Global Real Estate & Investment News from Propertyshowrooms.com

Sales of Cyprus real estate fall again

Tue, 15 May 2012 00:00:00 GMT

Sales of real estate in Cyprus have steadily fallen for the past two years, with the dip forecast to adversely affect state revenues.

Land Registry figures show a total of 461 property purchase contracts were submitted during April 2012, down 15 per cent on April 2011's figure of 542, Cyprus Property News reports.

Sales on the island have been falling steadily over the past 22 months - with the exception of January 2011 - and Andreas Christodoulou, Land Registry director, said the dip will cause state revenues to drop by between 25 and 30 per cent.

Overseas buyers make up roughly a quarter of the Cyprus property market, as the April data shows 119 of the 461 contracts deposited were in favour of foreign purchasers. Domestic demand is hampered by broader economic uncertainty, the news source noted.

An end to the slump is unlikely to occur in the near future and spokesman for Cyprus’ Royal Institution of Chartered Surveyors Pavlos Loizou was recently quoted by the Cyprus Mail as saying falling property and rental prices will make it difficult to reverse the decline.

Spanish house prices continue to fall

Tue, 15 May 2012 00:00:00 GMT

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

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

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

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

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

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

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

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

New-build market gathers pace in Thailand

Tue, 15 May 2012 00:00:00 GMT

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

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

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

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

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

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

Eurozone property 'looking increasingly attractive'

Mon, 14 May 2012 00:00:00 GMT

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

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

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

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

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

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.

US real estate market 'is stabilising'

Mon, 14 May 2012 00:00:00 GMT

Stability is returning to the US real estate market as it continues to recover from the effects of the global economic downturn.

According to the March Home Price Index from CoreLogic, home prices nationwide - including distressed sales - fell 0.6 per cent on a year-on-year basis during March 2012.

This estimate is slightly lower than that of Clear Capital, which recently stated prices declined one per cent in the year to April.

However, the CoreLogic data shows prices were up by the same percentage when compared to February 2012 and buyers with an interest in property in the US are likely to see values increase in some parts of the country, president and chief executive of CoreLogic Anand Nallathambi said.

"This is true in Phoenix, New York and Washington, for example, which all reflect higher home price values than a year ago," he remarked.

Chief economist at the firm Mark Fleming explained improved balance between supply and demand is helping stabilise the market, adding unlike in previous years, this is happening "without the support of tax credits".

Portuguese property market 'showing signs of improvement'

Fri, 11 May 2012 00:00:00 GMT

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

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

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

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

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

South African mortgage market 'improving'

Fri, 11 May 2012 00:00:00 GMT

South Africa's mortgage market has been given a boost by an influx of applications from younger property buyers.

The latest figures from BetterBond show more people aged between 30 and 50 are looking to purchase real estate in South Africa, resulting in the total number of requests for a home loan rising 45 per cent in the past year, BusinessDay reports.

BetterBond is the country's biggest mortgage originator and its chief executive Rudi Botha was quoted by the news source as saying the dip in loans to people aged over 50 is due to this demographic either delaying moving home or using equity to pay cash when downsizing.

However, it seems older expats are bucking the trend, as SA Commercial Prop News noted British expats are increasingly turning to South Africa when they retire as the country offers a better standard of living than the UK for those relying on a pension.

"The percentage of loans being granted to buyers between the ages of 20 and 30 - who are typically first-time buyers - has gone up substantially, from about 16.5 per cent to almost 21 per cent," Mr Botha remarked.

Spanish banks 'will have to raise more provisions for property losses'

Fri, 11 May 2012 00:00:00 GMT

Banks in Spain will need to raise more funds to protect themselves against potential property losses.

A spokeswoman for the ministry of economy and finance said new provisions regarding real estate in Spain will be introduced to ensure financial institutions are protected should their assets fail.

The representative did not provide any further information regarding the move, but it is believed the distressed property fund could total €35 billion (£28 billion)

Fresh concerns regarding the health of the Spanish banking sector have raised more worries over the eurozone financial crisis and shares in some of the country's biggest lenders, including Banco Santander, BBVA and Bankia have fallen

The government has taken control of Bankia in a bid to reassure the financial markets it is able to restore stability to the banking sector and chairman of the company Rodrigo Rato has stepped down from his position.

According to Reuters, the move gives the government a 45 per cent indirect stake in the bank.

