NEWS
Brexit making people look abroad
30% increase in UK Citizens planning to move abroad after Brexit
Moments after the shock of the EU referendum result the cost of living calculator from the Expatistan site said:
“The number of people comparing UK cities and cities abroad spiked to over 50% It comes as no surprise that the correlation between how a city voted and people researching to move abroad showed positive.
The lower the percentage for those pro Brexit, the lower the interest to move out of the UK. With locations where Remain votes where higher, the interest to move abroad grew higher.”
USA and Australia where the top 2 countries people were looking to move to, with Spain coming in third.
Here at Propertyshowrooms.com we have also noticed such an increase in property searches and notice that on our portal we find that more people have been searching for property in Spain, Cyprus and Portugal and further abroad to the UAE and Thailand.
Another notable result of Brexit is that a lot of Brits are researching how they can keep their EU passports.
The cover of a British passport reads “European Union”, when the UK leaves Europe, this will no longer be the case as it will cease to be an EU passport.
A possible route to an EU passport is marriage. For example, the spouse of a citizen of Spain can become a citizen after only one year of wedded bliss.
Article by +James Roberts on behalf of Propertyshowrooms.com
read moreLuxury Condo Prices to Remain Flat in Malaysia
As new development projects are completed in Kuala Lumpur and fringe locations, competition in the rental market is expected to heighten amid a weak Malaysian housing market.
Property prices in the high-end condominium segment will remain flat, while rental prices fall, due to increased competition between existing units and new launches, said property consultancy firm Knight Frank Malaysia.
The increasingly competitive property market is also forcing developers to be more innovative, with attractive packages and creative deals being offered to boost sales, it said.
In its report called Knight Frank Malaysia Real Estate Highlights 2H2015 , the firm said this may also lead to some of the projects scheduled for launch by the first half of this year, to be deferred.
” There has been an increased trend of projects offering leaseback arrangements and pool management programmes with guaranteed rental returns to boost sales and attract potential buyers and investors looking for long term investment in terms of rental returns and potential capital appreciation, “.
The report added that potential buyers and investors, however, would continue to adopt a ” wait-and-see ” approach as market sentiment remained weak.
In the third quarter of last year, Kuala Lumpur recorded 1,694 transactions in the condominium and apartment segment, 6.3% less than a year earlier.
For the office market segment, in Kuala Lumpur and Selangor, it said there was growing pressure on rental and occupancy levels due to the high supply pipeline of existing as well as new stock, and a weaker leasing market.
” The depreciation of the local currency and volatility in commodity prices coupled with economic and political uncertainties do not bode well for the office market which traditionally have been driven by the services sector and oil & gas (O&G) businesses “.
” The contraction of the O&G sector, the main lifeline of the office segment following the plunge in crude oil prices, has negatively impacted the market “.
” Tenants continue to be spoilt for choice with attractive rentals, incentives and tenancy terms “.
The firm said rental rates could fall due to heightened competition in the tenant favoured environment.
With business confidence at a low, coupled with the economic slowdown, it was inevitable that the take-up rate and overall occupancy levels would be impacted, it said.
” Nonetheless, rental rates of well-located good grade, dual-compliant office space are expected to remain resilient, ” said Knight Frank.
In the Klang Valley retail market, Knight Frank said the weak local currency and recent toll hike were expected to further dampen consumer sentiment over the next six months as disposable income falls.
” Majority of retailers are adopting a ‘wait- and-see’ approach and caution in their expansion plans amid poor sales performance and reduced profitability “.
” A handful of regional and local retailers operating several brands are taking up larger lots at competitive tenancy terms with attractive rentals and incentives to improve space and cost efficiencies “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreHong Kong Housing Ranked Most Unaffordable in the World
According to the 12th Annual Demographia International Housing Affordability Survey of 87 global cities by US think-tank Demographia, property in Hong Kong is the most expensive in the world while that in the US is the most affordable.
The report shows that the four most affordable housing markets, all with home prices 2.6 times median annual income, were found in the US – New York’s Buffalo, Cincinnati, Cleveland and Rochester. Overall, cities in the US have the most affordable housing according to the Demographia list.
