Global Real Estate & Investment News from Propertyshowrooms.com

Buyers get bargains in Sicily

Wed, 22 May 2013 17:10:18 GMT

Foreign buyers are taking advantage of low prices in the Italian island of Sicily, causing an influx of property investment.

Houses in small villages on the island can go for as little as €10,000, ensuring international investors get a bargain.

However, this investment is helping to prop up the housing market as Italy remains in one of its longest-ever recessions. At 20 months, the crisis is the most drawn out since 1993.

Speaking to AFP, Salvatore Sansemi, mayor of Cianciana, near the southern city of Agrigento, said foreign nationals make up a significant proportion of the local populations.

"When you go to the pizzeria now, you often meet more foreigners than Sicilians," he said.

“We have just signed off on 140 sales to British, French, Norwegians and Poles, as well as a few Canadians and Chinese.”

He added that many people from the indigenous population had migrated away from the village to Canada, France and Germany, leaving only around 3,500 locals left.

It follows research from research institute Scenari Immobiliari that shows 60 per cent of foreign nationals buying second homes in Italy originated from Germany, with a significant number of Brits and Russians also investing in Italian property.

However, the Italian property market is still in recession, despite the increased interest from overseas investors.

The number of property sales in 2012 dropped by 27.5 per cent compared to the previous year. This brought total sales to 448,364, the lowest level seen since 1985 when 430,000 homes were sold, according to a report from Italy's inland revenue agency and banking association ABI.

Some 150,000 fewer properties were sold last year compared to 2011, with the value of property sale transactions also falling by €27 billion in the same period.

One of the big names to buy a property in Sicily recently was Ray Winston, who is reported to have bought a home on the island for €50,000 with the intention of transforming it with a budget of €1.3 million.

Residency ruling will attract foreign investment

Wed, 22 May 2013 11:10:19 GMT

New regulations allowing foreign Spanish property investors to gain residency are expected to give the housing market a much needed boost.

A new law expected to come into force in July allows non-EU residents to get automatic residency in Spain if they invest €500,000 or more in a property.

Given the falls in property prices in Spain since the financial crash - an average of 45 per cent across the country and around 40 per cent in the capital and major cities - housing could be a ripe investment opportunity.

The latest figures show that foreign investment in the Spanish property market was up by 17 per cent in 2012 - the highest level seen since 2004, suggesting that investors are aware of the potential available in the country.

Foreign nations spend some €5.54 billion on Spanish property in 2012, a significant uptick from the €4.7 billion spent in 2011 and €3.6 billion in 2009.

In the last quarter of 2012 investors spent €1.8 billion in the Spanish property market, a 56 per cent increase on the same quarter in 2011, and a 92 per cent rise on figures from 2010.

Given the recent boost in interest from foreign nationals - due to record low prices - the added incentive of residency is likely to be tempting to property investors.

Jason Ham, business development manager of Lucas Fox, in collaboration with Asian property consultancy SQFT, said that it is likely the new rules will be of particular interest to Chinese investors. However, he said the wider Asia-Pacific region and some western countries could also be targets.

“We have seen Chinese investment in many corners of the world but this is the first time that we have seen interest in Ibiza,” he said.

“Thanks to the proposed changes in residency laws for property investors outside of the European Union, we expect to see increasingly more interest from the Asia-Pacific region, as well as Russia and the US.”

Brazil visa change to attract foreign workers

Tue, 21 May 2013 17:08:22 GMT

Brazil is implementing new measures to attract foreign professionals.

The regulations could provide a boost for the Brazilian property market as international talent pours into the country.

There are two new rules coming into effect, according to the National Immigration Council, to make it easier for foreign experts or graduates to accept positions in Brazil, as well as to reduce the quantity of visa documents.

Original proposals would have allowed highly skilled professionals to gain a visa to work in the country without an employment contract and would not force international workers to leave Brazil to get a new visa with every company or job change.

The regulations that have been approved this week by the National Immigration Council have been toned down, but are still significantly more workable than previous rules.

Until now, professionals seeking to work in Brazil would have to present the necessary documentation to the Brazilian consulate in their own country, which normally took around 30 days to process. Following this step, visa processing began at the ministry and usually took around 20 days from start to finish.

As a result, immigrants have to present 19 documents (compared to just 12 to complete the same process in the UK) and wait around 50 days.

Under the changes, companies can obtain a visa for foreign workers before they enter the country, with employees required to submit all of their visa documents to the ministry within 60 days of their start date.

Masters and doctorate graduates will also be able to apply for 90 day temporary visas to work with Brazilian companies.

An electronic registry will also negate the need to foreign workers to go through the same step with every role or company change.

Given the ease with which companies can now employ foreign workers or graduates, it is expected more workers will flock to the emerging country. Although the Brazilian property market has been uncertain of late, this move could inject more optimism as foreign workers look for temporary and long term rental accommodation.

House prices rise in Mallorca and Ibiza

Tue, 21 May 2013 11:08:22 GMT

Although Spanish property has come under the spotlight for the wrong reasons recently, finally some good news has emerged from the country.

Valuation company Tinsa has reported that the Balearic and Canary Islands both experienced price rises in April 2013 compared to the previous year.

Both regions experienced an increase of around 3.3 per cent compared to the average 10.5 per cent property price decline seen across the rest of the country.

Commenting on the figures, Daniel Chavarria Waschke, managing director of Balearics Sotheby’s International Realty with offices in Mallorca and Ibiza, said, “This is consistent with the market predictions we posted in January this year when we stated that we had started 2013 with a real sense of positivity.

“We made reference to the fact that Ibiza had its recovery in 2012, way ahead of the mainland, and was already ‘booming out’ again.”

The earlier report by Balearics Sotheby’s International Realty also stressed that demand for property in Mallorca had remained strong throughout the crisis due to the fact non-Spanish buyers accounted for more than 80 per cent of sales.

Mr Chavarria Waschke said that the firm predicted the worst was over for Mallorca last year.

“Our crystal ball appears to be spot on with April’s 3.3 per cent house price increase reflecting that recovery. Long may it continue.”

He added that it is unfair to judge Spanish property by the performance of Spain as a whole given that significantly different local markets experienced in Mallorca and Ibiza.

The report by Tinsa revealed that property prices across Spain have fallen by 37.2 per cent since they were at their peak in December 2007. However, the bulk of this drop is attributed to the mainline Mediterranean coastline which has seen house prices drop by 45.1 per cent, with falls of 40.4 per cent seen in the capital and major cities.

By contrast, the Balearic and Canary Islands have seen falls of 24.5 per cent in the past five and a half years, with a more positive short term outlook.

Now is the time to buy Australian property

Mon, 20 May 2013 18:28:54 GMT

Now is the time to get on the Australian property market, according to an entrepreneur from the country.

Speaking to over 3,000 estate agents at the Australian Real Estate Conference on the Gold Coast, John Symond predicted that the property market will return to confidence after the federal election and move quickly after September.

He said that the “bottomed out” house prices combined with the historically low interest rates created the ideal environment for a property market recovery.

"If you want to pick a time to get into housing, you can't get a much better time than now,” he explained.

"We have the lowest interest rates on record, which may even go a little lower, and we have seen the housing market bottom, while there is evidence right around Australia that prices are increasing."

Mr Symond inspired the delegates with tales of how he had bounced back from near-bankruptcy so found his company the Aussie Home Loans Business.

He suggested that the only missing ingredient from the property market recovery is confidence, but was bullish that optimism would return after the election later this year.

"First-home buyers are now able to borrow money at five per cent, that's a better incentive than any grant," Mr Symond said.

"Pricing today is very attractive when you compare it to the last ten years and affordability is the best its been for many, many years - and that's the best time to get into housing."

His comments follow a report by The Economist which found that Australian property prices rose by just 2.6 per cent in the past year to March 2013. This makes it the tenth best performing property market in the world out of the 18 measured.

Hong Kong, Brazil, South Africa and India were some of the nations ahead of Australia in the chart.

Last year the country appeared 18th out of the 21 best performing housing markets as rated by the magazine.

Nevertheless, Mr Symond stressed that property should always be a long term investment and not a “quick kill” option, given the propensity for the markets to boom and bust.

Could Q2 bring improvements for Spain?

Mon, 20 May 2013 12:29:04 GMT

The Spanish economy is deep in recession, but one expert believes the first signs of recovery aren't too far in the distant future. Juan Rodriguez Inciarte, executive director of Santander, told CNBC that there will be green shoots appearing in the country over the next few months. "[In the] second quarter of 2013, we will see the bottoming of GDP [gross domestic product] growth - and later in this year - third or fourth quarter - we will start seeing positive consumer demand," he said.

Mr Inciarte isn't the only one expecting Spanish fortunes to improve in the near-term either and market watchers have already predicted positive growth rates by the final quarter of the year. This will be driven by consumption and export recovery, despite seven straight quarters of economic decline.

According to CNBC, the Santander director is confident that the country will escape further economic downgrades, claiming ratings agencies "are always behind the curve". Spain will be hoping Mr Inciarte is right, after being downgraded to BBB -, one level above junk. "For the first time Spain has a positive balance of payments, we're exporting more than we're importing. That means the level of debt is being reduced," Mr Inciarte said. "Second thing, we have done huge restructuring on the financial sector and we have one of the strongest financial sectors in Europe right now."

Nevertheless, the Spanish property market remains in the doldrums, after contributing considerably to the country's economic collapse. Foreign buyers are helping to keep the market active in certain parts of the country, but domestic demand needs to keep pace to affect any real turn-around. What's more, overseas buyers will soon find it much harder to purchase real estate for holiday let investment. The government is planning on rolling out a law that means all vacation rentals will need authorisation from regional government, increasing administrative and development costs for buyers. It is hoped the legislation will help preserve local hotel industries, which often face fierce competition from independent landlords.

Property sales drop off in Cyprus

Fri, 17 May 2013 13:46:14 GMT

Property sales have reached record lows in Cyprus, thanks to current economic conditions. Figures from the Department of Landlords and Surveys showed that just 285 contracts of sales were deposited at the Land Registry in April - the lowest figure on record, Cyprus Property News reported. Conversely, in April 2012, 461 contracts were deposited at the Land Registry. This equates to an annual decline of 38 per cent.

Of the sales completed last month, 59 per cent were done on behalf of domestic buyers, while 41 per cent were deposited by overseas investors, according to the newspaper. This indicates that despite the state of the Cypriot property market, interest is still high among foreign buyers. Paphos appears to be at the centre of activity, with overall sales actually increasing by seven per cent year-on-year. However, this is the only ray of light in an otherwise bleak April.

