NEWS
Spanish Banco Popular to Sell-Off €450m Bad Property Assets
In evidence of growing investor confidence in Spain’s property markets, Banco Popular is to sell its portfolio of Spanish real estate assets worth a total of more than €450m.
The portfolio is comprised of 1,473 homes in Madrid, Barcelona, Toledo and the Costa del Sol worth €300m; land plots in different Spanish regions to the value of €103.4m and includes 13 hotels, worth €47.2m, according to Bloomberg .
Documentation for the offer was prepared by investment firm N 1 and was sent out to potential investors last month. The Spanish bank’s strategy is to sell the first half of its portfolio this year and is at the core of its divestment programme of non-strategic assets.
So far in 2015, sales of Banco Popular’s real estate assets have reached record-breaking levels with the bank closing deals on €534m worth of homes in the first three months of the year, representing a whopping 115% increase for the same period in 2014.
Banco Popular has been anxious to stress that properties are not being sold at bargain basement prices to accelerate sales. On the contrary, it maintains that transactions are being closed at prices similar to their book value which backs current levels of portfolio valuations.
The bank joins others in selling its unproductive assets during a time when currency weakness is attracting wealthy foreign investors, mainly from the UK and US. In recent weeks, Spanish banks have offered unpaid debt and foreclosed assets worth €10,000m to international investment funds.
The most active financial institution in the rush to offload bad assets has been Bankia, with its ‘Big Bang’ project placing 38,000 residential units on the market including apartments, garages and storage worth €4.8bn. Bankia was also the first to bring to market a portfolio of outstanding mortgage loans despite concerns over repeating mistakes from the past.
With many of Spain’s banks holding property assets in areas sought-after by investors both before and after the global financial crisis, recent transaction activity looks likely to impede price growth over time. There has been a significant upward shift in interest from foreign investors in Spain’s property markets, mainly on the back of significantly increased purchasing power due to euro weakness.
When the euro inevitably finds a more advantageous level in FOREX markets, investment may start to fall slightly in Spain as investors digest the considerable choice of property that will become available over the next few months. With supply likely to outstrip demand, property prices could stagnate or even decline a little.
Nevertheless, if you’re an investor in dollars or pounds, it’s definitely advisable to make hay while the sun shines and you’ll almost certainly see some fantastic returns over time.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreMore Brits Holiday in Cape Verde than Ever Before
Cape Verde remains a relatively unknown holiday destination although the hugely appealing 10-island archipelago in West Africa has risen in popularity among British soap stars and celebrities, alerting other Brits to its many charms.
The first quarter of 2015 has seen a significant increase in the number of overnight stays in Cape Verde, rising 3.1% over the three months from January, according to figures published by the National Statistics Institute (INE).
The figures reveal that the number of overnight stays reached 1.01 million with an actual increase in visitor numbers of just 136 (0.1%), showing that tourists stayed for longer in Cape Verde, or an average of 8.1 days.
Sal Island received 47.5% of total visitors to Cabo Verde in the first three months of the year followed by the islands of Boa vista (28%) and Santiago (11.8%). Of those visitors, 20% were visitors from the United Kingdom, 14% from the Netherlands, 13.7% from Germany and 12% from France.
Real estate in Cape Verde is extremely cheap at the current time, with plenty of opportunities for investors seeking income generating assets in the hospitality sector. As the tiny country’s tourist infrastructure develops further to meet rising demand, considerable growth is expected in both rental yield and capital value in its property market.
Cape Verde is a vibrant holiday destination with a pleasantly tropical year-round climate and much to offer visitors. Most of its wide selection of restaurants and eateries are family-friendly and the locals have a great laid-back vibe that is infectious, allowing tourists to truly relax on their trip.
As tourist infrastructure develops and air-connections to the destination improve, there is likely to be considerable growth that savvy investors can profit from by buying in the right area of this stunning holiday hotspot.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreThe Old School Tie Advantage in UK’s Property Market
Latest research from Hamptons International shows that homes located close to independent schools and university towns are more stable investments than average UK properties. Properties in these areas are shown to retain their value, generate more rental income and generally recover at a faster pace from a housing market downturn than average UK properties.