French election results 'to create opportunities' for property investors

Thu, 10 May 2012 00:00:00 GMT

International investors in the French real estate market may find there are more opportunities to enter the sector following Francois Hollande's victory in the country's presidential elections.

Mr Hollande beat incumbent president Nicolas Sarkozy in the polls and has pledged to focus on growth, rather than spending cuts, in a bid to improve France's and the eurozone's economic position.

Managing director of estate agency Leggett Immobilier Trevor Leggett said the new direction set to be taken by the French president will lead to opportunities for real estate investors.

"We are already seeing the euro/sterling rate hitting the 1.25 mark and with French mortgages already among the cheapest in Europe, it looks like there will be plenty of people looking to both buy and sell," he asserted.

However, Danny Silver, managing director of The Villages Group, pointed out that, as the vote was only for the president and not the entire government, there will be very little fundamental change for the French property sector.

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.

Spain 'needs to establish a new REITs regime'

Thu, 10 May 2012 00:00:00 GMT

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

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

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

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

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

Australian mining towns 'top target for property investment'

Wed, 9 May 2012 00:00:00 GMT

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

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

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

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

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

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

Romania tipped as property investment hotspot

Wed, 9 May 2012 00:00:00 GMT

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

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

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

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

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

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

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

Spain expected to bail out Bankia

Wed, 9 May 2012 00:00:00 GMT

The Spanish government is expected to announce a package of financial aid for one of the nation's largest banks - Bankia.

Between €7 billion (£5.6 billion) and €10 billion is likely to be ploughed into the firm to help bolster its balance sheet and cover future losses.

Bankia and its parent company BFA are the most exposed lenders to the Spanish property market, holding €31.7 billion of troubled real estate assets, according to Reuters.

Rodrigo Rato, chairman at Bankia, announced he would step down from his position ahead of the anticipated government bailout.

Last week, Luis de Guindos, Spain's economy minister, revealed proposals encouraging banks to transfer their bad property loans into holding companies run in conjunction with asset management firms would not be compulsory, Reuters reported.

A government announcement about Bankia's future is expected on Friday (May 11th), once a new chairman has been appointed at the organisation.

Jose Ignacio Goirigolzarri, the former president and chief operating officer at BBVA, has been tipped for the job, with Inigo Lecubbari, from the Abaco Financials Fund, telling Bloomberg "you couldn't ask for someone better qualified to lead a Spanish bank that's in trouble".

Cyprus property market 'struggling in current economy'

Mon, 7 May 2012 00:00:00 GMT

Board member of the Royal Institution for Chartered Surveyors (Rics) Cyprus Pavlos Loizou has said the economic situation in the country is impacting the real estate sector.

Speaking to the Cyprus Mail, he stated: "Property and rental prices continue to drop, mainly due to the unfavourable economic climate, the negative forecasts for the broader economy, the lack of sponsorship and the low performances [of real estate assets]."

Mr Loizou explained Cypriot commercial property yields need to improve and rents have to stabilise if investors are to be encouraged back to the country and he stressed until this happens, the market will remain in a "slump".

Meanwhile, Cyprus Property News revealed the rate of construction in the nation slowed in February, with 9.4 per cent fewer building permits issued this year than in the same month in 2011.

The figures from the Cyprus Statistical Service also showed the total value of construction projects in January and February fell to €261.2 million (£212.2 million), down from the €351.7 million recorded in the same period a year earlier.

"Buyers' market" for Italian property

Mon, 7 May 2012 00:00:00 GMT

The strength of sterling and reduced property prices in Italy have combined to create favourable conditions for Brits buying real estate in the country.

This is the assertion of Linda Travella, head of local estate agency Casa Travella, who highlighted Tuscany as a particularly attractive region for investors to consider.

"A vast selection of properties and a strong pound means it is a buyers' market. The Tuscan real estate market has always been international and there is still interest from around the world," she stated.

Ms Travella added her firm has experienced an increase in the number of people searching for Italian property online over the past year.

Real estate investor and founder of Your Property Club Brett Alegre-Wood recently advised any potential buyers not to agree to a purchase until they have viewed the house in question.

He said it is very easy to get caught up in the emotion of a deal - particularly at property fairs - and urged investors to book a plane ticket and visit the area before making a final decision about buying a home there.

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

Mon, 7 May 2012 00:00:00 GMT

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

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

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

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

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

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.