Transaction numbers fell in all districts, Cyprus Property News revealed. Nicosia experienced the greatest losses, with a 71 per cent decline, followed by Limassol (-41 per cent), Famagusta (-38 per cent) and Larnaca (-29 per cent). The price drops are part of a growing trends and during the first four months of the year, a 44 per cent fall in transactions has been noted. So far in 2013, 1,298 properties have been sold in Cyprus, compared to 2,313 during the same period last year.

This drop-off is down to a reduction in domestic sales and in April a fall of 51 per cent was noted in the domestic market. Despite estate agents selling properties at considerably knocked-down prices, the real estate sector is unable to get itself back on its feet. Cyprus is certainly in the doldrums lately and while May could see sales rise once again, the increase is likely to be slight.

However, the situation will come as no surprise to many, after the country accepted a bailout in March. Under the rescue programme, Cyprus' second largest bank, Laiki Bank, will be closed and deposits over the agreed sum will be placed in a bad bank. These deposits total around €4.2 billion and may be wiped out entirely. Smaller deposits will be transferred to the Bank of Cyprus, which will undergo huge restructuring. No bailout money will be used to recapitalise it.

Is Spain on the verge of deterring foreign property buyers?

Fri, 17 May 2013 13:46:14 GMT

Overseas investment has been the bread and butter of the Spanish property market since the recession hit. However, new legislation could see the country deterring those that are actually propping up the floundering sector. Due to come into effect this summer, the law will make it difficult for foreign home owners to rent out their property to holidaymakers. All holiday lets will need to be authorised by the regional government and failure to gain this approval will make any rental activity illegal.

Such a law is already in place in certain areas, but the nationwide rollout will have a significant impact on popular tourist destinations. The legislation is designed to restrict private tourist rentals, which have been accused of detracting from local hotel industries. However, some prospective investors may consider the new regulations too cumbersome and choose an alternative nation for investment.

Richard Way, a spokesman from the Overseas Guides Company, said: "One of the incentives for many British and other foreign buyers in Spain is the opportunity to pay for the upkeep of their property through rental income - without that benefit, buyers could look elsewhere for a second home, in effect making the new legislation counterproductive."

What's more, the rental licences are generally only granted to properties that meet certain health and safety legislation. While this benefits consumers, it could mean certain properties will be unrentable. This will be bad news for many holiday landlords and could mean budgets for renovations will need to be much higher in the future.

With a 28.4 per cent increase in the number of foreign and non-resident people investing in homes in Spain throughout 2012, people will be waiting to see how the legislation impacts the sector. A drop in overseas property purchases could easily see the market go from bad to worse. In 2012, 38,312 overseas buyers completed transactions in Spain, a number that is almost on par with 2007 levels. According to Taylor Wimpey Espana, this figure could have been even higher if it took into account the number of properties sold, not just the number of people investing.

Internet driving South African property sales

Thu, 16 May 2013 13:45:04 GMT

South African property sales are being driven by a generation of internet-enabled buyers. According to bond originator Ooba, the average age of those looking to get on the property ladder in the country is around mid-thirties and this age-group are heavy users of online media.

Research has shown that the proportion of first-time buyers in the South African property market grew from 44 per cent in April 2010 to 52 per cent in April 2013. The mean age for purchase was 33 throughout the country, while Ooba's applicants had an average age of 37. Rhys Dyer, Ooba's chief operating officer, explained: "If you think of the average 33-year-old in the property market today, they've probably had an email address for most of their adult lives, have used search engines over any other reference tool when they're looking for information, have Facebook profiles and interact with friends and brands on Twitter."

Consequently, it is unsurprising that when it comes to buying a house, the internet is the first port of call. There is plenty of analytical data to back this up too, with Ooba recording an increasing number of applications for bonds coming through their website. Online tools are also proving popular and the company's affordability calculator noted a 28 per cent increase in pageviews over the last year compared the 12 months previous.

It isn't just South African natives that rely on the internet either and foreign investors are known to head online for research prior to purchase. Some sales are even made entirely via digital platforms, although this is relatively rare.

To meet demand, there has been an emphasis on estate agents to increase their online presence. Mr Dyer said: "People want to be able to define the terms of their interactions with brands, products and services." Therefore, estate agents are increasing their use of social media to improve communication with clients. This trend can be noted across the globe and South Africa is certainly starting to embrace it. Ooba, for example, now offers customers a live chat option, enabling them to speak online to a home finance expert during business hours.

Will Spanish property market recover as unemployment falls?

Thu, 16 May 2013 13:45:04 GMT

Despite fears over a Spanish collapse abating in the eurozone, the country is certainly not out of the doldrums yet. The level of unemployment in Spain is still leaving a question mark over its ability to recover from recession and the property market is continuing its descent. So is there light at the end of the tunnel and will the grip of unemployment relinquish its hold any time soon?

Recent figures leave us anything but optimistic on this point. During the first three months of the year, more than six million Spaniards were out of work. The jobless rate now stands at 27.2 per cent - the highest level since records began in the 1970s. As the fourth biggest economy in the eurozone, this is worrying not just for Spain but the EU at large.

Many are blaming the continued crisis on Madrid's severe spending cuts, which were made to help increase investor confidence in the country. However, Spain has been plunged into deep recession and unemployment has been rising for seven consecutive quarters.There will no doubt be considerable debate as to whether easing off budget austerity could help to turn fortunes around.

Speaking about the recent findings, strategist at Citi in Madrid Jose Luis Martinez said: "These figures are worse than expected and highlight the serious situation of the Spanish economy as well as the shocking decoupling between the real and the financial economy."

The collapse of the property market has done little to help the situation and since the boom ended millions in the construction sector have found themselves out of work. However, until unemployment levels improve, demand for Spanish real estate will remain relatively subdued. While foreign interest remains buoyant, it cannot reinvigorate the sector single handedly - domestic activity must return.

Nevertheless, there are indications that Spain will eventually see an end to recession. The country is performing well in the export market and the International Monetary Fund has said the country's financial restructuring is on track. Prime Minister Mariano Rajoy is confident that Spain will begin to recover in 2014 and has faith in his government's labour reforms, which are designed to help address unemployment.

French property market proving 'attractive' for buyers

Wed, 15 May 2013 14:12:45 GMT

French property is increasingly becoming the subject of much interest, according to one expert. Leggett Immobilier, a leading international estate agency in France, explained that market conditions are attracting buyers to the country. During the first quarter of 2013, the company experienced a "steady increase" in investors and claims this is thanks to low mortgage rates and sensible pricing.

It is certainly true that conditions are becoming more and more favourable for buyers across the channel. Mortgages are now at their lowest level in 65 years and the recession has forced vendors and sellers to bring down property prices to more affordable levels. However, investors will still need the capital behind them to obtain French real estate as lending is still relatively constrained, mirroring conditions in the rest of Europe.

What's more, the property market isn't exactly in good health at the moment, although there are signs of improvement. Trevor Leggett, chief executive of Leggett Immobilier, commented: "We understand that the overall number of property sales in France fell by 20 per cent to 655,000 last year and that this year is likely to see a similar number of transactions. However, it's clear that many people are also convinced that the market will improve over the coming years and with the cheap money available that now is the time to buy."

He added that he has received "anecdotal evidence" that vendors are also becoming more realistic with their pricing, understanding that high values will not wash in the current climate. This was demonstrated by a recent sale by Mr Leggett's team in Brittany, in which two Parisian buyers arrived with financing in place, drove a hard bargain and gained a good value for money property.

However, it isn't just the French who have realised that there are bargains to be had in the French property market. "France has historically been the favourite destination of UK property buyers who love the sunshine, countryside and relaxed way of life," Mr Leggett stated. During A Place in the Sun Live last month, Leggett Immobilier in fact noticed a swath of Britons surprised by the value for money French property could offer them.

Madrid property market has own peculiarities

Wed, 15 May 2013 14:12:45 GMT

Each local property market has its own quirks and peculiarities, and Madrid is no exception. The Spanish Brick has stressed in a Q&A that investors must approach Spanish real estate differently depending on where it is. After all, buying a property in a small town is different to doing so in the capital. There are different price points and offers available in the Madrid and it is important to understand the environment.

Property price adjustment is just one thing people need to be aware of. "The fact that the cost of housing continues to adjust month-to-month should not be overlooked, as it is for this very reason that the market is swamped with very attractive housing offers," the Spanish Brick wrote. "You should analyse, in detail, the characteristics of the flat and place them in relation to the area in which the flat is located. These clues about the local market should help you in making the best decision."

You should also consider investment yields. Currently, according to the Global Property Guide, the price per square metre for Spanish property stands at €4,683 (approximately £3,967), with monthly rents of €1,865 (approximately £1,579). This creates an average rental yield of 3.98 per cent, but this is likely to differ in the capital. There will also be variation depending on the area where a property is located.

When it comes to choosing a district for investment, Salamanca, Chamberi, Charmartin, Retiro and certain parts of the city centre remain the most popular. However, it often pays to step outside of these comfort zones and opt for real estate in regeneration areas, ensuring you're ahead of the curve. However, this is better suited to those looking for a return in the long term.

For a quick turn around, stick to popular areas. Spanish Brick explains here returns are possible from the third or fifth year. Over a ten or 15-year period, look to properties in Tetuan and Usera. These areas have good prospects.

Fractional ownership: The next big thing in Italy?

Tue, 14 May 2013 11:25:41 GMT

Fractional ownership could well be the next big thing among people with their sights set on Italian property. The Global Property Guide reported that existing schemes are demonstrating that fractional ownership not only works, but can come with considerable benefits.

True, the cost of owning Italian property is generally much lower than in recent years - thanks to the recession - but in areas of high demand, many are still priced out of the market. Fractional ownership negates this problem and ensures investors have access to a high-quality property for a certain part of the year.

Similarly, opportunities abound for those looking for a renovation project, as such properties can then be resold under fractional ownership. Dawn Cavanagh-Hobbs and her husband Michael Hobbs, who run Appassionata, realised this in 2007. In their blog, Dawn explained: "We wanted a serious project - something that would inspire us while allowing us to work closely with local Italian craftsmen."

What they found was Estate Giacomo Leopardi. Originally populated by crumbling buildings, the couple turned the site into stunning houses, ensuring original rustic features were retained. The first two properties (Casa Giacomo) were new builds on the site of a former pig sty. They used traditional Italian building methods and materials, including old bricks, stone and terracotta roof and floor tiles.