At the other end of the spectrum, housing in the bustling port city of Hong Kong in southern China is classified as ‘severely unaffordable’. Property prices are on average 19 times median annual income. Second from the bottom of the list is Sydney (12.2 times) followed by Vancouver (10.8 times).
The rankings are based on the ‘median multiple’ of the respective housing market, ie the median price of property is divided by the median annual income before taxes. Cities with a median multiple of 5.1 and over are ranked ‘severely unaffordable’.
Housing affordability in Hong Kong is its worst since Demographia started its survey, in part due to well-off mainland Chinese buyers investing in Hong Kong property. US monetary policy and increasing demand in general contribute to housing scarcity which in turn places more upward pressure on housing prices.
Apart from their prohibitive cost, new housing developments in space-starved Hong Kong have become so tiny that they are referred to as ” mosquito units ” by locals.
The dire housing situation in Hong Kong was one of the concerns raised by young people who took to the streets in 2014 in massive pro-democracy protests known as the Umbrella Movement. Since then, the Hong Kong government has said it would increase housing supply.
” Virtually all of the geographies covered are facing more uncertain economic futures than in the past, ” said the Demographia press release.
” As always seems to be the case in economic matters, younger people and lower income people tend to be at greater risk “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUp To 10% Growth Expected for Thailand’s Property Market in 2016
Thailand’s economy has experienced some significant ups and downs in recent years but despite the weak economy, its property market is expected to pick up significantly this year, driven by the growing low-rise sector of the residential market.
Atip Bijanonda, president of Thailand’s Housing Business Association, said the Thai property market this year would grow by 5-10%, boosted by transactions in single-house and townhouse segments.
” In many provinces, condos will remain sluggish this year, while demand for single houses and townhouses will continue to grow as supply remains limited, ” he said.
According to the Real Estate Information Center (REIC) , the number of low-rise units – single houses, townhouses and duplexes – remaining for sale in 26 provinces totalled 146,870 worth 541 billion baht. Also available were 98,130 condo units worth 275 billion baht.
Bangkok, Chon Buri and Nonthaburi are recorded as having the most condo and low-rise units remaining for sale.
Prasert Taedullayasatit, president of the Thai Condominium Association , said sales of single houses and townhouses had picked up since the third quarter last year. Demand was strong for townhouses priced 2-3 million baht as large developers shifted to the segment.
Townhouses priced higher than 10 million baht located close to mass transit stations showed the most significant growth with the sector competing with condos in the same location due to lower prices.
” Developers should prepare for changes in the real estate landscape, ” Mr Prasert said. ” As happened last year, big developers are expected to continue dominating the residential market, putting smaller developers in trouble “.
Don Nakornthab, senior director of the financial institutions strategy department at the Bank of Thailand, said the government’s spending on infrastructure in 2016 may be minimal but it could lead private investment and help the property sector, as most megaprojects will develop mass transit and transport networks.
” Developers should be more cautious in property development as the economy remains slow, with high household debt and low prices of agricultural products having an impact on consumers’ purchasing power, ” he said.
Economists expect Thailand’s economy to improve from last year as the government’s economic stimulus policies and other measures introduced by the central bank and the Public-Private Partnership Committee are implemented.
In 17 major provinces, the property market significantly slowed down, with the number of housing units launched dropping by 29.3% in the first three quarters last year to 31,193. The number of units sold also fell by 35% in the same period.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBlackstone Predict New Opportunities in Australian Commercial Property
Blackstone, the world’s largest real estate investor do not see Australia’s commercial real estate market as overheated as many analysts do, suggesting that global volatility will continue to create new investment opportunities in 2016.
The firm’s global chief investment officer for real estate, Ken Caplan said: ” We bought a half-interest in Southern Cross not long ago, so we continue to see opportunities [in Australia]. We still see it as an interesting time to be investing. Australia has done well for us. We like the investment and would like to do more “.
