Global Real Estate & Legal News from Propertyshowrooms.com

Turkish rents and property prices up

Tue, 22 May 2012 00:00:00 GMT

The cost of buying a home in Turkey and rental charges have both increased in April.

According to the latest figures from REIDIN, the value of Turkish residential properties climbed by 0.86 per cent in April, compared to a month earlier, while rents jumped by 1.02 per cent.

The biggest rise in sales prices was recorded in Istanbul and Ankara, with both destinations experiencing appreciation of 0.96 per cent.

Istanbul was also the most robust rental market, with the cost of leasing a home in the city increasing by 1.18 per cent. Meanwhile, Izmir posted strong growth of 1.12 per cent last month.

Year-on-year, the value of Turkish real estate is up by 11.93 per cent, this new data revealed.

There are also hopes the country's property sector could be boosted further by the introduction of new legislation that will open up the market to a greater range of overseas buyers.

If approved, the draft law will allow foreigners to buy larger plots, as well as remove the clause relating to reciprocity. This currently stops citizens from countries where Turkish nationals cannot own property from entering the real estate market.

New Turkish property law 'will boost the market'

Mon, 14 May 2012 00:00:00 GMT

New legislation that will make the process of buying real estate in Turkey easier for overseas purchasers will be a "huge boost" for the sector.

Julian Walker, director of Turkish estate agency Blue Spot, explained the proposed changes to the system will make transactions much quicker and open the market up to more international buyers.

The law is still at the draft stage and is awaiting sign off from the country's cabinet and president. Among the key features of the legislation is that it will be possible for foreigners to purchase 30 hectares of land, up from the 2.5 hectares currently allowed.

In addition, the aspect of reciprocity will be removed, which has previously prevented people from buying real estate in the nation if Turkish citizens are unable to own such assets in the buyer's home country.

Mr Walker commented: "Tourism is going well here and for people already with a property here, legislation like this only adds to underwrite the value of the property."

There is some evidence the new rules are already having an impact, with Hurriyet Daily News reporting high-profile managers from the Middle East and Asia are attending a summit organised by Turkey's Real Estate Investment Trust Association this week.

According to the news provider, the passage of the draft bill through parliament has attracted investors who were previously unable to own Turkish real estate.

Cyprus to discuss property market measures

Tue, 24 Apr 2012 00:00:00 GMT

Issues affecting the Cypriot property market and suggestions of measures to solve these problems are expected to be discussed at a meeting today (April 23rd).

The Cyprus Land & Building Developers Association will be holding its annual general meeting at 12:30 local time in Nicosia, Cyprus Property News reported.

Minister of the interior Eleni Mavrou will be present, with difficulties such as low demand for real estate, falling property prices and high unemployment on the meeting's agenda.

According to the news provider, the president of the association Lakis Tofarides will make a series of suggestions about how to kick-start the country's real estate sector, as well as detail proposals to boost government funding in the industry and create new jobs.

Earlier this month, the publication highlighted a report by Leaf Research into the state of Larnaca's property market, which revealed the number of apartment sales in the city fell by 86 per cent between 2007 and 2011, while transactions involving other types of residential real estate slid by around 60 per cent.

In addition, the value of apartments and houses declined by 20 per cent and 11 per cent respectively since their peak in 2008.

Know about Tapu, Turkey investors advised

Wed, 18 Apr 2012 00:00:00 GMT

Those investing in property in Turkey should know about the Tapu - essentially the title deed.

Unlike in the UK, this is not automatically passed from one owner to another when a property is bought and sold, so an investor or a legal representative will need to visit the deed office to complete the transaction, Colordarcy.com has explained.

A representative who speaks Turkish is best as an interpreter is required for transactions involving foreigners as the document is, as one would expect, written in Turkish.

Managing director of Colordarcy.com Loxley McKenzie noted there are places in Turkey where a Tapu is not available due to foreign ownership restrictions, such as Istanbul, so buyers may look to the parts of the country where they can be obtained.

The effort taken to secure a property in Turkey may be justified by the current trend for prices and rents to rise.

According to the REIDIN.com Turkey residential property price indices for March, the cost of buying a home in the country rose 8.66 per cent year-on-year, while rents were up 7.86 per cent.

Foreigners 'may see minimum Malaysia property price rise'

Thu, 12 Apr 2012 00:00:00 GMT

The Malaysian government is considering proposals to increase the minimum floor price charged for houses bought by foreigners.

Currently, overseas buyers have to spend at least RM500,000 (£102,814) but this could potentially climb to RM1 million, according to a government source.

The move is just one measure being contemplated by officials to help control the rising cost of buying real estate in Malaysia.

In its most recent Global House Price Index, Knight Frank revealed the value of properties in Malaysia increased by 6.6 per cent between the final quarter of 2011 and the same period a year earlier.

Meanwhile, deputy finance minister Donald Lim recently asserted price hikes of between ten and 15 per cent are "healthy".

Another anonymous source also told the press the government would reserve the right to review the base price for foreign buyers and potentially reduce it in certain regions. Any future alterations would largely be influenced by national inflation levels, the informant added.