Dawn and Michael then renovated the 150-year-old farmhouse, preserving the outer walls of the building. However, original windows and shutters were beyond salvaging. Other original features have been maintained, including brick archways, Venetian plaster, beamed and vaulted ceilings and terracotta tiles.

Now the homes are completed, Appassionata is selling shares through fractional ownership, with all shares in Casa Giacomo already gone. There are still a few spots left for Casa Leopardi, but buyers will need to act fast. Those with shares in the property will be able to benefit from the estate's lavender plantation, truffle orchard, replanted vineyards and olive groves.

"The 2012/13 grape harvest has seen the first production from our newly planted vineyards result in 1,600 bottles of wine. As the vines mature we expect the production to rise to some 5,000 bottles per year - plenty to share between just 20 owners," Michael added.

Property investment visa will give Spain a boost

Tue, 14 May 2013 17:25:30 GMT

The introduction of new residency visas for foreign investors in Spanish property is expected to give the country’s ailing housing market a boost.

A new law, expected to be passed in July this year will give automatic residency to non-European Union citizens if they invest more than €500,000 in Spanish property.

It is expected that the move will create an increase in investment interest from Asia, with Chinese buyers predicted to pour €100 million into property investment in Spain.

Estate agent Lucas Fox told Property Wire that 80 per cent of the properties on their books in 2012 were sold to non-Spanish clients, with Asian investors looking at Barcelona and Ibiza in particular.

"Most Chinese investors want to buy a property in Barcelona because, not only are they getting a good investment, but there is now the opportunity to acquire Spanish residency at the same time. What’s more, the market is particularly attractive given the historic low price," said SQFT director Han Bin, which is working in collaboration with Lucas Fox.

Although Chinese investors are on the radar, it is expected that the new visa laws will create a boost in funds from many global investors seeking residency in Europe.

Jason Ham, Lucas Fox’s business development manager, told Property Wire: "We have seen Chinese investment in many corners of the world but this is the first time that we have seen interest in Ibiza. Thanks to the proposed changes in residency laws for property investors outside of the European Union, we expect to see increasingly more interest from the Asia-Pacific region as well as Russia and the United States."

The details of the visa have not yet been confirmed however it is expected that they will extend to spouses and children but will not be retroactive.

As well as the introduction of the residency visa, the current low property prices are thought to be tempting for investors as values are around 40 per cent below peak levels.

Spanish govt passes law to allow some coastal construction

Mon, 13 May 2013 11:54:58 GMT

Holidaying on the various coastal destinations in Spain has always been the most attractive option for Brits, with millions jetting off to locations close to beaches like Costa Del Sol and Costa Brava every year for a number of decades. Now investors could soon be seeing a raft of new properties for sale as a result of a law which has been passed by the Spanish government on Thursday (May 9th).

Officials announced that the change to regulations in the Mediterranean nation would see more construction allowed closer to the coast, a change to a rule that previously saw hotels, apartments and villas constructed beach-side across the country in the 1980s.

Under the new change, the closest distance that a property can be constructed in relation to the coast will be reduced from the current limit of 100 metres to just 20 metres, leaving predictions that it will spark a boom in new holiday homes being constructed for investors along the nation's popular beach fronts.

However, despite initial fears for many conservationists that this would see Spanish property being erected everywhere in this newly freed-up band, the government was quick to confirm that any new projects would be subject to extensive planning permission, adding that "exceptional circumstances" would need to be in place in order to retain the beauty of the coastline that has seen Spain become so popular.

It will mostly mean that those who have previously invested in Spain will be able to make improvements to the homes that they own, while some building projects will also be allowed in order to attract new tourists that will help buyers see a return on their investment.

With recent reports stating that tourists from other nations previously less familiar with Spain - such as the US - are now moving towards it more and more, this can only be good news for those looking to invest money there.

The only areas where there will be a blanket ban on any building work will be virgin beaches which have never had any buildings near them, where there will still be a rejection of any plans put forward.

Dubai In Top Five for Real Estate Growth

Mon, 13 May 2013 17:54:47 GMT

A significant increase in property prices has put Dubai firmly on the map when it comes to housing investments.

Knight Frank’s first quarter 2013 Prime Global Cities Index revealed that property prices in Dubai increased by 18.3 per cent in the year to March 2013, and 5.4 per cent in the last three months alone. The rise ensured the emirate maintained its stronghold in the top five best performing real estate markets in the world.

The report said that Dubai is now ranked fourth out of 29 global cities, above traditionally strong markets such as London, Monaco and Hong Kong. Indeed, Dubai is the only city from the Middle East featured on the list.

“A typical prime property is now worth 21.3 percent more than it was in Q2 2009 when Knight Frank’s Prime Global Cities Index hit its post-Lehman low,” said Kate Everett-Allen, International Residential Research at Knight Frank.

Jakarta, Bangkok and Miami took the three spots ahead of Dubai, with annual price growth of 38.1 per cent, 26.1 per cent and 21.1 per cent respectively. Cities in Asia, North America and the Middle East have maintained their dominance of the top half of the table, while European cities make up seven of the ten lowest performing global cities.

Double digit growth was recorded in eight of the 29 global cities, with Monaco and St Petersburg breaking the European mould with significant levels of growth in the three months to March 2013.

Across the 29 cities as a whole, prime prices say an increase in the year to March 2013 of 3.6 per cent. However this upward trajectory may be uncertain as the three months to March 2013 saw overall prime property prices fall by 0.4 per cent.

The increasing property prices are good news for Dubai which was badly hit by the global financial crash in 2008. Following the downturn, prices fell to 60 per cent below what they had reached during the boom.

Australian property sector sets sights on Asia

Sun, 12 May 2013 17:33:46 GMT

Asian investors have found themselves to be the new targets of the Australian property sector. With Chinese buyers increasingly snapping up prestigious Adelaide real estate, the industry has realised there is significant untapped potential in that part of the world.

Alexander Ouwens, director of Harcourts Ouwens Casserly, told the Australian that Google Analytics data has shown Chinese interest in Australian real estate websites was up 60 per cent on last year - a figure that will no doubt soar further in the near-term.

"This is based around the strength of the Significant Investment Visa scheme and we've noticed an increase in the number of Chinese purchasers at inspections and those actually purchasing properties," he said.

However, Asian investors are only interested in homes with specific features and have very different criteria for their homes than other other buyers. Mr Ouwens explained that feng shui, having the right number in the address of the house and the way the property faces are all important to the Asian market.

In a bid to ensure Chinese buyers are correctly supported, Harcourts Casserly hired two Chinese agents to bridge the gap between the two countries. "The legislation and laws for buying property are different between Australia and China and it's really foreign to them to navigate the Australian property maze, so this is to make them comfortable in making their acquisitions," Mr Ouwens said to the newspaper.

However, Asian buyers are generally only accessing the top end of the property market, as the Significant Investment Visa requires significant capital. What's more, the flow-on effect is that people will then buy accommodation for their children that are studying nearby. Nevertheless, Australia is more than happy to welcome investment in the prime sector and there are definitely plenty of opportunities available in the country.

According to new RP Data, house prices will double over the next decade in some areas. Melbourne is one place identified as poised for growth and investing in a home there could see buyers enjoy a 100 per cent return over the next ten years, Yahoo reported. This is being bolstered by strong demand.

Toxic asset shedding threatened by Spanish economy

Fri, 10 May 2013 14:49:49 GMT

The shedding of toxic Spanish property assets is being threatened by the country's flailing economy. Bankers and analysts are privately starting to fear the worst and there is speculation the bill to bail out banks will rise further in the future, the Global Post reported. Despite positive reports emerging from the country, the losses accrued in the real estate market during the recession mean help could still be needed to keep bad bank Sareb ticking over.

The bank was created to absorb the distressed assets of state-rescued banks. It took on €50.7 billion worth of foreclosed properties and troubled loans. This was matched by €50.7 billion in senior debt and backed by €4.8 billion in capital. More than half of this was put forward by healthy lenders in the country, but there is now concern this isn't enough to withstand losses, according to the news provider. However, finding money to top up capital will prove difficult in the private sector.

"The government is going to have to take over the entire vehicle sooner or later," a Spanish banking executive told the Global Post, on a condition of anonymity. This will spell bad news for the country, denting confidence in its already fragile markets. Last year Spain had to take €41 billion of a €100 billion European credit line to bail out banks, adding an equivalent of 3.5 per cent of gross domestic product to a deficit that is already higher than under EU rules.

However, Sareb looks like it is going to have to take even greater losses in the future if it wants to clear its backlog of toxic assets. Goldman Sachs has warned that real estate prices must decrease by a further ten per cent if Spain wants to turn its fortunes around. The Daily Telegraph reported that the global investment bank is calling for a fundamental restructuring of the country's lenders and believes banks are holding back progress. With a deficit reduction plan abandoned, new value models will be needed for the property sector.

Barcelona and Ibiza popular among Chinese buyers

Thu, 9 May 2013 13:50:45 GMT

Chinese buyers are increasingly setting their sights on Spanish properties in Barcelona and Ibiza, according to one estate agent. Lucas Fox explained to Property Wire that in 2012, 80 per cent of all real estate on their books was sold to non-Spanish clients and Asian investors were particularly looking to the capital of Catalonia and the popular party island.

"Most Chinese investors want to buy a property in Barcelona because, not only are they getting a good investment, but there is now the opportunity to acquire Spanish residency at the same time. What’s more, the market is particularly attractive given the historic low price," said SQFT director Han Bin, which is working in collaboration with Lucas Fox.

The residency scheme, which is expected to become law in July, is designed to attract more non-European investors to the country. It gives automatic residency to buyers investing more than €500,000 (£423, 059) in property. For Chinese buyers looking for a foothold in Europe, this is expected to be seen as an attractive deal. In fact, a group of investors from China is due to arrive in Barcelona at the end of May to see a showcase of properties from Lucas Fox.

Jason Ham, Lucas Fox’s business development manager, told Property Wire: "We have seen Chinese investment in many corners of the world but this is the first time that we have seen interest in Ibiza. Thanks to the proposed changes in residency laws for property investors outside of the European Union, we expect to see increasingly more interest from the Asia-Pacific region as well as Russia and the United States."

American interest in Spain is certainly increasing and figures from tourism research agency Frontur showed arrivals from the US increased by 35.7 per cent to almost 100,000 in March 2013 compared to 2012. While Americans have being choosing Spain as their destination of choice for decades, in March they had the highest growth rate of any region.

