increased in value by 2.9 per cent between 2010 and 2011.

Brits 'top investors in Australian real estate'

Thu, 26 Apr 2012 00:00:00 GMT

British investors ploughed more money into the Australian real estate sector than any other nationality of overseas financiers in 2010-11.

This is the finding of the latest annual report published by the country's Foreign Investment Review Board (FIRB). According to the organisation, investors from the UK spent AU$4.61 billion (£2.94 billion) on property in Australia during this period.

Chinese buyers were the next most active group, followed by purchasers from the US, the study added.

The FIRB publication also revealed the largest proportion of foreign investment in real estate was spent in the state of Victoria, which attracted AU$11.23 billion in funds. New South Wales (NSW) was second on the list, with AU$7.61 billion spent here.

In the recent Property Industry Confidence Survey, conducted by the Property Council of Australia and ANZ, sentiment surrounding the NSW real estate market improved for the June quarter.

Head of property research at ANZ Paul Braddick explained a number of factors are working together to make the state more attractive to investors, with rental growth and improved housing affordability contributing to the uplift in confidence.

Dubai unveils new law to protect real estate investors

Thu, 26 Apr 2012 00:00:00 GMT

New proposals have been announced by the Dubai Land Department, which aims to protect foreign investors buying property in the country.

The law, which will preserve the rights of investors, is part of the Strategic Plan of the Government of Dubai and could be passed in June.

It will prevent developers from selling property until 20 per cent of the project has been completed.

Director general of the Dubai Land Department Sultan Bin Mejren said the act will cover all stages of the development process and help to facilitate the relationship between developer and investor.

He stated: "The real estate investor protection law in Dubai will be the first law of its kind in the country and the world dedicated to the protection of the rights of a certain category of investors."

The latest Knight Frank Global House Price Index showed Dubai property values had risen by 2.3 per cent in the final three months of 2011, compared to the previous quarter.

Positive outlook for Malaysian property market

Wed, 25 Apr 2012 00:00:00 GMT

There are many reasons for investors to be optimistic about the prospects of Malaysia's real estate sector.

Writing for The Star Online, managing director of SDB Properties Teh Lip Kim explained the country's housing market is "still relatively underpriced" in comparison to other south-east Asian nations like Singapore, Indonesia and Hong Kong.

He added property prices in Malaysia are likely to continue to rise, despite the government discussing measures to slow growth down.

One proposal is to increase the minimum amount foreigners have to spend in order to buy real estate in the country - this currently stands at RM500,000 (£101,093), but could climb to RM1 million.

However, the expert pointed out this is likely to have little impact, as the majority of transactions conducted by overseas purchasers are already over the RM1 million threshold.

When the suggestion of raising the minimum purchase price for foreign buyers was first made earlier this month, an anonymous source told the press the rate may vary between Malaysia's regions, citing the Iskandar Malaysia economic corridor in the state of Johor as one location where this figure could be reduced to RM800,000.

Thai developers targeting overseas buyers

Tue, 24 Apr 2012 00:00:00 GMT

Developers operating in Thailand's most popular resorts - such as Koh Samui and Phuket - are attempting to attract foreign buyers to their schemes.

An article for Property Report pointed out build quality is a major consideration, while attractive pricing for overseas purchasers is an increasing trend.

Tourist arrivals in Thailand have improved significantly this year, the publication added, with popular destinations performing particularly well.

The Thai real estate market has received a boost from this growth, with some of the new projects under construction designed to cater for "a more sophisticated international clientele".

A recent post on The Phuket Insider highlighted the growing level of development on some of the country's lesser known islands, such as Koh Kood, Koh Chang and Koh Mak.

Many of these properties are being sold for their "investment yield and lifestyle", the news provider noted, adding the main reason why these markets have yet to grow significantly is the poor transport links from the mainland.

Spain 'popular due to being established investment destination'

Mon, 23 Apr 2012 00:00:00 GMT

Buyers seeking out real estate in Spain are doing so because it is among the most established and therefore reliable markets, an expert has suggested.

Liz Rowlinson, editor at A Place in the Sun Magazine, said a few years ago there was a tendency to look to invest in the next "hot, new emerging place" as buyers sought new frontiers.

However, she noted, this caused problems for investors - who spent money where property bubbles existed and often lost out.