According to the data, the national average UK property price in 2014 was at £173,500 contrasting with an average price of £354,000 for a home within a two mile radius of an independent school or university town. House prices in these areas currently stand at 116% of their 2007 peak in comparison with 98% for England and Wales as a whole.
London’s housing market has also reflected this trend in its property prices with houses close to independent schools at 66% higher than they were in 2007, compared with the average increase of 30%. Properties close to prestigious Westminster School (where Nick Clegg was a former student) are around 100% more than in 2007.
Data reveals that more than 35,000 overseas students are taught in independent schools within the UK and an additional 258,000 enrolled in university, representing an increase of 4% year-on-year.
Residential research director at Hampton’s, Fionnuala Earley said: “For many overseas parents with children studying in the UK this is a catalyst to investing in property – be this a student flat or a larger family home. For overseas investors looking to buy in the UK our research shows that average property prices within a two mile radius of an independent school have outperformed the national average. Similarly in university towns, capital and rental growth, boosted by student and employer demand alike continues to offer an attractive proposition to investors.”
Four out of five of the highest ranking universities in Europe are located in the UK, together with some of the most prestigious independent schools. This is undeniably a motivating factor behind foreign and domestic investment in property close to British educational establishments.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreIrish 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
read moreIstanbul 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
read moreAlgarve 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
read moreDubai Theme Parks to be Magnet for Tourists in 2017
In preparation for the World Expo to be hosted by the Emirate in 2020, Dubai has been pouring investment into its tourist infrastructure with the aim of attracting more than 25 million tourists in five years’ time.
There are currently three theme parks under construction that are expected to drive Dubai’s tourism towards its target when they open at the end of 2016. The theme parks are: Motiongate a Hollywood-inspired attraction based on major DreamWorks Animation and Sony Pictures movies; Legoland Dubai, the first legoland theme park in the Middle East and Bollywood Parks, offering a Bollywood movie experience.
Timeshare companies are particularly buoyant about the prospects for Dubai’s tourist sector, expecting growth in its timeshare industry of around 50% in 2017, once the parks are open to visitors.
Mohannad Sharafuddin of timeshare sales and marketing company Arabian Falcon Holidays said: “Dubai Parks and Resorts, the operator of Middle East’s largest multi-themed leisure and entertainment destination expects over 6.7 million ticketed visitors in 2017. That’s a huge number in the first year and will aid in the growth of the timeshare market here”.
“The timeshare market will grow exponentially in 2017, surpassing the growth rates of 15 to 20% per year and heralding a new era with annual growth rate of 50%, primarily driven by tourists visiting these theme parks,” he added.
All three parks are located close to Dubai’s international airport, Al Maktoum and will be easily accessible from there via the Emirate’s Metro system. Real estate in Dubai is also expected to enjoy rising interest as a direct result of growth in its tourist numbers over the next five years and beyond.
Further large-scale investment has been made into the construction of the €6.2bn Mall of the World by Dubai Holding. The mall is set to be the largest in the world, featuring a glass-domed theme park and expected to be a significant attraction for visitors in the Emirate.
“Dubai’s location, significant existing attractions and strong tourism infrastructure position it well to benefit from anticipated strong tourism growth in the Middle East,” Sharafuddin said.
Dubai presents a great opportunity for strategic property investment ahead of the World Expo in 2020. As part of the Emirates spending programme in tourism, the hotel sector is growing rapidly representing a very attractive investment market at the current time for those interested in income-generating property assets such as hotel rooms.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreEmiratis Gain Visa-Free Access to European Real Estate
This month saw an important change in EU legislation, granting Emiratis visa-free access throughout the Schengen area that is expected to boost UAE buying in European property markets.
Global real estate services company Cluttons forecast a significant uplift in investor interest coming from the UAE as a result of an improved investment climate together with dollar strength. The Emirates’ currency, the dirham is pegged to the dollar and consequently Emiratis are currently enjoying considerable purchasing power, particularly in the Eurozone.
Cluttons’ international research manager Faisal Durrani said: ” There is no doubt that visa free travel to the Schengen area for Emiratis has unlocked the door for a significant potential upturn in cross border property investment. The added benefit of the weakness of the euro means that dirham buyers are now about 23% richer than this time last year, in euro terms. This clearly makes an EU based property investment particularly attractive “.