Germans snapping up Italian property

Wed, 8 May 2013 13:41:57 GMT

German investors just can't seem to get enough of Italian property lately. Bloomberg reported that there is a growing market of German investors who are snapping up real estate that locals can't afford to buy. So strong is demand, that according to Yasemin Rosenmaier, who has been selling homes in the country since 2005, there has never been a better time to work for a German broker. "I’d say 60 per cent of our closings are with Germans, which is much higher than in previous years," she told the news provider.

This is set against a backdrop of poor residential sales and tight mortgage lending. Housing transactions fell by almost 26 per cent in 2012 and prices have plummeted by 12 per cent in real terms since their 2008 peak. Add in to the mix two years of recession, a new tax on primary residences and economic uncertainty, and it is no surprise that locals are unable to get on or move up the property ladder.

So why are Germans particularly attracted to Italy? After all, they haven't escaped the ravages of the financial crisis and chancellor Angela Merkel has been a fan of austerity measures, which traditionally limit the buying power of citizens. According to Francesca Andreini, owner of Case e Ville, a real estate agency based in Tuscany, low prices have something to do with it. She explained to Bloomberg that prices can drop as much as 30 per cent during negotiations - something unlikely to be seen again once the property market gets back on its feet.

Many Germans are also trying to escape inflation and, according to a survey from Hamburg-based Engel & Voelkers and vacation-rental website HomeAway.com, a quarter of respondents view vacation homes as a hedge. Forty-three per cent also look to overseas property as a form of retirement saving.

More broadly, the strong tourism industry in Italy makes it an attractive prospect for investors looking to capture the rental market. Currently, price per sq m stands at €6,327, while monthly rents are €2,558, according to the Global Property Guide. This puts yields at 4.04 per cent.

Beware of EPC regulations in Spain

Wed, 8 May 2013 13:41:57 GMT

Those considering investing in Spanish property need to be aware of Energy Performance Certificate (EPC) regulations, which are set to be introduced in the country on June 1st 2013. As in the UK, EPCs will establish the energy efficiency of real estate in a bid to reduce carbon emissions. Consequently, buyers will need to know what the EPC is and the efficiency of the property they are buying. Any property advertised for sale or rent will need a certificate from June, so there is no time to wait.

A certified assessor will score a house or apartment between A and G grades. A is considered to be the highest level of efficiency and if a property has any changes to it, such as new windows, it will need to be reassessed. While an EPC costs €300 (£252.45), those who do not comply with the conditions will be fined heavily.

Anthony Bloom of agents Spanish Property Sales, told A Place in the Sun: "With the approx cost of obtaining an Energy Performance Certificate (EPC) for the average property said to be around €300 and the fact that most properties in Spain over 13 years old don’t have insulation or double glazing fitted, it's not exactly in the sellers interest to make it public. Buyers will no doubt use a poor rating result to reduce the price further. It's obviously going to be welcome news for the double-glazing and insulation industry!"

He added that the EPC will hopefully result in older Spanish properties being insulated like newer homes, which is integral in the winter, as temperatures can plummet. However, it will create an imperative for investors to ensure that real estate has an EPC scores. Without one, a sale may become void and there may be grounds for compensation. If a home is lived in for less than four months a year, an EPC isn't needed. What's more, if a property is already being rented out to a tenant an EPC will not be required until a new tenant comes in.

Is Romanian property stabilising?

Tue, 7 May 2013 16:16:00 GMT

Figures suggest Romanian real estate prices could be stabilising, with the Eurobank Property Services' Residential Property Index noting fluctuations around a relatively constant average in Q1 2013. The Romanian Insider reported that average house prices increased slightly in the first three months of the year, after a small fall in Q4 2012. Values now stand at around € 45,000 (£37,867 approximately) across the country, while the Bucharest Ring and central Bucharest are enjoying higher values of €60,000 (£50,490 approximately) and €80,000 (£67,320 approximately) respectively.

However, this comes after four consecutive quarters of price drops, equating to a 1.2 per cent fall. While this is relatively small compared to the 33 per cent crash recorded since the 2008 peak, it's still not at the level many would hope. According to the newspaper, prices in central Bucharest and the Ring dropped during Q1 by 4.1 per cent and five per cent respectively quarter-on-quarter. Since the recession, values have fallen a shocking 51 per cent in the capital - an average of 13.3 per cent per annum.

Bucharest is certainly taking a hit and is even bucking national averages for old and new properties. In Bulgaria, new build values are rising faster than the national average, but in the capital, new property prices are falling rapidly than other real estate. This is bad news for investors in the city and presents a conundrum for the local property market.

Nevertheless, there is good news for Romania and the South and Moldova enjoyed significant price gains in the first three months of the year, increasing by 7.8 per cent and 3.9 per cent respectively, the Romanian Inside revealed. The cities of Craiova and Oradea had the highest levels of growth, with values up by over ten per cent in both places.

Stabilisation for the market was first reported by Eurobank Property Services in February. Their Business Review showed that residential real estate had only decreased by 0.8 per cent in 2012 year-on-year. Downtown Bucharest even reported a seven per cent annual average price rise between 2011 and 2012.

US tourists heading to Spain

Tue, 7 May 2013 10:15:58 GMT

Spain has long been the most popular holiday destination among Europeans, but it seems Americans now want a piece of the action too. According to the country's tourism research agency Frontur, arrivals from the US increased by 35.7 per cent to almost 100,000 in March 2013 compared to 2012. This is the highest growth rate of any nation.

Marc Pritchard, sales and marketing manager for leading Spanish house builder Taylor Wimpey Espana, commented: "US citizens have been vacationing in Spain for many years. Numerous celebrities including Michael Douglas, Antonio Banderas, Melanie Griffiths and even George Clooney own second homes here and walking down the Golden Mile in Marbella can at times feel like a stroll through the streets of Hollywood."

For those considering Spanish property, this means there is a burgeoning tourism market to be tapped into. To capture the interest of US holidaymakers, investing in real estate that appeals to their tastes and is in popular locations, such as the Costa del Sol, will help to ensure high occupancy rates.

However, it isn't just American's that are increasing their market share in Spanish tourism and overall tourism increased 7.9 per cent year-on-year in March 2013. In Q1 there was also an increase of 2.3 per cent in the number of holidaymakers visiting the country. This equates to a staggering 9.4 million tourists visiting Spain between January and March.

Brits made up just less than one in five (19.9 per cent) of all arrivals in the country, while Germans accounted for 11.9 per cent of total visitors. The French also increased their share in tourism, with arrivals rising by 16 per cent. Scandinavians were up 13.8 per cent year-on-year.

The Costa Blanca is proving to be a popular spot for holidaymakers and there is good access between the area and the US. Mr Pritchard explained direct flights operate from New York, Atlanta, Miami, Boston, Philadelphia, Newark, Charlotte, Dallas and LA to Madrid. There is then a high-speed rail link to Alicante.

Mortgage processes tightening in Portugal

Fri, 3 May 2013 14:40:23 GMT

While low prices and a vibrant tourism industry may make Portuguese property an attractive prospect for investors, getting a mortgage in the country is becoming more and more difficult. Ricardo Reis, Cushman & Wakefield Inc's head of valuations in Portugal, told Bloomberg that lenders are now requiring more collateral. This is causing a drop in the number of real estate valuations made by banks and in March, appraisals of homes and apartments fell by 6.9 per cent year-on-year. Average values now stand at €981 (£831.11) per square metre, the lowest level since September 2008, according to Portugal's National Statistics Institute.

"A lower bank valuation reflects the overall drop in property prices and may require potential home buyers to come up with more money to purchase the property due to a lower loan-to-value required by the banks in order to reduce their risk," Mr Reis explained to the news portal. This means that instead being able to take advantage of lower prices, some buyers remain priced out of the market.

Lower appraisals are given by lenders in volatile markets to protect them from being lumbered with an asset worth less than a mortgage. With the Portuguese property market still some way away from a recovery, this practice is becoming more and more common. Figures from the Bank of Portugal noted that during the first quarter of the year, lending fell once again and the trend looks set to continue.

These conditions may offset any benefits from government schemes to attract overseas investors, such as the Golden Residence Permit. Under this policy, investors from outside the EU can receive a five-year residency permit if they invest in property worth at least €500,000. The scheme is expected to generate considerable interest from Asians looking to enjoy the right to study and travel in 26 European states that make up to Schengen region. A similar scheme is also being implemented in Spain, but barriers to lending could throw a spanner in the works for such policies.

Goldman Sachs: Spanish property prices must go lower

Thu, 2 May 2013 13:52:07 GMT

While the thought of further price drops in the Spanish property market will send a cold chill up the spine of many, one industry expert claims values must go even lower if the country hopes to turn its fortunes around. Goldman Sachs has warned that real estate prices must decrease by a further ten per cent, despite the fact they have already dropped by 30 per cent since peak, the Daily Telegraph reported.

The global investment bank is calling for a fundamental restructuring of the country's lenders and claims Spain's banks are holding back progress.This comes after the deficit reduction plan was abandoned. A deal has been brokered between the European Commission and International Monetary Fund to give Madrid to bring down the deficit below three per cent. It is hoped this will lessen the pressure placed on the economy and address Spain's substantial unemployment problem.

This is impacting upon the property market and the government has recently passed a law to prevent banks from repossessing homes. However, Goldman Sachs don't believe this is the way forward and the bank's economists Andrew Benito and Sebastian Graves explained to the newspaper: "Our preferred model values housing based on the relationship between rental yields and real borrowing costs. The current level is consistent with house prices falling by a further ten per cent to reach an implied equilibrium."

They added that the bank's decision to continue offering evergreen loans to risky borrowers is holding back recovery, making too much credit available to "unhealthy sectors". Nonetheless, the financial sector has undergone significant restructuring and the International Monetary Fund (IMF) is confident the country is on the right track."The clean-up of undercapitalised banks has reached an advanced stage, and key reforms of Spain's financial sector have been either adopted or designed," they said in report. Sareb was also praised for its progress in dealing with distressed real estate and finalising the transfer of assets with affected banks.

Bulgarian property sales on the rise

Wed, 1 May 2013 13:00:43 GMT

Property in Bulgaria has had a strong start to the year, with sales increasing over the first three months. Data from the Bulgarian National Statistics Agency, relayed by Postbank, showed transactions skyrocketed by 23 per cent in Q1, compared to the same period in 2012. Total units sold ended the quarter at 44,174, Standart reported. This is a significant leap from 35,821 units transacted during the same time last year.

