NEWS
Iconic Utah Mountain Resorts Connect to Open as America’s Major Ski Hub
Following the acquisition of Park City Mountain Resort by Vail Resorts for $182.5m last year and significant development to connect it and the adjacent Canyons Resort, this Saturday will see the opening of what will be the largest ski area in the United States.
Since acquiring the site, Vail Resorts has spent a further $50 on renovations for the 7,300-acre mecca for skiers around the world. ” This is a historical year for us, ” said Bill Rock, Vail’s chief operating officer. ” People have been talking about connecting resorts in Utah for a long time, but we were able to make it happen. … Park City has all the ingredients to be one of the best ski resort destinations in the world “.
With the merger of the two iconic resorts, skiers and snowboarders can explore 17 peaks on more than 300 trails, ride 41 lifts and dine in 16 restaurants. ” It’s big, ” Rock said. ” It’s gotten a lot of attention from around the world – rightfully so because Utah’s got the greatest snow on Earth and now the biggest resort in the United States “.
The ” cornerstone centerpiece ” of the resort’s improvements, he said, is the new Quicksilver gondola, an eight-passenger, high-speed lift connecting Park City and Canyons resorts, which will be up and running by mid-December.
Halfway through the gondola’s nine-minute route, riders can unload at a new station at the top of Pine Cone Ridge, where they can ski to either Canyons or Park City areas on two brand new trails: The Highway for beginners and intermediate-level Blaise’s Way.
On the Park City side of the resort, the brand new Miners Camp restaurant replaces the Snow Hut with 500 indoor seats at the base of Silverlode Lift, next to the Park City terminal for the Quicksilver gondola.
The King Con lift’s capacity has also been increased from four to six people and the Motherlode lift has been upgraded from a fixed-grip, three-person lift to a four-person, high-speed detachable chairlift. In Canyons Village, the Summit House and Red Pine restaurants were renovated, Chicane trail was widened, and snowmaking was increased on Iron Mountain.
It was a massive project to complete in one summer, Rock said, but everything will be ready by Christmas. ” We’ve talked about this being transformational, ” he said. ” As the biggest resort in the U.S., people have big expectations, so we want to deliver “.
Utah is America ‘s principal ski resort area and property is very popular throughout the year both to investors and new residents in the area. At the beginning of this year, RealtyTrac named Hunstville, Utah as the best ski town for property investors, citing an average rental yield of 7.7% and an average price increase of 3% year-on-year.
The quaint town of Huntsville, Utah, located in the state’s Odgen Valley region, may only have about 600 people, but it has three ski resorts. Tourists and would-be residents flock to the Wasatch Mountains to hit the slopes at the Snowbasin, Powder Mountain and Nordic Valley resorts, and to take advantage of the 9,250-foot summit elevation. It has the lowest median home price on this list at about $170,000, and it was named the best ski town for real estate investors by RealtyTrac, all things considered.
Now there’s a huge new kid on the block in Utah’s ski-country at Park City Mountain Resort, property investment in the State is on the rise. Median prices for apartments are around $160,000 according to data from RealtyTrac and so there are many bargains to be had for savvy investors.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreSydney Becomes Australia’s Most Expensive City for Real Estate
25 years ago, the Australian version of Monopoly was released with the original board based on 1990 property prices. The board featured prominent inner city streets and locations in Australia’s seven capitals and, based on trends at the time, put Canberra as the most expensive city in the coveted dark blue property slots and Darwin the cheapest in the unwanted brown spaces.
However, a study of medial street prices shows property values have changed so much since then that the board would be almost unrecognizable if based on current property prices.
If the board was arranged based on today’s prices for property in Australia , Hobart would now be the cheapest and Sydney would be the most expensive, with Darwin boosted to the dark green slot, just behind Sydney.
The gap between game prices and real prices has grown incredibly – the latest Core Logic RP Data figures show a standard home on even the cheapest street today – Hobart’s Davey St – would actually cost you just over $305,000 in real money.
Mortgage broker Stephen Jones said comparing today’s price with Monopoly, while an amusing illustration of Australian home value, shows the different speeds at which capital city property markets have moved.
” The resources boom has probably been the biggest changer of prices, which explains why property prices in Perth and Darwin, which used to be a lot cheaper, are now among the most expensive in the country, ” he said.
” Sydney’s position as Australia’s most expensive city isn’t surprising either considering the recent [price] boom and how it has lifted the median value of a home more than 70 per cent since 2008 “. Originally, it was the appeal of cheaper property, with plenty of room for growth that attracted buyers to Sydney’s real estate market — driving prices up, and fast.