Spain's top banks announce provisions for property losses

Fri, 10 Feb 2012 00:00:00 GMT

The three largest banks in Spain by market value have unveiled the steps they will take over the course of 2012 to comply with new government regulations relating to the provisions they need to make to cover real estate losses.

Banco Santander, which announced last week it had set aside an additional €1.8 billion (£1.5 billion) to meet losses on repossessed homes in Spain, is due to add a further €2.3 billion to this pot.

Banco Bilbao Vizcaya Argentaria (BBVA) intends to make provisions of around €1.4 billion, in addition to money it had already earmarked for this purpose ahead of the Spanish government's announcement.

BBVA added its strong performance in 2011 means it will be able to "entirely absorb" the sum in 2012.

Finally, Caixabank has stated it will find an extra €2.4 billion to cover its Spanish real estate assets.

Speaking to Reuters, financial director at BBVA Manuel Gonzalez Cid commented: "These are the strongest banks in the Spanish financial sector so it's not surprising they can manage the [requirements] through generic provisions or by bringing forward other capital buffers."

Moody's recently announced it had downgraded Catalunya Banc and Bankia's debt and deposit ratings over concerns that the financial institutions will be unable to meet the higher provisions for real estate losses laid out by the government.

New NIE procedure 'won't affect Spanish property market'

Tue, 24 Jan 2012 00:00:00 GMT

The new regulations relating to obtaining a Numero de Identificacion de Extranjero (NIE) in Spain won't have an adverse effect on the property market.

This is the opinion of Chris Mercer, of real estate agency Mercers, who believes, while the bureaucracy may be frustrating, it won't put serious buyers off.

Since January 3rd 2012, all foreigners have been required to attend the local police station in person to receive an NIE - an identity number for tax purposes - which is needed to buy or sell property in Spain.

Before this year, it was possible to send a lawyer in your place by signing a power of attorney.

Mr Mercer commented: "Admittedly, it can be a hassle, but if people are pre-warned and prepared they simply accept it."

He added most people "don't mind a few tedious hours at a police station to get the home of their dreams".

It appears Brits are still keen to purchase real estate in Spain, after a recent survey conducted by A Place in the Sun magazine at two of its exhibitions revealed the nation is the top choice among many potential buyers looking for a home overseas.

Conveyancing process 'very different in South Africa'

Mon, 19 Dec 2011 00:00:00 GMT

Anyone who is considering buying property in South Africa should be aware that the legal processes associated with such a transaction are very different to the UK.

This is the opinion of Sue McDermott, co-founder of Spacesa.com, who explained the South African conveyancing system tends to provide more certainty for buyers.

She noted there is little chance of a purchaser being gazumped in the country, because the timeline for closing a sale is "much more fixed" than in the UK.

"You have one lawyer, who represents both parties, which sounds like a huge conflict of interests for anybody coming in [from] the UK, but in fact it works really well," Ms McDermott stated.

Last month, Berry Everitt, managing director of the Chas Everitt International Property Group, claimed an increasing number of foreign investors are targeting the nation's real estate market.

He highlighted South Africa's stable financial sector and economic growth as two reasons why more overseas buyers are interested in owning property here.

Taking legal advice 'sensible' before buying French property

Tue, 6 Dec 2011 00:00:00 GMT

Anyone considering purchasing property in France should seek out legal advice from an independent professional with knowledge of the country's market, it has been advised.

This is according to managing director at Leapfrog-properties Niclas Dowlatshahi, who stressed that the differences between French and British laws make this a prudent step.

"If possible, this should be a French notaire (an impartial notary), who is willing to take the time to explain things to you," he stated.

Mr Dowlatshahi added that this is preferable to a UK-based solicitor, as a notaire will have a more in-depth knowledge of regulations regarding real estate transactions in France - and it is this kind of professional who will complete the deal on your behalf.

Recent changes to tax laws in the country relating to wealth and property ownership also need to be considered and understood, he pointed out.

Last month, Tim Harvey from Offshoreonline.org - specialists in European mortgages - highlighted the good availability of home loans for 85 per cent of the real estate asset's value.

He added that it is easier to arrange a mortgage with a high loan-to-value in France than it is in the UK at present.

'Thorough research needed' when buying property in Spain

Fri, 2 Dec 2011 00:00:00 GMT

Anyone who is considering investing in property in Spain needs to make sure they carry out plenty of research, it has been asserted.

Editor of A Place in the Sun magazine Liz Rowlinson explained that the systems used for real estate transactions are often "unfamiliar" and it is therefore sensible to find out as much as possible about the process before proceeding.

She stressed the importance of obtaining independent legal advice in any property deal.

"Documents and contracts will usually be in a foreign language, so can be open to misinterpretation. There may be additional costs involved in the buying process that you are not familiar with - again, do your research," Ms Rowlinson stated.

Southern Spain remains one of the most popular destinations for people seeking a property abroad in a sunny location, she added.

Marbella is one place in particular that appears to be attracting many foreign investors, it was recently claimed.

