Global Real Estate & Commercial News from Propertyshowrooms.com

Real estate investment in Romania rises

Thu, 17 May 2012 00:00:00 GMT

The volume of money ploughed into Romanian commercial property increased significantly in the first quarter of 2012.

Property Magazine International reported on data published by DTZ Echinox, which revealed the €99 million (£78.9 million) invested in the country's real estate market between January and March represented a 189 per cent rise over the final three months of 2011.

Looking at real estate investment for last year, compared to 2010, the mixed-use and residential sectors made the biggest gains, with retail assets losing out.

According to DTZ, prime yields in the office, retail and industrial industries are stable, standing at eight, 8.5 and 10.5 per cent respectively.

Romanian real estate is a popular choice among alternative investors, US firm Alternative Asset Analysis recently claimed.

The organisation explained fluctuations in global economies are encouraging investors to turn away from equities and look elsewhere for opportunities, with property in Romania among the top options.

Malaysian retail property 'attracting attention'

Thu, 10 May 2012 00:00:00 GMT

Many commercial real estate investors in Malaysia are focused on the country's retail sector at present.

This is the finding of a new Savills report into property investment markets in the Asia-Pacific region in the first quarter of this year.

The firm predicted there will be "major shopping centre transactions" in the three months from April to June, highlighting several deals and developments in the pipeline.

In addition, the hospitality sector was described as "quite bullish", with an increasing number of local businesses ploughing their money into this part of the Malaysian commercial property market.

The study concluded: "The success of the retail sector is closely linked to tourism. Nearly 25 million tourists arrived in the country last year, with receipts edging close to RM60 billion (£12.1 billion)."

In the latest Global Commercial Property survey published by the Royal Institution of Chartered Surveyors, sentiment among commercial real estate professionals was largely positive for Malaysia.

Rental expectations for the coming quarter were in positive territory, while the supply of distressed assets is set to be balanced by demand. However, capital value and investment expectations were both slightly negative.

Australian commercial property market "stable"

Fri, 4 May 2012 00:00:00 GMT

There has been little change in the performance of the Australian commercial real estate sector in the first quarter of 2012, compared to the final three months of last year.

This is the finding of the Royal Institution of Chartered Surveyors (Rics) Oceania Commercial Property Survey, which described the country's market as "stable", noting both occupier demand and the amount of available space have remained steady.

However, investment enquiries climbed substantially during the first quarter of this year, with Rics anticipating interest in the Australian market will grow in the short to medium term.

According to the research, this is a positive sign, with the report stating: "Capital value expectations remain flat, but could begin to pick up in the coming three months if the surge in investor demand is anything to go by."

National Australia Bank's latest quarterly commercial real estate survey revealed retail is the weakest performing sector, while office property in central business districts and the hotel industry are more robust markets.

Returns on Italian property fall

Fri, 13 Apr 2012 00:00:00 GMT

The income generated by commercial property in Italy fell in 2011, compared to the previous year.

In its Italy Annual Property Index, IPD revealed returns for investors on such real estate assets came in at 4.3 per cent last year, down from the 5.1 per cent recorded in 2010.

The organisation noted income return - which stood at 5.8 per cent - was the main driver behind the industry, as capital values dropped by 1.5 per cent in the same period.

Retail was the strongest commercial property sector in the country, posting overall gains of 5.5 per cent, followed by industrial assets and offices.

Neil Turner, head of fund management at Schroders, told Financial News last month that retail assets in the north of the nation should be on investors' radar this year.

However, Luigi Pischedda, country manager Italy at IPD, urged caution, noting that despite the performance of Italian commercial real estate being "encouraging", the figures need to be "read carefully in the context of recent years".

He highlighted the "further and faster capital declines" experienced in 2011 as an example of this, adding conditions in the Italian property market weakened towards the end of the year.

Brazil 'a hotspot' for hotel investment

Wed, 11 Apr 2012 00:00:00 GMT

The hotel market could be the ideal place to invest for those looking for property in Brazil.

According to a column written by Jones Lang LaSalle Hotels for HotelNewsNow, the country's hospitality sector offers a lot of prospects for those keen to put their money into real estate.

The organisation highlighted the 2014 FIFA World Cup and the Olympic Games in 2016 - both of which are being hosted in Brazil - as being two drivers of development within the nation's hotel sector.

Meanwhile, revenue per available room recorded double-digit increases in 2011 and this growth is expected to continue during 2012.

"Brazil has become the most attractive Latin American hotel investment market," the firm asserted, adding rising domestic demand coupled with the large-scale sporting events is resulting in "an attractive environment for growth".

The Brazilian Ministry of Sports is anticipating 600,000 overseas visitors will travel to the nation for the football tournament in two year's time, while a further three million tourists are expected to head to the country during this period.

Madrid office market weakening

Wed, 21 Mar 2012 00:00:00 GMT

The office market in Madrid appears to have taken a downward turn since the beginning of 2012.

According to new research published by Savills, the vacancy rate in the Spanish city has been creeping up over the past few months, while a rising supply of such commercial properties coupled with falling demand is putting pressure on rents.

The firm noted approximately 300,000 sq m of new offices are expected to come on to the market in Madrid over the course of 2012; however, demand is sliding, with many occupiers choosing to downsize due to the current economic climate.