Sydney’s suburbs Guildford, Northmead, North Rocks, Carlingford, Parramatta, Dundas Valley, Werrington, Glenmore Park, Toongabbie, South Wentworthville, Bella Vista and Baulkham Hills have all had their top house price smashed this year.
Most of these records are sitting comfortably above $1 million, with some already in the $2 million-plus bracket and in a few of Sydney’s million dollar suburbs, the record has been broken several times in the past six months.
” We have got historically low interest rates so what has happened is that there was little price growth in Western Sydney and the southwest in the last seven years, and it makes housing in those areas very affordable, ” said Malcolm Gunning, Real Estate Institute of NSW president.
” What has now pushed (prices) up it is the improved infrastructure, particularly in the northwest, with the extensions of Windsor Rd, the M7 and now the North West Rail Link, ” he said.
Sydney’s property market shows no sign of slowing with home auctions cropping up throughout the city and its suburbs, attracting massive buyer interest. It is also worth noting that there is a marked increase in domestic home purchases in Australia, as Chinese interests’ shifts to the country’s commercial real estate sector.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreMichelangelo’s Historic 16th-Century Villa in Italy for Sale at 7.5m EUR
According to a press release by PR Rocket , the villa where the great Florentine artist Michelangelo Buonarroti lived, one of the most celebrated properties in Italy is still on the market. News of the listing was first published by The Daily Mail in August this year. The asking price for the culturally and historically significant home is a very reasonable €7.5 million.
The luxurious former residence of one of the greatest artists in the history features 1,200m² of space and has eight bedrooms and seven full bathrooms with scenic views of the Tuscany hillside. The grand estate stands on six acres of land and has three separate multi-story buildings plus an ancient tower believed to be erected in the 11th century. Grounds surrounding the villa are dedicated to Chianti vineyards, lemon groves, and olive orchards, as well as the original olive oil mill.
The house has retained much of its old grandeur, as the current owner has significantly worked to restore the villa from its rustic architecture down to the minutest detail in the brick work and wooden ceilings. He also has the original documents and deeds to the house.
Michelangelo bought the home in 1549, three decades after completing his work on the Sistine Chapel ceiling between 1508 and 1512. The estate belonged to the Buonarroti Family for over 300 years until 1857. The home is furnished with several of the original accents such as the wooden-beamed ceiling.
Michelangelo was born in 1475. At a young age, he already exhibited great promise as an artist, prompting his banker father to apprentice him with celebrated painter Domenico Ghirlandaio. From him, Michelangelo mastered the art of fresco painting. Soon, he became a student of sculpture under the tutelage of Lorenzo the Magnificent. At the age of 16, Michelangelo completed sculpting the ” Battle of the Centaurs ” and ” Madonna Seated on a Step “.
Michelangelo’s most famous works, however, are the paintings in the Sistine Chapel and his sculptures ” David ” and ” Pieta “.
There is significant investment in Italy’s historic buildings and entire villages are being renovated in attempts to restore the country’s former architectural grandeur beyond the famous landmarks tourists flock to see.
Some medieval properties in rural villages are being offered for restoration from as little as €1 to incentivise investment and there is considerable interest in the many fascinating opportunities in Italy’s real estate market.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreWeak Euro Boosts Investment in Luxury Alpine Resorts
According to Savills’s Spotlight on the Alpine Property Market Report, the recovery in the Alpine real estate market, led by the ultra-prime resorts, has spread to the rest of the region with infrastructure investment spurring new development. British buyers are returning as a weak euro poses buying opportunities in France , Austria and Italy.
Courchevel 1850 tops the Savills Ultra-Prime Ski Resorts Index with typical prices of €31,340/m² for the best properties. The French resort is followed by the premier Swiss destinations of Gstaad, St Moritz, Zermatt and Verbier at between €26,450 and €31,220 per sqm. In spite of limited price growth, a strong Swiss franc has pushed these markets up the rankings in currency terms.
In North America, only Vail is on par with the top European competition at €25,200/m2.
Courchevel 1850 and Gstaad continue to lead the Ultra Prime Ski Resort Index, with 92% of buyers purchasing for both personal use and investment. A strong Swiss franc has made Swiss property expensive to foreign buyers, however a weaker euro poses buying opportunities in France, Austria and Italy.
Paul Tostevin, associate director, Savills World Research, said, ” A home in a top-tier Alpine resort is a key component of global property portfolios for the world’s wealthy. A property in Courchevel 1850, Gstaad or St Moritz complements a city residence in London, Paris or Moscow “.