Marrakech 'a popular location' for Moroccan property investment

Fri, 4 May 2012 00:00:00 GMT

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

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

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

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

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

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

Demand for distressed Spanish property 'to outweigh supply'

Fri, 4 May 2012 00:00:00 GMT

There is not expected to be a big enough supply of distressed properties in Spain to meet demand in the second quarter of this year.

According to the latest Royal Institution of Chartered Surveyors (Rics) Global Commercial Property Survey, investor interest in Spanish real estate assets is set to climb over the next three months.

In particular, the study pointed to strong demand for distressed property, but it is anticipated the level of supply in the south European country will fall short.

However, the Rics research noted expectations for both rental and capital values are firmly in negative territory, while occupier demand remains weak.

Last month, a report published by Fitch Ratings predicted the value of repossessed Spanish real estate has fallen by an average of 48 per cent. The organisation calculated the worth of residential properties now, compared to when the mortgage was arranged.

Commenting on the findings, analyst Juan David Garcia stated there is likely to be a further decline in the value of homes in the nation as a result of the "recessionary environment and severe dislocation of the Spanish property market".

French mortgage market 'attractive for Brits'

Thu, 3 May 2012 00:00:00 GMT

The level of finance available for property purchases in France makes the market very attractive to British purchasers.

Writing for My Introducer, Clare Nessling explained the nation's banking system has not been hit as hard as those in other countries, because its financial institutions exercised more caution than some of their counterparts elsewhere on the continent.

She stated the French market "currently offers the widest range of finance options and best available rates in Europe for UK buyers, and it's in a relatively secure situation".

It is also possible to take out a high loan-to-value mortgage on a property in France, with some providers continuing to lend up to 90 per cent of the purchase price.

A recent survey by HiFX revealed France is a top choice for British buyers overseas, with 35 per cent of people seeking foreign real estate hoping to buy in the country. This was more than double the number of purchasers considering Spain - which attracted 16 per cent of those surveyed - making it the second most popular destination for property deals, the Press Association reported.

Uplift in tourism benefits Marbella

Thu, 3 May 2012 00:00:00 GMT

A rise in the number of tourist arrivals in Marbella has been recorded at the beginning of 2012, due in part to increased interest from Middle Eastern travellers.

Marc Pritchard, sales and marketing manager at Taylor Wimpey de Espana, said it is "no surprise" Marbella is popular not only as a holiday destination, but also as an option for those buying Spanish property.

He described it as delivering "a perfect location between mountains and award-winning beaches, as well as warm temperatures long after the summertime crowds have departed", concluding there is "something for everyone" in the resort.

Mr Pritchard added Brits are still one of the main target markets for the Costa del Sol as a whole and pointed out the region's tourist board is hoping to see arrivals rise by 37 per cent this year, compared with 2011.

Last month, an article in The Telegraph highlighted the opportunities available to property buyers in Marbella's historic centre, highlighting the "character and buzz of Spanish life" to be found, which is unavailable in new, beachside complexes.

Turkish property market 'attracting Middle Eastern buyers'

Thu, 3 May 2012 00:00:00 GMT

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

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

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

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

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

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

Investment in Brazilian land 'an affordable option'

Wed, 2 May 2012 00:00:00 GMT

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

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

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

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

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

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

'Aspirational quality' of Balearics keeps property prices up

Wed, 2 May 2012 00:00:00 GMT

Many people who choose to buy a property in Spain's Balearic Islands do so because of the aspirational nature of the archipelago.

As a result, demand for real estate is strong, which helps to keep prices on the islands up, managing director of Mallorca and Ibiza Sotheby's International Realty Stephen Dight asserted.

"The Balearics are a much more aspirational destination and, with higher property prices and lower supply of quality homes than the mainland, attract a wealthier expat," he stated.

Despite the Balearic Islands' appeal to overseas buyers, the value of homes in the archipelago - and on the Canary Islands - has fallen during the economic crisis that has hit Spain and other European nations.

The most recent figures published by Tinsa revealed the cost of buying a property in either the Canaries or Balearics fell by 9.8 per cent between March 2012 and the same month a year earlier. However, this is still below the average national decline of 11.5 per cent during the same period.

Banks' property assets 'to be bought by investors'

Wed, 2 May 2012 00:00:00 GMT

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

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

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

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

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

Signs of recovery in US property market

Wed, 2 May 2012 00:00:00 GMT

The number of pending home sales in the US increased by 4.1 per cent in March, compared to the previous month, and are up by 12.8 per cent year-on-year.

According to the National Association of Realtors (NAR) this is a sign the US property market is beginning to recover, with chief economist Lawrence Yun explaining inventory is falling as a result of the increasing volume of transactions.

