Milan EXPO 2015 Boosts City’s Rental Market by 10%
Milan is currently hosting the annual international EXPO event which kicked off on May 1st, showing until October 31st and has already seen positive benefits in local property markets. The impact has been significant, particularly with home prices still discounted by up to 30% on pre-crisis levels according to realtors based in the fashionable Italian city.
Diego Meani, sales manager Milan Sotheby’s International Realty remarked on the EXPO’s impact locally: ” We have already seen a 10% increase in rental enquiries since the start of EXPO 2015 and this positive impact on the market will continue throughout the event. There is also a positive outlook for how the EXPO will affect the sales market and we are expecting high levels of interest from foreign buyers from Switzerland, Belgium, America and the UK in particular throughout the event. “
” These buyers are attracted to the much loved Italian lifestyle along with the bargain property prices still available from the recession. Currently, prices are roughly €10,000-15,000/sqm for apartments in the centre of Milan and are 20-30% less in surrounding areas such as Rho. “
During EXPO Milano, the city will be a global showcase where more than 140 participating countries will show the best of their developments in technology providing solutions to vital issues such as famine and poverty. The event is set to welcome up to 25 million visitors to the 1.1 million sqm of exhibition space.
As property prices have declined in Milan in recent years, investor interest has grown particularly from Britain, Belgium and America. Now, these savvy buyers are renting their properties out on short-term contracts during EXPO and are set to receive a yield of 50% more than they would ordinarily, according to Sotheby’s.
Increased buying activity from foreign investors in Milan is underpinned by the huge investment that has poured into the EXPO site, with significant improvements in urban infrastructure in neighbouring towns contributing to rising demand for homes.
Milan has been attracting buyer interest from large-scale international investors, particularly drawn to high value opportunities in the commercial sector. Swiss global asset managers Partners Group acquired two central Milan office properties for clients, paying €233m in the deal earlier this year.
The firm with more than €33bn in assets under management said the two office blocks – one in Via Monte Rosa and the other in Viale Sarca – provided ” high-quality cash flows and feature long-term lease contracts with excellent tenants “. Partners said it bought the assets at an entry price which would enable it to realise ” significant value ” in a market with ” constantly improving fundamentals “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Turkey Promotes Tourist Hotspots at Korea Travel Fair
Istanbul has been enjoying quite some time in the investor spotlight, attracting significant foreign capital particularly to its hospitality sector. However, Ali Karakus director of the Turkish Embassy in Korea has been highlighting Turkey’s many other attributes while at the Korea Travel Fair at Coex in Seoul earlier this month.
Turkey, established as the bridge between east and west has long been a popular tourist destination for travellers from Asia although Karakus suggests that Korean tourists are missing out on a whole host of Turkish attractions because they are not exploring beyond certain areas.
” Perhaps due to the tourism agency’s choices, Koreans have visited limited areas in Turkey – Istanbul, Cappadocia and Pamukkale. This is only 10% of what we have to offer, ” he said.
Turkey has a varied landscape with shorelines on the Mediterranean Sea and Black Sea, eclectic architecture, breathtaking beaches, ancient sites and monuments, world-class ski resorts and golf courses. There’s literally something for everyone from every generation and offers fantastic value to holidaying families from both Europe and Asia.
” If visitors spend extra time touring nearby areas of the hotspots they will experience the full depth of Turkey’s attractions including outdoor activities, local food, customs and festivals, ” added Karakus.
During the Travel Fair, Mr Karakus recommended western Turkey, particularly the southern province of Antalya, known as the Turkish Riviera for its white sandy beaches, aqua-blue coves, ancient ruins and untouched countryside. The region has long been a magnet for international tourists and honeymooners and is the second most popular destination in Turkey, attracting 11.5 million tourists in 2014 particularly from Germany, Russia, Netherlands and the United Kingdom.
Antalya has a whopping 197 Blue Flag beaches with nearby resort towns that are lined with luxury hotels, waterfront bars, restaurants and shopping facilities. The Belek region in Antalya province has 17 golf clubs and 50 five-star hotels along the coastline.
Turkey aims to attract 50 million foreign tourists annually by 2023 which will mark the 100th anniversary of the founding of the republic. In 2014, more than 37 million international tourists visited the country placing it high in the ranks of the world’s most popular hotspots.
Turkey’s real estate market is shaping up in response to the government’s drive to boost tourism. Significant commercial investment in Istanbul, led by internationally branded hotel groups is now spreading to secondary tourist markets like Antalya.
Further investment in and development of the tourist sector in Turkey is set to have an advantageous impact on property prices, particularly in resort areas. Opportunities to invest in serviced hotel rooms in a number of branded hotels are available for those seeking to limit capital outlay. Property prices are generally still heavily discounted against pre-crisis levels although competition is gathering pace and it is likely that price growth will be marked in 2015.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Foreign Investment at all-time High in Panama
New data shows that foreign direct investment (FDI) surged a whopping 32.2% in Panama during the first three months of 2015, extending the country’s prolonged growth spurt of recent years.
According to research by Santander , Panama is the top recipient of FDI in Central America. After averaging €1.5bn revenues annually between 2004 and 2009, FDI inflows saw dynamic growth from 2010 reaching more than €4.4bn in 2014. Advantageous regulations for foreign investors and incentives introduced in 2011 have been attributed with increasing foreign investor sentiment in the tiny nation.
There are many benefits for foreign investors in Panama including its strong financial and investment freedoms. The country has several selling points:
It is politically stable and enjoys a degree of ‘protection’ afforded by the US
Panama has achieved economic stability with inflation maintained at 2% and its currency pegged to the dollar – currently enjoying significant strength
It has a beneficial tax environment with reduced taxes and a 0% VAT in the real estate sector
80% LTV mortgages with up to 30-year terms widely available
There is currently large-scale development of the real estate sector that is well underway with several construction projects in the pipeline
Significant tax exemptions are available for the development of tourism projects
Foreign money is mainly being poured into hotels, banks, property, electricity generation, commerce and manufacturing, according to data from Panama’s statistics bureau INEC . More than 65% of FDI in Panama comes from reinvested profits, while 22% comes from purchases of Panamanian companies’ shares by investors based overseas.
Foreign companies from outside the Colon Free Trade Zone contributed €110m to FDI growth in the first three months of this year, representing a 17% increase over the same period in 2014.
The country’s strategic location together with the almost completed expansion of the Panama Canal contributes to its strong growth outlook, proving to be a powerful magnet for private and institutional investors overseas.
Rogelio Alvarado of the Economy and Finance Ministry commented that: ” Panama offers favourable conditions for the reinvestment of foreign investors’ profits and the volume of additional investments is a solid vote of confidence on the business climate and Panamanian institutions “.
Panama is a fantastic destination not only because of its welcoming investment climate but also due to its spectacular and diverse landscape. It is possible to enjoy a taste of cosmopolitan living in Panama City with its impressive skyline that easily rivals Dubai and within hours escape to an idyllic white sandy beach in the heart of the tropics where you can take a dip in the Caribbean Sea.
For many years Panama has remained the top retirement destination for Americans who have long since enjoyed the many benefits that come from having the same status as a national. Now it seems that not only is the secret out but word is rapidly spreading among international investors.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