Spain seems set to be the main beneficiary of UAE investment , mainly due to its rich Islamic heritage, particularly in Andalucia. Property prices in Spain are considered to have bottomed-out, spurring further investment interest not only from the UAE but the UK, as the pound continues to respond positively to a decisive general election result.
Middle East outbound investment has remained significant in recent years and is now expected to receive a further push from the UAE. According to world-leading real estate advisors CBRE’s ‘Middle East In and Out 2015’ report ‘Middle Eastern buyers invested a total of $14.1 billion outside their home region in 2014, making the Middle East the third largest source of cross-regional capital globally’.
The report identifies Europe as the preferred market for Middle Eastern Investors, receiving $10.2 billion in 2014. ‘In line with other investor groups, the year saw a major shift in investment strategies, with activity growing across second-tier European locations, including Amsterdam, Frankfurt, Budapest and Madrid. While still the most popular market, London received 32% of spend in 2014 compared to 45% in 2013, with Paris and New York growing their shares in 2014 to 16% and 10% respectively. London and Paris were the only two markets to retain a top five ranking in 2014’.
Europe’s property markets seem set to become an investors’ playground with buying activity rising from the UAE, the US and the UK. With investors largely seeking income generating assets in preference to principal residences or holiday homes, buyers are less likely to be concentrated at the luxury end of the property market.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBritish Expats Surge on UK Income Generating Property
Offshore bankers Skipton International have reported a sharp increase in expat investment in UK buy-to-let property , particularly among Brits living and working in the UAE.
Jim Coupe, Managing Director of the bank said: ” We’ve had interest from all over the world but particularly the UAE. Our customers are showing they are making the most of the buy-to-let opportunity and with many now viewing the London property market as overheated, demand is set to increase for properties in other areas of the UK where rental yields are looking far more attractive for buy-to-let investors “.
Investors started to look beyond London’s property markets towards the middle of last year, cautious of putting capital into a rapidly overheating sector. Regional cities particularly in the north of England saw considerable rental growth in Q1 2015 which combined with lower base costs for property presents greater margin opportunities for investors.
According to research from British property management agency Homelet, UK rental prices for the first quarter of this year increased 10%, with regions outstripping London on growth.
British Expats working in the UAE are very well-placed to take advantage of growth in the UK’s regional rental market, mainly because of substantial and tax-free incomes. Expats in the US or earning in a currency pegged to the dollar as in UAE, Hong Kong, the Caribbean among others, are also enjoying improved purchasing power. Expat investors see the UK as a dynamic investment market that represents a safe bet.
Mr Coupe added: ” The buy-to-let sector has certainly outperformed the FTSE by some degree since the millennium. Many expats are looking for long-term investments for which property is a potentially suitable option and will often utilise their own knowledge of a particular geographic area of the UK in which to select properties that represent good value and desirability to their target market of tenants “.
It goes to show that even among international property investors, home is where the heart is!
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreAgents Report Rising Investor Demand for Spanish Property
It’s no secret that the euro has been a little downtrodden by sterling since the beginning of the year. With the additional impact of 200,000 more British investors eyeing up the market since changes to regulations came into force in April, Spain is very much an investors market!
The latest Spanish Property Market Confidence Index (SPMCI) from Spain’s major property portal Kyero reveals that around 71% of agents in the country have more confidence in the property market in Q1 2015 compared to a year earlier.
Covering 160 English-speaking and 216 Spanish-speaking agents across the country, the survey indicates a much more bullish attitude towards the market among the English-speakers, almost certainly due purely to sterling strength.
Martin Dell, director of Kyero said: ” The strength of sterling has played a key role in the confidence divide that we are seeing currently between English-speaking and Spanish-speaking real estate agents in Spain. Some 30% of English-speaking respondents have highlighted stronger sterling as the most significant change over the past we months. For Spanish-speaking agents, increased marketing tops the table of significant changes with 26% of respondents flagging this up as the biggest change “.
It is very evident that marketing to English property investors has stepped up a notch in 2015, with agents vying for pole position with tempting offers of turnkey investment opportunities in coastal resort areas.