On average, the rent charged for Spanish commercial real estate in Madrid's central business district is now nearly 40 per cent below its peak, and the organisation is forecasting prime rents will stand at €309 (£257) per sq m per year by the end of the first quarter of 2012.

However, while Madrid's office sector may be struggling, it appears its retail industry is faring better. A Jones Lang LaSalle report published earlier this month revealed the Spanish city is the fourth most popular destination in Europe for retailers to have a store in.

Barcelona also made it into the top ten, ranked as the seventh most desirable location in which to have retail premises on the continent.

Australian office rental markets 'growing'

Wed, 14 Mar 2012 00:00:00 GMT

Two of Australia's office markets made it into the top ten in a list of the world's most expensive places to rent this type of commercial space.

Perth and Sydney both performed well in the final quarter of 2011, according to a study conducted by Knight Frank.

The firm is predicting further rental rises in Perth over the course of 2012, with the average cost of leasing real estate in the city's central business district (CBD) currently standing at £55.96 per sq ft per year.

Perth is in seventh position and this is the first time the city has climbed into the top ten of the Knight Frank survey, with the organisation commenting this is due to "strong rental growth on the back of demand generated by Western Australia's booming resources sector and the falling availability of prime space".

Sydney, meanwhile, is in tenth position, with the average price of renting an office standing at £53.45 per sq ft per annum.

Brisbane and Melbourne are the two other Australian commercial property markets to feature lower down the table, at 15th and 21st respectively.

Western Australia is one region for investors to watch, after Australian Property Investor magazine named the destination as one of the country's hotspots in 2012, AAP reported earlier this month.

Paris a top target for commercial property investors

Thu, 8 Mar 2012 00:00:00 GMT

Paris is the most popular city in Europe among those seeking commercial property investments.

This is the finding of a new survey from CB Richard Ellis (CBRE), which revealed the French capital overtook London as the top investment choice in the second half of last year.

In the final six months of 2011, the amount of money spent on commercial real estate in Paris hit €7.9 billion (£6.6 billion), up significantly from the €3.6 billion registered in the previous half.

Central London wasn't far behind, attracting €7.8 billion in funds during the same period.

President of CBRE capital markets in France Antoine Derville commented: "Paris is attracting investment because of the depth of the market. With 54.5 million sq m of offices and a very low vacancy rate [...], take-up in 2011 was close to 2.5 million sq m."

Mr Derville added the boost to Paris's investment market at the end of 2011 was partially a result of new properties coming on to the market, noting there is still strong demand from buyers for prime assets.

Last month, managing director of the Villages Group Danny Silver highlighted France's status as a safe haven for real estate investment, pointing to its strong economy and the 0.2 per cent growth in gross domestic product recorded in the final quarter of 2011 as reasons why it remains attractive.

Madrid 'a top target for retailers'

Tue, 6 Mar 2012 00:00:00 GMT

Madrid is one of the most desirable destinations in Europe to hold retail premises.

According to new research from Jones Lang LaSalle, the Spanish city is the fourth most popular place in the continent to have a store, behind London, Paris and Moscow. Barcelona, meanwhile, is ranked in joint seventh position with Munich and Istanbul.

The revelation that businesses are keen to have space in Madrid and Barcelona may encourage investors to consider the merits of Spanish commercial property in this sector.

James Dolphin, head of the pan-EMEA (Europe, Middle East and Africa) retail agency at the firm, commented: "Many top-tier retailers will accept flagship space in iconic locations and nothing less. This is maintaining or, in some instances, putting upward pressure on rents in super-prime locations."

The office market in Madrid also received a boost recently, when DTZ upgraded the outlook for this asset class from cold to warm in its European Fair Value Q4 2011 report.

Capital appreciation, rather than rental income, is behind the bulk of investor returns from Madrid offices, unlike the majority of other European markets, where the reverse is true.

Outlook for Madrid offices upgraded

Fri, 2 Mar 2012 00:00:00 GMT

The Madrid office market has had its outlook for 2012 upgraded from cold to warm by DTZ.

In its European Fair Value Q4 2011 report, the firm was more upbeat about the prospect of returns in this sector of the Spanish commercial property market than it was in the previous three-month period.

According to the DTZ research, Madrid is one of the few European locations where capital appreciation rather than rental income has been the driving force behind investor returns.

Meanwhile, the organisation also highlighted the stability of yields for offices in Madrid, which remained at 5.75 per cent throughout 2011, with no fluctuations anticipated over the coming months.

Last month, Savills drew attention to the strong start to 2012 for Madrid's office market, pointing to the sale of the Torre Picasso building, which was purchased for €400 million (£335 million).

According to the real estate firm, this accounted for ten per cent of the total transaction volume recorded in the sector in 2011.

Looking forward, Savills expects the majority of deals this year to be concluded by domestic buyers in the €30 million to €50 million range.

Demand for green offices rises in Malaysia

Thu, 1 Mar 2012 00:00:00 GMT

An increasing number of commercial tenants are seeking green-rated offices in the Malaysian capital Kuala Lumpur.

Savills unveiled the trend in its Asian Cities Report for Kuala Lumpur's office market, noting some occupiers are looking specifically for any buildings that comply with the US Leadership in Energy and Environmental Design (LEED) rating system.

