Brits Snap Up One in Five Spanish Homes Sold to Foreigners
According to reports in The Independent newspaper, British property investors are taking full advantage of a weak euro in Spanish property markets in 2015, with one fifth of all foreign purchases in the country being snapped up by savvy buyers capitalising on the significantly increased purchasing power of the pound.
New figures published by the Spanish land registry show that Britons, more than any other nationality are taking advantage of a combination of favourable economic factors. In the last 12 months, the euro has fallen from around 80p to the pound to just over 70p, making holiday homes in the Spanish Costas more appealing to British buyers.
Slow price growth in Spain, coupled with rapidly rising property prices in the UK – in some instances by more than 10% a year – mean that Spanish property is making less of a dent in Britons’ wallets. In a report published by the Colegio de Registradores , 19.8% of all property bought by non- Spanish buyers in the first six months of 2015 went to UK buyers. German and other northern Europeans are stymied by the weak euro, while buyers from Russia and China have reduced activity in Spain’s property markets after being hit by sanctions or weakening domestic economies.
As many as 750,000 Britons live in Spain for at least part of the year. “The British market is by far the most important,” said Marc Pritchard, the Majorca-based sales and marketing director of Taylor Wimpey España, which develops homes in popular coastal areas. “There are several factors at play but people are starting to realise that after years of the Spanish housing market being depressed, it is beginning to pick up.”
Spain was one of the biggest victims of the global financial crisis, suffering one of the sharpest economic downturns in the Eurozone, sending property prices plummeting. Many British buyers suddenly found themselves heavily indebted and holding an asset that was worth a fraction of what they paid for it, after many had ploughed retirement savings into a dream home in the sun.
But greater confidence of economic stability at home is allowing people, especially those with plenty of cash, to look abroad for what are still bargain prices, some at 30% discount to peak levels in 2007. “Prices, while rising, are still low,” said Mr Pritchard. “Even in prime locations, properties are still at 2002 levels.”
The most popular destinations are the sun-kissed coastal areas, with some communities in Alicante and Marbella dominated by English-speaking residents. The house-moving website, Rightmove, says it is the grey pound that is driving the market. Britons aged between 55 and 64 are the most active in Spain, making up almost half of all enquiries about holiday homes. Those aged between 45 and 54 make up one third of all requests.
The research is in line with analyst-predictions made at the beginning of the year, ahead of changes to pension legislation in the UK which took effect from April, allowing pension savers to withdraw lump sums from their pension pot for any purpose. It was widely believed that this would stimulate property investment markets, particularly in BTL opportunities in the UK and Europe.
However, the dynamic of sharply increasing property prices in the UK has led to a shortage of investible asset opportunities, leading pension investors to look closer at overseas markets. When viewed with other countries in the Eurozone, Spain’s property markets remain consistently appealing to British buyers and this sentiment has increased further throughout 2015.
Crowdfunding opportunities are on the rise in Spain, as boutique investment companies get creative to capitalise on the increasing interest among British investors in income-generating property assets in the country. Housers, a Spanish-based crowdfunded investment group is hoping to raise around £90m to invest in 500 properties, most of them in Madrid, with a view to renting them out. House prices in the Spanish capital have risen by more than 5% this year.
Crowdfunding provides a real estate investment vehicle with entry levels from as little as £1,000, enabling investors to get in on lucrative property deals, while mitigating the risk considerably in the shared ownership arrangement. With the increased purchasing power of sterling buyers, Spain’s property markets offer the perfect opportunity to grow wealth from a lower base than at home and it’s perennial popularity amongst holidaymakers ensures a reliable return on investment and sustainable long term value.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Latest Archaeological Discovery in Turkey set to Boost Tourism
Turkey has been investing heavily in its tourist sector in recent years to great success and much of its capital has been spent in uncovering the country’s rich history which draws tourists like a magnet from all over the world.