In December last year, the private equity giant bought a half share in the Southern Cross office complex in Melbourne for AUD675m, with Canadian giant Brookfield owning the balance. Analysts have speculated that the yield of just over 5% is a new benchmark for the Melbourne office market.
Globally, Mr Caplan expects the pace at which yields have tightened to slow after the strong run real estate has had in recent years. However, he did not see interest in Australia abating, rejecting talk of a commercial property bubble. ” I see a lot of reasons why Australia will remain a place that investors will want to invest capital into real estate “.
Blackstone has more than AUD5bn of property and AUD1bn of real estate debt in Australia. In 2015 the group made its first push into the Australian real estate debt market, buying $750m of Australian loans as part of its USD26.5bn to purchase General Electric’s global real estate assets.
” It does feel like we are in an environment where we will see more interesting opportunities. And having the dry powder across the firm of USD85bn [funds available globally across asset classes] means we are able to take advantage of this, ” Mr Caplan said.
Blackstone has been most active in Sydney and Melbourne office and retail property and according to Mr Caplan, ” That’s where I expect we will continue to be most focused “.
Increased investment activity in commercial real estate markets is generally a precursor to increasing prices in the residential sector. That’s why savvy investors pay close attention to the activity of the investing giants like Blackstone for indications of where smart capital is flowing and seek opportunities locally.
Opportunities to invest in commercial real estate around the world are becoming more widely available through crowdfunding platforms and real estate trusts, with entry levels at more affordable ranges for retail investors.
The commercial sector of global real estate markets is expected to see significant growth in the next 12 months, as more economies achieve stability or seek to stimulate growth through investment in business.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreFaith Tourism Booms in Turkey
Turkey is a fascinating country that is home to a mesmerising blend of East and West. Ancient civilisations have come and gone in the country over generations in time, each leaving behind an incredible heritage that resonates with followers of many different faiths.
Consequently, millions of people from all over the world visit the spiritual attractions. Turkey is home to and faith tourism has become an important part of the country’s growing tourism sector.
Here we take a look at the most popular sites and attractions for religious visitors to Turkey:
Konya: Shrine of Rumi and Museum
Konya was the final home of Rumi (Mevlana), Anatolian mystic, poet and the father of the Mevlevi Order. He is known as Mevlana in the East and as Rumi in the West and his tomb is in the city. In 1273, his followers in Konya established the Mevlevi Sufi order of Islam and became known as the Whirling Dervishes. Konya has the reputation of being one of the more religiously conservative metropolitan centres in Turkey. It was once known as the ” citadel of Islam ” and its inhabitants are still comparatively more devout than those from other cities.
Izmir: Virgin Mary’s House
The house was discovered in the 19th century by following the descriptions in the reported visions of Blessed Anne Catherine Emmerich, a Roman Catholic nun and visionary which were published as a book by Clemens Brentano after her death. The Catholic Church has never pronounced in favour or against the authenticity of the house, but nevertheless maintains a steady flow of pilgrimage since its discovery.
Catholic pilgrims visit the house based on the belief that Mary, the mother of Jesus, was taken to this stone house by Saint John and lived there until her Assumption, according to Catholic doctrine. The shrine has merited several papal visits from several popes, the earliest pilgrimage coming from Pope Leo XIII in 1896.
Trabzon: Sumela Monastery
Sumela Monastery is a commonly-visited attraction of faith tourism in Turkey, as well as pleasure trips. The ancient monastery and buildings surrounding it were built in the 19th century, with the Roman Orthodox community permitted to perform the religious ceremony of the ascension of the Virgin Mary since 2010. The area, already rich in natural beauty draws significant numbers of faith tourists in Turkey.
Nevşehir: Cave Churches and Haji Bektash
Nevşehir is the capital of the Cappadocia region where the first settlements date back to 3000 BC; the oldest name of the city was ” Nyssa “. The city also has some interesting remains from the Seljuk period, such as the castle which stands at the highest point of the city.
The Kursunlu Mosque has an impressive complex of buildings and a medresse surrounding it which dates back to 1726. They were built by carving the soft rock surface located in what is now the Göreme Open Air Museum, attracting thousands of visitors as well as faith tourists every year.