The firm pointed out many steps are being taken to ensure Malaysia's commercial property sector is environmentally friendly, stating the nation is "catching up fast with the rest of the world and in some cases exceeding other countries in terms of initiatives".

Property owners are also more focused on finding "good-quality office tenants", rather than making savings over the course of a building's life.

Earlier this month, president of the Malaysian Institute of Estate Agents Nixon Paul told the Malaysia Star an increasing number of investors are shifting their attention from residential to commercial real estate.

He explained Malaysia's commercial property sector is considered to be more resilient than the country's housing market, highlighting the "pent-up demand" for commercial space.

Optimism for Cairo property market

Tue, 28 Feb 2012 00:00:00 GMT

The long-term outlook for Cairo's real estate market is broadly positive, with signs of increased activity in the city.

This is the finding of a Jones Lang LaSalle report, which noted confidence in Egypt's commercial property sector is beginning to return following the revolution that overturned president Mubarak in January 2011.

Head of the firm's Egypt office division Ayman Sami stated the organisation is positive about the "long-term fundamentals of the Cairo real estate market", adding there needs to be consistent stability if the nation's economy is to fully recover.

"For the longer-term investor, Egypt will always be an attractive market with considerable potential," he asserted.

Last week, real estate analyst at Beltone Investment Bank Harshjit Oza told Daily News Egypt that property prices in the residential sector are fluctuating less than last year.

He went on to predict there will be a rise in the number of transactions completed in 2012, compared to 2011, with developers in the nation set to deliver more new units on to the market htis year.

Domestic investors 'will dominate Madrid office market'

Mon, 27 Feb 2012 00:00:00 GMT

Madrid's office market is not expected to significantly improve during 2012, despite a strong start to the year.

This is the opinion of Savills, which noted investment in Spanish offices will be limited due to falling demand for space and a lack of confidence in the country's economy.

"It is likely that growth in Spain will remain muted until 2013, and with foreign investment mainly focused on retail, we expect the domestic buyers to dominate the office market this year," Gema de la Fuente, of Savills Research, commented.

One bright spot for the Spanish commercial property sector was the sale of Torre Picasso, a Madrid office development that was purchased for €400 million (£338 million) at the start of 2012. The firm revealed this transaction represented over ten per cent of the total volume of deals completed in 2011.

Torre Picasso is one of the city's tallest skyscrapers, boasting 43 floors, the majority of which are used for offices.

The deal to buy the building was revealed at the end of December last year, with construction firm Fomento de Construcciones y Contratas announcing it was to be purchased by Pontegadea Inmobiliairia SLU, an investment vehicle set up by Zara founder Amancio Ortega.

Australian offices 'set to outperform other commercial assets'

Mon, 20 Feb 2012 00:00:00 GMT

The value of offices down under has been predicted to rise above other commercial property in Australia.

A survey from National Australia Bank (NAB) showed that capital city office values will grow by three per cent in the next couple of years, including a 1.6 per cent rise by December 2012, Bloomberg revealed.

Despite this boost for office properties, the report showed retail real estate values will drop by 0.5 per cent by December, while the industrial property market will be static.

Confidence in Australian business has risen recently, reaching an eight-month high last month, at the same time that consumer confidence rose as well, according to figures published by the news provider.

This comes after CB Richard Ellis (CBRE) Australia reported earlier this month that foreign investors will carry on putting money in office real estate in the nation.

It stated demand for commercial investment opportunities will continue to provide a boost to property sales.

'Mixed results' for UAE property markets

Mon, 20 Feb 2012 00:00:00 GMT

Real estate figures from the United Arab Emirates (UAE) have seen mixed results, with property values in some areas rising, while others are falling.

According to the REIDIN.com UAE Residential Property Price Indices: January 2012 Results, Dubai has had an increase in real estate values since December 2011.

Findings showed prices for residential property rose by 1.21 per cent in the month, resulting in a boost for property in the UAE.

The report revealed apartment sales prices grew by 0.54 per cent, while villa sales values increased by 1.58 per cent during this period.

However, the figures also showed residential real estate in Abu Dhabi declined in value between December 2011 and January 2012 by 0.59 per cent, as a result of apartment and villa sales prices dropping by 0.98 per cent and 0.04 per cent respectively over the month.

This follows Jones Lang LaSalle's Top trends for UAE Real Estate in 2012 report, which predicted that while there will be a greater number of property transactions in 2012 compared with last year, there will be more realism among investors, with the focus being directed towards long-term commercial viability.

Australian commercial property market 'broadly flat'

Fri, 10 Feb 2012 00:00:00 GMT

The commercial real estate sector in Australia stabilised in the final quarter of 2011, with capital value growth, investor demand and occupier and owner sentiment all "broadly flat".

According to the Royal Institution of Chartered Surveyors (Rics) Oceania Commercial Property Survey, vacancy rates in the nation fell and, despite tenant demand continuing to slide, it did so at "a noticeably slower pace" in the final three months of last year.

Kaye Herald, managing director of Rics Asia Pacific, commented: "The expectations for the first quarter of this year seem to suggest that this stability may result in some better results going forward."