Mr Yun added this has led to "much more balanced conditions around the country, which means home prices will be rising in more areas as the year progresses".

Data published in the Standard & Poor's/Case-Shiller home price indices last month revealed that, despite values continuing to slide in February, the rate of decline slowed when compared to January.

The NAR figures showed demand for new homes is strongest in the south and west of the country, while pending sales fell marginally in the mid-west and north-east of the US.

Portuguese lettings market 'outperforms sales'

Tue, 1 May 2012 00:00:00 GMT

The Portuguese property sales market remains weak, despite strong lettings activity, according to the Royal Institution of Chartered Surveyors (Rics)/Ci Portuguese Housing Market Survey (PHMS).

Results from the March PHMS show the continued weakness of the sales market, across price, activity and expectations. While the national price balance and confidence index improved slightly, they still remain in negative territory.

Falling demand is one of the reasons cited behind the decline in property prices in Portugal.

By contrast, the lettings market has benefited from a lack of available finance, as households who cannot afford a mortgage are deciding to rent instead.

Josh Miller, senior economist at Rics, said rents were also declining, despite being more robust than the rest of the property market.

He stated: "[This] may be indicative of the current stresses on the household sector, reflected in a 15% unemployment rate."

The Financial Times recently reported that property prices are lower in central and northern Portugal, compared to those in the popular tourist areas further south and around Lisbon.

Santander announces further losses from Spanish property

Tue, 1 May 2012 00:00:00 GMT

Santander saw its first quarter profits fall by 24 per cent, compared to a year earlier, largely due to an increase in its provisions to service bad real estate loans.

The banking group announced it has now set aside €3.1 billion (£2.5 billion) to cover losses on Spanish property assets and other non-performing loans - an increase of 51 per cent from the first three months of 2011.

According to the firm, these provisions were "charged entirely against ordinary profit", while the organisation's loan-loss coverage grew by one point to stand at 62 per cent.

Earlier this month, Santander-controlled Banco Espanol de Credito SA (Banesto) announced an 88 per cent year-on-year decline in profits, which was largely attributed to the bank's €475 million in provisions for bad real estate loans.

This figure is approximately half the amount the financial services organisation is required to set aside by the end of 2012 to help cover its exposure to the Spanish property market.

"Challenging" outlook for Abu Dhabi property

Tue, 1 May 2012 00:00:00 GMT

The Abu Dhabi real estate market has experienced a decline in sales and falling rents over the past few months.

Cluttons stated the outlook for the emirate's residential property sector will continue to be "challenging" in 2012, but stressed an improvement is on the horizon.

The REIDIN residential property price indices for Abu Dhabi in March revealed the value of homes declined by 1.02 per cent month-on-month, while rents slipped by 0.36 per cent.

According to Cluttons, rents for apartments have fallen by between six and ten per cent and this downward trend is likely to continue, as more stock is due to come on to the market this year.

However, the firm pointed out there is strong demand for homes in Abu Dhabi, while the government announcement that several "landmark projects" are to be resumed is a further positive step.

Optimism in the sector has also been boosted by the significant profits posted for 2011 by several major developers - including Sorouh and Aldar - in the emirate.

US house prices 'continue to fall'

Tue, 1 May 2012 00:00:00 GMT

House prices in the US continued to fall in February, according to the Standard & Poor's (S&P)/Case-Shiller Home Price Indices.

There was an annual decline of 3.6 per cent for 10-city composites and 3.5 per cent for 20-city composites.

While this was an improvement on annual rates posted for January, nine metropolitan statistical areas - a geographical area with a relatively high population density - and both composites posted new cycle lows as of February 2012.

David Blitzer, chairman of the Index Committee at S&P Indices, said there were some contrasting results between real estate prices in US cities.

Atlanta posted its lowest recorded annual rate of -17.3 per cent, after seven months of declines. Meanwhile, Phoenix, which was badly hit during the economic crisis, posted its second consecutive month of year-on-year growth.

The National Association of Realtors reported last month that existing-home sales fell during February, but were still well above what they were a year ago. It stated transactions were up in the mid-west and south, while they had declined in the north-east and west of the US.

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

Fri, 27 Apr 2012 00:00:00 GMT

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

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

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

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

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

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

Advice offered to Morocco property buyers

Fri, 27 Apr 2012 00:00:00 GMT

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

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

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

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

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

Tourism push 'will benefit Spanish property market'

Fri, 27 Apr 2012 00:00:00 GMT

A new campaign to promote the Costa del Sol to overseas visitors is likely to have a positive effect on Spain's real estate market.