Jeremy Rollason, managing director, Alpine Homes, in association with Savills, said, ” 2015 has been a tale of two currencies for UK buyers in the Alps. The de-peg of the Swiss franc caught markets off guard, but sterling has since recovered and now trades within a 5% range of the pre-January 2015 exchange rate. The weakening euro has helped buyers in euro denominated countries. Currency swings have the effect of either suppressing or stimulating markets through affordability, but the net effect has little influence on property values per se “.
Buying activity in the Swiss resorts cooled in 2015 with foreign buyers, particularly important to the top end of the market, impacted by the strong Swiss Franc. However, despite limited supply of second homes, investment in infrastructure continues and the cache of Swiss resorts remains.
Villars, a year round Swiss resort with high quality international schools, has seen high levels of new supply in recent years and has suffered from poor snowfall. This has had some impact on pricing and, for those who shop around; there are deals to be done. Prime apartments here trade at between €9,000 and €11,000 per sqm.
The Austrian Alpine resort market has remained strong on the back of a vibrant local economy, which has generated house price growth nationally of 41% since 2008. The country continues to offer excellent value for money compared to the more established French and Swiss resorts. Committed investment in resort infrastructure and investor appetite means there is still room for upward price movement.
Over in France, sales volumes in the ski regions of Haute-Savoie and Savoie have held up better than the rest of the country whilst a weaker euro has opened up investment opportunities for dollar and sterling denominated buyers.
Val d’Isere has seen premium restaurants and boutiques open. Popular with the UK market, there is strong rental potential with yields of circa 3.5% gross achievable for top chalets. The Chamonix Valley continues to see demand led recovery and prices are now at or around the pre-crisis peak of €10,000/m².
” We anticipate a continued globalisation of Europe’s top ski resorts as the customer base broadens and attracts a more diverse and market savvy investor, ” concludes Rollason
The report identified five emerging destinations and resorts opening up to an international market. The Balkans, on the edge of the large European market, and already attract British and Russian skiers. Pyeongchang, South Korea, is the 2018 host for the Winter Olympics. International investors have been attracted by special visa investor programmes.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreIs Qatari Real Estate Booming towards a Bubble?
Property prices in Qatar have been growing at an explosive pace, with banks stepping up lending as the real estate market heats up. Real estate prices rose 18% in the year to September, according to Qatar Central Bank data, beating the previous 2008 in June last year and continuing to rise at a double-digit rate.
Activity in the property market has been fueled by increases in the amount of credit provided by local banks to the real estate sector. Commercial credit to Qatar’s property market grew by 17% from June 2014 to June 2015, now accounting for around one sixth of all lending by Qatari banks, according to the central bank.
However, this is only part of the lending story in Qatar right now. The data doesn’t give a clear indication of how much credit to the public sector and private individuals is spent on real estate. It is likely that mortgages and government building projects account for a significant chunk of this lending, making the overall amount of credit directed at the sector much higher.
Jason Tuvey, emerging markets economist at Capital Economics said: ” If you look at Qatar now it looks like the UAE in 2008 and 2009 – rapid price rises in housing, high lending and banks borrowing from abroad to sustain credit growth “.
The IMF, in its annual report on the Qatari economy, singled out price rises in the real estate sector as an area that needs closer attention paid. ” Although the banking system as a whole appears cushioned from real estate sector volatility, developments at weaker banks need to be closely monitored, ” the Fund said.
A considerable part of the spending on real estate is focused on Qatar’s hospitality sector and with the country aiming to attract 7 million tourists by 2030, adding 60,000 hotel rooms to existing stock, it is likely to be significant. This is a red flag to analysts. ” The 2009 property bubble in the UAE wasn’t just a real estate bubble, ” says Sanyalaksna Manibhandu, senior researcher at the National Bank of Abu Dhabi. ” You also had an overheated hospitality sector “.
Nevertheless, the mortgage business continues to attract investment because of significant demand in some housing market segments in Qatar. Dr. Raghavan Seetharaman, chief executive of Doha Bank said there is ” a need to be cautious of property market prices because land prices in the recent past have been climbing and a time will come for it to stabilize or correct “.
There are indications that price growth may starting to slow in Qatar’s real estate sector, as the low oil price hits deposits. Year-on-year price increases were close to 40% in September 2014. As the oil price drop has led to project slowdowns and redundancies in the hydrocarbons sector, demand for mid-range real estate and office space has taken a small hit.