Demand from investors for Australian commercial property remained in negative territory, although the organisation stated there are clearly fewer fluctuations on this side of the market than there have been previously.

Earlier this month, the Property Council of Australia revealed that vacancy rates in offices in the country's main central business districts fell to 7.9 per cent in the six months to January 2012, bringing them to their lowest level in three years.

Property investment activity dips in Romania

Mon, 6 Feb 2012 00:00:00 GMT

There has been a decline in the level of investment flowing into the Romanian commercial property sector in 2011.

Head of valuations and consulting at DTZ Echinox Bogdan Sergentu explained the amount of money invested in Romanian real estate dropped by 13 per cent in 2011, compared to the previous year.

Bucharest was the main target for those seeking such assets in the country, with developments in the city accounting for six out of the 13 transactions completed last year.

Mr Sergentu added 69 per cent of the total investment volume for 2011 was spent on mixed-use developments, despite a greater number of deals being agreed in the retail sector.

However, it appears the new year has started well for the nation's commercial real estate sector, with Romania Business Insider reporting this week (February 2nd) that New Europe Property Investment - a South African-based fund - has purchased the City Business Center in Timisoara.

The complex comprises three office buildings, with two more premises still to be constructed.

Managing director for Jones Lang LaSalle in Romania Troy Javaher explained it is the "first major institutional office transaction outside Bucharest".

'Positive outlook' for South Africa commercial property

Mon, 6 Feb 2012 00:00:00 GMT

There is reason to be optimistic about the future performance of commercial real estate assets in South Africa.

This is according to Malcolm Horne, chief executive officer of Broll Property Group, who is confident demand for properties to rent in the nation will pick up, thereby reducing the amount of vacant space on the market.

A yearly report published by the company predicted income from commercial properties in South Africa will rise, while capitalisation rates will become steadier.

Speaking to SA Commercial Prop News, he commented: "The South African property fundamentals remain strong, landlords and tenants have become more educated about the costs involved and the pressure is on all to find effective means to reduce operating costs."

Last month, head of capital markets at Jones Lang LaSalle South Africa Andrew Bradford asserted investors in the nation are better off purchasing existing buildings, rather than ploughing their money into new developments.

He explained expenses associated with established assets are usually considerably lower than with new builds, while there is also less hassle and more predictability over a deal's timeline when opting for finished projects.

Selling distressed property 'important for South African market recovery'

Tue, 31 Jan 2012 00:00:00 GMT

Quickening the process of selling distressed real estate assets in South Africa is vital if the country's property market is to recover.

This is according to SA Commercial Prop News, which outlined several areas that need to improve before the real estate sector in the nation can get better.

Among them are employment growth, more support from lenders to borrowers who are struggling to pay their mortgages and an upturn in the global economy.

Commenting on the state of the South African residential real estate market, chief executive officer of Auction Alliance Rael Levitt said: "There's likely to be more pain before there are any real gains for the sector, primarily because of the giant inventory of homes on the market."

Earlier this month, chief executive officer of ooba Saul Geffen stated that it is a buyer's market in South Africa at the moment, partly because of the low interest rates in the nation.

Rising investment in French commercial property

Thu, 19 Jan 2012 00:00:00 GMT

During the final three months of 2011, France recorded its highest commercial property transaction volume since the third quarter of 2007.

Figures released by CB Richard Ellis (CBRE) revealed that investment in French commercial real estate climbed by 65 per cent between the third and fourth quarters of last year.

In total, €6.5 billion (£5.4 billion) was transacted between October and December 2011, making it the second most popular market in Europe after the UK.

The CBRE report stated: "Investment activity in France was heavily biased towards the Paris office sector and included large portfolio and single-asset deals."

According to the Savills European Office Markets bulletin released in autumn last year, yields for Parisian offices stood at just over five per cent in the third quarter of 2011.

The organisation noted that both demand and rents were on an upward trend at this time, while the supply of such real estate assets in the French capital was falling.

Head of Europe, the Middle East and Africa capital markets at CBRE Jonathan Hull stated that data from the final quarter indicates France, along with the UK, Germany and the Nordic nations, "are key to core strategies" among investors.

Confidence in Australian property market 'broadly positive'

Mon, 16 Jan 2012 00:00:00 GMT

Confidence levels across the Australian real estate sector remain in positive territory, a new survey has revealed, although some areas are faring better than others.

This is one of the findings in the Property Council-ANZ Property Industry Confidence Survey December 2011, which noted the Northern Territory (NT) saw the greatest improvement in sentiment among real estate professionals.

A new gas deal with INPEX is expected to boost the economy in the NT, with the Property Council's division president in the state Brendan Dunn describing it as a "game changer" for the region.

However, respondents in New South Wales and Victoria - which are home to the country's largest property markets - took a more negative outlook in the final quarter of 2011 than they did in the previous three-month period.

Meanwhile, Warren Hogan, ANZ global chief economist, was optimistic about the future of the nation's commercial real estate sector.

"Tight vacancies, limited capacity expansion and attractive yields will support growing investor interest and are laying the groundwork for a marked increase in valuations as rents rise and yields compress," he stated.

US commercial real estate sector 'expected to improve'

Thu, 1 Dec 2011 00:00:00 GMT

The US commercial property industry is expected to perform better in 2012 than it has done this year.

