Irish Property Gains Price Traction in April
After a the first months of the year saw declines in Ireland’s residential property market suggesting the market was losing momentum, April’s data shows the upward price trend may be resumed.
Nationally, average house prices increased 0.6% during April according to the latest Residential Property Price Index published this week. Dublin, already identified as an investment hot spot for property investors in 2015 by industry experts, buoyed the national figure significantly with a strong 1% rise in its centrally located residential sector.
The new data shows April’s upward price movement follows a small gain in March and declines of 1.4% in January and 0.4% in February. Concerns are mounting that prices will continue rising driven by severe lack of supply which could lead to instability in Ireland’s housing market.
According to the data, April saw national average property prices at 15.9% higher than a year earlier, with Dublin’s prices inflating by 20.2% for the same period.
There are concerns that the bottleneck in supply combined with an improved lending climate and increasing investor interest could lead to the market combusting completely.
Ireland’s economy is in full-recovery mode which is attracting investment from both domestic and foreign sources. Consumer confidence is at its highest since 2006, unemployment is declining and favourable improvements to taxation have resulted in increased disposable incomes; all the dynamics are there to appeal to savvy investors.
Ireland has also seen considerable growth in rents with the data showing that private rents increased a whopping 8.7% year-on-year in April. Again, there are concerns that this will out-price local residents who face limited housing supply across Ireland as it is.
On balance there is much to offer property investors in Ireland , particularly those in dollar denominated countries or with currencies pegged to the dollar, with purchasing power rising as the euro scrapes closer towards parity.
There is also much to be aware of when entering Ireland’s property market, particularly with income-generating assets. Rental growth is great from a landlord’s point of view but only for as long as tenants can afford it. With rental growth massively outstripping wage growth, this is an uncomfortable dynamic for many buy to let investors in the market.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Istanbul on Target to be Investment Hotspot of the Year!
Towards the end of 2014, the perennially popular city of Istanbul in Turkey was being identified as a rapidly emerging hotspot for property investment. Less than half way through 2015 and recent numbers from the Turkish Statistical Institute ( TÜÍK ) show property prices in Istanbul are increasing at 20% year-on-year, proving many positive forecasters to be completely accurate.
The stats show that in the year to April, property sales in Turkey increased 42.7%, driven by the sale of 23,197 homes in Istanbul, almost 10,000 more than the capital, Ankara.
Almost half of total transactions are made of new-build sales, reaching a record 52,958 across the country, representing a gain of 40.1% year-on-year. 20.3% of new build homes sold were in Istanbul.
The exponential rise in Turkey’s property prices is attributed to increased demand from the Gulf region, propelling foreign investment by 14.7% over the 12 months to April.
Domestic demand in Turkish property has also improved on the back of stronger economic fundamentals and low mortgage rates. According to the institute’s press release, mortgaged house sales throughout Turkey reached 46,063, increasing 96.5% compared to April 2014. The majority of property transactions with mortgage finance were in Istanbul with 9,718 sales, representing a mortgage market share of 21.1%.
Istanbul sold the most properties to foreigners during April, with 584 transactions followed by Antalya with 507, Bursa and Yalova 133, Aydin 90, Mersin 76 and Sakarya with 63 house sales to overseas buyers.
Director of leading estate agency Spot Blue International , Julian Walker said: ” These figures show that foreign buyers account for every 1.5 transactions every 100 sales, with the importance of these foreign transactions growing significantly over the last month “.
” In Istanbul, the demand is coming from the Gulf, from a number of countries with many buying for both personal use and investment. The proximity of Istanbul to the Gulf region and lifestyle work well with these Gulf citizens, ” he added.
Adil Yaman, director of Turkish estate agency Universal21 believes the country’s rapidly expanding infrastructure, economic development and relative property values make Istanbul a particularly attractive investment destination.
” Istanbul has much to offer both the short-term visitor and the longer-term property purchaser. There is a really positive, exciting vibe of growth and evolution in the city today, drawing international attentions and increasingly so, ” he said.
Set to bolster property markets further is the significant 5.5% annual rise in international visitors to Turkey. Istanbul was the most googled location in the world during 2014 and the city itself saw an increase of 8.99% in visitor numbers, according to the Turkish Ministry of Culture and Tourism.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Algarve Driving Growth in Portuguese Real Estate
The Algarve region of Portugal is one of the most popular tourist destinations in Europe. Having suffered more than other countries after the economic downturn, the vibrant country is now making a come-back and is very much in favour with foreign property investors once again.
Such is the turnaround that real estate experts are forecasting growth in Algarve property to reach a whopping 3% in 2015.
According to the RICS/Ci Portuguese Housing Market Survey (PHMS) published recently, property prices across Portugal are expected in to increase by around 4.5% a year for the next five years.
Buyer confidence together with property values remains highest in Lisbon, Porto and the Algarve where rental growth has also been concentrated. Domestic sales have also been boosted with banks offering more mortgage finance as confidence in the country improves.
Director of Ci, Ricardo Guimarães said: ” Recent statistics show new mortgage loans increased 20% during the second half of 2014. This is naturally being felt by agents. Their comments suggest this is the main factor changing the market as banks area gradually starting to lend to the sector again “.
The report also showed new buyer enquiries increasing in April and extending a run of uninterrupted demand growth going back to August 2013 and agreed sales rose for the 14th consecutive month.
Industry expert Chris White of Ideal Homes Portugal said: ” Obviously Portugal has gone through some tough times but the country has worked hard to put the bailout money to good use and has turned its fortunes around over the past four to five years. It has been a struggle at times with austerity measures impacting deeply on the peoples’ psyche as well as their pockets but the results of that effort are now beginning to become clear “.
The outlook for Portugal’s property market has been considered optimistic since the third quarter of last year when house prices across the Eurozone rose by 0.5%, showing gains for the first time since the crisis. According to data released at the time, prices in Portugal increased by almost 5% during the last half of 2014, with the Algarve enjoying the lion’s share of price rises.
The pound has gathered strength against the euro for the past 12 months, giving 15% more purchasing power to British buyers. Portugal is a long-term favourite destination for British property investors and with the chance to get more bang for their buck, they have been piling into property on the Algarve, making hay while the sun shines.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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