Sanliurfa: Legendary Pool of Sacred Fish- Standing Place of Abraham
According to Jewish and Muslim tradition, Urfa is Ur Kasdim, the hometown of Abraham and is also one of several cities that have traditions associated with Job. For Armenians, Urfa is considered a holy place since it is believed that the Armenian alphabet was invented there.
Urfa, town of Prophets, still cherishes the memory of the Prophets Abraham, Eyup, and Suayb, today. The Pool of Sacred Fish which is one of the most beautiful places in Urfa and the Halilürrahman Mosque right next to it constitute an island of spirituality. The pool of Sacred Fish and its surroundings where Prophet Abraham was born, thrown into the fire, and saw the most significant moments of his life include attraction spots for local and foreign visitors.
Istanbul: Blue Mosque and Hagia Sophia
The Blue Mosque ranks 20th among most commonly visited historical buildings in the world. Its very construction was marked by the desire to compete with Hagia Sophia, a Byzantine architectural masterpiece. Undoubtedly, both of them play a great role in making Istanbul, which is already the centre of culture, business and entertainment, an outstanding destination for faith tourism as well.
Hagia Sophia is a former Christian church, later an imperial mosque, and now a museum in Istanbul. From the date of its construction in 537 until 1453, it served as an Orthodox cathedral and seat of the Patriarch of Constantinople and in 1261, it was converted to a Roman Catholic cathedral under the Latin Empire. The building was a mosque from 29 May 1453 until 1931. It was then secularized and opened as a museum on 1 February 1935.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreEighteen Consecutive Months of Growth in Spanish Property Market
The latest data released from Spain’s General Council of Notaires shows that residential property sales in the country increased by 7.3% in November last year, compared with the same month in 2014.
The figures show just over 18-months of continuous growth in Spain’s real estate sector, reflecting increasing buyer interest in the country, set to extend well into 2016 and beyond. Furthermore, analysts believe growth is sustainable, with price growth stability.
A breakdown of the data shows that apartment sales increased by 6.2% year-on-year, more than double the increase recorded in October 2015. This was largely due to transaction volumes of new apartments which increased by 8.3% and resale apartments 12.2%.
Sales of individual family homes also saw strong growth, up 11.4%, recording nine months in a row of double digit increases. However, sales of new housing fell for a tenth month in a row, down in November by 18.6%.
In the new-build market, the issue holding back price growth is lack of supply. This dynamic is slightly misleading however, as there is a vast supply of unfinished and empty housing stock across Spain that is mostly held in bank inventory.
As this inventory is released and made available to buyers, it could serve to prevent Spain’s property market from overheating in the face of significantly increased buyer-interest. In the meantime, the supply issue is likely to affect price volatility in certain regions of the country.
The average price of homes sold in November was €1,219/m2, a fall of 1.1% year-on-year. A breakdown shows that apartment prices fell by 0.6% and the price of individual family homes fell by 0.8%. The data also shows that the price per square metre of second hand apartments fell by 0.7% year on year to €1,320 although new apartments increased by 5.9% to €1,666.
The total number of new mortgage loans also increased by 7.3% year on year in November but in seasonally adjusted terms this figure moderates to an increase of 2.4% year on year, the lowest increase in 18 months.
Spain’s economy remains hampered by high unemployment rates and a significant public deficit. However, tourism has been booming in the country and its contribution to the economy continues to grow. In the regions of Spain popular with holiday home buyers and investors, property prices are set to continue to rise throughout 2016, albeit at a meandering pace.
As with all property markets, there are anomalies that present themselves as opportunities for value growth and savvy investors can still find such opportunities in Spain.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUK BTL Investors Face Significant Challenges in 2016
Despite the fact that demand still outstrips supply in British buy to let markets, government measures are set to change the landscape of the property investment market to slow down purchases of second homes.