This is the prediction of the National Association of Realtors (NAR), which noted there are indications that an upturn for the sector is just around the corner.

Lawrence Yun, NAR chief economist, commented: "Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant's market. However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve."

He went on to say that there is likely to be less empty space in 2012, while there is the anticipation of rental growth.

Mr Yun pointed out that in some sections of the market where demand is strong - such as multifamily accommodation - there is the potential for substantial rental increases.

Vacancy rates in this part of the market are expected to fall from five per cent in the third quarter of this year, to 4.3 per cent by the end of December, the NAR revealed.

Earlier this month, the Mortgage Bankers Association published research showing that the number of loans issued in the three months from July to September 2011 in the commercial and multifamily market rose by 98 per cent compared to the same period in 2010.

Asia-Pacific office rents climb

Tue, 15 Nov 2011 00:00:00 GMT

The Asia-Pacific region is leading the pack in terms of office rental growth during the third quarter of 2011, new research shows.

A report published by Jones Lang LaSalle found that seven out of the top ten office markets were in this area, with two Australian destinations making an appearance.

Perth and Sydney both experienced increases in the amount charged for office space, recording a 10.5 per cent and 6.6 per cent rise respectively.

Melbourne and Adelaide both made it into the top 50 with marginal hikes, while in Brisbane, the market was flat and Canberra saw rents decline by 2.3 per cent.

However, this indicates that the Australian commercial property sector is performing relatively well in comparison to some of the other established office markets around the world.

Dr Jane Murray, head of research for Asia-Pacific at Jones Lang LaSalle, commented: "The picture across Asia-Pacific is diverse, reflecting varying conditions within markets [...] We expect rents to increase in most markets over the short term."

A survey released by the Royal Institution of Chartered Surveyors earlier this month revealed that many professionals are positive about rental expectations in the nation for the rest of this year, although respondents predicted that investor sentiment and tenant demand will slip by the end of 2011.

Investment volumes in Spanish commercial real estate fall

Tue, 15 Nov 2011 00:00:00 GMT

New research has revealed that the amount of money ploughed into the Spanish commercial property sector fell by over 50 per cent during the first three quarters of 2011, compared with the same period a year earlier.

According to Savills, the nation has seen €1.25 billion (£1.07 billion) injected into its commercial real estate markets between January and September this year.

The firm noted that the country's economy has been "severely affected by tension in the financial markets", which has resulted in many investors taking a more cautious approach.

Danny Kinnoch, international investment director with the organisation, commented: "Although there is product available, investors are increasingly conservative and continue to wait for the perfect investment."

Looking forward, Savills predicted that a lack of finance will prevent many potential deals being closed, while there are problems with existing transactions due to the extended length of time it is taking for sales to go through.

Data published earlier this month by the Royal Institution of Chartered Surveyors revealed that sentiment among both occupiers and investors in Spain remained in "deeply negative territory" during the third quarter of this year.

Brazilian property market 'grew in Q3'

Fri, 11 Nov 2011 00:00:00 GMT

During the third quarter of 2011, the real estate market in Brazil continued to grow, with the Sao Paulo office sector putting in a particularly strong performance.

This is according to a report published by Cushman & Wakefield, which revealed that net absorption across all the cities surveyed was 52.3 per cent higher in this period than the figure recorded in the three months from April to June this year.

Meanwhile, the average asking price for rents has climbed by 2.5 per cent year on year, to stand at R$71.50 (£25.56) per sq m per month.

Sao Paulo's central business district far outstripped that national average, with a 22.6 per cent annual increase in rents in this area, bringing the typical monthly cost of leasing a property to R$111.8 per sq m.

"High demand, limited supply and more modern buildings added to the market have once again influenced average rents in high-end office buildings located in the main office districts of Sao Paulo," the research stated.

The recent Global Commercial Property Survey carried out by the Royal Institution of Chartered Surveyors predicted further growth in both capital values and rents within the Brazilian property sector by the end of 2011.

Spanish commercial property sector 'weakens further'

Tue, 8 Nov 2011 00:00:00 GMT

The latest data to be published by the Royal Institution of Chartered Surveyors (Rics) into the state of European commercial property markets shows an overall decline.

Countries such as Spain, which have been affected by the sovereign debt crisis on the continent, in addition to poor domestic economic performance, have been hit particularly hard.

According to the Rics findings, capital value and rental expectations across all areas of the Spanish commercial property sector are well into negative territory.

In terms of the underlying value of assets, office and retail premises have slipped further than their industrial counterparts.

However, there is a greater disparity when it comes to rental expectations, with industrial still the more favoured class, closely followed by retail buildings, while the sentiment surrounding offices has been hit much harder.

Simon Rubinsohn, Rics chief economist, noted that "overall, confidence has definitely taken a knock".

He attributed this to the "considerable levels of uncertainty in financial markets around the world and the intensification of the euro area crisis".

Australia's commercial property sector 'slowing'

Mon, 7 Nov 2011 00:00:00 GMT

The commercial property market in Australia is exhibiting signs of a slowdown, new data has revealed.

