NEWS
Records-Breaking Tourist Spending in Spain
Visitors to Spain parted with more money than ever before during May in a record-breaking month that saw revenues climb 11.8%, raking-in €5.89m.
The Tourist Expenditure Survey ( EGATUR ) published stats showing the total spending by inbound tourists in Spain for the first five months of 2015 was the highest since records began at almost €22bn, representing growth of 8.4% on the same period last year.
Spending growth comes on the back of a 6.9% increase in visitor numbers during May, paying an average €905 per person on accommodation and spending around €114 each day. The report shows that the average stay increased slightly to 7.9 nights.
A welcome break for Spain
The figures come as a welcome break for Spain after reporting a current account deficit of €232bn earlier this week. Tourism contributes more than 10% to the Spanish economy and its revival has already positively impacted labour markets in the slowly recovering country.
British tourists dished out the lion’s share of cash in Spain during the first five months, spending a whopping €4.22bn over the period, representing around 20% of the total tourist spend. French tourists followed close behind increasing their spending by 16.5% to €2.22bn.
Andalusia, the region that is home to the Costa del Sol recorded a spending increase of 10.3% with tourist spending rising to €3.44bn from January to May this year, representing 15.8% of the total inbound visitor revenue. During May a total of €975m was spent in this region which at 16.9% was the largest regional increase in the month, accounting for 16.6% of the total.
Spain had a bumper 2014 in its tourist markets which stimulated investment in Spanish real estate , notably in regions popular with holidaymakers. The strong pound and excruciating weakness of the euro has combined to incentivise buyers looking to achieve revenue for holiday lets in one of the world’s favourite destinations.
However, price growth in Spain is likely to be subdued in the next few years due to the excess of empty and unfinished housing projects littering the country and large bank-held inventories of repossessed homes waiting to be off-loaded.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUS Senate Propose 62.5% Increase in ‘Golden Visa’ Investment Requirement
Considering dollar strength at the time of writing, it’s hard to fathom quite why the US EB-5 Immigrant Investor programme could potentially become a lot more expensive. The Senate has put forward fresh proposals to increase the minimum investment b…
read morePortugal Property Reaches Bottom of Market
Many industry insiders believe that property prices in Portugal’s Algarve region have bottomed-out, meaning the only way is up for the perennially popular destination for British holiday home buyers.
With homes discounted by up to 40% on pre-crisis prices, property in the Algarve has reached a level that represents attractive value to savvy investors.
It’s a good time to buy
Mike Braunholtz, director of luxury realtors Prestige Property Group said: ” I’ve been an overseas property agent for 20 years and I’ve never invested in an overseas property. I’ve chosen Portugal this year because I think the time is right. I don’t see the market going below where it is now and it’s definitely beginning to go up again, so it’s a good time to buy. “
The Portuguese government has been actively investing in its tourism sector since 2006 when the ambitious National Strategic Plan for Tourism (PENT) was introduced. Tourism directly contributed €10.4bn to Portugal’s economy in 2014 and is set to increase 3.1% to contribute €10.7bn in 2015.
As a result of PENT, tourism is currently booming in Portugal, with revenues rising, unemployment decreasing and the outlook for the country’s real estate improving on the back of it.
Property at the luxury end has been buoyant for the last two years, something that is mirrored in prime real estate markets throughout the world. However, recovery has taken longer in the mainstream residential sector particularly in the Algarve, with the green shoots just beginning to appear.
Portugal showed modest house price rises during the year to Q1 2015, increasing by just 1.53% over the period, albeit a better performance than the previous year. However, despite its lacklustre performance in recent years, Portugal is very well-placed to return to growth over the short term future largely due to its commitment to expanding tourism.
Pre-crisis, the Algarve region was particularly popular with British holiday home buyers, who drove demand to such a degree that property prices inflated to the point where value opportunities became few and far between.
In 2015, it would appear that the Portuguese property market has moved back into positive price growth territory which, supported by increased investment in tourism is likely to throw out some great opportunities for savvy property buyers in Portugal.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreDubai Top Holiday Hotspot for Brits
Data from hotel booking site Trivago identifies Dubai as the most popular overseas destination for holidaymakers in July and August this year.
Spain remains the top country for foreign holidays according to the report with Benidorm and Barcelona taking 2nd and 3rd place in the Trivago charts, but in terms of single destinations – Dubai holds pole position.