Ms Rowlinson added: "They are steering very clear of those and are looking at the solid, established, well-tested markets like Spain, France and Italy."

One reason many buyers could look to established European locations like Spain is because of the improving exchange rate between the pound and the euro.

Managing director of Mallorca Sotheby's International Realty Stephen Dight noted this week that sterling is at a 19-month high against the multi-nation currency as it appears "attractively stable".

Culture status may boost Guimaraes

Fri, 20 Apr 2012 00:00:00 GMT

Those looking to invest in property in Portugal may consider the city of Guimaraes, which is the 2012 European Capital of Culture.

Filipe Silva, UK director of Turismo de Portugal, noted this month's Madeira Flower Festival is one of the events taking place.

And visitors will find much else to interest them, such as the cuisine of the central region.

"Alentejo's gastronomy is very strongly linked with the region's history and traditions and can be the basis for very interesting and tasty holidays," he remarked.

The attention focused on such attractions by the status Guimaraes enjoys this year may help provide a longer-term boost to tourism and holiday lettings could benefit directly as a result.

Another part of the country buyers may consider is Madeira.

Linda Beaney, from Madeira Villas marketing firm Beaney Pearce, recently told the Financial Times the island is a very popular part of Portugal for investors, as its real estate market is strong at present.

Euro rate 'a major boost for buyers in Spain'

Fri, 20 Apr 2012 00:00:00 GMT

People buying property in Spain can now take advantage of the most favourable exchange rate between sterling and the euro for 19 months.

Managing director of Mallorca Sotheby’s International Realty Stephen Dight said this makes the present time a very good one to buy in Mallorca.

He commented: "The eurozone debt crisis is weighing heavily the European Central Bank's and politicians' shoulders, which makes sterling appear to be attractively stable and increase in value."

Mr Dight also noted those investing in the Balearics who do so before May 1st can avoid the deadline for a new property transfer tax being introduced in the islands.

The tax changes apply to more expensive properties, but new-build homes are excluded from the tax and instead subjected to a different levy whose rate has been halved.

Reuters columnist Fiona Maharg-Bravo predicted this week that property prices in Spain are likely to become cheaper in the near future as unemployment rises and the country slips back into recession.

Group of muppets put in charge of boosting New York tourism

Thu, 19 Apr 2012 00:00:00 GMT

People seeking property in the US may turn their attention to holiday lets in the New York area after a new initiative by mayor Michael Bloomberg that has placed a lot of muppets in charge of attracting more family tourism to the Big Apple.

That may sound ominous, but the characters in question are the real thing as the likes of Kermit the Frog, Miss Piggy and Gonzo have become official tourism ambassadors for the city.

They will help promote attractions for children and family-friendly establishments such as restaurants.

Of course, visitors of all ages may enjoy a walk in central park, the Statue of Liberty or the view from the Empire State Building, as well as some of the upstate countryside.

Managing director of Feltrim International Adam Cornwell recently suggested Florida is a good part of the US to invest in property because of its tourist rental potential, noting that Orlando alone had 51 million visitors in 2011.

Spanish property 'to get cheaper'

Wed, 18 Apr 2012 00:00:00 GMT

Property in Spain could become more affordable for investors as the country's economy struggles.

According to Reuters columnist Fiona Maharg-Bravo, the cost of housing in the country is yet to reach its floor, with 23 per cent unemployment and the return of recession likely to suppress local demand.

She noted figures from surveyors Tinsa indicated an 11.5 per cent year-on-year fall in March, but said the likelihood for more falls is also due to the government insisting banks take "haircuts" on the value of foreclosed homes of about 35 per cent.

Ms Maharg-Bravo said this will mean banks hitherto unwilling to sell for fear of crystallising losses will decided to bite the bullet and do so - meaning more discounted properties on the market.

Among the banks hit by Spanish government demands over capital ratios is Santander-owned Banco Espanol de Credito SA.

Having set aside funds to cover its bad real estate assets, the bank has seen net profits fall 88 per cent in the last year.

Dominican Republic 'among the best property markets'

Tue, 17 Apr 2012 00:00:00 GMT

The Dominican Republic is emerging as a strong property market prospect as Caribbean holiday bookings rise, a new report has stated.

Investment firm Macleesipps has noted a report by Hayes and Jarvis has identified an 800 per cent jump in such bookings in the country in the past year and suggested this will inevitably bolster the holiday rental market.