Housing supply is expected to more than double in 2018 compared to current levels which could lead the Qatari property market from undersupply to oversupply in just three years. However, many analysts believe that housing supply is driven by government policy rather than demand for real estate. For that reason, growth in Qatar’s real estate sector is not considered dynamic which places another element of risk into the equation for property investors.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read morePortugal Makes Golden Visa More Attractive to Investors
Portugal’s Golden Visa scheme offering residency in exchange for non-EU investment in its real estate has become one of the cheapest in Europe, following a decision to reduce the minimum investment amount from €500,000 to €350,000.
Only the Greek residency programme is cheaper but despite the lure of a full Greek passport as part of the deal, the country is fast losing popularity among wealthy investors due to its economic instability.
The Portuguese Golden Visa Programme offers investors from outside the EU several alternatives to qualify for residency. A candidate can transfer an amount of €1m into a local Portuguese bank; create at least 10 local jobs in the country; invest €500,000 in the capitalisation of small or medium enterprises or €250,000 into a national heritage project or artistic production.
A recent report described Portugal’s residency scheme as one of the best in the world. The country’s location in Europe’s Schengen zone makes it particularly attractive to non-EU buyers as it allows visa-free access to 25 countries. Additionally, investors are not taxed unless they sell a business property or real estate. Other attractive features of the scheme include better processing time than in other countries and more relaxed rules for bringing in spouses or dependents.
Investors under the scheme are initially provided residency for two years which is then renewed twice for two-year increments. To qualify for renewals the investor is required to provide proof that they have resided in the country for at least seven days during their first year and at least fourteen days in each of the subsequent years. After six years of Portuguese residency, the investor becomes eligible for citizenship although there is a requirement of additional criteria including learning the Portuguese language.
Portugal boasts an excellent reputation, with a very high Human Development Index ranking according to the UN and the country is considered one of the world’s most globalised and peaceful nations with a great quality of life. It is among the oldest countries in Europe with a rich history, vibrant culture, stunning beaches and beautiful countryside. The tax burden on residents of Portugal is among the lowest both on corporate and personal levels and the country’s compliance standards and due diligence are comparatively high.
According to figures released by the Portuguese Immigration Service in February, as of 31st January 2015 more than €1.25bn had poured into the Golden Visa scheme since its inception in October 2012.
This level of investment is very significant for Portugal and reflects the importance of the residency programme to its economy. Property acquisitions represent the majority of selected investments under the scheme, totalling more than €1.1bn at the end of January. Nevertheless there has been a significant increase in capital investments also, which have risen to almost €120m.
Portugal’s Golden Visa has performed very well and continues to be the top choice for foreign investors in Europe. The Portuguese Immigration Service has issued 2,100 residency permits for investors and over 3,100 to extended family members since the launch of the programme.
Portugal’s housing market continues to recover with property prices rising 1.81% during the first quarter of this year to an average price of €1,011/m2, based on figures released by Statistics Portugal (INE) . Following more than three years of recession, house prices started to show the green shoots of recovery during 2014, despite Portugal’s struggling economy.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreCrowdfunding Firm Eyes up Irish Real Estate
Crowdfunding has become the financial trend of the moment, a model helping to shake up everything from sending cash overseas to delivering loans to small businesses. London-based firm Property Partner plan to extend offer this investment vehicle to individuals seeking buy-to-let investments.
” Property investment is something that’s available to the few, rather than the many; our vision is to make it as accessible as a company stock, ” CEO Daniel Gandesha said.
Speaking to the TheJournal.ie at this week’s Web Summit, the startup’s founder repeatedly used the stock analogy to differentiate his company from both other crowdfunding prospects and old-fashioned property speculation.
Rather than having to pay significant deposits on loans, investors instead pay anything upwards of £50 to buy shares in a property, or in some cases whole blocks of apartments.
” Being able to diversify is really key and it also means you can invest through the property cycle, ” Gandesha said.
Imagine, here in Ireland, if you bought a property at one minute to midnight at the peak of the cycle … well, on our platform you can say I’m going to invest £10,000 a year and I’m going to invest in different areas. It’s not risk-free by any means, and we’re very upfront about those risks, but it’s a smart way to invest”.
Shares in a property are traded on an exchange – with the important caveat that there needs to be a willing buyer – which means investors don’t need to wait for a home to be sold outright to cash in on any price rises.
The average time to sell at market price currently stands at about 8 hours, Gandesha said, while shareholders also enjoy their cut of the rent. In return, the company takes 2% of any initial investment and a 10.5% share of the rental income to cover costs.
The vast bulk of its purchases so far have been in London, but unsurprisingly, given the city is Property Partner’s main source of bread and butter, Gandesha isn’t entertaining a “doomsday scenario” of the English capital suffering a repeat of Ireland’s catastrophic property crash.