The Emirate has been working hard to develop its tourism infrastructure ahead of hosting the World Expo in 2020, with tremendous success. 2014 saw more than 5.8 million guests staying in Dubai’s hotels during the first six months of the year, marking the busiest six months for the sector ever.
A similar if not even better performance is expected this year and Dubai together with the wider UAE remain committed to demonstrating the emirate’s popularity among tourists as a world-class destination for both leisure and business.
During the course of 2015, Dubai is expected to attract more than 15 million visitors with a target of more than 20 million by 2020. The Emirate holds a great deal of appeal to both business and leisure travellers, largely due to its strategic location at the crossroads of Europe, Asia and Africa.
From Dubai, one-third of the world is just 4 hours flying-time away and the Emirate’s international airport is ranked second in the world for international passenger traffic. More than 7,000 weekly flights and 125 airlines reach 260 destinations daily from Dubai International Airport. Dubai’s tourism figures will be boosted further when the new Al Maktoum International Airport opens in Jebel Ali with a capacity to handle 160 million passengers once fully operational.
Dubai has a lot going for it as a tourist destination which is something that Brits are fast catching on to. Known as a global hotspot for leisure and recreation, Dubai has an enormous variety of attractions for holidaymakers to enjoy, stemming from more than 200 nationalities living in the Emirate, creating a wide mix of cultural experiences.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUS Buyers ‘Go Long’ in Ireland’s Euro Property Market
Ireland is turning out to be the darling of international property investors in 2015, particularly wealthy buyers from America.
With dollar strength and euro weakness combining to present significant value in Irish real estate, US buyers are investing heavily in distressed Irish property, both commercial and residential.
The most recent transaction in Ireland’s commercial market is the sale of Manor West Retail Park in Tralee, Co Kerry to New York based Marathon Asset Management . The firm, which has just over €11bn of capital under its management snapped up one of Ireland’s best-performing shopping centres in a deal worth €59m.
Marathon’s new investment will be held in an Irish-registered company called Bryant Park and is expected to show an initial yield of just over 7%. The retail park covers an overall floor area of around 32,515sqm and is tenanted by a strong mix of high-profile traders including Woodies, Next, Halfords, TK Maxx and Dixons.
American interest in Irish real estate is currently surging on the back of the euro being equal to just $1.1, its weakest position to the dollar in almost 12 years. Ireland is an increasingly popular retirement destination and is expected to grow as retirees enjoy more buying power in the Eurozone.
Americans seem set to continue buying up Irish property , particularly as domestic buyers struggle to afford homes in a rapidly inflating market. Shortage of residential stock and increased foreign buyer interest, particularly in Dublin drove prices up 13.8% in May amid concerns of a possible housing bubble.
Financial analysts believe that the dollar will continue in strength throughout the year although the outlook for the euro remains questionable. It is likely that the trend of American buying in Ireland’s value-laden property markets will increase considerably in the next few years.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreForeign Investment Powering Spain’s Property Markets
It’s a situation mirrored throughout the world’s luxury real estate markets. Revenue inflows from foreign investors and buyers of Spanish real estate are at an all-time high, currently representing around 12.2% of residential property transactions in Q1 2015.
Large-scale real estate investors like London-based Europa Capital are building high-class residential units and selling them on completion to almost entirely foreign buyers. The firm’s latest project is being managed by local developers Bonavista Developments and is located in Barcelona, the focus of considerable interest from foreign buyers.
The big-ticket development which is expected to be completed this year comprises 14 luxury apartments with a rooftop pool. All units have been sold for prices between €600,000 and €1.85m with 12 going to foreigners, representing an 85% take-up from overseas buyers.
That is just one illustration showing the degree of foreign buying that is being duplicated across Spain’s most popular locations like Madrid, Barcelona and the Costa del Sol. According to Spain’s property registrars’ society , foreign nationals bought just over 12% of residential property in the first three months of the year, an increase of 9% for the same period in 2006.
Alex Vaughan, co-founder of Lucas Fox in Barcelona said: ” At the high end – €500,000 and up – it’s primarily being driven by international demand “. The luxury estate agent sold two-thirds of the Bonavista project and last year, 91% of their total 126 home sales were to foreigners looking for luxury bargains in Spain.
Developments in FOREX markets have shifted the buyer demographic in 2015 with more investors from the Middle East and America dipping their toes in Spanish real estate, taking advantage of dollar strength. Euro weakness has encouraged Brits and non-EU buyers, (particularly attracted to the benefits of Spain’s golden visa programme) and interest from Russian buyers has been soft due to the rouble’s collapse.