Investors seeking property in the Dominican Republic may be encouraged by this trend and Macleesipps managing director Gary McArd said: "The growth of tourism in the area has been staggering and this can only feed the appetite for investing in property that is excellent value for money."

He suggested the country is a "particular favourite" with Britons.

And the company noted the island has been nominated in 14 categories for this year's World Travel Awards.

International Living Magazine's Global Real Estate Index recently identified the Las Terrenas region of the country as a particularly strong project, with its assets including a recently-completed road linking it with the capital Santa Domingo with less than two hours driving time.

Dubai property enjoys successful March

Tue, 17 Apr 2012 00:00:00 GMT

People seeking property in the UAE may be interested in Dubai after new figures indicated the emirate performed well last month.

Reidin.com has published its latest Residential Property Price Indices for the UAE for March 2012 and revealed Dubai enjoyed a positive performance for the month, with a two per cent rise in sale prices.

Apartment sales prices were up two per cent month-on-month and 1.24 per cent year-on-year, suggesting the market has been bouncing back recently and for villas the monthly increase was 1.89 per cent and the annual rise 18.11 per cent.

Such figures may indicate the emirate is leaving the price slump of recent years well behind and is offers a strong investment prospect.

It was the fourth successive month of price growth and the first this year to exceed one per cent.

Other positive news in Dubai included a recent report from Asteco Property Management showing rents in the emirate rose by one per cent in the first quarter of 2012.

Florida property is a good investment 'for many reasons'

Mon, 16 Apr 2012 00:00:00 GMT

There are numerous reasons why buying Florida property is a good investment option.

According to managing director of Feltrim International Adam Cornwell an increasing number of foreclosed homes are likely to hit the market this year, presenting investors with an opportunity to purchase real estate at a reduced price.

However, he is quick to point out the low cost of purchasing a property is not the only advantage to choosing Florida as opposed to another US real estate market.

"Rental potential is a key factor that creates stability," Mr Cornwell asserted. He highlighted figures showing 51 million tourists visited Orlando in 2011, adding "short-term lets are booming".

On top of this, there is greater demand for long-term rentals, due to the unfavourable mortgage and economic conditions that are forcing increasing numbers of households out of their own homes and into the rental sector.

A recent report published by Zillow revealed the value of US property fell by 4.5 per cent between February this year and the same month in 2011, while average rents climbed by two per cent during this period.

Population growth 'aiding Egypt's property market'

Thu, 12 Apr 2012 00:00:00 GMT

Demand for housing due to a growing population will help sustain Egypt's property market.

Speaking to Business Today Egypt, managing director of Orascom Housing Communities Omar Elhitamy explained demand for homes is outpacing supply in the country.

He noted an average of 440,000 new properties need to be constructed each year to meet existing demand, adding as there are so many young couples in the nation, there is continuous growth in household creation.

"The Egyptian real estate sector has always represented an opportunity for investors," Mr Elhitamy asserted, concluding the best prospects can be found in the low and middle sectors of the market.

Chief executive officer of Hassan Allam Properties Mohamed Allam also told the publication population growth is pushing Egypt's housing industry forward, commenting its expansion is "based upon real demand".

Last month, The National revealed an increasing number of developers in Egypt are concentrating on building apartment complexes, where the price of an individual property will not exceed 600,000 Egyptian pounds (£62,583), in a bid to deliver more affordable housing.

Chinese buyers targeting US real estate

Thu, 5 Apr 2012 00:00:00 GMT

An increasing number of Chinese buyers are entering the US property market, with many purchasers from the country targeting luxury homes.

USA Today revealed destinations such as New York, San Francisco and Los Angeles are proving popular with Chinese investors, with foreclosures offering attractive opportunities for these foreign buyers.

The publication cited data from the National Association of Realtors (NAR), which revealed the Chinese are now the second-largest group of overseas purchasers in the US market, with only Canadians completing more property sales in the country.

Steven Lawson, chief executive of Windham China, told the news provider around 40 per cent of Chinese purchasers are snapping up real estate for investment purposes, while the remaining 60 per cent are buying with a view to sending their children to school in the US, immigrating or for business reasons.

Last month, the NAR published a study showing sales of investment property in the US climbed by 64.5 per cent in 2011, compared to 2010, while transactions for holiday homes increased by seven per cent in the same period.