That is despite the city recently being given the ignominious title of the world’s most overpriced property market. Each property is wrapped in its own ‘special-purpose vehicle’, a type of mini-company which leaves investments ring-fenced from Property Partners’ other assets in the event everything goes belly-up.
Since its launch in January, over 4,600 people have put up a combined £12 million (€16.7 million) through the site. It also has the financial backing of some big players, including Betfair co-founder and angel investor Ed Wray. Earlier this year it took on £5.2 million (€7.3 million at today’s rates) from a consortium including Index Ventures, which is also behind fintech companies such as TransferWise.
While Property Partner is already open to investors in Ireland, Gandesha said the company hasn’t been actively marketing outside the UK.
” My wife is Irish, she’s from Kilkenny, so it probably won’t be forever until we’re able to offer properties in Ireland, ” he said.
” We know investors have an appetite for properties all over the world, not just in the UK. What we want to build is a global stock exchange so any investor anywhere in the world can invest in properties across all of the interesting property cities “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreUK Regional Real Estate Investment Exceeds London Volumes
For the first time in a year, investment in UK regions during Q3 exceeded London volumes with the North East seeing a whopping 89% year-on-year increase in commercial property investments
According to new research published by commercial property consultancy Lambert Smith Hampton (LSH), a total of £184m was invested in commercial real estate in North East England in the third quarter of this year, demonstrating a real sign of confidence in the UK’s region.
British investors dominated activity in the UK, ploughing £63.67m into the region, where the retail sector fared best with £68.3m of investment – 37% of the total volume invested.
Substantial increase in the volume of investment
There was a significant increase in the number of deals carried out in Q3 than in the same period of 2014 – with 24 deals closing compared with 9 last year – although the average transaction size dropped to £7.65m compared with £10.77m.
LSH director Bill Lynn, who heads the Newcastle office, said: ” The substantial increase in the volume of investment into the North East in the last quarter is clear evidence of the buoyancy and attractiveness of the region’s commercial property market “.
” We continue to see increasing investor confidence in the North East, particularly from UK investors, and we would expect this to continue into 2016 “.
Key deals for the quarter included Pradera UK’s acquisition of Hylton Riverside, an 11,241sqm retail warehouse in Sunderland, for £23.9m and Henderson Gravitas IV’s purchase of the Darlington retail space 3 to 7 High Row for £22.5m. Cobalt 12, a 9,197sqm office at Cobalt Business Park, also sold for £16.75m.
Across the UK, investment in the commercial property sector during the third quarter of 2015 reached £12.8bn, the research revealed. Despite representing a 23% decline on the previous quarter, investment for 2015 as a whole could just eclipse the record of £61.7bn set last year. Investment volumes in the UK for the year to date are currently at £48.5bn.
The latest edition of Lambert Smith Hampton’s UK Investment Transactions report also reveals that investment volume in the UK regions during Q3 exceeded London volumes for the first time in 12 months.
The firm said this helps to explain the reduction in the average lot size from £35m to £25m, and the fact that total transaction volume fell despite an 8% quarter-on-quarter rise in the number of deals.
Ezra Nahome, CEO of Lambert Smith Hampton, said: ” We continue to see high levels of interest among investors for UK commercial property “.
” Although there are signs that the market is starting to return to more sustainable levels of activity, we’re seeing a considerable stock of properties under offer, on the market or being prepared for sale. This indicates a dynamic end to 2015 and a very real prospect that investment will hit a new annual record this year “.
The report shows that UK institutions were ne dis-investors in commercial property for the first time in Q3 since mid-2012, with a number of key institutions appearing to rebalance their portfolios by cashing in within London whilst continuing to invest outside of the capital.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreIsrael Seeks to Reposition Eilat and Tel Aviv as Tourist Hotspots
The launch of direct flights to Eilat and Tel Aviv in December will help reposition Israel as a winter sun and city break destination for the UK market, according to its head of tourism.
Monarch is to begin weekly services from Luton to Eilat every Thursday and three times a week to Tel Aviv, set to boost the popularity of Israel’s principal resort areas.
Speaking at the World Travel Market event in London, Amir Halevi, director general of the Israel Ministry of Tourism said: ” The city break is becoming very popular now with the rise of low-cost airlines but this year we have more than six times the number of weekly flights to Eilat from around Europe, so it’s becoming better known as a winter sun destination “.
Israel has seen an 8% increase in visitor number from the UK so far this year and is investing in a new international airport for Eilat due to open in 2016, as well as new hotel development and plans for a casino to be built on the site of the current airport.