In Spain’s residential market s foreigners are making a big impact and its commercial markets are seeing even more action. According to CBRE Spain, out of €10.2bn invested in commercial real estate in the country through 2014, more than 50% came directly from foreign funds with a further €2.5bn coming from Socimis – real estate investments that are traded like shares on exchanges – largely funded by foreign investors.
Residential property has a tendency to follow in the steps of commercial real estate, with around 12 months lag in general. Commercial investors operate on different dynamics than buyers of residential in that they select areas that will best facilitate and support their own growth and expansion. Residential investors seek to reap the benefits of that growth and expansion in the commercial sector that drives up demand for homes in the residential areas.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreMilan 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
read moreTurkey 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
read moreForeign 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
read moreThings you probably didn’t know About Morocco
Morocco is just 8 miles away from Europe, across the Strait of Gibraltar
White is the official colour of mourning. A Moroccan widow wears white for 40 days after the death of her husband
Moroccan Berber women have tattoos in geometric designs on their faces, covering much of their forehead, cheeks and necks. The practice is a form of tribal identification originating from times when it was essential to be able to spot women who had been carried off by another tribe after a raid
Often referred to as the “Red City”, Marrakech requires sun protection and headgear of some kind all year-round, including winter
In Morocco, the liver is traditionally associated with love rather than the heart
In the 1950s Orson Welles stayed at the Hôtel des Îles in Essaouira while filming Othello where, according to legend he met Winston Churchill. Essaouira also became a famous hangout for singers Cat Stevens and Jimi Hendrix in the 1960s
Private baths are not the norm in Morocco. In order to perform the required ritual purification of the body before Muslims can pray, many Moroccans bathe at the public baths (hamman) which is segregated
Morocco is the only African country that is not a member of the African Union.
The country covers 446,550km2 and is slightly larger than California
Morocco was the first country to sign a treaty with the United States in 1786
Apart from Egypt, Morocco is the only other Arab country encouraging friendly relations with Israel, now enjoying direct air, telephone and postal links to each other
During the 50s and 60s, the country served as a literary sanctuary for many foreign writers including Americans William S Burroughs, Paul Bowles, Brion Gysin, Jack Kerouac, Allen Ginsburg and Tennessee Williams
The Romans introduced wine-making to Morocco more than 2,000 years ago. After the establishment of Islam in the 7th century AD, the country’s vineyards were not maintained
During the French Protectorate, they were revived and are now under the control of French company Castel famous for producing Gris de Boulaouane, a rosé with hint of citrus
Morocco’s prized thuya wood was the first burled wood used in the luxury dashboards of the Rolls Royce
The Atlas film studios just outside Ouarzazate are known as ‘Morocco’s Hollywood’ and movies shot in the location include Lawrence of Arabia, Gladiator, Bertolucci’s The Sheltering Sky and Scorsese’s Kundun.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreCyprus’ Investment for Citizenship Programme Attracts €2bn
Cyprus received more than €2bn over the past two years from the property-for-residency scheme according to Interior Minister Socrates Hasikos. The scheme allows third country nations to obtain permanent resident in Cyprus if they buy property costing at least €300,000.
” This plan amongst others has brought the Republic €2bn and more these past two years, ” Hasikos said on Tuesday.
Other schemes offering citizenship for foreign investment in Cyprus include making a deposit of €2m into the treasury to buy shares or bonds with the state-run investment company and also donating €0.5m towards the government’s Research and Technology fund.
Alternatively applicants can invest at least €5m in projects ranging from the purchase of houses, offices, shops and hotels provided the real estate is put to use. Foreign nationals buying companies that were founded and active on the island or else bought shares in companies registered in Cyprus are also eligible for citizenship.
A further option requires applicants to have deposits of up to €5m in a local bank or own a company of which they are the main beneficiary for at least the last three years.
Recent studies conducted by global immigration experts rank the Cyprus Citizenship by Investment programme among the “top ten best in the world” and the country is also the 5th best relocation destination in the world according to an international lifestyle review.
Ranked by key business and leisure indicators Cyprus was the only European country alongside Switzerland to make it into the top five – ahead of London, Madrid and Monaco. Cyprus ranks highly because of its favourable tax regime for new residents, particularly high net worth individuals.