Property rights in Brazil improve

Wed, 4 Apr 2012 00:00:00 GMT

Brazil has made gains with its property rights for the fourth consecutive year.

According to the Property Rights Alliance International Property Rights Index (IPRI), the nation saw its total score increase by 0.1 points compared to 2011.

Every metric in the physical property rights category either improved or remained the same, which may add to the appeal of Brazilian real estate for investors.

Overall, the country is ranked eighth in the South American region and 62nd globally.

Last month, Samantha Gore, sales manager at UV10, stated she does not believe the Brazilian real estate market will experience a crash, despite the significant price increases recorded for residential property in the nation.

She explained that, unlike in Europe, many of the homes in Brazil are being purchased by domestic owner-occupiers rather than investors. Ms Gore commented: "Instead of crashing, the consensus is that values will take a more modest path of growth."

Growth recorded for Cape Verde hotels

Wed, 4 Apr 2012 00:00:00 GMT

The number of hotels on Cape Verde increased by 9.6 per cent between 2010 and 2011, highlighting the country's growing popularity with tourists.

Feltrim International cited figures from the archipelago's National Statistics Institute, which also revealed the volume of available rooms had climbed by 34.1 per cent in the same 12-month period.

Adam Cornwell, managing director of the firm, stated: "It is projected that Cape Verde will reach half a million tourists annually by 2015 and one million by 2020 as northern Europeans wake up to the potential of this mid-haul winter sun destination."

The growing number of holidaymakers visiting the islands may also bode well for anyone who rents out Cape Verde property.

Last month, HomeAway noted the country entered its list of the top ten most popular holiday destinations in 2011. Regional director for the organisation in the UK Andy Cockburn pointed out there are "good opportunities" in Cape Verde for those seeking a real estate investment outside of Europe.

Penang 'attracting property investors'

Tue, 3 Apr 2012 00:00:00 GMT

Penang is proving to be a popular destination with real estate investors looking for a property in Malaysia.

Chairman of the Real Estate and Housing Developers Association (Rehda) Penang Datuk Jerry Chan Fook Sing highlighted the north-western state's strong performance at the Malaysia Property Exposition Penang (MAPEX), The Sun Daily reported.

"Astute local and foreign real estate investors have complemented Penang's progress in offering not just some of the most attractive product designs, but developments at attractive prices," he stated.

Mr Chan anticipated transactions worth between RM30 million (£6.14 million) and RM40 million would be concluded during MAPEX, which ran between March 23rd and 25th.

Earlier this month, senior manager of Henry Butcher Malaysia Fook Tone Huat predicted the value of mid-market properties in Penang would rise by the end of 2012.

He told Bernama strong demand for homes costing less than RM400,000 will boost the state's housing sector, adding that properties in the medium price bracket are "recession proof".

Property investors 'should focus on Marrakech'

Mon, 2 Apr 2012 00:00:00 GMT

Real estate investors who want to pick up a property in Morocco should concentrate their search on Marrakech.

This is the advice of Nik Kapur, director of M2Morocco, who explained the city is one of the best markets to focus on in the nation because it is "the most established tourist destination".

He noted city centre apartments in particular are sought-after among both domestic and international investors, pointing out they present "a good opportunity for both rental income and capital growth".

Mr Kapur went on to say that Marrakech is only set to become more appealing with the addition of a new terminal at the city's airport, which will in turn help to boost the number of visitors arriving in the destination.

Obtaining finance to make a property purchase in Morocco is not overly difficult for overseas buyers, he explained, revealing 70 per cent mortgages are available. "The Moroccan banking system is strong with a lot of liquidity, so that is fuelling increasing demand for property and resulting in more sales," Mr Kapur concluded.

Earlier this month, Global Arab Network reported on figures published by Bank Al Maghrib, which showed the number of purchases of residential property in Morocco increased by 22.8 per cent in the final quarter of 2011, compared to the previous three months. Transactions for apartments accounted for 61 per cent of total sales.

Spain's Murcia named as a top global property location

Mon, 2 Apr 2012 00:00:00 GMT

The Murcia region of Spain has appeared in a global index of the best property markets in which to invest.

Ronan McMahon compiled the list for International Living magazine, putting the Spanish destination in 22nd place out of 27 locations.