A survey carried out by the Royal Institution of Chartered Surveyors (Rics) covering the outlook for the Oceania region in the fourth quarter of 2011 recorded a slide in both tenant demand and investor sentiment.

However, the organisation noted that rental expectations for the final months of this year remained positive.

In its report, the institution stated that the figures "should be seen in the context of an extended period of strong economic growth and a healthy performance from the real estate sector".

Kaye Herald, managing director at Rics Asia Pacific, commented that the Oceania area is "following the global trends as economic conditions cool".

Research published by Savills at the end of October found that transaction volumes in Sydney's central business district increased markedly during the third quarter of 2011.

As a result, this is the highest number of sales recorded in the city since the second quarter of 2006.

Brazilian commercial property 'performing well'

Fri, 4 Nov 2011 00:00:00 GMT

Brazil has been highlighted as one of the top performing commercial real estate markets in the world at present in a new study.

The Royal Institution of Chartered Surveyors (Rics) Global Commercial Property Survey for the third quarter of 2011 predicted that Brazil's momentum will continue throughout the final quarter of this year.

According to the organisation, "rental and capital value expectations remain high", while the picture for demand from investors looks strong, despite weakening slightly compared to the second quarter of 2011.

Rics chief economist Simon Rubinsohn described Brazil's commercial property sector as one of the "key areas of resilience" around the world, alongside the likes of China and Russia.

Meanwhile, those questioned for the research anticipate continued strength in occupier demand, with Rics stating that recent reductions in interest rates by the Banco Central do Brasil will further support this side of the market.

Last month, Ruban Selvanayagam wrote for Global Property Guide that new regulations have been introduced in Brazil to help resolve issues caused by delays to developments when residential units have been sold off-plan.

He noted that the intention of the guidelines, which are not compulsory, is to bring greater transparency into the sector.

Rental growth slows for South Africa commercial property

Fri, 14 Oct 2011 00:00:00 GMT

Many fund managers in South Africa are struggling at present because tenants are able to negotiate rental rates down, it has been claimed.

Paul Duncan, portfolio manager of Catalyst Fund Managers, told Business Day that the South African commercial property market is likely to run into difficulties over the coming year to 18 months.

He explained that many investors have seen vacancy levels across their portfolios rise, which has allowed tenants to renegotiate contracts to pay less rent.

Mr Duncan added that although vacancy rates appear to have "troughed", there is still little new demand to help buoy the sector.

"As a result, the positive effect that vacancy reduction has on distribution growth is only expected to filter through beyond the 12 to 18-month time horizon," he stated.

In September, the SAPOA/IPD South Africa biannual property indicator revealed that returns generated by commercial property in the country "stagnated" between January and June of this year.

The organisation recorded a total return from real estate rents of 4.3 per cent, while there was no capital appreciation noted in the survey.

'Promising signs' in Madrid office market

Tue, 30 Aug 2011 00:00:00 GMT

The office market in Madrid's central business district (CBD) is showing signs of recovery, the latest research from Savills has revealed.

According to the organisation, vacancy rates in the Spanish city dropped during the second quarter of the year to reach 4.73 per cent, compared to the 5.31 per cent recorded in the first three months of 2011.

Meanwhile, Savills also noted that a lack of new developments has resulted in landlords refurbishing their properties in Spain to bring new space on to the market.

Ana Zavala, head of office agency at Savills Madrid, described this as "a promising sign", although she noted that there are still concerns over the economy that are affecting commercial real estate.

However, there has been a low level of transactions in the office building sector since the beginning of the year, which has helped keep yields steady.

The Royal Institution of Chartered Surveyors recently issued its European Commercial Property Survey for the second quarter of the year, which predicted that the number of investment transactions in Spain will increase over the next three months.

Spain and Portugal looking for World Cup boost

Wed, 1 Dec 2010 00:00:00 GMT

The Spanish and Portuguese property markets could be dealt a timely boost later this week when the hosts of the 2018 and 2022 FIFA World Cups are named.

Spain and Portugal are among the leading candidates after registering a bid together, A Place in the Sun reports.

If successful, the two countries would benefit from a boost to their fragile economies and potentially an improvement in their respective property markets, the news provider stated.

The news could interest individuals looking for real estate in Spain as there are currently a number of bargain homes available.

Meanwhile, a recent survey from tourism marketing experts, Pangaea Network, found that hosting an international football tournament will do more to boost a nation that any other sporting event.

According to the report, football tournaments are four times more popular than motor racing and there is no bigger sporting event in the world than the football World Cup.

Vacancies in the UAE property market to rise

Tue, 5 Oct 2010 00:00:00 GMT

Commercial property values in the UAE are unlikely to return to sustainable levels before 2013, a new report has suggested.

Jones Lang LaSalle has claimed that the situation in Dubai can draw strong parallels with central business districts (CBDs) in emerging markets.

The real estate consultant explains that these CBDs often outperform other commercial areas, those looking for property in the country may be interested to learn.

Graham Coutts, head of management services at Jones Lang LaSalle, said that the experience of these cities shows that markets often go through periods of excess.

“Dubai currently has one of the highest levels of office space per person in the world. This reflects the regional and global role of Dubai but does suggest that the level of supply has increased ahead of the maturity of the market,” he said.