The tourism ministry’s representative for the UK and Ireland, Naama Oryan-Kaplan, said: ” Eilat’s strongest USP is the fact that it’s a city, not just a beach resort. If someone is going scuba diving or for a family holiday, they can also enjoy the full city life with shopping, clubbing or family attractions “.
” We expect an increase in traffic as it becomes more accessible and we would hope to double the number of flights for next year. Eilat has been off the radar for a few years but people do know about it and we hope to use this awareness going forward. We think Eilat can offer a very good alternative to other winter destinations “.
The Dead Sea will also see a significant jump in hotel product with a further 5,000 rooms due to be added over the next five years, a trend that is emerging in other popular destinations in Israel. Eilat and the Dead Sea have both benefitted from an increase in domestic tourism as a consequence of the tensions between Israel and Turkey, which made many Israelis choose to holiday in their own home country rather than travelling abroad.
A number of international hotel brands are seeking to enter the market in Israel and a major trend has emerged that is seeing increased development of boutique hotel, predominantly in Tel Aviv and its surrounding area, according to HospitalityNet .
Israel is known for its high ranking among Middle Eastern countries in terms of human development, freedom of press, economic competitiveness and for embracing the cultural diversity of its population. However, the nation’s tumultuous history and difficult geo-political situation since its foundation in 1948 has not encouraged a perception of Israel as a holiday destination, despite its diverse and beautiful landscape.
As the government pushes Eilat and Tel Aviv forward in a bid to increase visitor numbers to Israel’s prime resort areas, there are more opportunities to invest in the hotel and hospitality sector for savvy property investors. Both cities have excellent infrastructures to support tourism combined with many unique attractions that hold a deep significance for visitors of all faiths from around the world.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreReal Estate Investment Soars in Northern Ireland
According to property agents CBRE, around 300,000 square feet of office leasing activity will be signed off in Belfast in the final three months of this year, making it one of the busiest quarters since the recession and bringing property investment over the year to £500m.
The report says the office market has been buoyed by the fact that City Quays 2 is now under construction and a number of new schemes are in the planning process which will eventually see much-needed grade A office space being provided.
Recent significant investments include Fairhill shopping centre in Ballymena, which sold for £45.8m reflecting a yield of 8.43% as well as the Bloomfield centre in Bangor which has a sale agree close to the £54m asking price.
Other real estate investments currently being marketed include Damolly Retail Park in Newry with a guide price of £33.5m, Tesco Extra at Craigavo asking £25m and Lisnagelvin shopping centre in Derry at £17m.
Retail vacancy rates have diminished in 2015
The retail sector has had a number of boosts in Northern Ireland this year with national retailers including Yours Clothing, Bon March and Schuh Kids opening in CastleCourt shopping centre. Dunnes Stores is due to revamp and extend its flagship store at the Abbey Centre where Next will be carrying out a similar project.
Retail vacancy rates have diminished in 2015, with Donegall Place fully let and the former Barrett’s store reportedly let to Inditex brand, Stradivarious. Boux Avenue recently opened in Victoria Square and CEX and Uberfone have leased accommodation at Rushmere shopping centre.
Industrial rents have increased for the first time in several years in Northern Ireland due to a shortage of prime accommodation. Prime headline rents are now in the order of £3.50 per square foot.
The hospitality sector has a number of promising schemes in the pipeline with Ten Square Hotel in Belfast applying to build a 71-bed extension, permission granted to convert Windsor House into a 200-bed four star hotel for the Hastings Group and Nightclub El Divino, currently for sale at £1.75m.
Brian Lavery, managing director at CBRE Belfast said: ” Now entering the final two months of the year we are set to see considerable activity in the local commercial property market. As we have seen over the last number of years, there is a tendency for a large amount of transactional activity to conclude in the last few weeks of the year “.
” The increasing surge in the office market and rising rents has coincided with upward pressure on rents in the industrial and retail sectors. We recently hosted a conference at our London HQ where we were able to highlight the investment opportunities in the Northern Ireland market due to the notable pricing differential between Belfast and competing UK cities “.
” Despite any political uncertainty and on-going negotiations, Northern Ireland is set for a busy two months ahead as the usual clamour to get deals signed by year-end kicks off. Indeed CBRE have moved into our new office at Linenhall Street and we look forward to welcoming our clients to our new premises in the coming weeks and months “.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreTurkey Emerges as Top Golf Destination in 2015
The Turkish Airlines Open has been referred to as the latest and most exciting addition to the European Tour calendar, becoming the penultimate event of the high profile International golfing tournament in 2015.