Among the many areas being excavated to uncover Turkey’s ancient and fascinating history is the town of Anazarbus, formerly an ancient Cilician city situated in modern-day Antalya , and a popular area for tourism and international property investment. Archaeological digs have been underway since mid-2014 and the discovery of a gladiatorial ring, buried underground for centuries, has just been announced.
With a $335,000 grant from Turkey’s Ministry of Culture and Tourism also intend to excavate a nearby amphitheatre in the 4 million square meter city.
Beneath the amphitheatre are what are believed to be the arches and chambers where wild animals, including lions and tigers, waited to be brought into the stadium to fight the gladiators, according to Çukurova University archaeologist Fatih Gülşen, who is in charge of the project.
Anazarbus is on the outskirts of present-day Dilekkaya in the Kozan district of Adana Province, where the ruins are fast-becoming a major tourist attraction. The city had the only known two-lane road in the ancient world, stretching 2,700 metres and lined with monumental columns, which archaeologists are now restoring.
Now known as Antalya, the city is the hub of the Turkish Mediterranean and has a diverse landscape and dynamic economy, making it an investment hotspot for savvy property buyers. Antalya’s buoyant property market has transformed the region into one of the most exciting destinations for investment capital on the Turkish Riviera and with property prices remaining at significantly discounted levels from their peak in 2007, there are plenty of bargains to be found.
Antalya’s rapid economic growth has seen the city’s population double in ten years to more than a million in 2013 and property investors are increasingly looking for BTL rental opportunities in the local private rental market, achieving significant yields from occupying Turkish nationals in its up- and-coming suburbs. Antalya’s galvanised economy and subsequent positive growth throughout the region has bolstered real estate values together with the area’s international profile and there has been a flurry of investor interest in particular from buyers in the Middle East in 2015.
Turkey is a country where East meets West, giving it a diverse cultural history that has enormous international appeal. It’s wealth of ancient monuments and historical sites are a significant pull for tourists from all ethnicities and cultures and, for that reason, the country’s property markets are becoming much more active in terms of transaction volume which ultimately is pushing up prices in Turkey’s popular investment destinations, like Antalya.
The whole region is a goldmine of rental potential with annual yields reaching as high as 8% for exceptional sea view and exclusive Antalya properties and homes in Antalya Konyaalti and Lara Beach areas can be let out throughout the year for a steady annual income. Average property prices have increased by more than a staggering 100% over the past 10 years, making the area exceptionally desirable to property investors from all over the world.
Article by +Roxanne James on behalf of Propertyshowrooms.com
French Regional Cities in Focus as Investors Look Beyond Paris
As property prices in Paris continue with their upward movement, restricting yield opportunities for international investors, many are now seeking value in regional cities such as Lyon, Marseille, Toulouse, Bordeaux, Nantes, Lille and Strasbourg.
According to JLL, France is one of the only European markets having a worse 2015 than 2014 although it is largely due to lack of product. At a presentation at the recent Munich trade fair, David Green-Morgan, JLL’s global capital markets research director said: ” Over the past 2-3 years we have seen a change in behaviour. Now investors, particularly from Asia are seeing real estate, particularly in Europe as a safe haven – and the emphasis on wealth preservation especially from Asia has become more important “.
Although many investors tend to focus on bigger cities such as Paris, a lot of capital is looking to generate more aggressive returns and therefore there is a rising interest in regional opportunities. This is a trend that is also happening outside London in the UK and outside the Big Six in the German market, (Munich, Düsseldorf, Frankfurt, Berlin, Hamburg and Cologne).
Peter Rawls, investor relations director for the huge Euroméditerranée urban renewal project on the sea front in Marseille, said yields in prime offices in the city are between 5.76% and 6.1%, comparable to other regional cities in France. Availability of capital is not the problem and many large investors such as Germany’s Union Investment Real Estate and US manager Pramerica are already allocated. ” The main challenge is that those who are already invested don’t want to sell “, he said.
However, regional cities are attracting families through quality of life and industry is stepping up to provide employment. The Airbus group has it’s headquarters in Toulouse with divisions in other French regions and its main helicopter arm is based near Marseille airport. Marseille also acts as a gateway to Africa which is attractive for commercial real estate investors, particularly from China.