Currently, office vacancies in Dubai’s financial centre could hit 40 per cent over the forthcoming years as oversupply takes hold of the emirates already battered market.

Egypt 'in early stages of a real estate boom'

Wed, 8 Sep 2010 00:00:00 GMT

Egypt is in the early stages of a property boom, people hoping to find property in Muhafazat al Bahr al Ahmar will be pleased to hear.

Research from Business Monitor International (BMI) highlighted that rents and capital values in the nation have risen while yields appear to have fallen.

According to the body, there has been a substantial increase in the supply of commercial property across Egypt, addressing the issue of underdevelopment which has been going on for years, and providing property investors with the opportunity to add to their portfolios.

This increase in supply is also being met by a rise in demand, coming from Western multinationals and Middle Eastern companies relocating to Egypt.

"The result is that conditions are dynamic. Vacancy rates vary, but are generally low or falling. Looking ahead, we expect that the optimism of protagonists in the office and retail sub-sectors will be justified. There should be a double-digit increase in rentals in these sub-sectors in 2011; further - if smaller - rises are likely in the following years," the report stated, adding that capital values will rise more significantly than rentals and the general downward trend in yields will continue.

US commercial property market prices dropping

Wed, 25 Aug 2010 00:00:00 GMT

US commercial property prices have dropped to nearly half the levels seen at the height of the real estate boom, meaning savvy investors looking for Florida property could bag a bargain.

The latest commercial property price index from Moody's found that nationally, prices dropped by 9.1 per cent in June compared to the previous year. The rate also dropped 0.9 per cent over the first half of the year.

Moody's managing director Nick Levidy said that the price falls may help meet rising demand.

"The increase in dollar volume in each of the past two months, taken together with this month's 43 per cent increase in the number of repeat sale transactions, may be an early indication that buyers and sellers are starting to agree on market-clearing prices.

"If this is in fact occurring, we would expect transaction volumes to rise steadily and price volatility to ebb in the months to come," he added.

Earlier this month, DTZ's Fair Value Index highlighted that US prime commercial property is very fairly priced compared to that in Europe and the Asia Pacific region.

France and Germany tipped for commercial property investment

Wed, 11 Aug 2010 00:00:00 GMT

France and Germany have been tipped as hotspots for commercial property investment by Capital Economics.

Ed Stansfield, a property economist at the firm, said that France, along with the Nordic countries, stands out in terms of economic conditions and pricing.

This means investors could be advised to keep an eye out for Midi-Pyrenees property listings and Provence-Alpes-Cote d'Azur property for sale.

"Germany, from a purely top-down macroeconomic performance point of view, is going to be one of the best performing economies in Europe over the next couple of years," Mr Stansfield added.

"A lot of the data would suggest that the correction was very modest and therefore there is not a lot of potential for an upswing but, as a solid income producing investment, I think German property has got some attractions as well."

Mr Stansfield added that investors should be wary about buying property in nations which have an unstable economy at the moment.

Recent research by the Royal Institution of Chartered Surveyors highlighted that real estate professionals in 14 out of the 25 nations it surveyed thought that the number of distressed properties coming to the global commercial property market will continue to grow over the next three months.

Owners deciding to keep commercial property off the US market

Sat, 10 Jul 2010 00:00:00 GMT

The decision of property owners in the US to keep real estate off the market has had a profound effect on the level of sales in the country, new data has shown.

According to statistics released by Real Capital Analytics, the amount of commercial property sold in the first half of 2010 stood at just a quarter of the average seen in the past six years.

A lack of available real estate has been cited as the primary reason for the low level of deals, with frustration beginning to mount among prospective buyers.

"When something does come to market, that lack of supply is causing almost a feeding frenzy," Alan Kava, co-head of Goldman Sachs Group's Real Estate Principal Investment Area in New York, said.

"People have real estate funds that are not on an infinite time line, they need to put capital [in] to work."

However, the residential sector is faring better, with a surplus of foreclosed homes currently selling for up to 27 per cent less than other real estate.

The latest figures from RealtyTrac show that distressed sales now account for at least a third of all Florida property purchases.

Australian auctions maintain strength

Tue, 15 Dec 2009 00:00:00 GMT

The rate of sales success in Australian residential property auctions has continued to exceed 70 per cent, it has been revealed.

Figures from Australian Property Monitors indicated that in the week to December 12th, 71 per cent of homes made available this way were traded.

This followed levels of between 71 per cent and 73 per cent being sold over the previous four weeks.

Such a steady rate may indicate that the market is solid and stable, something that could interest those who are looking to buy in the country.

Last week's total saw 505 out of 676 lots sold, with the median price being AUD590,000 (GBP331,000).

Figures from the recent Knight Frank Global House Price Survey showed Australia has had one of the best-performing markets in recent months, with prices rising 6.2 per cent in the year to the end of October.

It also revealed a jump in values of 4.2 per cent during the third quarter of 2009.

UAE developer reveals fourth-quarter profit fall

Thu, 26 Feb 2009 00:00:00 GMT

UAE real estate developer RAK Properties has revealed a fourth-quarter profit drop of almost 74 per cent.

The company, which is based in Ras Al Khaimah, revealed a profit of 50.9 million AED (9.65 million GBP) for the final three months of 2008, compared to 194 million AED during the same quarter in 2007.