A report published by auditors KPMG during the Turkish Airlines Open identifies Turkey as a rising star among golf destinations, following a phenomenal surge in the country’s golf tourism over the past decade. The Open is set to continue as part of the European Tour’s Final Series for at least another three years and KPMG’s research reveals considerable potential for golf to continue to grow in Turkey as more courses and facilities are created.
According to the report, golf has played a pivotal role in the remarkable growth of tourism in Turkey , particularly over the last decade, moving from 12th in the world in 2004 to sixth in 2014 in terms of the number of tourists the company welcomes. Turkey now receives 12% of its GDP through the travel and tourism sector and golf plays a significant role in the country’s appeal to tourists. The report states: ” Turkey has led the way among emerging markets in developing a competitive and attractive golfing offering “.
The report shows that golf in Turkey remains focused on the area known as the ‘Golf Coast’, which is located around Antalya. Belek has become particularly popular and is an area that has experienced ‘extraordinary growth’ in the past ten years compared to the rest of Europe. Since 2004 the number of golf clubs in the area has tripled and the number of rounds played is now over two and a half times higher. In 2014 a whopping 513,000 rounds of golf were played in the region and KPMG found that Belek now ranks as the top performing destination in the Mediterranean.
The growth of the game in Turkey, although primarily fueled by tourism is also stimulating golfing talent among Turkey’s population – in particular with younger golfers. The Turkish Golf Federation has a 45% junior membership, representing the highest proportion of young players of any federation in Europe.
Ahmet Ağaoğlu, the president of the Turkish Golf Federation, said: ” It has been my pleasure to see the growth of this great sport in my country over the past few years. The report’s findings are no surprise to me, as I see every day the enthusiasm and excitement people get from playing golf in this beautiful country. I look forward to seeing the continued growth of Turkey as golf’s rising star “.
The global head of sport at KPMG, Andrea Sartori, said: ” Our findings show that Turkey has great development potential. With a progressing tourism industry, fantastic climatic conditions, a highly successful junior program, and the commitment of stakeholders and sponsors to continue to support the game, golf in Turkey looks to have a very bright future “.
Golf tourism remains a significant pull for visitors throughout Europe, particularly in Spain and Portugal where there have been many world-class golf courses attracting tourists for decades. However, the emergence of Turkey in the international golfing calendar as a destination for world champion players is set to place the country very much under the radar of golfers around the world seeking new challenges at the exciting courses available there.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreBahrain’s Investcorp Targets Push into European Property
Investcorp, one of the biggest foreign buyers of US real estate and an early backer of luxury brands like Gucci and Tiffany & Co., is planning to buy European property for the first time, said its recently appointed executive chairman.
” We want to do things we haven’t done before within our areas of expertise. We’re thinking about Europe now, ” said Mohammed Al Ardhi, who took over the top job at Investcorp in June, in an interview with the Wall Street Journal. He added that Investcorp is assessing the right opportunities to target in European real estate, particularly in the UK and Germany.
The asset management firm is considering whether to buy an existing European real estate investment business or build one itself, he said.
Investcorp has$2bn invested in real estate assets on top of more than $8bn in hedge funds and private equity and has poured around $1bn into American property in the past year, including student housing in California and Florida and commercial property in the Northeast. It currently has no real estate investments outside the US.
Investcorp will focus on commercial and residential real estate but not on the trophy assets targeted by many overseas investors, particularly in central London and the firm will continue to expand its US property portfolio.
Investment in European commercial real estate is surging. In the 12 months through the end of the third quarter, investment volumes reached nearly €238bn ($263bn), the highest level on record, according to data from broker Cushman & Wakefield . The previous high of almost €235bn for the comparable period was in 2007.
With interest rates low, returns on property appear attractive compared with other asset classes like bonds and demand for real estate in Europe shows no signs of slowing. Investcorp’s push into Europe will also involve trying to target more investment from the region’s ultra-high net worth individuals and families, Mr Al Ardhi said.
Earlier this month, the firm bought eight residential properties in Las Vegas, Denver, Chicago, Atlanta and Dallas for approximately $400m. All eight were so-called multifamily rental properties, a sector Investcorp has been involved with in the past.
For property investors in Europe with smaller budgets, the entrance of big players into the arena indicates there is still value to be had in real estate markets, particularly in central London and in the five big cities of Germany where Investcorp are zooming in.
It’s always worth making particular note of investment activity in commercial markets to find the best value in residential property. As labour markets expand and companies fill newly constructed office buildings, retail and industrial sites, demand for residential property naturally increases as a result and a dynamic is created that presents value to savvy buyers.