Jean-Philippe Blangy, managing director of UK-based fund manager Tristan Capital Partners said his firm hasn’t yet developed a strategy for French regions but is beginning to look at more opportunities in France. All the major regional cities are attractive for potential office investment, while retail value can be found throughout France, even in smaller locations. ” We have €5bn of assets under investment and most of that so far in Germany, UK and Spain – but there is no specific focus on the regions “, he said. ” In France our investments are 100% in Paris and zero in the regions “.
According to Blangy, the yield spread between Paris and Marseille is much wider than that between Berlin and London, and even regional cities in Germany are closer to less attractive capital market yields.
” But in France the yields are still more attractive and the good thing in France is that you can still get decent financing “, he said, adding that foreign investors have an inaccurate perception of value in French residential property where he believes rent restrictions are no more hindrance than in Germany.
Green-Morgan indicated there is a reversal of the global trend out of the regions and into the major cities. In France, the efficient rail infrastructure is helping this trend. A lot of Asian capital is coming to Europe and holding long term, he said.
” Most of the Asian capital is focusing in general on locations where it can close deals more easily. But what we are seeing particularly from the Chinese capital is that it is much more inclined to go into regional markets now, and particularly on the development side “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
UAE Property Portal Raises $9m Venture Capital for GCC Expansion
One of the UAE’s most successful property portals, Bayut.com has announced plans to expand further into GCC property markets, after securing $9 million in venture capital from three global investment funds.
Bayut.com ‘s holding company Zamzama Property Group, which also controls Zameen.com, Pakistan’s leading property portal, has received investment from three funds including Vostok New Ventures, which also invested $34m in BlaBlaCar, the world’s largest long distance ride-sharing community last month.
Vostok’s managing director Per Brilioth has joined Bayut’s board of directors and the portal also welcomed Middle East property experts Simon Baker, Roland Tripard and Gilles Blanchard to its team as part of its significant push towards expansion in the GCC.
Haider Ali Khan, CEO of Bayut said: ” Bayut has been busy working on its business intelligence and gathering quality resources for expansion into Saudi Arabia and other GCC markets. The results have been overwhelming and, with the right people on board who possess the right know-how for expanding into new markets, we’re set to move forward aggressively “.
Property markets across the Middle East have shown mixed performance in 2015, with speculation swinging like a pendulum between boom and bust forecasts, particularly in residential markets. A shortage of affordable supply across the region has significantly reduced transaction volumes, according to official statistics.
However, foreign investment in GCC property is on the up, as property price declines outstrip falls in rental values, resulting in significant yield opportunities. This dynamic is particularly strong in Saudi Arabia which has seen transactions plummet 14% since last year, according to figures released by the Ministry of Justice in August. The Saudi Gazette reported that the total value of real estate deals completed so far this year has reached $74bn, including commercial and residential transactions.
Saudi property developer Ibrahim Al Subaie was quoted in the Saudi Gazette as saying: ” The percentage of real estate deals in some parts of north and south Jeddah and in Asfan and Dhahban dropped by 20% since the beginning of the summer holiday. In areas with low population density the rate dropped by 30% “.
Despite difficult market conditions, Bayut has continued from strength to strength, returning more than 100% year-on-year growth across all metrics so far in 2015, including paying agencies and traffic while its competition stagnated in the face of a slow UAE market .
The portal’s newly appointed Chairman Gilles Blanchard, one of the founders of SeLoger, the largest French property portal commented: ” Bayut not only has the best brains in the business but also boasts the requisite expertise and resources for providing the best solutions to the industry’s needs. With the excess capital at our disposal, we are going to invest further in technological innovation and providing an unprecedented quality of service in the markets we tap into “.
There are plenty of opportunities for price growth in Saudi’s property market, with realtors Colliers International identifying an investment hotspot called Half Moon Bay, located south of Al Khobar and Dhahran. The region is frequently visited by Saudi families during weekends and holidays and it’s a popular place to own a vacation home.