Earlier this month, International Property Success predicted that prices in the area will not fall any further, while an increasing number of buyers from the Middle East, as well as countries such as Russia and the UK, are targeting real estate assets here.

Maintenance fees 'causing issues' among Dubai property owners

Wed, 12 Oct 2011 00:00:00 GMT

The high maintenance charges levied by many developers for their apartment blocks is causing an increasing number of buyers to look elsewhere for a property in Dubai.

A report on Emirates 24/7 explained that the expense of maintenance fees is encouraging investors and owner-occupiers alike to look into the villa market as an alternative.

The publication noted that such costs are much lower with this kind of property, while there are still good returns of between six and seven per cent to be made on these real estate assets.

Rushiraj Mehta, from Legacy Real Estate, told the news provider: "The selling prices have jumped more than ten per cent due to this positive aspect. The same has happened to all villa communities."

He suggested one way to lower maintenance costs in apartment blocks could be to allow the residents to choose their own firm and manage it themselves.

There has been some good news for real estate owners in Dubai recently, with the REIDIN.com residential property price index recording a 0.5 per cent increase in values in August compared to July.

However, apartments registered a 0.3 per cent fall in value over the month. By contrast, villas achieved 1.34 per cent price growth.

Cyprus property sales fall again

Fri, 7 Oct 2011 00:00:00 GMT

The rate of sales of property in Cyprus has dropped for the 15th consecutive month, the latest figures from the country's Department of Land and Surveys show.

Reporting on the data, Cyprus Property News noted that this now puts the number of transactions below the level seen when the market crashed in 2009.

In September, the number of purchases fell by 11.5 per cent compared to the same month a year earlier, although some regions of the island performed better than others.

The publication cited Famagusta and Limassol as two locations that saw the rate of sales increase last month, with a 43.1 per cent rise recorded in Famagusta.

However, Nicosia, Larnaca and Paphos all recorded further declines in their property markets.

The news provider highlighted the falling level of overseas buyers in the Cypriot real estate sector, pointing out that transactions among this demographic have decreased by 37.2 per cent year-on-year.

Last month, the United Nations hosted a series of talks between Greek and Turkish leaders of the island country, with the aim of making progress towards the creation of a unified federal government.

'Be diligent' when buying property in Spain

Mon, 15 Aug 2011 00:00:00 GMT

People hoping to find a property in Spain that they can purchase should not take any less time or care over the process than if they were buying a house in the UK, one expert has cautioned.

Andy Bridge, managing director of A Place in the Sun, commented that "buying overseas is a serious business" and urged potential investors to be diligent.

He pointed out that due to the current economic situation across much of Europe, few locations are likely to generate a return over the next few years, so buyers should choose a property in a place they love.

Other things to consider are its proximity to good transport links and whether any rental income received will be enough to cover maintenance costs.

Earlier this month, research published by the Worldwide Property Group revealed that 65 per cent of Brits would consider purchasing real estate abroad because now is a good time to make such an investment.

Penang property prices rise

Thu, 4 Aug 2011 00:00:00 GMT

Real estate values on the Malaysian island of Penang have increased rapidly since the introduction of new legislation, it has been revealed.

Speaking to Star Property, deputy chairman of the state Barisan working committee Datuk Zainal Abidin Osman claimed that the state government's decision to raise land premium rates had caused property prices to go up.

"When the state government increases the premium as it wishes, the developers are forced to increase the value of the houses. It is a simple cause-and-effect factor," he commented.

Last month, a panel of experts at the Star Property Fair 2011 all agreed that the housing market in Penang is likely to grow over the course of the year.

Chairman of the Real Estate Housing Developers Association Datuk Jerry Chan noted that there is "a lot of confidence" in the sector on the island, adding that there are local and foreign buyers who want to invest in property in Penang.

Experts 'unsure' over whether new Dubai visa rules will boost property sector

Wed, 3 Aug 2011 00:00:00 GMT

Changes to legislation in the United Arab Emirates (UAE) regarding visas for foreign homeowners may not have the desired effect on the country's property market, some experts have claimed.

Jesse Downs, director at Jones Lang LaSalle MENA, told ArabianBusiness.com that because any real estate investment must be greater than one million UAE dirhams (£166,859) in order to qualify for the three-year visa, buyers may be unwilling to pay for a higher value property.

"The crux of the issue is whether or not buyers will actually pay a premium just for the visa. This is unlikely because buyers are value conscious, especially now," she stated.

However, Nick Maclean, managing director of CB Richard Ellis Middle East, disagreed, telling the news provider that he believes the comfort afforded by a three-year residency will encourage buyers to hand over some extra cash.

Research published by Jones Lang LaSalle last month looking at the performance of Dubai's real estate sector during the second quarter of the year found that the majority of properties experienced price and rental declines, with only the higher-end, established villa locations seeing a marginal increase.

Spain introduces online help for foreign property buyers

Fri, 29 Jul 2011 00:00:00 GMT

A new online portal offering advice and assistance to foreigners who are planning to buy a property in Spain has been launched by the country's government.

The website has been designed to give people a simple way to contact the Public Law Corporation of Land and Mercantile Registrars of Spain - and receive a response in English.