Such is the opinion of Marc Pritchard, sales and marketing manager at Taylor Wimpey de Espana, who explained British holidaymakers in particular are being targeted by the region's tourist board.

However, he noted Brits are not the only demographic who are heading to Spain, citing research by Fastighetsbyran - a division of Swedbank - which revealed the number of Swedish and Norwegian investors entering the Spanish property market is up significantly.

"The Swedish economy has been performing better than the UK given the strength of the krona and low house prices and, as a result, Swedes are fast becoming Spain's biggest fans," Mr Pritchard asserted.

Although it is not performing as well as the krona, sterling recently climbed to hit a 19-month high against the euro, with Mallorca Sotheby's International Realty pointing out this is an advantage for any Brits planning to purchase a Spanish property at present.

Brits 'top investors in Australian real estate'

Thu, 26 Apr 2012 00:00:00 GMT

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

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

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

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

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

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

Spanish property 'remains popular among Brits'

Thu, 26 Apr 2012 00:00:00 GMT

Spain and France are the most popular locations for Britons who are looking to buy property abroad, according to a survey by currency company HiFX.

The study showed that, despite the current economic crisis in the eurozone, 35 per cent of people would be interested in owning a home in France, while 16 per cent opted for Spain, the Press Association reported.

Nearly three quarters of those surveyed said lifestyle was one of the most appealing aspects of living abroad, followed by the weather. 25 per cent of Britons also believe it is cheaper to own a property overseas.

Advisory firm R.R. de Acuna and Asociados recently predicted Spanish real estate values could fall by a further 12 to 14 per cent by the end of the year. HiFX director Mark Bodega said that Britons hope to take advantage of these depressed prices.

He stated: "The average property price in the country [Spain] is down almost 30 per cent since the market peaked in 2007, yet while there are discounts to be had, buyers need to pick carefully."

Dubai unveils new law to protect real estate investors

Thu, 26 Apr 2012 00:00:00 GMT

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

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

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

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

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

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

Property prices in Brittany 'attractive'

Wed, 25 Apr 2012 00:00:00 GMT

Brittany is a good option for buyers seeking real estate in France due to the current pricing in the region.

This is the assertion of Town & Country Property France, with Richard Dannreuther, a spokesperson from the firm, explaining the value of homes in the area has stabilised recently, with "plenty of bargains to be had".

"The lower end of the market is very buoyant and those who don't have a restricted budget can make the most of a huge selection of Brittany properties," he concluded.

In a recent blog post, the company highlighted some other parts of France that real estate investors may want to consider.

Paris and the Cote d'Azur were named as relatively expensive locations in which to buy property, but demand for rental homes in both destinations is strong, making them a good option for those who can afford the initial outlay.

Bordeaux was singled out as another area to consider, with its reputation as a world-class wine making centre helping boost its appeal among those seeking a vineyard with their home.

Positive outlook for Malaysian property market

Wed, 25 Apr 2012 00:00:00 GMT

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

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

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

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

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

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

Climate and investment 'most important factors in overseas property purchases'

Wed, 25 Apr 2012 00:00:00 GMT

The main reasons why Brits buy property in Spain or other nations overseas is due to the warmer climate and investment opportunities on offer.

This is the opinion of James Price, head of international residential development at Knight Frank, who explained the ideal of owning a home in the sun has "become a reality for so many rather than the dream it once was for all but a few".

He added purchasing real estate abroad is something many people aspire to, with the climate and culture more important in their decision making than whether the country is more stable than the UK economically.

It is not only British buyers who are drawn to Spain, with sales and marketing director of Taylor Wimpey de Espana Marc Pritchard revealing earlier this month there have been an increasing number of Scandinavian, Dutch, Belgian and Danish investors targeting property in the country.

He noted the Costa Blanca is particularly popular among buyers from these nations.

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.

Distressed Spanish property falls in value

Tue, 24 Apr 2012 00:00:00 GMT

The value of repossessed properties in Spain has fallen by an average of 48 per cent since the finance on the home was issued.

This is the finding of a new report published by Fitch Ratings, which revealed the majority of the mortgages associated with real estate assets included in the study had a loan-to-value ratio of 80 per cent or higher.