As from April this year, buy to let investors in the UK will have to pay an additional 3% stamp duty surcharge. In real terms, this will add a further £3,000 to BTL investors’ tax bills to the purchase of a £100,000 home that would ordinarily be exempt from stamp duty. For properties purchased at £250,000, the tax bill amounts to no less than £7,500, bringing the total obligation to £10,000.
The measures are set to curb the rapid growth of private investment in UK property markets and extend to all second-home buyers in the country. According to Reuters, BTL transactions made up a quarter of market activity last year, far more than in most other advanced economies and a major cause of spiralling prices.
There is a rising voice of descent among younger first-time buyers struggling to get their feet on the property ladder as private investment reduces affordability. The inability of the younger generation to buy principal residences has also increased pressure on social housing, already experiencing supply shortage at critical levels in some UK regions.
Earlier this month, the Council for Mortgage Lenders revealed a late surge had pushed buy to let lending up 35% year-on-year in November as investors look to act before the new tax comes into force. New figures from the Royal Institution of Chartered Surveyors (RICS) reveal buyer enquiries were at a three-month high in December, driven by demand from would-be landlords seeking to complete before April.
The surcharge is not the only tax change hitting buy-to-let. In his earlier budget last July, Osborne announced that investment owners would be restricted to a flat 20% rate of relief on mortgage interest, effectively halving relief for higher-rate taxpayers. Investors and second home buyers will also be assessed for tax before the relief is deducted, pushing more into the higher rate bracket.
Although it is predicted that there will be a slowdown in the BTL sector from April, there are certainly no signs that momentum is declining in the market. RICS did note however, an increase in new instructions in December for the first time in almost a year, a sign that landlords could be seeking to exit the market due to concerns about yield.
If investor interest does wane after April, it should serve to remove some of the heat from the housing market and slow price growth although there is bound to be a period of adjustment to improve affordability for first-time buyers in the UK.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreInternational Hotel Brand Announces its First Luxury Hotel in Portugal
Meliá Hotels International and Discovery Fund have signed a joint agreement that will see Europe’s third largest hotel chain open its first luxury hotel in Lisbon, Portugal.
The Meliá lisboa is part of an ambitious project that aims to return life to a strategic location in the city, with the hotel set on the corner of the central Antonio Augusto de Aguiar and Fontes Pereira de Melo avenues.
The hotel will open in early 2018 with 239 rooms, a 24-hour restaurant adapted to the lifestyle needs of guests, and a panoramic lounge-bar on the upper terrace with stunning views of the city.
The hotel is set to follow the ‘bleisure’ (business and leisure) concept, providing everything needed by guests visiting Lisbon for a combination of business travel and leisure, while also giving local residents a meeting point where they can ‘see and be seen’, with attractive options for dining, drinks and music. Meliá Lisboa will feature modern facilities for conferences and conventions for between 50 and 550 people, two floors of parking, and a health club and Yhi Spa, the chain’s spa brand.
Portugal is considered one of the most important destinations for European tourism and with a growing strength in urban hotels; the Meliá Lisboa is set to mark the group’s continued growth in Portugal. The hotel chain is working closely with Discovery Portugal Real Estate Fund who are focused on real estate and tourism assets management in Portugal.
Pedro Seabra, partner of Discovery Fund, highlighted the importance of the agreement in bringing an international brand into the hotel’s management:
” This alliance and the Melia Lisbon’s project represent the continuation of the excellent work of the Discovery team, with the aim of revaluating the Fund’s assets, ” he said. ” We are also excited to be able to count with the best professionals to make this project a successful reality from 2018 “.
Gabriel Escarrer, vice chairman and CEO of Meliá, added: ” We are very excited about the Meliá Lisboa because it combines architectural innovation in a hotel with the highest standards of quality and service, with the history of such an emblematic corner of the city of Lisbon, with the attractiveness that you only find in the centre of the great historic capital cities in Europe “.