One of the main aims is to help those purchasing a property resolve any issues or queries they may have about legal terminology and avoid problems caused by the language barrier.

Secretary of state for housing in Spain Beatriz Corredor commented: "This means that foreign citizens will now have access, in a way they can more easily understand, to all the information regarding the physical, legal and urban development status of a property."

The government body also noted that the buyingahouse.registradores.org site will improve the transparency of the Spanish real estate sector outside the country.

Meanwhile, Spain is also participating in a pilot of the cross border electronic conveyancing scheme with the Netherlands.

It is set to be introduced as an EU-wide initiative and the hope is that it will offer greater protection to buyers involved in real estate transactions outside their home country.

French property purchase process 'is relatively simple'

Wed, 13 Jul 2011 00:00:00 GMT

Those looking to move from the UK and invest in French property will find that the process for doing so is not complicated.

That is according to Sharon Evans, director of Cle France - property specialists in the north-west of the country - who suggested that some people may feel wary of buying property abroad, especially when the culture is so different.

However, buying a house is relatively easy in France, she said.

"It is a simple system and a system that I think gives the buyer considerable support. It is a safe system, a well-tried and tested system and it is quite simple and quite logical," Ms Evans explained.

The expert added that gazumping is not common in French property purchase as sellers generally stick to their first acceptance.

Leggett recently reported that its website has seen a rise in visitors to its French property pages from around the world, with Americans boosting reader numbers by 52 per cent over 2010.

Protests in Spain over evictions

Sun, 10 Jul 2011 00:00:00 GMT

There have been protests taking place all over Spain against evictions being carried out because homeowners have fallen behind on mortgage payments.

Reuters reported that people have been fighting against rising unemployment, which has resulted in many households struggling with their bills.

Property prices in Spain have dropped significantly since their peak, which means a lot of people now owe more than their home is worth.

Analyst at Idealista.com Fernando Encinar told the news provider that the problems have arisen because "Spain has been so much more exposed to the property bubble", which has been compounded by falling values and rising job losses.

Last month, prime minister Jose Luis Rodriguez Zapatero unveiled proposals to change Spanish law to help reduce the risk of foreclosure.

Bloomberg revealed that under current rules, banks can claim back the deficit from homeowners if their properties are repossessed and then sold for less than the amount owed on the mortgage.

Zapatero aims to change this, so that handing the residence over to the bank would clear the debt, regardless of how much it is later sold for.

Spanish property purchase to be affected by new EU directive

Tue, 5 Jul 2011 00:00:00 GMT

Expatriates who have purchased Spanish properties are to be affected by a new European Union directive that looks set to be implemented across member states, one expert has claimed.

Helena Walsh of Cicero Consulting told moneymarketing.com that the legislation, which aims to provide better levels of protection for mortgage buyers, should boost the information ex-pats receive on foreign homes.

The new ruling will require financial institutions to increase transparency and encourage buyers to compare mortgage products offered by a number of providers if they are taking out a loan secured by their home.

"Many expats have buy-to-let properties on a personal basis which are currently regarded as commercial mortgages but will [be] affected as they are personal borrowing secured against a property," she explained.

Liberal Democrat MP Diana Wallis recently claimed a better system is required in order to guarantee protection for those purchasing property or land in another European country.

New process for buying overseas property being trialled in Spain

Sun, 3 Jul 2011 00:00:00 GMT

A pilot initiative to help expatriates hoping to buy overseas is currently being trailed in Spain and the Netherlands.

The Cross Border Electronic Conveyancing scheme enables buyers to carry out the process of purchasing a house or apartment in their home country, providing them with the protection of its legal system, Cyprus Property News reported.

Details of the project were first unveiled last month at an EU parliament seminar and it is expected to be tested in other nations throughout this year.

Speaking to the Daily Telegraph at the time of the seminar, Liberal Democrat MEP Diana Wallis said: "We must urgently arrive at a system that will guarantee legal certainty to people buying land abroad."

Ms Wallis went on to add that the EU has an obligation to develop a framework that provides this, stressing that it is important to encourage a transparent environment for real estate transactions.

This could come as welcome news to those hoping to invest in the Spanish property market while prices are low, after operations director at Conti Claire Nessling told Mortgage Strategy last month that buyers are turning to familiar markets when purchasing overseas.

UAE extends visas for property investors

Fri, 1 Jul 2011 00:00:00 GMT

The United Arab Emirates (UAE) has taken the decision to extend the length of property investors' visas to three years - up from six months - in a bid to boost the nation's real estate market.

Chairman of one of the region's largest development companies Emaar Properties Mohammed Alabbar stated that the visa extensions will "significantly enhance investor confidence and drive the growth of the country's property sector".

Meanwhile, Citigroup suggested that while the move could aid residential real estate in the UAE, it is likely to be restrained by an oversupply in the market.

Rather than having to renew their visas every six months, foreign investors will now be entitled to a three-year multiple-entry visa - as long as they own property worth more than one million UAE dirhams (£169,040).