Spanish real estate in Murcia scored highly on the value for money metric - receiving 85 out of 100 - while it also ranked well in terms of the ease of making a purchase.

Mr McMahon explained he looks at numerous factors when putting together his index, including the potential for capital appreciation, rental income and the general costs of buying a home in each place.

One reason why property investors may want to keep an eye on Murcia is the new Paramount theme park, with construction on the project expected to get underway later this year.

It is estimated the number of visitors to the region will increase significantly when the new attraction opens its doors to the public in 2015.

Morocco 'a good choice' for property investment

Thu, 29 Mar 2012 00:00:00 GMT

Buying real estate in Morocco is a good option for anyone who is keen to invest in property markets outside Europe.

According to Nik Kapur, director of M2Morocco, the country is the most attractive destination for investors in north Africa, as it has not witnessed any political upheaval, unlike Egypt and Tunisia.

He noted the nation is appealing because of its proximity to Europe and its economic strength.

"The economy there is still showing year-on-year growth and the safe buying process also makes it a good destination for investment," Mr Kapur asserted.

Properties at the bottom and middle end of the market are the most popular at present, while there is an oversupply of high-end assets, he added.

The most recent Knight Frank Global House Price Index revealed the value of homes in Morocco increased by 2.9 per cent between the final quarter of 2011 and the same period a year earlier.

US real estate market 'appealing to Brits'

Tue, 27 Mar 2012 00:00:00 GMT

British buyers are increasingly considering investing in property in the US, with one expert noting it is possible to pick up homes for as little as $50,000 (£31,529).

Director at Mayfair International Realty Annette Reeve explained these opportunities are particularly appealing to cash buyers, even though it has become easier to secure a mortgage in the US recently.

She added buying a home in the US is about more than making a return on their investment for many purchasers at present.

"They might not make a killing, but it is actually a nice place to put their money and they will get some family enjoyment out of it," Ms Reeve asserted.

Earlier this month, the National Association of Realtors (NAR) revealed the volume of existing home sales climbed by 8.8 per cent in February, compared to the same month a year earlier.

The organisation also noted distressed properties accounted for 34 per cent of the transactions completed last month, with NAR president Moe Veissi pointing out there is competition between investors and first-time buyers for these "bargain-priced" assets.

Positives of Murcia property highlighted

Mon, 26 Mar 2012 00:00:00 GMT

One real estate firm has drawn attention to the advantages of purchasing a property in Murcia, Spain.

According to International Property Success, there are numerous reasons why investors should consider this part of the country, including the construction of a new Paramount theme park.

The company highlighted figures from a study conducted in Dallas in the US in 2001, which discovered real estate facing a theme park cost 22 per cent more than equivalent properties further away from the attraction.

In addition, the new development is expected to attract more tourists to the region, which will boost demand for holiday rentals and could, therefore, benefit investors.

However, the new theme park is not the only reason to find a home in Murcia, with the organisation stating property prices in the region have fallen by 60 per cent since their peak.

Earlier this month, Chris Mercer, director of local estate agency Mercers, expressed his optimism about the performance of the area's real estate market due to the construction of the Paramount attraction.

He said: "I very much doubt that there is another location in Spain that will offer the same rental returns and capital appreciation."

Cape Verde 'offers property investment potential'

Fri, 23 Mar 2012 00:00:00 GMT

Cape Verde may attract more interest from property investors due to the rising numbers of tourists visiting the nation.

Figures published by HomeAway revealed the country entered its list of the top ten most popular holiday destinations for the first time in 2011.

According to the firm, an increase in the number of charter flights to Cape Verde, as well as a growing market for package holidays, have helped boost its tourism industry.

Regional director for HomeAway UK Andy Cockburn explained these factors could all result in more investors buying real estate in Cape Verde, as well as other hotspots like Dubai and Florida.

"For those looking for an alternative to Europe for property investment, these mid to long-haul markets provide good opportunities. Not only can properties at attractive prices still be found, but they have strong rental potential too," he stated.

Speaking to Todmorden News earlier this month, Victoria Rigg, of Whitesands Travel, commented that Cape Verde is an up-and-coming holiday destination because it is not commercialised and is much more accessible and cheaper than places like the Caribbean.

Property investment opportunities 'exist in Italy'

Thu, 22 Mar 2012 00:00:00 GMT

Investors who know where to look will still be able to find favourable opportunities to put their money into Italian real estate.