Properties removed from the market months ago have been re-introduced at huge discounts, some with tempting mortgage offers of up to 110% loan to value in attempts to attract British buyers into Spain.
Professional resort management companies are releasing old stock on to the market at heavily discounted prices, showing an eagerness not to miss out on British investor activity. In a bid to maximise profits, resort companies are appointing agents on a time-sensitive, volume sale basis, churning out whole developments that have become tired and worthless to them.
Although it is undeniably a great time for sterling investors to buy in Spain’s property market, analysts believe they will have to wait to see any marked capital appreciation. Many parts of Spain’s ever-popular southern coastline have become synonymous with swathes of empty, half-finished developments, many owned by banks.
As these are completed and released on the market with accompanying offers of low cost mortgages, property price increases in Spain will be stunted as a result.
However, for a straightforward investment that isn’t an issue. Spain is enjoying record-breaking tourist numbers meaning that good rental incomes are more or less guaranteed in the resort areas. British buyers who buy well and in the right locations can’t really fail to enjoy favourable returns at the current time.
A word of advice from the author: Many agents are piling pressure on British buyers to act swiftly, while they are in such an advantageous position. All property investments should be calculated and considered decisions and there’s absolutely no hurry to jump on the bandwagon in Spain. With the amount of poorly performing property assets remaining on the books of Spain’s banks, we have not seen the last of the bargains in its property market by any stretch of the imagination. It is also highly unlikely that price movement will be significant in the next two years because of oversupply and so there’s plenty of time to make a cracking investment purchase in Spain.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBulgarian Holiday Rental Portal Captures Tourism Growth
Bulgaria’s tourism minister Nikolina Angelkova recently reported a bumper winter season (December-February) that saw growth of over 9%, representing an increase of almost 80,000 tourists.
Commenting on this year’s summer season, she said the preliminary forecast was extremely optimistic. An increase of 5% of German arrivals, 10% Israeli, 5% from France and a massive 40% increase in visitors from Lituania, Latvia and Moldova is forecast for summer 2015.
Bulgaria has become an increasingly popular holiday destination in the last few years although its tourist sector is relatively undeveloped. With fantastic beach resorts and winter skiing, there’s something for everyone all year around.
Seeing a niche in the market, a new portal – Arendoo.com – is set to revolutionise Bulgaria’s holiday property market. This is good news for the many British and Irish investors in Bulgaria’s property market and presents an opportunity to capture growth in the country’s tourism and make a good profit from it.
Arendoo.com is a fully transparent, fully accountable rental portal that generates bookings as well as providing associated services such as cleaning, key exchange and linen changes. In a press release the portal states:
” Arendoo.com is Bulgaria’s answer to a decade of under-performing property assets. Charging owners only when property rentals are completed, arendoo.com’s clients enjoyed their properties being let for more than 40,000 rented nights last year. “
The portal’s director Christophe Gater said: ” Until now, British and Irish owners have had few professional options in the Bulgarian rental market. Most have naturally opted for the services offered by their complex reception but have suffered inexplicably low occupancy. It’s time for accountability and full transparency in Bulgaria’s holiday rental market “.
Arendoo.com fills the void and communication between foreign owners and their holiday properties in Bulgaria. It is currently the only rental portal offering videos of listed properties and online log-in facilities for owners where they can view all bookings, transactions and monies owed. They also cover check-in and check-out together with cleaning and linen services so that owners overseas have hassle-free rentals in their absence.
The portal arrives at just the right time as Bulgaria’s popularity among international tourists is rising. Owners of property in the country’s holiday hotspots now have a way to tap into visitor volume growth allowing them to enjoy more consistent rental income.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreRestoration Row over Queen’s Former Home in Malta
It’s a little-known fact that Queen Elizabeth called Malta home for a period between 1949 and 1951. Before her coronation, the then Princess stayed in a villa leased by Lord Louis Mountbatten from 1929 while her fiancé at that time, The Duke of Edinburgh was stationed in Malta as a serving Royal Navy officer. Malta is the only country outside the UK, the Queen has ever lived in.