Juan David Garcia, senior director and head of the company's structured finance team in Spain, commented: "Fitch expects property prices to continue falling, due to the recessionary environment and severe dislocation of the Spanish property market."

He added the rate at which the price correction occurs will depend on how the banks manage their portfolios of distressed Spanish real estate.

According to the latest data published by Tinsa, average property values in the country dropped by 11.5 per cent between March this year and the same month in 2011. The organisation added the price of homes has declined by 28.6 per cent since its peak in December 2007.

Thai developers targeting overseas buyers

Tue, 24 Apr 2012 00:00:00 GMT

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

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

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

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

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

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

Cheapest Australian markets highlighted

Mon, 23 Apr 2012 00:00:00 GMT

People seeking property in Australia at a low price may wish to check out the town of Cunnamulla in Queensland, where the average home is worth just AUD$59,500 (£38,300).

The location topped a list of places in the country where it is possible to buy homes for under AU$100,000, based on RP Data's figures, reports News.com.

Others include Roseberry in Tasmania at AU$70,500, Bourke in New South Wales (AU$75,500), Pinaroo in South Australia (AU$80,000) and Minyip in Victoria (AU$82,500).

The news provider quoted advice from Australian Property Monitors economist Andrew Wilson regarding the best bargain investments, who said: "The key is to follow economic activity that will stimulate property demand and take a long-term outlook on capital growth."

Earlier this month, the McKell Institute said a number of steps can be taken to make housing more affordable in general across Australia.

This included planning reforms to help increase building and swapping stamp duty for a new land tax to avoid plots being bought but not built on.

South African house prices 'on the wane'

Mon, 23 Apr 2012 00:00:00 GMT

Those seeking property in South Africa may find they can get it for less as a new survey has indicated house prices are falling.

Absa Group has revealed the average value of homes in the country's housing market for which it received mortgage finance applications dropped 6.1 per cent in the year to February 2012 (when figures are adjusted for inflation).

This trend was seen in relation to small, medium and large homes, suggesting buyers can find less expensive properties in all categories.

According to Absa, higher running costs and the general economic situation in South Africa are responsible for the falls.

These include national inflation at 6.3 per cent and lower economic growth, expected to be 2.7 per cent this year after reaching 3.1 per cent in 2011.

Buyers may look for cheaper homes now in the expectation that values will rise in the long term.

Last month, research by Lloyds TSB International indicated the average home in the country rose by an average of 10.1 per cent each year over the past decade.

Spain 'popular due to being established investment destination'

Mon, 23 Apr 2012 00:00:00 GMT

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

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

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

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

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

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

Property in Dubai 'showing recovery signs'

Mon, 23 Apr 2012 00:00:00 GMT

Applications for mortgages to buy property in Dubai have risen, according to Cluttons Middle East.

Director of the firm Ron Hinchey said it is small-scale property where the improvement in the market has been seen, stating that local banks are "acting with moderate caution and are offering introduction interest rates of around four to five per cent".

He said these tend to be initial offers with the rate rising to six to seven per cent after a year, while most banks ask purchasers to provide 20 per cent of equity at the outset.

However, Mr Hinchley noted: "Plenty of buyers are now taking up these offers and this is indeed helping the residential sales market to become more fluid."

With the market potentially in the early stages of recovery, it may be larger purchases will follow later on.

Figures from Reidin have indicated March saw a two per cent rise in property prices in Dubai, the fourth successive month of price growth.

France to be the country of choice for pensioners?

Fri, 20 Apr 2012 00:00:00 GMT

People whose retirement is not too far off may be increasingly considering buying property in France after the recent controversy over tax allowances for pensioners.

Chancellor George Osborne's Budget 'granny tax' announcement last month on personal allowances will see pensioners having their tax allowances frozen from 2013, bad news for those approaching their 60s.

French real estate expert and MD of The Villages Group Danny Silver suggested this could be a factor in persuading older people not to hold pensions in the UK.

"This so-called 'granny bashing' has generated a lot of controversy over the last month and it is likely that the bad feeling amongst UK pensioners could well spark British retirees to flock overseas," he remarked.

It may soon be cheaper to buy in France as the Global Property Guide report recently suggested the market in the country is slowing down.

The guide based this projection on figures from the National Association of Real Estate Agents in France, which showed growth in the final quarter of 2011 was substantially lower than in the three months to October.

Culture status may boost Guimaraes

Fri, 20 Apr 2012 00:00:00 GMT

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

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

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

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

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

Another part of the country buyers may consider is Madeira.

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