Jamaica’s Hotel Sector Receives US$200m Boost from Investors
Around US$200m has been pumped into the tourism sector by international investors for the construction of two five-star hotels.
The hotels are to be located in the parish of Trelawny in Cornwall County, northwest Jamaica and will provide 800 additional rooms and 1,000 permanent jobs in the Caribbean country’s hospitality sector.
The investment has come from Ocean by H10 Hotels, a Spanish and Canadian joint venture group. Design work for the properties has commenced, and construction is slated to start in 2016, with the openings set for late 2018.
At a press conference at the Jamaica Tourist Board’s (JTB) New Kingston offices on Monday, November 16, where the announcement was made, Tourism and Entertainment Minister, Hon. Dr. Wykeham McNeill, said the investments in the sector will deliver over 10,000 spin-off jobs over the next two years.
” We are seeing a boom in the tourism sector now that is unprecedented. We are going to get new properties, we are creating linkages, so that Jamaicans, and Jamaican companies can benefit from the investments that are taking place, ” he said.
In October, the international hotel chain, Karisma Hotels and Resorts, announced an investment of over US$900 million to add some 4,000 more hotel rooms over the next decade.
By December 2015, some 2,694 new rooms will come on stream, as a result of upgrading and expansion of existing properties, as well as construction of new hotels, from an investment of US$500 million.
The Tourism Minister said with the jobs flowing, his Ministry is working with agencies such as the Housing Agency of Jamaica (HAJ) and the National Housing Trust (NHT), to ” ensure that the housing for the workers is all put in place “.
An investor with Ocean by H10 Hotels, Carlos Moleon, credited the measures being undertaken by the Government, which have made the country attractive for business, saying the Administration is doing a ” great job with their reform towards bringing in foreign investors. That is why H10 has decided to invest in Jamaica “.
For his part, Chairman of the JTB, Dennis Morrison, said the agency will ensure that subsectors such as manufacturing and agriculture can seize opportunities from the investments.
” The agriculture sector will feel the impact of that and we are coordinating the efforts, so that investors in the economy, such as furniture manufacturers, can benefit fully, ” he pointed out.
Jamaica remains a luxury property market and foreign investment has been consistent in 2015, particularly for properties value at USD$1m . As one of the most developed Caribbean countries, there is a wealth of opportunity for savvy investment in its property market and with the hospitality sector meeting rising demand from tourism, there are significant opportunities for high-yielding investment.
Article by +Roxanne James on behalf of Propertyshowrooms.com
UK House Prices Still Rising Despite Improving Supply
According to the Office for National Statistics this morning, UK property prices rose by 6.1% in the year to September 2015, up from 5.5% in August. The biggest jumps were seen in the east and southeast of England, and London, as usual.
Meanwhile, housebuilders have been reporting that business is booming. Taylor Wimpey’s chief executive has reported a record order book, boosted by wage growth starting to outpace inflation. It appears that construction is now rising to demand and supply of housing in the UK is increasing.
In the past year, more than 155,000 homes have been built, up by 25% year-on-year- significantly higher than previous estimates of just over 124,000 new homes. They feel they’re not getting enough credit for contributing to supply.
In addition, more than 20,000 new homes were created by converting commercial premises. That was up by 65% on last year. In some cases, established businesses have been evicted by landlords keen to benefit from the increase in their property’s value that comes from its conversion to residential use.
In London, more than 24,000 homes have been built, compared to earlier estimates of just over 18,000. Some of the capital’s most expensive areas saw their housing completions more than double in the most recently published statistics.
However, there is another major factor in the UK housing market, which explains affordability problems which is that it’s not just about the supply of houses – it’s about the supply of money.
With mortgages harder to come by and cash sales to investors an ever more important part of the market, it’s hard to see what will replace demand when interest from foreign buyers starts to wane. With interest rates still more likely to rise than to fall further, support is unlikely to come from the ordinary buyer in the street.
Estate agent Savills has published research highlighting the scale of the looming affordability crisis in UK housing, claiming 350,000 people will need financial assistance to rent or buy property by 2020. According to the figures, around 70,000 new households a year will be unable to afford the market rate for rental or mortgages each year for the next five years.
Houses for sale in the run up to Christmas are typically priced lower to attract buyers in a quieter market, but with low mortgage rates holding up demand at a time when supply remains low, asking prices have fallen by just 1.3 per cent, according to The Times .
Overall, the outlook for the UK property market in 2016 is generally bright, with conditions for homebuyers expected to ease, improving affordability and slowing price growth to more sustainable levels.
Article by +Roxanne James on behalf of Propertyshowrooms.com
UAE Investors Spend 4.3bn EUR on Overseas Property in H1 2015
High net worth individuals (HNWIs) and private investors in the UAE spent €4.3bn snapping up properties across the world in the first half 2015, according to CBRE.
” Despite low oil prices, Middle Eastern purchasers remain very active, collectively investing €10.8bn outside their home markets in first half 2015. Almost €4.9bn and €4.3bn flowed out of Qatar and UAE respectively into direct real estate globally during the period, ” the property consultancy said in a report.
Nick Maclean, Managing Director, CBRE Middle East, said: ” Data from H1 2015 shows a continuing acceleration in the flow of capital out of Middle East region by private offices and HNWIs. This, to some extent, is compensating for a decline in sovereign wealth capital going overseas, naturally perhaps as a consequence of reduced revenue allocations because of recent oil re-pricing. The interest in overseas investments, particularly from the UAE, is also being influenced by some uncertainties in local real estate markets “.
Global commercial real estate investment reached €3.8bn in the first half 2015, the strongest first half of a year since 2007, and up 14 per cent year-over-year.
Although rapid growth has been maintained for several years, the rate of growth slowed during the said period and was vastly different at a regional and country level. The Americas experienced growth of 31% year-on-year, while a strong dollar impacted activity in EMEA (Europe, Middle East & Africa) and Asia Pacific (APAC). In dollar terms, EMEA was up just 5 per cent from H1 2014, with APAC down 19% year-on-year. When measured in local currency EMEA grew by 25%, while a decline in APAC was more muted at 9% year-on-year.
While recent activity was boosted by a few large sovereign wealth fund deals, the investor base is growing and so is their investment strategy towards greater geographic and sector diversification, with activity spreading beyond gateway markets to second-tier locations in Europe and the Americas, and more recently towards Asia Pacific.
Cross-border investors have grown in influence to become an important driver of commercial real estate investment globally, particularly in the last 24 months, and are changing the shape of the market. The world’s leading destinations, in terms of global capital flows, is a balanced mix of cities across all main regions—London was the most targeted city by cross-border investors in H1 2015, followed by New York and Paris.
This contrasts with the top destinations for overall investment where the bias is strongly on the US—New York was the leading city overall, followed by London and Los Angeles, the report said.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