With significant residential development in the area and more in the pipeline, Half Moon Bay has experienced high demand, achieving 152% higher than average selling rates in 2014 and on target for a similarly stellar performance this year. Colliers attribute the significant rise in interest in Half Moon Bay to its leisure focus, with villas and chalets in midscale and upscale resorts in the area.
Bayut’s considerable experience of operating successfully in difficult conditions and identifying growth areas ahead of the competition through its dedication to top quality property market research is set to project the portal to dominance in the Middle East, as it expands further into other GCC markets.
Article by +Roxanne James on behalf of Propertyshowrooms.com
London Still Tops Popularity Polls for European Property Investors
According to the latest LaSalle Investment Management’s European Regional Growth Index (E-REGI) , which ranks Europe’s top 100 cities, London has once again taken first position in the ranking.
The report highlights London’s resilience combined with its deep investment market, justifying the city as a target for a wide range of investment strategies. Other UK cities increasingly coming to the fore include Manchester, ranked 17 th and Bristol at 25 th position, both having climbed three spots in the European ranking, while Birmingham is up two places at 37.
” Having published this index for 16 years, we now have an unrivalled understanding of the different economic patterns in Europe’s leading cities, ” said Mahdi Mokrane, LaSalle Investment Management’s head of research and strategy for Europe.
” The index not only determines which real estate markets are likely to out or underperform in the medium term, but combined with our on the ground expertise, we also use the index as a strategic framework to match cities with the most relevant investment styles, ” he explained.
Paris takes second place once again according to the survey and the top two cities are Europe’s most consistent performers, although balanced scores and consistent performance over time are not limited to the top of the ranking. Munich, Frankfurt, Hamburg, Stuttgart and Amsterdam are also suited for value-add or opportunistic strategies, the report states. Düsseldorf, Mannheim-Karlsruhe, Cologne-Bonn, Rotterdam-The Hague, Utrecht, Edinburgh and Leeds are also included in the group but the report says core investment in prime markets would be more suited given their smaller market size.
Emerging markets that are receiving increased attention from real estate investors seeking enhanced returns are found in Turkey the report states, with Istanbul scoring highest due to strong growth performance and outlook and the cities of Izmir and Ankara as solid contenders. The cities of Warsaw and Prague continue to benefit from balanced economies and progressive policies, leading to increased growth and investment activity in the Polish and Czech Republic capitals.
Meanwhile in London, there seems to be no let-up in foreign buyer interest in the city’s real estate and there are still plenty of entrants in the market wanting to buy in the capital. Foreign investors are particularly dominant at the top end of the market. Of the 111 deals worth £150m in the past three years, 84% involved foreign buyers, according to international estate agents Cushman & Wakefield.
Total investment volumes in the central London market hit a record £24.6bn last year, Cushman & Wakefield’s data shows, and the agent predicts that this year could exceed that figure. The autumn deal-making season is usually the busiest, as investors seek to empty their bank accounts before the year-end and experienced advisers expect the coming months to see a particularly large number of transactions.
Stephen Down, head of central London and international sales at estate agency Savills, says there will be a ” fairly substantial uptick in stock coming on to the market “.
” The temptation is to think that this means they are calling the market, but that’s not the case, ” he adds. ” It is often private equity companies looking to take profits and return them to investors “.
The extended global downturn after the financial crisis meant that London’s commercial property market took a long time to recover, Mr Down says, and some fund managers that brought early in the cycle are reaching the end of their fund’s life and need to cash-in.
It seems that those leaving through the revolving door of London’s property market are still bumping into newcomers heading in the other direction. Despite prices and yields being back at pre-crisis levels, plenty of investors are still piling in.
The biggest buyers in the city in the year to date have been Canadian and US investors, according to Cushman data, investing £6.5bn between them so far this year. They are ” the bedrock of the market “, Mr Down says. ” The market in the US has recovered and there is limited stock to be bought, so as a result that money is flowing over here “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