The UAE was among the biggest fallers in the Knight Frank Global House Price Index Q1 2011 published earlier this month. According to the organisation, residential property values in the nation dropped by 8.2 per cent year-on-year.

Thai property experts press for changes to foreign home ownership policy

Wed, 15 Jun 2011 00:00:00 GMT

Officials in Thailand are lobbying the government to review its policy towards foreign home ownership.

The Joint Foreign Chambers of Commerce in Thailand (JFCCT) and real estate consultants are keen for less restrictions to be placed on the sector.

They warn that if changes are not implemented, many buyers will simply go elsewhere.

JFCCT is lobbying for the introduction of a 60 year registered lease term, double the current 30 years.

"Properly handled, the contribution to the wider Thai economy could be significant without any material risk to issues of sovereignty or adversely affecting social or economic conditions," the company says in a new report.

The firm draws attention to the less-restricted markets of other countries in the region, such as Hong Kong or Singapore, where the sector is booming.

"In response to the global crisis, Singapore has liberalised its foreign ownership laws and launched for the first time landed villas at Sentosa which were targeted at new overseas investors and have been a resounding success," the report added.

Cyprus sees increase in foreign property buyers

Wed, 18 May 2011 00:00:00 GMT

Some 151 separate contracts were processed at the Cypriot Department of Land and Surveys by overseas buyers during April, it has been revealed.

The figure is up by 19 per cent on the same period last year and suggests that foreign investors are beginning to return to the once hard-hit Cypriot property market.

Indeed, the trend is not limited to a monthly increase. During the first quarter of 2011, total sales to overseas buyers increased by more than 16 per cent year-on-year.

Larnaca leads the way with sales up 43 per cent, followed by Nicosia at 21 per cent, Paphos with 12 per cent, Famagusta at ten per cent and finally Limassol with a four per cent increase.

Speaking to Overseas Property Professional, Imperio Properties boss Yiannis Misirlis said that the island has seen an increase in the number of nationalities active in the market.

"There has been a noticeable percentage increase in business from Russia and China," he added.

Mr Misirlis noted that the country's guidelines and rules regulating overseas property buyers have helped to make Cyprus an attractive investment destination.

Dubai looks to increase real estate transparency

Thu, 5 May 2011 00:00:00 GMT

Demand for property in Dubai could be set to rise after three regulatory bodies announced plans to increase transparency in the emirate.

The Hawkamah Institute for Corporate Governance, Real Estate Regulatory Agency and the Dubai Real Estate Institute all signed an agreement of understanding relating to the proposals.

They claim that improving and strengthening corporate governance practices is one of the primary goals to protecting owners' property rights.

In addition, the initiative aims to increase investor and tenant confidence in the real estate sector.

"The real estate companies, property developers and valuation agencies need to become more transparent through better reporting of transactions and prices," Nasser Saidi, executive director of Hawkamah told Arabian Business.

He added that the landmark initiative would produce the first ever real estate corporate governance code in the region.

It is hoped that by introducing more transparency into the sector confidence will return and foreign and local buyers will return to the markets.

Thai restrictions having 'no negative effect' on property market

Wed, 6 Apr 2011 00:00:00 GMT

Limitations on foreign ownership in Thailand are preventing overseas buyers from entering the market, it has been claimed.

Bangkok, in particular, did not witness any notable deals and income through real estate during the fourth quarter of 2010, a new report from CB Richard Ellis (CBRE) has claimed.

"Although there have been concerns regarding the influx of foreign capital into Thailand, the various restrictions on foreign investment ensured the real estate investment market remained largely dominated by domestic players," the consultancy confirmed.

Indeed, CBRE explained that the market was completely dominated by local buyers following a decision to raise the policy interest rate three times in the second half of 2010.

The Bank of Thailand also announced that it would be decreasing LTV's for condominiums to 90 per cent and LTV's for houses to 95 per cent.

Despite this, CBRE concluded that the moves have not had any major negative impacts on the property market, with Thailand's major property firms even announcing dozens of new building projects for 2011.

Italian agents 'positive' about the future

Thu, 17 Mar 2011 00:00:00 GMT

House prices in Italy recorded declines of just 0.3 per cent last year, with some areas of the country even seeing values rise.

The news may tempt investors to buy property in Italy, with the news indicating that the market is now near the bottom, Overseas Property Professional reports.

According to the Bank of Italy, the cities of Cagliari, Catania and Genoa all enjoyed increases in terms of prices and research suggests that agents are more positive about the future.

Indeed, 61 per cent of those surveyed by the bank expect the overall housing market to improve over the next two years, while 26 per cent expect it to stabilise.

The bank believes that Italy's better performance could well be attributed to the country's property investment laws which favour the buyer.

Banks in Italy have a solid guarantee on deposit for off-the-plan developments, the news provider explains, while properties resold after five years of ownership are exempt from capital gains tax.

Dominican Republic real estate 'sought-after'

Thu, 10 Mar 2011 00:00:00 GMT

Low prices, great ambiance and easy resale in the Dominican Republic has ensured that the location remains one of the most sought-after segments in the Caribbean today.

According to an article by Stock Markets Review, investors have been heading to the region to take advantage of the favourable business environments, as well as the climate.