Mortgage loans are the most common means through which properties are being obtained, accounting for 13 per cent of all sales. This equates to 5811 units. With Postbank registering an increase in the number of people asking for loans of 25 per cent, activity in the sector is certainly improving. The newspaper explained that 74.5 per cent of these were in Bulgarian lev rate, compared to the year previous when just half were. Postbank expects this to continue and reach a market share of 80 per cent.

This is a pleasing turn around from previous quarters, when the market has remained sluggish. The Global Property Guide reported in February that prices were continuing to slowly decline, causing stagnation - a trend not expected to change any time soon. Figures from the National Statistical Institute showed that in Q3 2012, the average price for existing flats dropped by 2.2 per cent to BGN 881.2 (£384.03 approximately) per square metre.

Real estate in Bulgaria now has a value 38 per cent lower than its Q3 2008 peak, when values stood at BGN 1,481 (£645.43 approximately) per square metre. While it is now cheaper to invest in property in the country, return on investment is unlikely to be quick and holiday lets are sure to be the best way to generate an income. Popular tourist spots like Sunny Beach are still attractive markets for buyers.

However, even the capital Sofia has witnessed significant price drops, with dwelling values falling by 0.6 per cent since 2011 and 41 per cent since peak, the Global Property Guide reported. In February, prices stood at approximately BGN 1,447 (£630.61).

Access to Spain improved for Brits

Wed, 1 May 2013 11:33:06 GMT

More and more Britons could be heading to Spain on their holidays, thanks to improved transport links between the two countries. British Airways CityFlyer has announced that it will be more than doubling its service for winter 2013/14. This is after it debuted regular flights from London City Airport to Ibiza and Mallorca in 2012/13.

Sotheby's International Realty has welcomed the move and Spanish property could be the subject of much activity among investors looking to capitalise on growing tourism numbers. Improving access to Spain for Londoners will also have positive implications for local economies, with holidaymakers providing a much needed boost to the country.

Daniel Chavarria Waschke, managing director of Balearics Sotheby's International Realty, commented: "In winter 2011/12 British Airways did not operate one single flight direct from the UK to the Balearics, but for winter 2012/13 they made the brave decision to extend their twice weekly flights throughout the season.

"The decision seems to have paid off as the flights have proved so popular that next winter, from 27 October, two flights a week will become five for Ibiza and four for Mallorca. British Airways is currently the only airline offering direct flights from the UK to Ibiza during the winter months – perhaps others will follow suit."

Off-peak, there is still plenty to do in Ibiza and Mallorca. Mallorca is particularly known for its golf and boasts 24 of the archipelago's 26 golf courses. There are also plenty of shops, restaurants and bars available for travellers out of season, while the climate is still favourable. Ibiza is slightly more subdued during winter but there are plenty of opportunities to explore the island.

Improving links between London and Ibiza and the Balearics also has a positive effect for the capital. Mr Chavarria Waschke explained that the London City Airport's Dockland has great appeal for the Balearics' affluent target audience, thanks to its proximity to the financial district and wealthy suburban areas.

Russians pip Brits to the post in Spain

Tue, 30 Apr 2013 13:55:17 GMT

When it comes to Spanish property, it seems Britons are being pipped to the post by Russian investors. Taylor Wimpey Espana claims that people from the former Soviet nation are now the single largest buyers of real estate in the country, closely followed by Scandinavians. This is certainly an interesting turn of events and marks the end of UK dominance of the sector.

Spain has long been a favourite holiday destination for Europeans, making it a popular spot for those looking for a second home or to enter the holiday let market. Figures from Eurostat, the statistical office of the European Union, revealed that in 2011, 13 per cent of all outbound trips in Europe were made to the country. Ten per cent of Spanish GDP derives from tourism, making Spain heavily dependent on the sector. This can be seen clearly in the property market and in key resorts, foreign buyers are helping to keep things ticking over. In 2012, international property investments in Spain grew by 17 per cent, according to the Bank of Spain.

Britons have traditionally been the most active in the market, choosing Spain for their holiday home, a place to spend their golden years, or as a place for investment. So what's changed? Is it simply that the financial crisis has limited the spending power of buyers from the UK or are there other factors at play?

Marc Pritchard, sales and marketing manager for Taylor Wimpey Espana, said: "Russian interest in particular has increased dramatically over the last year. On the Costa del Sol alone, 45 per cent of the total sales this year have been from both Scandinavian and Russian buyers." This can be attributed to a growing Russian middle class and greater transport links between the countries. Spanish weather is also a major draw.

When it comes to location, Marbella is proving to be the most popular place for Russian buyers and other overseas investors. Taylor Wimpey Espana claims that non-residents of Spain have increased their market share for six consecutive quarters now.

South African golfing property market proves 'resilient'

Tue, 30 Apr 2013 13:55:17 GMT

Golfing estates are proving to be among the resilient segments in the South African property market. Dr Andrew Golding, chief executive of the Pam Golding Property group, explained to an audience at a recent Talking Turf summit that while the golfing sector has struggled in places like the US, in South Africa it has been performing relatively well.

"From 1990 to 2003 some 3,000 new courses were built in the United States, boosting the total number of courses nationally by 19 per cent and costing about $20 billion (£12.9 billion approximately), according to the National Golf Foundation. However, soon after that the sport began to lose its allure and since 2005 over 350 golf courses closed," he explained.

While the South African property market has had its troubles, metropolitan sites like Steenberg, De Zalze and the Atlantic Beach Estate in the Cape have been relatively "recession-proof". What's more, when comparing the property values in these estates to surrounding areas, golfing property is performing strongly.

Dr Golding claims Zimbali and Simbithi are prime examples of this. Ninety-five per cent of both estates are currently sold out, with Zimbali - the more mature of the two - achieving a 90 per cent completion rate. Both of these sites are located in the Ballito area and in 2012 alone, total market sales turnover stood at R 1.3 billion (£9.3 billion approximately). Simbithi and Zimbali ended the year at around R 800 million - two thirds of the entire Ballito market. Land prices in Simbithi also increased by 30 to 40 per cent since 2007, despite difficult economic times.

"Another excellent example of this typical golf estate ‘phenomenon’’ is Cape Town’s Steenberg Estate, which is listed as the fifth most expensive place to live in South Africa," Dr Golding added. "There is a 540 per cent difference in the average property value between a Steenberg home and one that is just beyond its gate in the suburb of Tokai."

Market conditions boosting Australian property auctions

Mon, 29 Apr 2013 12:25:34 GMT

Market conditions in Australia are helping to create a strong appetite for auctions. The Global Property Guide reported that low interest rates and high property prices are driving people to the country's auction houses, with Australian homes in major cities proving to be the most popular lots for bidders.

Two-thirds of homes offered during public auction throughout February and March in Sydney beat figures recorded during the last two years, according to Australian Property Monitors (APM). In Melbourne, which has proven to be the second biggest city for home auctions, this proportion has reached 68 per cent. This is the highest since May 2010.

Last weekend (April 27th) alone, auction clearance rates reached 74 per cent, while the week prior, this stood at 75.6 per cent. During the same time in 2012, clearance rates stood at just 49 per cent, indicating growing interest in the auction market in Australia. APM claims these figures are "remarkable" in their consistency and strength, exceeding 70 per cent on nine of the 12 auction weekends in 2013. So far, the average clearance rate for the year stands at 72 per cent - 15 per cent higher than the 57 per cent average recorded during the same time in 2012. This is the best start to the year since 2010.

The housing sector as a whole has benefited from the strong auction performance. House prices are rising and APM reports that the median value in Sydney has increased by 1.6 per cent over Q1 to $672,681 (£447,371). This is a second consecutive quarterly record and represents a rise of $30,000 over the past six months.

The inner west of the city is proving to be the most popular region for auctions and over the weekend produced a 77 per cent clearance rate, with an average sale price of $1,013,390. Marrickville was also in demand, with a five bedroom house going for $1,590,000. However, the most expensive property sold over the weekend was in Strathfield. The five bedroom home went for $3,200,000.

Australia property prices 'to double in some suburbs'

Fri, 26 Apr 2013 10:34:02 GMT

Now could be the time to consider investing in Australian residential property, if a new report from RP Data is anything to go by. The firm has identified a number of areas where house prices are projected to double over the next decade, based upon latest industry trends. Should house values increase at the predicted rate, property investors will have an opportunity to experience significant returns in Australia.

RP Data Investors Report shows that Melbourne has the greatest number of suburbs with a likelihood of delivering a 100 per cent return within ten years, reports Yahoo. House prices are rising fast in the Victorian capital, and are expected to continue in the same vein as demand for property continues to grow.

The report identified 263 suburbs across Australia which are likely to generate high returns for investors - each of which has seen annual prices rise by more than 7.2 per cent over the past five years. Some 68 of these were in Victoria, with Melbourne claiming the lion's share. A number of Sydney suburbs are also seen as being attractive for investors, including Eastern Creek, Campbelltown and Belmore.

But it is not just Australia's major cities where property value growth is being experienced at present - RP Data noted that the regions are also experiencing something of a boom. More than half (55.7 per cent) of the areas with fast-rising property prices were located away from the main cities, showing there are a range of opportunities for investors in Australia. Among these are mining towns such as Hunter Pilbara, Mackay and Fitzroy.

Earlier this week, Bloomberg reported that Australians are increasingly selling property at auction, as low interest rates fuel demand for property. The news provider cited figures from Australian Property Monitors, claiming that in February and March, two-thirds of homes offered at a public sale found buyers. This was the highest level since April 2010.

Los Alcazares 'a hidden gem for property investors'

Fri, 26 Apr 2013 10:34:03 GMT

Foreign property investors are always on the lookout for a bargain Spanish real estate - properties in desirable regions which are likely to be in demand in the future. Spain is full of investment honeypots - areas which typically attract plenty of attention from overseas. But sometimes it is advisable to deviate from the beaten path and take a look at areas that other real estate buyers may have overlooked.

Writing for NuWire Investor, Stennie Harvey highlighted the pleasant coastal town of Los Alcazares in Murcia, Spain, as being something of a "hidden gem". Despite the climate, location and abundance of affordable property, she claimed that many investors overlook this part of the country. Rather than trying to find a home in Murcia, they typically look elsewhere for their purchase.

Ms Harvey described Los Alcazares as one of her favourite coastal towns in southern Spain. She explained that it originated as a Roman spa settlement, and later attracted Moorish traders who brought their goods to market. Los Alcazares is both a summer resort and a year-round working town, Ms Harvey noted - meaning property may be attractive to both tourists and employed residents.