Portugal remains one of the most popular destinations for property investors in Europe and despite some economic and political instability in recent years, considerable growth now seems to be back on the agenda for 2016.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreAmerican Retailer Claims Prime Barcelona Asset
Real estate giant Hines expanded its retail portfolio this month with the purchase of Arcs 10, an upscale retail asset in Barcelona. Houston-based Hines forked out almost €40m for the 1,200m² property, located close to the Cathedral and Plaza Sant Jaume in Spain’s perennially popular tourist hotspot.
The building is leased to Barcelona-based international fashion retailer Desigual, who emerged in Ibiza back in 1984 to become one of the largest fashion retailers in Europe with a presence in 42 countries around the world. Arcs 10 is also home to the four star hotel, Catalonia Catedral.
Hines acquired the retail asset from a private Spanish investor on behalf of its Pan-European Core Fund (HCEF), a euro-dominated Luxembourg-based investment fund established in 2007. Managed by the Hines group, the fund aims to develop an extensive portfolio of commercial real estate assets across Europe.
The acquisition comes at a time when confidence in Spain’s economic stability and future performance is riding high among investors.
” With the acceleration of economic growth, take off of retail sales and consequent performance of the High Street, Spain is an attractive market, where tenant activity is seen to be strongly improving, for both existing retailers in the market, and newcomers seeking to make a presence, ” said Jamie Rea, managing director for Hines España.
As part of its Europe expansion, Hines entered the Spanish market with an investment in 84 acres of land in downtown Barcelona in 1996. That investment, fronting onto the Mediterranean Sea, is now known as Diagonal Mar, one of Europe’s largest mixed-use developments, totalling more than 37 hectares.
The project consists of a retail and leisure centre, which opened in November 2001, five residential phases totalling 1,400 apartments, three hotels, three office buildings and the third-largest public park in Barcelona. Hines expanded its Spain operations in 2000 by opening the Madrid office and in 2004 with its Marbella office.
Significant purchases of this nature are proving to boost investor interest in Spain’s real estate markets. Investors in residential properties have been growing in numbers in recent months, buoyed further by euro weakness against other currencies. With major players taking the lead, this is a trend that is set to continue well into 2016 and beyond.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read morePositive Outlook for Dubai Real Estate in 2016
As the emirate continues its preparation to host World Expo 2020, Dubai’s real estate is proving an attractive proposition to international property investors.
With investment in mega infrastructure projects and increased construction supporting contin…
Investor Appetite Increasing for Thai Hotel Opportunities
Despite the sluggish economy, demand remains strong for real estate in Thailand with the nation currently leading the region in the hotel residence boom, the property investor’s vehicle of choice throughout 2015.
Economists estimate the real estate market grew by almost 10% this year after receiving a boost from the government’s property stimulus measures, implemented to stimulate interest from property buyers overseas.
The stimulus measures include reductions in housing transfer and mortgage fees, personal income tax deductions for those purchasing a property for less than €75,000 and soft loans amounting to €250,000 offered by Thailand’s Government Housing Bank, (GH Bank) .
In October last year, the cabinet approved cuts in housing transfer and mortgage fees to 0.01% each for six months for homes priced at €75,000 or less, down from 2% and 1% respectively. Also approved was a proposal allowing first-time buyers who purchase a home below the same threshold to deduct 20% of the value of the home from their annual personal income tax over a five-year period.
Thai Condominium Association president Prasert Taedullayasatit said the tax incentives would boost the overall housing market in the fourth quarter by 20%-30%, increasing full-year housing market values by 12.6% from last year.
Investment in hotel residences surged in Thailand in 2015, with many opportunities falling well below the new threshold for tax incentives. The sector has a significantly improved outlook on the back of the Thai government’s stimulus measures and construction has been stepping up to meet rapidly increasing demand for robust, income-generating assets in branded hotels.
According to research by Thai-based hospitality consulting group C9 Hotelworks, there are currently more than 28,000 hotel-branded residential units for sale across the region overall, representing almost 120 projects. In Thailand, there are 44 developments on the market, representing 4,775 units, with the top three locations for hotel residences being Phuket, Bangkok and Pattaya.