In addition, those hoping to buy property in the Dominican Republic will also find that there are a lack of legal loopholes and bureaucratic red tape among the property authorities and administrations.

This, the news provider explains, makes it less cumbersome for buyers looking to make a purchase.

"While other nations have heaped on regulations and levied a great number of taxes on the foreign investors, the Dominican Republic has been clever enough to abstain from doing the same," the article noted.

"The result is a booming business and even better future - both for the investors as well as the property market in the region."

UAE property buyers to benefit from reduced fees?

Wed, 22 Dec 2010 00:00:00 GMT

People investing in UAE real estate could benefit from lower costs following the announcement of a review into fees for municipal services in Dubai.

Earlier this year, the emirate's Dubai Municipality (DM) announced plans to revise the system for collecting fees from homeowners for providing municipal services.

This included a decision to collect five per cent of rental value of properties from all residential units in the emirate irrespective of their status of being leased or owned.

However, homeowners have been left outraged as they claim it is a duplication of the fee they already pay to developers for maintaining buildings and surrounding areas.

This has led to the Dubai Executive Council setting up a committee for reviewing the DM's plans.

The Council has appointed Abdulrahman Al Saleh, director general of the Department of Finance in Dubai, to head the committee that will investigate the complaints from homeowners.

It was recently predicted by real estate experts that residential property prices in Dubai, already on a downward trend, could continue to fall for another two years.

Investors eye Australian property market

Fri, 10 Dec 2010 00:00:00 GMT

Oversees investors are increasingly looking to buy property in Australia, it has been claimed.

According Jonathan Thompson, KMPG global head of real estate, large corporate investors are looking to increase their real estate portfolios and are attracted to the country's property market.

Speaking to the Australian, he said that these investors include Chinese life insurance companies and new sovereign wealth funds.

He said one example was the Norwegian Government Pension Fund, the second largest in the world, with USD520 billion under management.

It was recently cleared to invest in real estate after a change in national laws.

Japanese institutions were also cautiously starting to look at going overseas with Australia being the most transparent country in the region.

Mr Thompson argued that stability had returned to the Australian property market and that foreign investors are backing prices to recover.

"They want asset protection and incomes from property," Mr Thompson told the news provider. "The bubble has been taken out of property.

"These large institutions are investing into recovery and for a hedge against inflation."

Portugal tops Doing Business 2011 report

Thu, 18 Nov 2010 00:00:00 GMT

Those looking to buy property in Portugal will be encouraged to hear that the country recently topped The Doing Business 2011 report, which compares real estate business practices and procedures around the world.

Portugal came out as the quickest and easiest country for potential buyers to register a property out of nearly 200 separate destinations, The Portugal News reports.

Overall, the country beat off competition from other popular European destinations such as Spain, which ranked 49th, Italy, which is in 80th place and Greece, which is now ranked 109th.

Portugal's success can be put down to the establishment of a 'one-stop-shop' for property registration.

A spokesperson from Vernon Real Estate told the news provider: "The actual buying process in Portugal has improved in recent decades, with the process having become very straightforward, fast and transparent for buyers.

"If the funds are available and the property has no legal issues, then a sale can be completed from start to finish in as little as a week."

The Doing Business 2011 report is an annual publication from the World Bank, which provides measures of business regulations and their enforcement around the globe.

Homeowners reminded of tax laws in Spain

Fri, 12 Nov 2010 00:00:00 GMT

Individuals looking to sell their property in Spain have been reminded of the tax laws which exist in the country.

According to Carlos Paton, a lawyer in Spain, there are a number of complex measures which non-residents must go through when looking to offload their property.

Writing for Lawdit, Mr Paton explained that foreign buyers in the country can expect to receive 97 per cent of the sale price, with the remaining three per cent contributing toward the "Plus Valia capital gains".

"After the completion, the seller independently being resident or non-resident will have to declare before the revenue commission, the revenues obtained from the sale of their dwelling," the legal expert added.

Non-residents will then be required to submit an application within 30 days of the completion date to the Administration Tributaria, declaring the capital gains tax.

However, many property owners in the country may prefer to hold onto their residences for a while longer, with recent figures suggesting that prices are declining still.

Measures to increase transparency introduced in the UAE

Sat, 16 Oct 2010 00:00:00 GMT

Individuals with property in the UAE have welcomed the introduction of new measures designed to improve transparency in the market.

The implementation of real estate associations will help to improve both value and services in the country’s property market, a survey by Dubai-based Real Opinions has found.

However, while the measures will have a number of positive impacts, one in three home owners questioned believe that they will ultimately have little effect on the real estate industry as a whole.

“These results are a strong endorsement of owner associations but this is just the beginning of the challenge they face with the transition from developers to actually prove these beliefs,” Jim O’Hare, the chief executive of Place Community Managers who commissioned the study, said.

Indeed, according to the survey, just 23 per cent of people believe that the measures will encourage others to buy property in the UAE, while 46 per cent remained unsure either way.