The scheme was introduced by the Cypriot government two years ago to attract high net worth individuals, investors and entrepreneurs with all the benefits available to a Cyprus and EU national.
There are a few reasons the Cypriot Citizenship programme is so attractive:
There is no requirement to make a donation to the local government unlike the Maltese citizenship scheme which requires a donation of €650,000.
Applicants are not required to live on the island prior to or during the application process or even after citizenship is granted. Again, other countries including Malta require applicants to physically live in the country one year prior to filing an application for citizenship.
It is the fastest application process for EU Citizenship currently available with passports issued within 3 to 4 months of filing.
Investors are able to take advantage of Cyprus’ attractive financial centre due to its highly favourable tax system and strategic location at the crossroads of three continents – Europe, Africa and Asia.
Cyprus enjoys a high standard of living with good access to reputable private schools and medical facilities. It also has one of the lowest crime rates in the EU.
The sentiment among real estate agents in Cyprus is that opportunities for foreign investors will increase during 2105, particularly in the apartments market in Famagusta, Nicosia and residential areas within towns. Foreign investment has already picked up in the commercial property market; with the most transaction activity in grade A office buildings offering mid-term tenancies of around 8-12 years and yielding an average 6% annually. Rental demand for good quality office premises has risen in Nicosia and Limassol, with residential property also gaining traction as Cypriot business districts continue their expansion.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBulgaria Pulls out Stops to Boost Tourism after Bumper Winter Season
Simplification of the visa requirements of Russian and Turkish visitors to Bulgaria introduced in February this year look set to significantly boost Bulgaria’s tourist sector, an important economic driver for the country.
Bulgaria’s tourism minister Nikolina Angelkova recently reported 9% growth in tourism over an extremely successful winter season that saw an additional 80,000 visitors to its alpine resorts, boosting revenue a further €17.5m.
She said that the number of Turkish visitors had increased by almost 30% as a result of the simplification of visa requirements while German tourists increased 17%, Austrian 7% and visitors from Israel by more than 20%.
The visa application process was streamlined to try and improve visitor numbers from Russia and Ukraine in attempts to improve relations with the country after Bulgaria’s support for EU sanctions and its cancellation of major Russian energy projects.
More visitors are expected
Angelkova commented on the upcoming summer season arguing that the preliminary forecast was optimistic except for the Russian and Ukrainian market, expected to decline by around 30% this year.
However, more visitors are expected from other nations that could limit the shortfall for the coming summer season. Arrivals from Germany are expected to increase by around 5%, Israel 10%, France 4.5%, Lithuania, Latvia and Moldova 40% and Poland, Czech Republic and Belarus by 5.10%.
The tourism minister suggested that the number of tourists arriving from UK and Romania was expected to remain unchanged, while visitors from Greece – one of Bulgaria’s most important markets – are set to increase by around 10%.
Bulgaria’s government are also making headway to improve the country’s tourism infrastructure and have been developing cultural and historical routes together with promotional material and maps that are available imminently.
Bulgaria is a fantastic country for property investment because of its place at the base of a growth curve in its tourist markets. Bulgarian property prices remain low compared with pre-crisis levels there are some great yield opportunities in resort areas, both beach and ski. This is a country that has everything on offer to the discerning traveller and although relatively under-developed, the outlook is rather bright.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBirmingham Best in UK for BTL Rental Yields
According to a report published by LendInvest, Birmingham has taken pole position as a buy to let investment hotspot, representing the best value for new landlords in Q2 2015.
At the end of the second quarter the data shows landlords in Birmingham, Ipswich, Liverpool and Glasgow are benefitting the most from advantageous rental yields.
LendInvest , who prepared the research gathered data for new tenancies from postcode areas throughout the UK and found four of the 10 highest rental incomes were in Birmingham: B44 yields 13.6% annually, B42 11.9%, B98 10.5%, B23 9.1%. Others in the top 10 were postcodes in Ipswich 10.8%, Liverpool 9% and Glasgow with G34, G21 and G22 yielding 11.9%, 10.1% and 9.2% respectively.
Using 1,000,000 sales and 500,000 rental listings provided by Zoopla, LendInvest took the average asking rental price per year and divided it by the average property asking price to calculate yield and then sorted the numbers according to postcode areas.
The Midlands provides a great investment opportunity
Jane Morris, managing director of Property Let by Us said: ” Many landlords tend to invest near to where they live but if they look further afield, they could easily increase their yields and capital growth. The Midlands provides a great investment opportunity as the property is much more affordable than the South East and the yields are high. For example, in Coventry, a three bed semi will cost around £125,000 and will provide rental yields of around 6.57% “.