The average price per square metre for urban properties in Thailand is €5,960, while in resort destinations it is €3,283. One key catalyst for the rising tide of buyer interest has been an increasing number of mixed-use projects that contain hotel and real estate components. Recognised hotel brands are being tapped to help engineer pricing premiums for property sales, which in market-wide terms has equated to 26% in urban locations and 14% for resort products.
Commenting on the research, C9 managing director Bill Barnett said: ” The historic pattern of hotel and real estate marriages has moved away from the beach and leisure destinations and is gaining traction in urban city offerings. Traditional lifestyle buyers are being supplanted by end users, with Asians representing the largest transaction segment. Bangkok’s stirring success story at the St Regis Residences demonstrated this, while the more recent Four Seasons offering has struck a chord with both local and overseas buyers “.
The two leading Southeast Asian real estate marketplaces are Thailand, offering 37% of the region’s hotel project residences, followed by Indonesia with a 22% share.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBulgaria’s Property Market to Strengthen Further in 2016
Property consultants Cushman & Wakefield reported a record year for foreign investment in Bulgaria last year with real estate sales contributing €239 to the economy, predicting a continued rising demand throughout 2015.
After prolonged economic hardship following the global financial crisis, Bulgaria’s property market remains at a huge discount to peak 2007 prices, attracting wealthy foreign investors with opportunities to acquire land and property at rock-bottom prices.
Polina Stoykova, managing director of Bulgarian Properties said: ” An important element of the new market reality is the return of confidence in the property market. More and more buyers are thinking of buying property because real estate is a safe real asset and good investment. This understanding coincided with a very favourable moment in the property market development because real estate prices are currently at levels from ten years ago and respectively, the properties are much more affordable. We could also add to the picture the improved mortgage conditions now offered by the banks “.
Apart from price, another dynamic property investors are interested in is tourism. Most foreign investors seek to take advantage of resort properties with excellent occupancy rates that ensure consistent rental revenue streams in a growing market. Bulgaria has risen through the ranks as one of Europe’s most popular alpine resorts, offering exceptional value for family ski holidays and with plenty of breathtaking beaches the country has a whole lot more on offer besides.
Bulgaria enjoyed an extremely successful winter season in 2014/2015 that saw more than 80,000 visitors to its alpine resorts, boosting the nation’s economy by €17.5m. According to the country’s tourism minister Nikolina Angelkova, the number of visitors from Turkey increased by almost 30% as a result of the simplification of visa requirements while German tourists increased by around 17%.
At the beginning of August last year, budget flight operators Ryanair issued a press release that is set to boost Bulgaria’s tourism and real estate sectors moving forward into 2016. The airline’s Robin Kiely said: ” Ryanair is pleased to announce a new daily London Stansted to Sofia route beginning May 2016 which will go on sale on www.ryanair.com in September. Sofia is another key capital city airport and our second in Bulgaria as we continue to grow Europe’s largest route network, with more routes and flights and improved schedules “.
Property prices in Bulgaria have also been buoyed by weak supply due to limited construction. This has impacted markets in the country’s large cities and resort areas the most and with off-plan investment opportunities thin on the ground, prices look set to continue rising.
As a direct result of Bulgaria’s fantastic winter season and the financial injection to its economy, property prices are forecast to stabilise as the economic recovery is consolidated. Modest price growth in both commercial and residential property sectors is expected throughout the year, matched by stable economic growth that will underpin investment in Bulgaria.
According to a report by real estate researchers Colliers International , foreign investors are expected to steadily increase their exposure in Bulgaria’s commercial property market throughout 2016, depending on the availability of product for sale. Investor returns will continue to be driven by rental upside, discounts on existing debt and lower interest rates and strong income generating assets in Bulgaria’s commercial occupational markets will continue to attract more investment capital.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreCape Verde Emerges as Tourist Hotspot in 2015
Cape Verde’s National Statistics Institute (INE) reported a 2% annual increase in visitor numbers in the first half of 2015, putting the country on target for a bumper year for tourism.
In the first six months of the year, more than 278,000 visitors arrived on the beautiful archipelago off the northwest coast of Africa, attracted by its fabulous beaches known as jumping-off points for windsports and a great location for diving among shipwrecks.