She drew attention to the town's long promenade, which is lined with cafes and overlooks the beaches of the silver-blue Mar Menor. "A mineral-rich lagoon, it’s separated from the open Mediterranean by only a narrow strip of land," Ms Harvey said. "Some seaside settlements die in winter, but Los Alcazares isn’t one of them," she added. Typically, property prices are affordable, but also negotiable for those eager to drive a hard bargain, Ms Harvey suggested.

"Murcia and the Costa Calida - the name means 'the warm coast' - enjoy some of mainland Europe’s best winter weather," Ms Harvey stated. She pointed to daytime temperatures of 68 to 70 degrees Fahrenheit, claiming that Los Alcazares is a very desirable location - and worth considering as real estate investors look to develop their Spanish portfolio.

Mallorca property 'boosted by thriving tourist industry'

Fri, 26 Apr 2013 13:44:34 GMT

Mallorca has no shortage of visitors each year, with millions flocking to the Mediterranean hotspot for a sun-soaked holiday. The popularity of the island with cruise ships and package holidays ensures it is well and truly on the beaten track, giving excellent exposure to the Mallorca tourist industry.

According to Marc Pritchard, sales and marketing manager of Taylor Wimpey de España - the Spanish house builder - the number of people visiting the island is great news for the local property market. He claimed that demand for accommodation in Mallorca is increasing, particularly over the summer period. Properties close to marinas are becoming "highly desirable", Mr Pritchard noted - meaning real estate in the Balearics could be a great investment opportunity for overseas buyers.

“There are many benefits to be had from owning a home in Mallorca," he stated. "The stunning Balearic Island offers a wonderful quality of life and superb properties that are so often desired by holiday makers and potential home owners. And, although recognised in part as a hub for the rich and famous, Mallorca has plenty to offer in terms of affordable property with something for everyone."

Mr Pritchard noted that much of the attention is focused on Palma de Mallorca, the island's capital, a city home to around 300,000 people. In the main, visitors flock to the old town around the cathedral, and to the secret natural coves with secluded beaches nearby. He also drew attention to the island's many traditional fishing villages, and the abundance of hiking opportunities.

“Mallorca is quite simply a tourist hotspot," Mr Pritchard stated. He said that every year, the island receives "an abundance of intrigued visitors" attracted by its "sun-soaked climate, over 43 striking blue flag beaches and high class restaurants". The staging of the Super Yacht Cup race - one of the most significant luxury sailing events in Europe - also adds prestige to the island, potentially giving the local property market a further boost.

Paris apartments still too expensive

Thu, 25 Apr 2013 13:43:56 GMT

High prices are denting interest levels for Parisian property, according to one property expert. Christine Perrissel, company director of Agence Etoile, told Bloomberg that at least one in four apartments in the city can't be sold. This is despite mortgage rates currently standing at record lows.

So why aren't more people opting for French real estate? After all, prices are high in London but demand remains constant. It seems the state of attrition reached in the Parisian property market is thanks to an unwillingness of sellers to lower values. "I have some inventory that’s too expensive and sellers don’t want to lower prices," Christine Perrissel told the news provider. "Buyers are just much more selective."

This isn't the first negative report of the French property market to emerge. At the beginning of April the Global Property Guide reported that the country is struggling to bring down its sky-high unemployment rate and budget deficit, which is having knock-on effects for the real estate sector. The National Institute for Statistical and Economic Studies recorded a 1.63 per cent fall in house prices in Metropolitan France for 2012 compared to 2011 levels. This is the third consecutive year of annual declines.

When adjusted for inflation, values dropped by 3.12 per cent, with a 1.27 per cent quarter-on-quarter rise in Q4. Sales volumes have also taken a hit, with data from La Chambre des Notaires de Paris reporting just 709,000 homes were sold across Paris last year. This is a fall of 12 per cent year-on-year.

The poor health of the market is partly due to the inactivity of first-time buyers. As in most of Europe, those looking to get a foot on the property ladder have remained constrained in France. Les Chambre des Notaires de Paris believes this is due to the end of the loan to zero ration and the percentage of transactions by purchasers under 30 years of age fell to 15.8 per cent of all sales in 2012.

Murcia property market booming

Thu, 25 Apr 2013 13:43:56 GMT

While it is easy to get bogged down in doom and gloom news about the Spanish property market, there are some areas that are going from strength to strength. Murcia is one of these lucky locations and figures have shown the destination is still drawing in overseas buyers. The National Institute of Statistics revealed sales of Murcian property were up by 24.1 per cent in February 2013 year-on-year, ending the month on 1,169 transactions. This is well above the national figure of 17.3 per cent.

Growth in the region can also be seen in the books of local estate agents and Murcia-based firm Mercers enjoyed a 25 per cent rise in sales for Q1 year-on-year. This comes after the estate agents predicted a 25 per cent rise in transactions for the whole of the year. Luckily, the first quarter of the year has gone off with a bang, placing the local property market in a good position for the year ahead.

Chris Mercer, director of Mercers, commented: "I can’t pinpoint exactly why our sales are up so much, but momentum is certainly beginning to build. It can’t be attributed to an end-of-year rush before VAT on new builds went up from four per cent to ten per cent on January 1st, as all of our transactions have been resales. Furthermore, enquiries have not increased at the same level but those we have are more serious, have the funds in place and are intelligent enough to know that the window of opportunity on a serious Spanish property bargain will not be open forever."

This sales boost could be the result of places like the UK slowly emerging from the financial crisis, enabling international buyers to enter the fray once again. When comparing Mercer's Q1 2013 performance with the first three months of 2011, a massive 65 per cent rise in sales is noted - a sign conditions are improving. However, in Murcia prices have been reduced by up to 55 per cent from their peak levels, showing the area hasn't managed to escape the effects of the recession.

Will Turkey emerge as the new hotspot for foreign investors?

Wed, 24 Apr 2013 13:39:28 GMT

In the world of real estate, there is always some new hot location for investors to sit up and take notice of and it seems Turkey could be the next big thing. The country has already enjoyed considerable overseas interest in recent years, but one expert believes this will only intensify in the future.

Richard Way, editor of The Overseas Guides Company, explained that Turkish property is drawing in buyers thanks to its strategic position."Outside the uncertainty of the eurozone, strategically located between East and West and enjoying economic stability, Turkey is intensifying its campaign to attract more foreign homeowners and residents to its shores," he said. In 2013, the government has also made it easier for foreigners to visit the country and purchase property. It has recently announced plans to grant one-year residency to all people from overseas that buy property there. This is a welcome increase on the previous three-month permit offered.

"While British people historically have had little difficulty obtaining residence permits in Turkey, Middle Eastern and other non-European nations have not always found it easy – this new legislation will be especially attractive to them," Mr Way explained. He added that travel to the country has also become easier, thanks to a new system that allows tourists to obtain a tourist visa online. The e-visa will replace the sticker and stamp-type visas currently in use.This means the number of holidaymakers heading to the country will no doubt increase - good news for the holiday let market.

Investors can also celebrate eased restrictions on the sale of land and real estate to foreign citizens and companies. The abolition of the reciprocity law has opened up new markets for the property sector and the country is already beginning to feel the benefits. With all this positive activity, Mr Way is eager to see what the future has in store for Turkey, especially if Europe continues to remain in the doldrums over the near-term.

Is now the time to invest in Marbella property?

Tue, 23 Apr 2013 11:01:37 GMT

With real estate prices low and tourism booming, it seems now could be the ideal time to invest in Marbella property. Fine & Country claim the climate, changes to the cultural scene and improvements to the transport system in the area are making Marbella one of the most attractive places to be. Expansion of the port also means the property market is in a good position for recovery.

This makes a luxury villa in Marbella the "smart choice", according to Fine & Country, especially with March being the fourth coldest ever on record. Between March and April, there is approximately ten days of rainfall in the UK, with 110 days of rain per year. Conversely, Marbella has 320 days of sunshine on average per annum.

Michael Lovett, director of Fine & Country Marbella, said: "The attraction of Marbella is at its peak right now not just because of the unfortunate weather in the UK but because the area is undergoing a real rejuvenation. Changes to the cultural scene and the transport system have recently been made to re-establish Marbella as the place to live and as a result, the future of the property market is promising."

Investors may be particularly interested in the €84 million expansion of the port, which is expected to drive the revitalisation of the area. Not only will the port bring economic benefits, it will enable more cruise liners to dock in Marbella - good news for local tourism. Over the next four years, it is expected that the number of cruise ships coming to the port will increase considerably, while more berths will be created for private boats and yachts.

The Balearic Island of Mallorca is one place that has already seen the benefits of welcoming cruise liners. Already enjoying considerable tourism footfall from the ships, with approximately one million passengers entering Mallorca by sea annually, the extension of the pier is expected to increase the number of cruise ships coming to the port. In 2013 alone, the port of Palma is forecast to receive 449 cruise ships.

Spain remains top spot for golf tourism

Mon, 22 Apr 2013 14:24:25 GMT

Spain continues to be the top spot for golf tourism, with a new survey by KPMG's Golf Advisory Practice naming the country as the most popular travel destination for the sport once again. Portugal and Scotland came in second and third respectively, but it is the lush greens of Spain that attract golfers in their droves year after year.

This is yet another string to add to the country's tourism bow, showing Spain is still a heavy hitter on the holiday scene, despite its economic troubles. What's more, with global golf holiday sales increasing by 9.3 per cent in 2012 compared to the year previous, there are plenty of opportunities to be had. In fact, among those operators surveyed by KPMG, 1.6 million golf travellers were recorded.

With golf tourism exceeding the estimated €1.5 billion (£1.2 billion), now is a great time to invest in Spanish property to capture the holiday market. This is the advice of Taylor Wimpey Espana and with real estate values at an all time low, there are plenty of great deals to be had. Marc Pritchard, sales and marketing manager for Taylor Wimpey Espana, explained: "[While] the course itself is an important factor when choosing a golfing holiday, the accommodation is equally important once you leave the fairway. Developments with onsite courses, accommodation and amenities are in high demand as they offer the entire package, are often easy to maintain and offer a higher level of security and community living."

Germans are proving to be particularly active in the golf tourism market and in 2012, Taylor Wimpey noticed a 36 per cent rise in the number of buyers from the country compared to 2011. The Costa del Sol is also proving to be a hot spot and boasts over 50 golf courses within its parameters. Some of these even have a stunning mountain locale, with breathtaking views of the area. With these amenities, it certainly isn't difficult to see why golf tourism is hotting up in the country.

