Caribbean Real Estate on Investors’ Radar
Both real estate and tourism have been experiencing significant growth in the Caribbean and Central America over the last 18 months. Savvy property investors are stepping up their search for bargain investment properties with increasingly more British buyers taking advantage of sterling strength.
The high quality of living, good value for money and political and economic stability are factors that reinforce the appeal of Caribbean real estate, particularly in the face of social, economic and political volatility in other regions of the world.
Walter Zephirin, managing director of London-based 7th Heaven Properties said : ” Many investment locations such as the Turks & Caicos, the Bahamas and the Cayman Islands experienced strong growth last year and we expect 2015 to be the year that the Caribbean real estate market as a whole turns a corner. A growth in enquiries from prospective buyers indicates a renewed confidence in the region and sales levels on many islands are returning to pre-crisis levels “.
He added, ” Locations across the Caribbean and Central America are benefiting from an upturn in the USA, Canada and the UK resulting in an increase in visitor arrivals, tourist spend and property sales. A growing pipeline of new projects, significant infrastructure investments and a thawing in relations between the USA and Cuba are also expected to provide an additional boost to the region. “
Tourism growth has encouraged further investment in the Caribbean’s real estate and with a pipeline of 167 hotel projects in development across the Caribbean and Mexico is likely to spur expansion in the tourism sector further.
Luxury residential developments are also in the pipeline in multiple locations including Antigua, Costa Rica, Honduras and Panama. With plenty of government programmes incentivising property buyers in Antigua & Barbuda, Granada and St Kitts & Nevis and retirement programmes in Belize and Panama, growth across the region’s real estate market looks set to soar.
 
Article by +Roxanne James on behalf of Propertyshowrooms.com
Tourists Switching from Tunisia to Spain in light of Terror Attacks
Spain looks set to be the biggest beneficiary from a mass move to switch holidays in Tunisia to safer destinations in the sun.
Tourism in Tunisia was on its way to recovery after the Arab Spring unrest of 2011 with 2.8 million tourists visiting the country last year according to official statistics.
However, last month’s attack which saw 38 holidaymakers killed by an Islamist gunman – mostly Britons – has added to mounting security fears and heralded mass-avoidance of Tunisian resort areas.
Spain is expected to gain the most from this shift in destination because the country targets a similar type of tourist to those travelling to Tunisia – those seeking a value for money all-inclusive holiday in the sun.
Chairman of the Spanish Hotel Federation Juan Molas said: ” It’s clear that some tourists will now change Tunisia for continental Spain or the Canary Islands but they will have to pay more, ” commenting on the difficulty in finding last-minute flights and accommodation in Spanish resorts.
The biggest groups of European tourists to Tunisia come from France, Britain and Germany. The British Foreign Office advised all nationals to leave Tunisia on July 9th, forcing a mass evacuation of tourists and British expats in the country and have since advised against all non-essential travel to Tunisia.
For those British holidaymakers left stranded at the last minute with summer bookings in Tunisia, they have been forced to look elsewhere for their summer holiday. Spain is the natural second choice in this scenario because of the country’s perennial popularity with British holidaymakers.
Spain enjoyed a record-breaking year in its tourism sector in 2014 and looks set to break them all again in 2015. Availability of short-term accommodation has been difficult since around March this year as Brits book their holidays ahead of the crowds.
No doubt the dust will settle in Tunisia’s market and its popularity with British holidaymakers will return once again. The country’s enduring appeal can only be resisted by tourists for so long, after all.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Foreign Investment in Turkey’s Property Market set to Double
Turkish real estate has been popular with international property investors for more than 10 years, recording around 25,000 sales to foreigners annually.
Turkey builds around 700,000 properties each year
Despite sounding like a very healthy figure, Turkey builds around 700,000 properties each year with just 3.5% of sales going to foreign investors. However, rising investor sentiment over the last two years has led to industry professionals predicting a potential increase in foreign property purchases to 60,000 annually.
Haluk Sur of Cushman & Wakefield Turkey said: ” There are no obstacles to Turkey reaching this volume. The country must however, act very carefully on the road to achieving this goal. The sector needs to focus on selling properties to foreigners who will use them with their families or for themselves, rather than potential buyers who make huge volumes of acquisitions in order to create big price fluctuations in the market “.
Concerns are mounting that Turkey may follow the same path as the UK where investment has inflated house prices to an extent that homes have become less affordable in the domestic market for those wishing to buy their principal residence.
Sur added: ” Turkey needs to develop solid policies to lure foreign buyers who want to use their potential homes in Turkey for several weeks or months rather than others who buy many properties just to sell on later or rent out. “
Parallels are also being drawn between Turkey and Dubai in 2008, when the Emirate experienced a boom/bust in its housing market as a result of huge levels of foreign investment.
Turkey will be a very attractive market for foreigners
” Dubai faced this boom effect in the housing sector in 2008 and is still trying to normalise conditions. Acquisitions should spread to a wider geographical location at different price scales. When such a market is created, Turkey will be a very attractive market for foreigners, ” he added. Istanbul has received most investor attention among Turkey’s property markets, particularly in the offices and hotels sectors although buyers are being urged to look further afield for value.
Mr Sur said: ” It is not right to concentrate on Istanbul too much for the sector. Other centres of attraction must be created. Actually some cities elsewhere in the country have been developing rapidly such as Bursa in the northwest, Antalya on the Mediterranean, Izmir on the Aegean, etc. There are other centres that have huge growth potential including Gaziantep in the southeast or Kayseri in Central Anatolia. With the required infrastructure projects and employment opportunities, more people will opt to live in these cities “.
Economically, Turkey has achieved relative stability in the last 2 years and annual GDP expansion of 4% is expected in 2016, creating a nice dynamic for investment. However, investment returns in Istanbul are unlikely to rival those found elsewhere in Turkey where prices are set to experience more gradual growth, presenting better margin opportunities for investors.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