During the second quarter, Cape Verde hosted 116,200 tourists representing a 4.8% increase on the same period of 2014, despite the country’s relatively under-developed tourism infrastructure. Overnight stays in H1 increased 3.5% to almost 1.8 million with hotels remaining the most popular type of accommodation for 87.3% of visitors to the tiny archipelago nation.
The data reveals that the second quarter of the year saw mostly British tourists arriving in Cape Verde, representing around 25% of international visitors. Brits holidayed for an average stay of 9 days with the island of Sal as the most popular resort location, accounting for around 46% of overnight stays in hotel establishments.
Cape Verde is a former Portuguese colony and maintains close links with Portugal and the Eurozone. Special partnership status has been granted by the EU and in 2008 Cape Verde joined the World Trade Organisation. The country has improved significantly to achieve economic stability with plenty of potential for further growth, particularly through its tourist sector.
The country’s democracy is one of Africa’s most stable and Cape Verde was officially removed from the Unite Nations list of Least Developed Countries in December 2007. The country’s outlook has never been better according to the World Bank , recently reporting that ‘good governance, sound macroeconomic management, trade openness and increased integration into the global economy, as well as the adoption of effective social development policies underpinned an impressive development trajectory’.
Around half of Cape Verde’s 482,000 population lives on the biggest island, Santiago which is home to the capital city, Praia. Tourism is mostly concentrated on the island of Sal which has the country’s only international airport capable of receiving charter flights from Europe. New and bigger international airports are scheduled to be opened in Santiago, San Vicente and Boa Vista, boosting residential property prices in those areas.
Almost every habitable island of the archipelago has new development in construction. Capital values are consequently rising by 10%-15% annually and yet property in Cape Verde is still very much a bargain at around €1,200-€1,650/m2.
Cape Verde remains largely undiscovered to international travellers, despite its unique cultural vibe and breathtaking beauty. Data from the INE from 1997 shows that 45,000 visitor arrivals were recorded for the year compared with more than 500,000 expected in 2015, illustrating the country’s massive rise in popularity among international travellers.
Consequently, the archipelago has been overlooked by property investors and the market for holiday rentals is almost non-existent. A studio unit in popular Santa Maria is currently priced at around €81,000 which would offer a yield in the region of 8%-9%, according to local realtors.
The ten archipelago islands of Cape Verde are clustered 280 miles off the coast of Africa, approximately one hour south of the Canary Islands. Notable for its vibrant blend of Portuguese and African cultures the country is also blessed with long stretches of fine white sandy beaches and an all year round perfect temperature of between 25 and 34 degrees.
With booming tourism and discounted real estate, it won’t be long before investors zoom in on Cape Verde’s bountiful property market. For investors seeking a lower entry level property purchase, there are investment opportunities in the country’s hotel sector currently attracting interest among buyers of income generating assets, starting from as little as €10,000.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreInvestors Look beyond Paris for Bargains in France
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.
At a presentation at the Munich trade fair in October last year, 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
read moreZeti: Sale of 1MDB’s assets to China firm has no impact on market
KUALA LUMPUR, Dec 1 ― 1Malaysia Development Bhd’s sale of its energy assets to China’s firm will not have an impact on the market, said Bank Negara Malaysia’s Governor, Tan Sri Dr Zeti Akhtar Aziz.
“Our system is large and the foreign exchange…
read moreRinggit rebounds to open higher against US dollar
KUALA LUMPUR, Dec 1 — The ringgit rebounded to open higher against major currencies, including the US dollar today, as investors shifted their interest to the local note, a dealer said.
At 9am, the ringgit was quoted at 4.2440/2530 against the…
read moreShort-term rates to remain steady on BNM’s intervention
KUALA LUMPUR, Dec 1 — Short-term interbank rates are expected to remain steady today on Bank Negara Malaysia’s (BNM) intervention to absorb surplus liquidity from the financial system.
BNM estimated today’s liquidity at RM44.55 billion in the…
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