Now, the Queen’s former residence – called Villa Guardamangia – is at the centre of a row over its restoration. A recent survey conducted by the Telegraph revealed that 84% of respondents would visit the villa in Malta if it were restored and opened to the public.
The only property outside of the UK which the Queen has called home
Located on the outskirts of Valletta, the formerly imposing house is now in need of considerable renovation and being privately owned, there are conflicting opinions as to who should fund the work. Leading conservationist Astrid Vella feels that the government should foot the bill for the work which would considerably boost tourism on the island, already a popular destination for international holidaymakers.
” This villa not only has immense architectural value but it’s the only property outside of the UK which the Queen has called home, ” said Ms Vella from the steps of the villa itself. ” It is crucial to our heritage and our collective memory and could really boost quality tourist numbers, ” she added.
The row comes in the build up to the next Royal visit scheduled for November. It has been reported that on her last trip to Malta , the Queen requested she be able to visit her former home but the current owners did not agree to it. Mrs Vella believes the Maltese government has a duty to restore the building to its former glory as an important part of the island’s heritage.
She said: ” The only other solution is for the government to buy such houses outright and restore and maintain them at state expense, for public use. If these buildings are considered public heritage, then it follows that public heritage must not be maintained at private expense, enforced by law, but at public expense but with the consent of the owners and market-price compensation paid to the, and not through enforced expropriation or requisition. The government is, apparently, in negotiation with the owners to buy Villa Guardamangia, or so it has told the press “.
The row has prompted Malta’s government to issue a statement concerning the villa in which it says it has already embarked on a process to restore the property: ” Surveys on the property have been carried out and restoration costs estimates have been gathered. However, the government has no title on the property and this has created legal complications with its owners “.
Despite the legal issues, the government has confirmed the property will be expropriated, with full compensation to its owners because it ” believes that the property is one of historical heritage “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreIs It Boom or Bust for Israel’s Property Markets?
Israel’s government are seeking to introduce measures to cool investor purchases in its property as unprecedented interest pushes property prices upwards.
According to the nation’s tax authority, figures show a sharp increase in investor purchases over the last six months. The number of private individuals owning five properties or more rose 6.4% to 5,760 individuals, representing a record high. Out of this number, 331 investors own 10 or more properties, an increase of 7% the authority said.
The reality is that even these statistics understate the extent of multiple home-ownership in Israel as figures don’t include companies, trusts, individuals registering property in the name of relatives, foreign residents or those who have inherited a home.
Benjamin Netanyahu’s last government took some measures to rein in housing prices although the programs either never got off the ground or did so slowly to no effect.
New finance minister Moshe Kahlon has vowed to put a lid on rising home prices, including plans to sell land to contractors and others at lower prices with savings being passed on to buyers when the units are sold.
Kahlon is also considering plans to impose heavier taxes on property investors in an attempt to reduce competition for buyers seeking a principal residence. Economists argue however, that reducing demand by investors won’t address the supply-demand imbalance as the majority of investors rent their properties out.
Israeli home prices increased 4% in the first quarter of this year, with the sharpest increases in Ashdod, Ashkelon and Jerusalem at around 7%. At the other end of the scale, one of Israel’s prime markets, Tel Aviv remained flat during the first quarter, finally showing signals of cooling.
Tel Aviv’s prime residential market has grown more than 75.4% in the last six years. The city’s renaissance over the last decade has brought accolades for its restaurants, nightlife and arts scene together with an ever-increasing population. Israel’s most densely populated city has an average of 7,522 people per square kilometre compared with 5,750 per sq km in the capital, Jerusalem.
Real estate professionals in Israel wait with bated breath to see what cooling measures will be implemented by the new government and how they will impact price appreciation. As a reasonably affluent country, property prices are consistently high compared with Europe. The national average rent in Israel is €630/pcm, with average prices at a median range of €3,548/sqm.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreSupply Squeeze Pushes Up Prices in Northern Ireland
Despite growing transaction activity, house prices in Northern Ireland are rising and set to continue on the back of a shortage of new supply.
According to the latest RICS/Ulster Bank residential market survey, housing supply remains a problem, forcing property prices higher despite increased sales. The survey reports new buyer enquiries are rising at a faster rate than new vendor instructions, putting additional upward pressure on Northern Ireland’s property prices.