British BTL investments have risen in popularity in the last two years, receiving a further boost earlier this year when changes to pension regulations kicked in, introducing in excess of 200,000 new investors to the market.
UK property markets have been dominated by investors for almost two years amid rising concerns of affordability issues for families struggling to get on the property ladder. According to homeless charity Shelter, 80% of UK homes are unaffordable to a family of renters earning average wages seeking to buy their first property.
In London, the charity identified just 43 properties they classified as ‘genuinely affordable’ including a houseboat and mobile homes.
A poll conducted by Huffington Post just prior to the May elections revealed that around 19% of private renters in the UK need help from family and friends to pay rent.
In essence, the figures indicate the potential rental yields achievable in certain areas based upon fresh tenancies during the respective quarter. How those figures stack up over the longer term and what is actually received by the landlord in rental income each year, remains open to question.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreDubai Sports City a Run Away Success
With Dubai investing heavily in its infrastructure ahead of hosting the 2020 World Expo, several major residential developments have been kick-started after work ground to a halt following the financial crisis.
Dubai Sports City, part of the huge Dubailand development is one of the ambitious projects attracting increasing buyer interest in the Emirate. The 5 million m² community currently home to 15,000 people across 6,000 apartments and 1,000 villas is expected to house 70,000 when it is completed in seven years.
The development has been a major Dubai real estate hotspot since 2013 when the project was resurrected after falling by the wayside in the aftermath of 2008’s global financial crisis. The mixed-use residential area is built around a number of world-class sporting facilities, some of which are still under construction or planned for the future.
A number of the residential components of Sports City have been delivered although there is still a lot of construction activity in the area. Of existing projects, 70% of villas and 60% of apartments are occupied and Sports City expects to attract 5,000 residents this year as the mixed-use project continues to gather buyer interest, swelling its population to 20,000.
The world’s first integrated purpose-built sports city
In February, GGICO launched apartments targeting middle-income families with price tags starting at €200,000. The offering sold out within weeks, boosting expectations of the development’s take-up rate over the remaining seven years to completion.
Dubai Sports City is the world’s first integrated purpose-built sports city, featuring 5 international sports venues and a series of major sports academy facilities. The area is supported by excellent infrastructure for resident families with retail parks, schools, leisure facilities, cultural attractions as well as the wealth of sports options available.
Dubai Sports city’s chief financial officer, Vijay Sajjanhar said: ” We have a great mix of residential, sporting facilities and food and beverage outlets which are proving big success stories. We are running a marathon, not a sprint, ” referencing the development’s long term goals as part of the Dubailand mega-development.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreThe Rise of the First Time Buyer in South Africa
The young professional demographic in South Africa has expanded to the degree that more young people are in a position to buy their first home much earlier than their peers a couple of decades ago.
The increase in first time buyer activity in South Afr…
European Commercial Real Estate Continues its Ascent in 2015
Overseas investment has continued to pour into Europe’s commercial real estate markets which have recorded growth for the seventh consecutive quarter in the first three months of 2015.
CBRE’s All Property Capital Value Index increased by 1.1% during Q1 2015, across all asset classes in European commercial real estate.
The index shows Germany , the UK and the Nordics as the strongest performers, with values rising across the board by 1.7% in Germany and 1.6% in both the UK and Nordics during the first quarter. The industrial property sector boosted southern Europe, driving growth up 0.6% over the same period.
Industrial property continued its reign as best performing asset class in the commercial sector, recording growth of 1.7% followed by retail at 1% and offices 0.8%.
CBRE’s senior analyst Matthew Edmonds said: ” Once again, there was compression across the full range of yields as investors continue to seek opportunities further up the risk curve. Prime assets are still the highest in demand but the group of assets with higher equivalent yields compressed noticeably, confirming growing interest in more opportunistic and value-add properties region-wide. “
Investment hotspots have shifted focus in the last year with many investors taking advantage of the relative strength of the dollar and sterling against a weak and consistently fragile euro. More foreign investors are looking again at Greek property markets on the back of the country meeting its debt obligations and showing signs of getting back on track, particularly in its property markets.