Speaking to Financial News, head of property fund management at Schroders Neil Turner highlighted retail assets in the north of the country as one area to watch, adding his firm is "very happy" to consider investing in Italy's property sector at present.

"I think there has been a little bit of re-pricing of real estate, perhaps not as much as everyone on the buyside would have liked, but Italy is a really interesting one," he told the publication.

Mr Turner and his colleague at Schroders Mark Callendar recently came up with some advice for those considering investing in European property markets.

The experts acknowledged caution is necessary when putting money into peripheral economies, like Italy, but the pair stressed certain sectors - like northern Italy's retail industry - are worth looking into due to their "fundamental attractions". A lack of supply of modern retail premises and wealthy households were cited as two reasons why this region of the country offers opportunities.

New marina 'will boost Limassol property market'

Tue, 20 Mar 2012 00:00:00 GMT

A new development in Cyprus which encompasses a marina, waterside apartments, restaurants and leisure facilities is expected to provide a boost to the Limassol property market.

The project was showcased this weekend (March 18th) at the Dubai Boat Show 2012 and has attracted significant interest from Middle Eastern investors, with the scheme due to open in approximately nine months.

Kurt Fraser, sales and marketing director at Camper & Nicholsons Marinas, the firm operating the Limassol marina, explained the security, privacy and size of berths offered in the Cypriot location are among its biggest selling points.

"It is also exceptionally rare to have private villas with super yacht berths alongside. In the Mediterranean, Limassol Marina is the only one that comes to mind," he added.

Those hoping to find a home in Limassol may have to move fast to secure one of the 274 apartments or villas available, as the organisation revealed over €40 million (£33.3 million) has already been generated by sales of the Cypriot properties.

The development is likely to be seen as a welcome boost to Limassol's real estate market. Earlier this month, Cyprus Property News reported on figures released by the Department of Lands and Surveys, which showed the number of sales in the destination fell by 14.8 per cent in February, compared to the same month in 2011.

Brazilian property market 'won't crash'

Mon, 19 Mar 2012 00:00:00 GMT

A property market crash on the same scale witnessed in European destinations like Spain, Portugal and Ireland is unlikely to occur in Brazil.

This is the assertion of Samantha Gore, sales manager for UV10, who commented: "Undoubtedly there have been some significant double-digit percentage price hikes in Brazilian property over recent years but, instead of crashing, the consensus is that values will take a more modest path of growth."

She cited a Reuters poll of real estate and finance professionals published late last year, in which over half of the respondents anticipated price rises of between five and ten per cent for properties in Brazil in 2012.

Ms Gore pointed out one of the main factors that sets the South American nation apart from other real estate markets is that many sales are completed by domestic buyers who want a home, not by investors.

Earlier this week, managing director of DLT Property Dean Thomas highlighted Natal in the north-east of the country as a hotspot for real estate investment due to its tourist appeal and growing economy.

Bulgarian property values 'down significantly'

Mon, 19 Mar 2012 00:00:00 GMT

The value of real estate in Bulgaria has fallen by approximately 50 per cent since its peak in 2008, with both ski and beach resorts hit the hardest by the downturn in the market.

This is according to chief operations manager of Bulgarian Properties Polina Stoykova, who explained that, despite the slump in prices, there is reason to be optimistic about some regions in the nation.

She highlighted the ski resort of Borovets, which has seen a rise in interest from investors, although prices slipped by an average of 18 per cent in 2011.

Another location that appears to be on the radar of those seeking real estate in Bulgaria is Sunny Beach on the Black Sea coast, where Russian buyers are helping to support the market for holiday homes.

However, the recent Knight Frank Global House Price Index did not record such dramatic falls in property values in Bulgaria during 2011. According to data published earlier this month, the cost of buying a home in the nation fell by an average of 6.2 per cent between the final quarter of 2010 and the same period 12 months later.

'Increasing interest' in Murcia property

Mon, 19 Mar 2012 00:00:00 GMT

A rising number of people appear to be trying to find a home in Murcia, with one real estate firm revealing enquiries about properties in the Spanish region are outpacing those for other destinations, like the UK and Portugal.

Director of International Property Success Jon Ainge explained the Paramount theme park has a lot to do with the spike in interest.

"Building is to start in May and we expect demand for property to increase as a result," he asserted.