Cyprus 'ready' for property investors

Fri, 8 Oct 2010 00:00:00 GMT

Cyprus is fully prepared for any Brits wanting to purchase real estate in the country, those looking to find a home in Paphos or buy property in Famagusta will be pleased to know.

According to Pafilia Property, the infrastructure and community feel on offer make it the ideal destination to buy a home.

"It attracts everybody from the holiday home crowd to the retirees because it has the infrastructure," Maria McLaren, spokesperson for the company, said.

"Everything is geared up for anybody who wants to go to Cyprus and live there very happily. If you buy something near a village then you become a part of the local community

Ms McLaren added that developers have dropped their property prices by between ten and 20 per cent on the island due to oversupply.

And British buyers who act soon will be able to take advantage of the recent strengthening of sterling against the euro, with figures from the International Currency Exchange showing that pound has increased by four per cent in the past year.

Brits urged to seek legal advice when buying in Cyprus

Thu, 7 Oct 2010 00:00:00 GMT

Brits looking to buy property in Cyprus have been told to seek independent legal advice to help the process run smoothly.

According to law firm Michael Kyprianou and Co, employing the help of an expert will mean that those purchasing real estate in the country will avoid any unwanted problems.

"Like everywhere else in the world, the most important thing is to get good legal advice," Savvas Savvides, partner at the firm, said. "Get independent legal advice; everything else will be fine."

"In Cyprus, there are long discussions about title deeds, [but] the thing is, when you buy wisely, I don't see any problems."

Mr Savvides added that buyers always attempted to negotiate a contract that worked out in their favour, rather than the favour of the developer.

The latest buying statistics from the Royal Institution of Chartered Surveyors shows that residential prices on average fell by 2.5 per cent during the second quarter.

New service could boost confidence in Spanish property market

Sat, 25 Sep 2010 00:00:00 GMT

A company in Spain has launched a new service designed to help real estate investors in the country reclaim their money if a development is not completed on time.

The service has been set up in response to demand and works on a no win no fee basis.

It could lead to an increase in the number of people looking at Spanish property, with it helping to boost market confidence.

To qualify clients must be able to produce the original contracts, have a bank guarantee or insurance bond certificate, have proof of payment and have a contract that has expires without the property being completed.

Company director Daren Wallbank said the service allows property investors the chance of making a claim against a developer without the risk of high upfront costs.

"It's often the legal costs that provide the biggest hurdle for people who have already invested their life savings into a Spanish holiday home and really have no spare liquid funds available to them," he explained.

Cyprus title deed fiasco 'still ongoing'

Mon, 12 Jul 2010 00:00:00 GMT

Individuals who are looking for or own property in Cyprus may be interested to hear about the latest development in the country's long-running title deed dispute.

The Cypriot government has so far unsuccessfully attempted to introduce no fewer than five bills to speed the process up, but any further progress will now have to wait until parliament re-opens after the summer break.

According to Yiannos Lamaris, the house interior committee chairman, the bill is unlikely to go before parliament again until October at the earliest.

Estimates have suggested that approximately 130,000 properties are without title deeds because they have been built illegally.

Meanwhile, investors who are looking to find a home in Nicosia may be interested to learn that sales in the region are still rising, despite the crisis.

Earlier this year, it was revealed that the Cypriot government was planning to increase property tax to combat the recession.

The Cyprus Property News website claims the move will allow an additional EUR10 to EUR20 million in fees.

Government guarantee aims to boost confidence in UAE property market

Wed, 7 Jul 2010 00:00:00 GMT

A number of developments in the UAE have been shortlisted to be covered by the first phase of a new government guarantee designed to improve confidence in the emirate's property sector.

The Dubai Land Department-backed initiative assures investors that finance and completion for certain developments can be secured.

Named the Tayseer system, the first phase of the project is aimed at increasing liquidity and confidence in the sector, Sultan bin Butti bin Mejren, director general of the Land Department, said.

"Through this and other related initiatives the department is introducing a different, comprehensive and coherent level of strategic management to Dubai's property sector," he added.

"This will offer clear transparency and in doing so inspire confidence among developers, end users and all those with an interest in Dubai's property sector."

Currently, a total of 40 projects have been shortlisted for inclusion on the scheme and once approved they will receive a government guarantee that they will be completed by a specific date.

Meanwhile, Jones Lang LaSalle has predicted that office vacancy rates in Dubai are likely to exceed 50 per cent over the next year.

Britons 'increasingly involved in Spanish politics'

Tue, 11 Aug 2009 00:00:00 GMT

Britons who invest in Spanish properties may find that their local elected representatives speak with familiar accents, it has been revealed.

Figures from the Spanish government have shown that of the 85 councillors in the country who are from overseas, 37 are British.

This has been achieved due to the European Union law that allows citizens of member states to vote and stand for office in local and European Parliament elections if they live in another country.

One result of this may be that some British property owners will be able to enjoy better representation at local level if they have concerns about aspects of their life in Spain.

Last year a Briton on the council of the Costa Blanca town of San Fulgencio denied that he had taken on the role of the town's mayor after all the members of the authority who were senior to him were arrested.