2015
Berlin
Dublin
Madrid
Hamburg
Athens
Birmingham
Copenhagen
Amsterdam
Lisbon
London
2014
Munich
Dublin
Hamburg
Berlin
London
Zurich
Istanbul
Copenhagen
Stockholm
Frankfurt
Going forward into 2015, it seems likely that momentum will continue to gather across Europe’s property markets, led principally by non-EU investors seeking to capitalise on euro weakness, particularly in countries offering residency visas for property buyers.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreForeign Investment Driving Up Property Prices in New Zealand
Homes are becoming less affordable for Kiwi buyers as prices continue to rise on the back of increasing foreign investment in New Zealand’s property markets.
Although Asian investment comprises a healthy majority of foreign buying in the country and are certainly singled out as being the main driver of price hikes, other nationalities are steaming in on Antipodean real estate. With Asian capital investment in Kiwi property with almost half the market share, there is still a considerable percentage – around 54% – of buyers from Australia, Europe, UK and South Africa.
Media speculation in New Zealand has unfairly pointed the finger at Asian investors as being responsible for driving up property prices to the extent that local residents are unable to buy principal residences. Reports have included new million-dollar homes in the Vaughan Farm development in Long Bay were almost all vacant having been ” bought by rich Asians and left unoccupied to reap the capital gain “.
However press reports have not been substantiated by any proof and the country’s estate agents are keen to highlight New Zealand real estate’s attraction to overseas buyers from outside Asia. New Zealand has always been a popular investment destination for Asian capital, particularly in recent years with the degree of wealth generation China has enjoyed.
However, more than 20% of foreign buyers in NZ property markets in 2014 were from Australia compared to 25% from China and so there seems to be little evidence of imbalance. There are many reasons why investors are attracted to the country’s property markets, not least it’s stable economic climate, great quality of lifestyle and the sheer beauty of its landscape.
Where perhaps Kiwis are being priced out of domestic property markets, Australians still see a lot of value represented in the country’s real estate. Many Australian buyers are miners getting good tax refunds they wish to invest in property and in the absence of value in their own country, they are looking further afield for property in New Zealand .
A high percentage of purchases in New Zealand’s property market are said to be for straight investment purposes. Obtaining a mortgage in the country is a fast process, often taking as little as 47 hours to complete. Many agents across the nation anticipate a continued rise in Chinese investment although not disparate with growth in capital from other nationalities.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreThe Rising Tide of Investor Sentiment for Philippines Real Estate
Although it’s difficult to come by property pricing data in the Philippines, industry insiders are reporting a significant upshift in values, particularly at the luxury end of its property markets.
Data from the Bank for International Settlements (BIS) show that capital values of flats and commercial properties in the Makati area of the capital Manila has risen almost 50% per square metre in peso terms from the first quarter of 2008 through to the third quarter of 2014.
Research published by real estate researchers at Colliers International shows that land values in the Makati central business district (CBD) exceeded their 1997 pre-Asian Financial Crisis peak, with residential capital values up 3.4% from the previous quarter and around 5.6% year-on-year. Residential rents increased by an average of 5% year-on-year in the CBD.
The main driver of growth in Philippines’ real estate has been increased investor appetite for its luxury property, both residential and commercial. Competition between high profile brands has been aggressive at the high-end in recent months resulting in a polarised real estate market.
Internationally-known names are increasing their presence in the country: the Azure condominium in Paranaque city, southeast of Manila is offering a beach club house designed by Paris Hilton, while a Trump Tower is going up in Manila’s Makati area.
The latest investment hotspot in the Philippines is idyllic Boracay, named the world’s best island getaway by Travel & Leisure magazine and best Asian Beach Destination by TripAdvisor’s Travellers’ Choice Awards for the last four years.
Residential and hotel design company YOO are behind a sumptuous new development on one of the world’s most pristine beaches in Boracay. The five-star boutique residential resort offers a fantastic opportunity for investors to harness some capital growth on the back of increased investor interest in the Philippines.
The highly-anticipated resort is on schedule to open in 2016 and is already gaining international attention and prestige for its unique, design and breath-taking scenery. Luxury residential units are available from €195,000 to €1.8m with rental yields expected to achieve from 6% to 8% annually.
It’s a great time to invest in the Philippines and Boracay in particular, with the opening of a new airport this year offering 50-minute flights from Manila, 2 hours from Hong Kong and 4 hours from Singapore. An already popular tourist destination particular for Asian visitors, the tiny island is seeing a steady increase in holidaymakers from Europe, the US and the UK.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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