Now is the time to buy French ski property

Fri, 19 Apr 2013 13:26:47 GMT

If you're looking for French property in one of the country's many ski resorts, now is the time to strike. The end of the ski season means there will be discounts, according to Athena Advisors. However, after a period of record property sales, competition will be fierce. What's more, only a few developers in the French Alps will be offering these deals in a bid to boost sales.

"Increases on forecasted sales for the 2012/2013 season have enabled alpine developers to leverage offers and soften their prices to provide an end-of-season sales boost before the summer," Nicholas Leach from Athena Advisors explained. "For some developers this has been the best season since 2006/2007 and they want to keep it going for as long as possible."

This has been in thanks part to some of the most stand-out snow conditions in years, enabling the ski season to last for longer. However, a fluid mortgage market has also helped to encourage buyers to head to the slopes. This has had an effect on developers, who are eager to help investors to make hay while the sun shines. "Developers know that the current all-time-low mortgage rates won’t be around forever so they’re making it as easy as possible for investors to capitalise now," Mr Leach added.

This is good news for buyers and with the ski sector guaranteed strong seasonal demand, the French Alps are becoming more and more attractive. The market also exists in relative isolation, keeping it protected from some of the woes experienced by the real estate industry. Figures have suggested that the market is in trouble again and the Global Property Guide reported that the country is struggling to bring down its sky-high unemployment rate and budget deficit. The National Institute for Statistical and Economic Studies noted a 1.63 per cent fall in house prices in Metropolitan France in 2012 compared to 2011 levels. This is the third consecutive year of annual declines and when adjusted for inflation, values dropped by 3.12 per cent.

Squatter risk for Spanish property investments

Fri, 19 Apr 2013 11:50:44 GMT

Despite Spain's ongoing economic difficulties, the nation remains a desirable destination for many foreign investors - including those seeking second homes and rental incomes. Many parts of the country continue to attract interest from overseas, and there are certainly bargains to be had in the current market.

However, investors need to ensure they do their research before buying Spanish property, and are fully aware of what they are getting into. Some properties may appear to be bargains in theory, and too good to turn down, but buyers need to ensure they are not falling into a trap.

A recent Bloomberg article shed light on Spain's growing problem with squatters - an issue which has implications for foreign property investors. With many Spanish citizens having lost their jobs, defaulted on their mortgages and lost their homes, an increasing proportion of the population has been pushed into poverty. And in their desperation, some have moved into properties without permission or a legal tenancy.

Jose Maria Fraile, mayor of Parla - situated 30 minutes' drive from the capital Madrid - told the news provider how a 285-unit apartment complex in the town has been overrun with squatters. He explained that two-thirds of the building generates no revenue whatsoever for the property owners, since the residents are living there without permission. Mr Fraile claimed that "this is happening all over the country".

Squatters can take up to three years to evict in Spain, causing significant problems for the title holder. Not only do non-paying residents provide no rent, but they are in no way incentivised to worry about the upkeep of the property. Creating a hostile environment may even enable them to stay longer in the building - or indefinitely. The presence of squatters is likely to make neighbouring property less attractive to bona fide residents, which can lead to a higher likelihood of vacancy. This in turn may expose empty property to the risk of illegal intrusion by individuals.

"These are people who resort to squatting because they have no other option," Mr Fraile stated. "It’s a social problem of the highest severity happening all over Spain." With this in mind, overseas investors need to take care when purchasing property - particularly when real estate has been repossessed and is in the possession of the banks. There are many great opportunities for real estate investors, but there are also some developments and properties to be avoided.

Spain remains top EU destination

Thu, 18 Apr 2013 13:37:08 GMT

New figures have named Spain as the top EU destination once again, showing that despite the economic climate, the country remains the dream spot for many tourists. Eurostat found that in 2011, 13 per cent of all outbound trips in Europe were made to Spain, with Italy and France coming in second place (nine per cent respectively). These figures do not include holiday makers outside of the EU and actual visitor numbers are likely to be much higher.

It was also revealed that Spain is the preferred choice among Portuguese, British and French tourists, with market shares of 39 per cent, 21 per cent and 18 per cent respectively. This flies in the face of most research, which indicates it is in fact people from the UK that make up the majority of travellers in Spain.

These figures will no doubt be welcomed by Spaniards, who have been faced with a deluge of bad news over the coming years, thanks to the recession. What's more, they indicate investors looking to enter the holiday let market should set their sights on Spanish property, to benefit from low real estate prices and high demand.

Data shows that many foreign buyers are already capitalising on the assets the country has to offer. Spain's Ministry of Development revealed overseas buyers upped their investment in real estate by 13.7 per cent in 2012, equating to €6,336 million worth of property transactions on private homes. This is considerably greater than the €5,573.3 million noted in 2011.

Over the last quarter of 2012, activity was particularly strong, with overseas investors buying 47 per cent more homes than the same time in 2011. Some 13,873 properties were bought by foreigners between October and December. This appetite for Spanish real estate shows little sign of abating anytime soon, and non-residents of the country have been increasing their market share for six consecutive quarters.

The most popular areas for investment are Alicante, Malaga, Barcelona, the Balearic Islands and Madrid. For those interested in the holiday let market, selecting the right location is integral. The Costa del Sol and Costa Blanca have proven particularly sought after among investors and holiday makers.

Property 'now the key asset class for UAE investors'

Thu, 18 Apr 2013 13:37:08 GMT

Investors in the UAE are increasingly focusing their attention on real estate, it has been claimed. The latest Friends Provident International (FPI) Investor Attitudes report indicates that property in the region is being seen as an increasingly secure investment.

The study revealed that UAE investors are also more eager to invest in gold, equities and bonds. However, FPI found that property was the preferred asset class for investors in the emirates, reports Gulf Business.

Some 27 per cent of survey respondents said it is 'a very good time' to invest in UAE real estate. This compares with just 13 per cent in the previous FPI report. The domestic property market has been in strong recovery mode for some months, with Dubai attracting particular interest.

Research published by Jones Lang LaSalle recently showed that residential sales prices increased by almost a fifth (18 per cent) year-on-year during the first quarter of 2013. This suggests that demand for real estate is continuing to rise, having an inflationary impact on property values.

Matthew Waterfield, general manager for the Middle East and Africa at FPI, noted that - along with gold - property remains the most popular asset class for UAE investors "by some distance". He said it is good to see that the Friends Investor Attitudes index for UAE has eclipsed the indices for both Hong Kong and Singapore. "This reinforces the generally positive consumer sentiment that has been reported in the country as of late," he stated. Mr Waterfield added that it signifies "a return of confidence to the local investment markets".

Earlier this month, Al Masah Capital claimed in its Mena - Alternative Investment Strategy 2013 that demand for both residential and commercial real estate remains strong in the UAE. The firm cited economic improvements, a rising population and the emirates' booming tourism industry as being key factors in the strength of the market.

Cairo price rises not market reflection

Wed, 17 Apr 2013 11:25:58 GMT

Cairo real estate prices increased in Q1 2013 but the rise may not be reflection of the health of Egyptian property. Jones Lang LaSalle explained that values increased by eight per cent across Cairo's two satellite cities during the beginning of 2013. However, instead of being driven by demand, the hike is the result of developers looking to pass on increases in construction costs to end buyers.

This is set against a backdrop of economic turmoil and high inflation, meaning investors should still show caution when entering the villa and apartment market. Nonetheless, asking prices for apartments in New Cairo increased by four per cent to $1,180 (£771.09) per square metre, while villas increased their value by nine per cent. In the 6th of October area, apartment prices increased by eight per cent to $1,071 (£699.86) per square metres. Villas also increased their asking price by seven per cent.

For investors in the holiday let market, the good news is that rental costs remained stable throughout Cairo. However, the New area enjoyed slightly higher rents of $1,000 (£653.47) on average. This suggests there is still demand for property in the two satellite cities, which are rich with culture and history.

Unfortunately, rising inflation is still making things difficult in Egypt. Jones Lang LaSalle explained in its report: "High inflation will make it more difficult to reduce subsidies and increase taxes as required by the IMF (International Monetary Fund). These challenges have overshadowed the Cairo real estate market which has seen further delays in both construction and leasing commitments during the quarter."

Nevertheless, the firm stresses that despite obvious barriers, there is ongoing demand and Q1 witnessed several significant leasing transactions in the commercial market, particularly in the office sector. This bodes well for the Cairo's performance overall, indicating a rise in business confidence and growing activity across the board. Tourism is also starting to recover and in January, the hotel occupancy rate stood at 51 per cent. This is a five per cent rise on the same month last year.

Florida property comeback 'led by Canadian investors'

Wed, 17 Apr 2013 17:25:58 GMT

Florida property has long been on the radar of UK investors, eager to establish a base in sunnier climes for the winter but without the challenge of a language barrier. Canadian buyers have the same idea it seems, with a new report from BMO Private Bank highlighting their role in the recent resurgence of the Sunshine State's housing market.

Latest figures reveal that property prices have surged 12 per cent from the low-point reached in April 2011. This compares favourably to the overall US average - the national housing market has seen an upturn of nine per cent.

And BMO Private Bank claims Canadian buyers are doing much to support prices in Florida, as they head south to avoid the snow season at home. In 2010, Canadians accounted for 36 per cent of all real estate purchased by foreigners, and more than 500,000 nationals currently own property in Florida.

"Beyond the obvious attraction of great weather and beautiful beaches, there are two factors that are making Florida real estate an especially good value for Canadians," claimed Jack Ablin, chief investment officer at BMO Private Bank.

"The first is that Florida properties are a bargain compared to real estate in Canada. The median priced home in Florida is nearly half of a home in Canada. At the same time, the Canadian dollar is trading nearly ten per cent above 'fair' value versus the US dollar, arming snowbird shoppers with extra buying power."

In terms of Florida real estate locations, the Sarasota-Bradenton-Venice region proves most popular among Canadian investors (17 per cent), ahead of Orlando-Kissimmee (13 per cent), Miami-Ft. Lauderdale-Palm Beach (13 per cent), Cape Coral-Ft. Myers (nine per cent) and Tampa-St. Petersburg (nine per cent).

Foreign consumers may invest in Florida property for a number of reasons. While many desire a second home - and a warm haven for the winter - others recognise the potential rental opportunities, particularly where overseas tourists are concerned. Others may desire Florida real estate as they approach retirement and consider a new life in a foreign land.