Mark Lewis decided not to take on the role after councillors were held in a police corruption probe.

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Florida lawmakers may boost coastal dwellers

Thu, 26 Mar 2009 00:00:00 GMT

A new law in Florida may prevent private landowners restricting access to public beaches.

Under state law, all of the beach below the mean high water mark is public property but some private property owners have blocked off access or placed notices claiming they are off limits, the Tampa Tribune reports.

A new law being proposed in the state legislature would make such actions criminal offences, which may enable those buying property in this part of the US to enjoy easier access to beaches.

Speaking in favour of the bill, state legislature member Maria Sachs said: "With more and more coastal development, we need the state of Florida to step up and say that Florida beaches belong to all Floridians."

Those keen to buy waterside or coastal Florida property may be interested in an ongoing auction of 48 lots from all over the state.

Run by Rowell Realty & Auction and due to end on March 31st, the sale includes homes in places such as Daytona Beach and Palm Coast.

Cyprus property talks hailed as "substantive"

Tue, 10 Feb 2009 00:00:00 GMT

Talks taking place in Cyprus regarding property rights on the island have been described as "substantive" by the United Nations (UN).

The discussions are being held by Greek Cypriot leader Demetris Christofias and his Turkish Cypriot compatriot Mehmet Ali Talat in an effort to reunify the island.

And special representative to secretary-general Ban Ki-Moon Taye-Brook Zerihoun explained that outcome had been positive.

"They had a good round of substantive discussions on this issue and they have agreed to continue these discussions next week," he stated.

The talks are part of a larger drive by the UN to give the island a single national identity following years of disagreements between the two parties.

Should the attempts be successful, further opportunities for property investors wanting to make a purchase on the island could become available.

Property expert Dave Bexon recently stated that Cyprus is one of the leading countries for investors looking to make purchases.

Beijing suspends restrictions on foreign buyers

Wed, 28 Jan 2009 00:00:00 GMT

In an attempt to boost the property market, Beijing is reportedly moving to ease restrictions on international buyers. As part of a wide range of moves, the municipal government suspended measures implemented in 2007 to limit the number of foreigners purchasing residential property. Under the rules only expatriates who had lived in Beijing for at...

Desperate Beijing suspends restrictions for foreign property investors

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Property Court Established in Dubai

Wed, 28 Jan 2009 00:00:00 GMT

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Spanish police investigate more property corruption scandals than ever before

Wed, 28 Jan 2009 00:00:00 GMT

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Spanish MEPs United Against EU Criticism

Tue, 27 Jan 2009 00:00:00 GMT

Normally implacable foes, Spanish MEPs from the Socialist Party and the right-of-centre Popular Party closed ranks yesterday in the face of heavy EU criticism of Spain’s abuse of property rights and the environment.

The criticism came in the form of a draft report by Margrete Auken, a Danish MEP from the Greens, who has been commissioned by the Petitions Committee of the European Parliament to report on property and environmental abuse in Spain.

This is the third time the Petitions Committee has ordered a report into town planning, public tender, property rights, and environmental problems in Spain, all in some way related to Spain’s unfettered building boom of the last decade.

Auken’s draft report is a hard-hitting condemnation of Spain’s urban planning practices, weak property rights, and unresponsive legal system. The report points out that this is the third time that the Petitions Committee has investigated “serious abuses of the legitimate rights of European citizens to property legally purchased in Spain.”

The Valencian Community, in particular, is in the dock for its so-called “land grab” planning laws that enable developers to promote private housing schemes on other people’s land, and force owners to help finance those schemes. It is also accused of allowing housing schemes without sufficient water resources, and ignoring EU directives on environmental protection.

The Petitions Committee of the European Parliament has received 186 petitions signed by 15,000 people denouncing urban planning abuses in Spain. The Greens claim there are 250 residential housing schemes that have no guaranteed access to sufficient water. Most of the urban plans denounced to the Petitions Committee involved the reclassification of rural land that lead to “considerable economic gains for to the urbaniser and developer,” says the report.

Auken also argues that the unfettered urban development has wreaked massive destruction on the Spanish Mediterranean over the last decade, “and all for the greed and speculation of some local authorities and members of the construction sector.”

Auken’s report proposes a moratorium on approving new housing projects that do not meet EU norms, and a threat to deny EU cohesion funds if Spain fails to comply.

A highly critical report from Auken was expected, but what has come as a surprise was the u-turn by Spanish Socialist MEPs, who have joined forces with the Popular Party MEPs to try and water down the report with amendments to remove references to a moratorium, and sections criticising the Spanish judicial system. MEPs have until 27 January to submit their amendments.

“The Valencian PP appear to have persuaded their Socialist colleagues to turn this into an issue of patriotism, that being the last refuge of the scoundrel,” says Charles Svoboda of the AUN citizens group fighting Valencia’s “land grab” laws.

Commentators in the Spanish press suggest that, with the construction sector in a deep recession, and with European elections just around the corner, the Socialists don’t want to be seen attacking a sector that has already shed hundreds of thousands of jobs, nor supporting moves denying Spain EU structural funds.

Story by Mark Stucklin

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