Samuel Dickey, RICS ‘ Northern Ireland residential property spokesman said: ” Supply remains quite tight with not a lot of properties coming on to the market and this lack of supply combined with rising numbers of people looking to buy is leading to rising prices and the expectation of further rises in the months ahead “.
According to government figures, 10,066 social and affordable homes have been delivered to Northern Ireland in the last four years, much more than the 8,000 target set by the Department for Social Development (DSD). Out of this allocation 6,101 were social homes and 3,965 affordable and around £900m was invested over the four years.
DSD Minister Mervyn Storey said: ” Not only has this investment delivered 10,066 homes but it has helped support the construction industry and provided employment for many people through a difficult economic climate “.
Northern Ireland’s property market started 2015 as it had finished 2014 with prices house prices rising rapidly. Industry experts predicted that house prices would outpace those in the rest of the UK this year and it looks likely predictions are accurate.
Samuel Dickey of RICS Northern Ireland said: ” The local housing market is expected to benefit from the reform of stamp duty with the large majority of homebuyers here paying less of the tax. This will help encourage activity “.
” In terms of prices, the gap between demand and supply is creating upward pressure. However the slowing economic recovery and public spending environment will present challenges for the market. Overall, RICS expects prices to rise on average 4% this year, a moderation in growth relative to 2014, ” he added.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBritish Buyer Interest in Italian Real Estate Soaring
Italian property portal Gate-Away has reported a massive 87.5% increase in search enquiries from British investors in the first quarter of 2015, compared with the same period last year.
Sterling strength against the euro has led to a significant upward shift in sentiment from British buyers since the beginning of the year. Interest was further buoyed when changes to UK pension regulations took effect in April, resulting in more than 200,000 new buyers entering real estate markets both at home and overseas.
Gate-Away also revealed that Brits are looking at more expensive property in Italy ‘s prime regions with budgets of an average €324,000 compared to €190,000 in the first three months of 2014. This is partially due to increased purchasing power resulting from sterling strength in euro denominated property markets.
Simone Rossi, commercial director of Gate-Away said: ” The average value of Italian properties sought by the British has grown tremendously in this first quarter and even beyond the depreciation of the euro against the pound. More and more Brits than ever are being driven by the favourable economic climate and are finding that the Italian real estate market is far from inaccessible and beginning to consider the idea of buying a house in Italy very seriously “.
Topping the list of most favourable buying locations was Puglia, knocking Tuscany off the top spot. 80% of searches by British visitors to the portal have shown interest in houses and 20% in apartments, with around 55.7% looking for habitable properties not requiring renovation.
Gate-Away shows that the UK generates the highest number of enquiries for property in Italy, followed by the Americans at 14.2% and French (9.3%). Interest from American buyers in Italian property markets is also expected to increase considerably in 2015 on the back of a rock solid dollar.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUnfair housing loan agreement
MOST if not all house buyers will require financing to buy their dream homes. While there appears to be stiff competition among banks for market share and interest rates may be kept low, house buyers are ultimately at the mercy of banks when it comes to the detailed terms and conditions of the housing loan.
read moreProperty market can direct itself
Housing busts can take economies down with them, as the US in the late 2000s, Japan two decades ago and now parts of Europe, can attest. Beijing, worried about the mainland’s slowing economy, has again turned to the troubled property sector to stabilise growth. Measures have worked before and those announced last Monday to stimulate demand aim to replicate the successes. The stock market there and in Hong Kong have given a show of confidence with share prices soaring, but the focus should be less on short-term gains than more forcefully pushing far-reaching economic reforms.
read moreRinggit slump won’t affect property sector, Penang Rehda says
Malaysia Ringgit slump down won’t affect property sector, Penang Rehda says GEORGE TOWN, Jan 9 — The drop in ringgit value at the start of this year due to the global oil price slump is not likely to affect the local property sector, Real Estate and Housing Developers Association (Penang) chairman Datuk Jerry Chan said. Chan said now when the ringgit is weak; it is a good time for Malaysians to invest in local assets as it would not be affected by the exchange rate. Instead of buying foreign assets, the prices of which would be affected by...
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