More than 1 million sq m of land have been purchased for the project, with the attraction scheduled to open in 2015.

Although Murcia is an appealing prospect for investors seeking real estate in Spain, Mr Ainge urged potential buyers to be selective about the assets they purchase. He highlighted five-star resort properties as "the best places to invest".

In addition to the Paramount theme park, which will feature more than 30 attractions and two onsite hotels, there are plans to construct a business and leisure complex on adjacent land.

Research mortgage market before buying in Spain

Fri, 16 Mar 2012 00:00:00 GMT

While the significant price falls experienced in the Spanish real estate market are attracting investors, one expert has advised potential buyers to do their research when it comes to financing a property purchase.

Marc Elliott, owner of Fluent Finance Abroad and an independent mortgage consultant, explained investors need to do their homework before taking out a loan from a bank.

For overseas buyers, most lenders are offering a loan-to-value (LTV) of between 60 per cent and 70 per cent, although there are 110 per cent LTV mortgages available on some bank-owned properties, with the additional money provided to cover purchase costs.

While these bank-owned homes might seem like a great deal, Mr Elliott urged investors to be cautious.

"If you have a sizeable deposit at your fingertips it would probably be better to look at the traditional real estate market, as these properties tend to be slightly better value for money," he stated.

Director at Conti Clare Nessling recently advised buyers to seek out the services of a specialist overseas mortgage provider when purchasing property abroad in order to improve the chances of the application being successful.

Natal 'a top Brazilian location for property investment'

Thu, 15 Mar 2012 00:00:00 GMT

Investors seeking real estate assets in Brazil would be wise to consider some of the developments in the north-eastern coastal city of Natal.

This is the opinion of Dean Thomas, managing director of developers DLT Property, who explained the settlement is popular among domestic and international tourists who flock to the region for its excellent weather and stunning coastline.

"For investors seeking stability and progressive growth coupled with endless access to scenic beauty and dazzling beaches, Natal is the ideal destination," he asserted.

Mr Thomas added the economy in and around the city is growing, while the second homes market in the area is also improving.

According to research published earlier this month by Knight Frank, Natal isn't the only Brazilian real estate sector on the up. The firm revealed residential property values in the nation climbed by 26 per cent over the course of 2011, putting it at the top of its Global House Price Index for the final quarter of last year.

Bangkok apartment market 'performing well'

Thu, 15 Mar 2012 00:00:00 GMT

The occupancy rate of apartments in Bangkok climbed in the final quarter of 2011, compared to the previous three-month period, despite the supply of this type of home increasing.

Research conducted by CB Richard Ellis (CBRE) Thailand revealed occupancy in such developments had jumped to 89.5 per cent at the end of last year, up from around 85 per cent in the third quarter.

Meanwhile, there was a 3.6 per cent year-on-year rise in the number of apartments available in the downtown area of the Thai capital.

However, the condominium market in Bangkok did not perform as well, with the vacancy rate of this sort of development increasing, while supply also rose.

Investors seeking to enter the Thai real estate market may therefore want to turn their attention towards schemes for new apartments, rather than condominiums.

A poll conducted recently by Century21 and the architecture and planning faculty at Thammasat University discovered 34 per cent of respondents will take the likelihood of flooding into account when selecting a home, following the extensive damage caused last year when parts of Bangkok were badly hit by rising water levels. As a result, demand for apartments and condominiums may increase.

Dubai property market making headway

Mon, 12 Mar 2012 00:00:00 GMT

Both the number and value of real estate transactions conducted in Dubai in January and February climbed compared to the same period in 2011.

Figures from the Dubai Land Department revealed the number of property purchases were up by 84 per cent. However, the value of the deals had only climbed by 33 per cent compared to the same two-month timeframe last year.

Paul Musson, manager of Better Homes' Barsha office, commented that investors are returning to real estate in the United Arab Emirates (UAE) because of the stability of the nation.

Looking at Dubai specifically, he is confident the emirate's property sector is improving. "The sales transactions are on the increase; however this is not reflected in the now flat line selling prices. This suggests that the worst is now behind us."

Brits looking to emigrate may want to consider the benefits of living in the UAE, after a recent survey by NatWest highlighted the nation's attractions. The bank revealed the country has climbed from tenth to sixth position in its annual quality of life study, which polls expats around the world.