Full-year profit for the firm fell 23.5 per cent to 379.46 million AED, the company announced, with it also booking a provision for impairment of 58.86 million AED for the year.

It is the latest in a number of UAE property developers to report faltering financial results as the economic downturn begins to have an effect on real estate in the Middle East.

Emaar Properrties, Aldar Properties and Sorouh Real Estate have all reported losses for the fourth quarter of last year.

Last year RAK Properties announced the launch of the Julfar Residence, a 500 million AED, 24-storey tower located on Abu Dhabi's Al Reem island.

Wincrest Homes in liquidation

Thu, 29 Jan 2009 00:00:00 GMT

Building company Wincrest Homes has announced the company is going into voluntary administration...

Developer abandons wharf hotel plans

Thu, 29 Jan 2009 00:00:00 GMT

Plans for a new 60 suite hotel on Hobart's waterfront have been abandoned by the consortium Hunter Developments...

Abu Dhabi Real Estate Investment Show Flops

Thu, 29 Jan 2009 00:00:00 GMT

The Abu Dhabi Real Estate and Investment Show has been hit hard by the global downturn. Exhibitors showcasing their latest projects said yesterday that they are finding buyers hard to come by...

Federal Government to Bail Out Banks in Commercial Property

Wed, 28 Jan 2009 00:00:00 GMT

The Federal government has come to the party to the tune of $4 billion dollars of Federal money to prop up commercial property....

U.S. Commercial Property Sales Fell 70 Percent in 2008

Wed, 28 Jan 2009 00:00:00 GMT

The commercial real estate industry has slowed dramatically in recent months as credit tightens and sellers and buyers dispute how far values have truly fallen. For more information, read the following article from Property Wire. Sales of U.S. commercial property fell a staggering 70 percent in 2008...

Rousse: Bulgarian Property Developments builds 2nd ogistic park in Ruse

Tue, 27 Jan 2009 00:00:00 GMT

Real estate investment firm Bulgarian Property Developments, which is listed on the alternative segment of the London Stock Exchange, unveiled plans to build a second logistic park in Bulgaria. The company has been granted construction permit for the sche...

Real estate sector applauds lifting of 15pc loan cap

Tue, 27 Jan 2009 00:00:00 GMT

Property developers hope for fresh capital injection, but banks may not be willing to extend credit to sector so battered...

Mixed results expected for Dubai developers

Tue, 27 Jan 2009 00:00:00 GMT

Fourth quarter results for a number of Middle Eastern property development firms will paint a mixed a picture of the sector, it has been suggested.

According to figures from Credit Suisse, some companies will post robust results for the last three months while others will see weakening performances, the Khaleej Times reports.

It said that Sorouh Real Estate and Aldar Properties will see strong results for quarter four.

However, Emaar Properties is likely to experience a slip in revenue growth, which will reflect a fall in profits for the year of 13.3 per cent due to a goodwill write-down to John Laing Home, Credit Suisse stated.

"We expect fourth quarter earnings for both Aldar and Sorouh to increase by 62 per cent and 13 per cent respectively compared to the third quarter," the paper reporting the company has saying.

It added that Union Properties could see earnings decrease by 50 per cent.

These figures follow news from state-owned developer Nakheel that it is to stop construction on what is set to become the world's tallest tower.

Union Properties to issue bonds

Mon, 26 Jan 2009 00:00:00 GMT

Union Properties, a Dubai-based real estate developer that's building F1-themed parks, said its board approved plans to issue non-convertible bonds worth Dh2.5 billion to "strategic investors". The board will decide on the terms and conditions of the bond, the company said...

Turkey recommended for affordable holidays

Sat, 24 Jan 2009 00:00:00 GMT

A new report from the Post Office has named Turkey as one of the world's top ten destinations for affordable holidays.

The Holiday Money Report, which is based on exchange rate movements and local tourism costs, found that Turkey offers an attractive package for visitors on a budget, particularly those taking a longer break.

Spain also made it into the top ten, despite recent claims that the drop in the pound has made eurozone destinations too expensive for many British travellers.

"UK holidaymakers will be checking prices carefully this year and this means that the winning destinations will be those that offer good value not just for flights and accommodation, but for tourist staples like meals out and drinks," commented Andrew Spice, spokesperson for Post Office Travel Services.

Turkish news provider Hurriyet recently claimed that the rapid growth of the country's tourism industry will contribute to a property boom in 2010.

Visit our off-plan property Turkey page.

Ansal to invest Rs 500 cr in low-cost housing

Thu, 22 Jan 2009 00:00:00 GMT

Ansal API on Thursday announced an investment of Rs 500 crore in the next l8 months to develop 10,000 affordable homes, which are expected to be priced between Rs 2.5 lakh to Rs9.51akh. The housing projects are coming up in the states of Uttar Pradesh and Rajasthan in places like Lucknow, Agra and Meerut in UP...

Private sector urged to use EU funds for tourism

Thu, 22 Jan 2009 00:00:00 GMT

Tourism businesses should take advantage of EU funds and tap into them to realise innovative projects that would ensure sustainable tourism, Parliamentary Secretary for Tourism Mario de Marco said this morning. He was speaking during the opening...