Russians heading to the Balearics

Tue, 16 Apr 2013 13:05:51 GMT

Balearic property buyers will need to fend off competition from Russian investors, as the eastern Europeans flock to the country. Sotheby's International Realty explained that the islands are becoming more attractive to wealthy Russians, thanks to improved hotel and leisure facilities. Visitor numbers from this part of the world were up 23.4 per cent in 2012 and all three Balearic airports now have links to the nation.

This means that not only is the property market likely to witness more Russian activity, but holiday let investors can benefit from this emerging market. According to figures from Mallorca's Hotel Association, overnight stays among Russians have increased by 34.1 per cent, with a higher-than-average stay of 11.6 days. Tourists from this nation spend an average of more than €162.8 million on the islands - up by 19.7 per cent since 2011.

Sotheby's International Realty claims this is the result of improved connectivity between the country. Daniel Chararria Waschke, managing director of Balearics Sotheby's International Realty, explained: "At March’s Moscow International Travel and Tourism exhibition, Russian tour operators confirmed that air capacity to the Islands would double and, for the first time, all three of our airports – Mallorca, Ibiza and Menorca – would be directly connected for the summer season. The Balearics are outperforming other Spanish holiday destinations in terms of percentage increase of Russian tourists and the expectation is for this trend to not only continue, but to soar."

The weather is also one of the main drivers behind Russian interest in the islands and with the Balearics increasingly tailoring their offerings to this market, demand is likely to continue. Already, the 26 golf courses and stunning marinas are proving popular. Investors looking to capitalise on the market should focus their efforts on the prime sector, choosing luxury property in key locations.

Taylor Wimpey Espana has also recognised the potential of the Balearics, explaining that Mallorca in particular is a popular port for cruise liners. With around one million passengers entering the island by sea each year, there are plenty of opportunities to tap into the growing number of tourists.

Is the South African property market turning a corner?

Mon, 15 Apr 2013 13:45:22 GMT

It seems as though there is light at the end of the tunnel for South African property buyers, with the latest Absa house price index showing positive indicators in certain parts of the market. The report showed year-on-year growth in average home values of the middle housing segment reached an upper turning point in Q1 2013, while low interest rates are making real estate more affordable. This means the market is becoming more attractive for a wider range of investors.

The Absa house price index is based on applications for mortgage finance in respect to middle-segment small, medium-sized and large homes. It tracked 11.8 per cent year-on-year growth in the middle segment in March, after a 10.9 per cent rise in February. Real price growth stood at 4.8 per cent annually in February, after adjustment for the effect of consumer price inflation, which was recorded at 5.9 per cent. Average nominal value of homes in each of the three middle-segment categories stood at R752,600 (small), R1,079,500 (medium-sized) and R1,609,600 (large).

Economic conditions also helped to keep prime and variable mortgage interest rates stable at 8.5 per cent per annum. Rising fuel prices and a weaker rand exchange rate have been driving inflationary pressure for headline consumer prices. The South African Reserve Bank expects inflation to average 6.3 per cent year-on-year in Q3 2013, before slowing to more than five per cent in Q4 2014. The repo rate stood unchanged at five per cent per annum. This stands against the background of an expected real economic growth rate of 2.7 per cent in 2013 and an inflation average of six per cent.

Absa explained: "Nominal year-on-year house price growth appears to be peaking in some categories of the middle-segment of the market, influenced by market conditions and slowing month-on-month growth in the past few months. Nominal price growth for the full year is forecast to be in single digits, with real price trends to be driven by a combination of nominal price movements and consumer price inflation."

Mallorca property will enjoy strong sun-seeker market

Mon, 15 Apr 2013 13:45:22 GMT

After a strong Easter period for the holiday rental market, investors will no doubt have their sights set on Spanish property. However, according to Taylor Wimpey Espana, those looking to benefit from the countless sun-seekers jumping on a plane this summer, should perhaps consider Mallorca instead. After all, over six million tourists visit the Balearic Island each year.

What's more, Mallorca is also a popular port for cruise liners and the extension of the pier means it can accommodate larger ships and more vessels. This is good news for the local tourism industry, with around one million passengers entering the island by sea annually. In 2013 alone, the port of Palma is expected to receive 449 cruise ships.

Marc Pritchard, sales and marketing manager of Taylor Wimpey Espana, commented: "Mallorca is quite simply a tourist hotspot. Every year cruise ships visit and prepare to set sail from the beautiful Mallorcan shore with an abundance of intrigued visitors flocking to the island to explore its many attractions coupled with sun soaked climate, over 43 striking blue flag beaches and high class restaurants."

Demand for accommodation increases significantly in Mallorca during the summer, particularly for property close to marinas or beaches. The island is considered a hub for the rich and famous, so there are also opportunities for investors to enter the prime market. However, demand still lies in the luxury villa segment, so new developments in top locations will generate the best yields.

This doesn't mean there aren't opportunities in more affordable market segments. El Puerto II in Cala d'Or has two bedroom apartments located in generous gardens, with three communal swimming pools. With prices ranging from €149,500, this is a sophisticated complex in reach of a blue flag beach, ensuring you'll have interest all year round. Following on from the success of Cala Magrana I and II, Taylor Wimpey Espana has also launched a third phase just 500 metres from Cala Anguila beach. Situated close to several golf courses and the marina of Porto Cristo, these two bedroom apartments with sea-views are a great opportunity.

Is Natal set to be new tourist hotspot?

Fri, 12 Apr 2013 17:36:14 GMT

There could be a new hot location in Brazil for the holiday let market, after it was announced Natal's tourist infrastructure will receive a boost. Secretary of state for tourism in Rio Grande do Norte, Renato Fernandes, outlined plans to upgrade the area, which is already popular for it beaches. Marinas, golfing ranges and five and six star hotels will be added under the new proposals. The possibility of a theme park is also being discussed.

It is hoped such developments will make Natal even more attractive to holiday makers and Brazilian property investors considering expanding their portfolio in the area will want to act swiftly. In particular, it is expected the site will become a hub for water sports tourism, to capitalise on its 400km of coastline and year-round sea temperatures of 26 degrees C.

Local estate agent uv10.com has shown particular interest in this part of the proposal, highlighting the small town of Sao Miguel do Gostoso as ripe for development as the Brazilian centre for windsurfing and kitesurfing. The world champions for both sports currently live in the area, indicating its potential.

While it is unclear whether Sao Miguel do Gostoso will be the site of new development, Mr Fernandes has promised that the 98 hectares of the historical centre of Natal will be restored into a pedestrianised open air culture attraction. Ecological tourism will also feature in the plans, with charities already working to protect sea turtles in Sibauma, Tibau do Sul and Pipa.

"Everyone has something to gain from tourism from the poorest to the richest," Mr Fernandes said. "I don’t think there is anything quite like tourism that can benefit the whole society... I think tourism is going to transform this state."

Getting to Natal will also be easier by March or April 2014, when the new Sao Goncalo do Amarante Airport is opened. Already the region is the closest part of Brazil to Europe, with under seven hours flying time to Lisbon.

La Caixa moving to dispose of housing assets

Thu, 11 Apr 2013 11:28:13 GMT

La Caixa banking group is moving to dispose of its toxic assets and is believed to be in talks to sell a package of 12,000 Spanish properties. A source told Reuters that the real estate units will go for more than €1.5 billion, making it the largest cleansing of housing assets by a lender. La Caixa will be competing against Sareb and other financial institutions to rid itself of distressed property, as banks try to make a big push to clear their books of repossessed homes and buildings.

Should La Caixa secure the deal for their property package, it will be a big move for the group. Such deals are rare, despite international private equity firms and hedge funds interested in 'bundles' of discounted property. With so many banks looking to shift distressed assets, investors can pick and choose units.

So far, price has been a major obstacle to ridding books of toxic assets. While banks have lowered values considerably, many buyers are looking for discounts that institutions are unwilling or unable to offer. What's more, with most buyers looking for contemporary villas, opposed to the style of property that dominates the books of financial institutions, interest is tempered.

For La Caixa, clearing distressed assets will be an important part of securing their future. However, any deal has yet to be confirmed. "The process is at a very early stage and could be done in various stages, so for now the numbers are just an estimate," the source told Reuters. Nonetheless, it is expected the package will include flats and housing in Madrid, Barcelona and other major cities. These assets are considered easier to sell or rent out than more remote developments.

Properties in popular tourism destinations also have considerable potential in the holiday rental market, giving buyers a steady income until house prices rise once again. With values at an all time low, this is potentially a lucrative option for investors and with forecasts suggesting recovery will begin in 2014, they need to act quickly.

Australian property among the most affordable

Wed, 10 Apr 2013 13:30:01 GMT

Those worried that Australian property will be out of their price range will be pleased to know that it is currently at one of its most affordable levels. The HIA-CBA Housing Affordability Index has shown that prices are now the most reasonable since the 2009 global financial crisis hit global economies, the Global Property Guide reported.

Data gathered over four years on mortgage costs, home prices and corresponding household income, showed that the market is prime for investment, favouring prospective buyers. These conditions are thanks to average wage rises, interest rate cuts and slow home price growth.

In Q4 2012, affordability levels in Australia had increased 5.5 per cent and 18 per cent year-on-year, with Hobart deemed the most affordable. Figures show that the market is certainly one of growth, with price levels rising 5.3 per cent in Sydney and 4.1 per cent in Melbourne over the final quarter of last year. However, the same performance hasn't been mirrored across the country.

According to Shane Garrett, HIA's senior economist, affordability levels would be even more favourable if lenders passed on the rates fully. This could also serve to stimulate activity, which is still struggling to pick up the pace. However, a lack of transactions isn't affecting property prices. Figures from RP Data showed that dwelling values across the combined capitals rose by 2.8 per cent between January and March 2013. This rise takes cumulative capital to 4.7 per cent since the market 'bottomed out' in May 2012.

The only city not to report an increase in property prices was Adelaide, but the market is still steady, making it attractive for buyers. Hobart also posted a price rise of 2.5 per cent, while Darwin enjoyed an increase of 2.4 per cent. However, it was Perth that was the site of the most growth, recording a 3.4 per cent inflation in dwelling values.

RP Data research director Tim Lawless said: "Since the capital city housing market bottomed out at the end of May last year we have seen dwelling values rise by 4.7 per cent after falling by 7.4 per cent from their market peak back in late 2010. The most significant recoveries have been recorded across Darwin, where values have risen 13.9 per cent since bottoming out in January last year, and Perth where values are up 9.4 per cent since the market trough in November 2011."