The principal interest for large-scale investors in residential property has been in income generating assets in 2015. Properties that provide homes to specific groups like students, hospital staff and low-income families are generally the vehicles of choice for consistent rental yields.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreFive African Property Markets in Top 10 Emerging Economies
Emerging markets present unique and individual challenges for property investors and tracking data to identify the most sought-after emerging economies is no easy task. Nevertheless, a new report from global real estate researchers Cushman & Wakefield ranks five African markets in the top 10 most transparent emerging economies.
According to the latest annual Emerging and Frontier Markets report (2015) , a 55-page study that provides investors with overviews of the office market and relevant indicators for 42 countries globally – from Angola to Zambia – Africa dominates the top 10 rankings through South Africa (3rd), Ghana (4th), Morocco (8th) and Tunisia (10th) – in addition to Botswana in southern Africa that retains its 2014 top ranking.
Reasons for Africa’s dominance in the top 10 most attractive emerging markets include a growing middle class population, better infrastructure and technological improvements in a number of countries possessing transparent real estate markets.
” Emerging markets are often mistakenly viewed as homogenous,” notes Richard Middleton, Head of account management & client services for EMEA at Cushman & Wakefield. “However, in reality real estate dynamics vary considerably as do the sets of risks and opportunities on offer for occupiers across differing geographies and business sectors “.
As emerging markets become increasingly integrated into the global economy it’s important to remember the sheer size and diversity of developing economies. Middleton adds: ” Africa is a good example of this with countries [across the continent] offering very different operational profiles. Real estate strategies [consequently] need to reflect this “.
One of Africa’s up and coming markets is the Western Regional capital of Sekondi-Takoradi in Ghana. The city’s status has burgeoned in recent years with the discovery of oil in the Western Region, with foreign and local oil companies taking the opportunity to tap the newly discovered ‘black gold’. Demand for both commercial and residential properties in the city has risen exponentially as a result and with an abundance of other natural resources such as gold, timber and cocoa, Sekondi-Takoradi stands in good stead to be one of the giants of Africa.
The same is true over in Casablanca in Morocco where the country’s industrial and business centre has become home to numerous Moroccan and international companies, taking advantage of its close proximity to Europe and international trade routes. The dynamic city is increasingly attractive to Morocco’s young population, looking to settle down in a modern area with an abundance of employment opportunities. The city is seeing a number of commercial development projects taking place to improve the retail and entertainment facilities on offer, additional incentive for savvy property investors.
With pockets of economic growth emerging across the African continent, it’s no surprise that real estate in those markets is beginning to boom. Africa has become particularly appealing to large scale investment from China in 2015, which has brought considerable buoyancy to real estate markets in key investment areas across several African countries.
Mining and oil remain a primary focus for China’s investments; however, the country’s investments extend throughout virtually every market sector, including everything from infrastructure to food processing. China’s investments in the largely undeveloped infrastructure of African nations are particularly strong, encompassing key areas such as utilities, telecommunications, port construction and transportation.
There is significant growth potential in several of Africa’s emerging property markets that combined with demand levels outstripping supply is likely to see increasing property prices in the near future. However, with rising affluence in key cities that are expanding and growing, buy-to-let investment opportunities will be sharp in the focus of the savvy investor seeking high-yield opportunities.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreIrish Rental Crisis Inflamed by Government Division
For some time, investors have been calling for government intervention to slow rising rents in Ireland and bring much needed relief to the country’s growing housing crisis. However, the situation has remained the same despite promises to introduce measures, resulting in significantly reduced appetite for Irish property.
The Environment Minister, Alan Kelly promised some form of curb on rising rents as long ago as last March at the Labour Party national conference in Killarney. Eight months later that promise remains unfulfilled leading to speculation that uncertainty in Ireland’s housing market is set to continue.
Mr Kelly insists that ‘rent certainty’ will be brought in as a short-term measure and the minister who has notably always avoided the term ‘rent controls’, argues that it ” has to happen “. However, he is unable to say how this scheme might work and without these details, others struggle to assess this unknown quantity.
Experts are now linking the rise in rents and the drop-off of investment in Ireland’s rental market to uncertainty over what cooling measures the government will implement, suggesting that property investors are taking a back seat and a ‘wait and see’ attitude. It is widely felt that the very existence of the promise of ‘rent certainty’ has fed instability in an already disturbed rental property market.
Rents in Dublin have climbed 8.5% over the last 12 months compared with a 15% jump in the preceding 12 months and just outside Dublin, an 8.7% rise in rental costs has been recorded over the last year. In terms of cash values, the national average rent was €934 between April and June this year compared with €860 for the same quarter in 2015. In Dublin, the average price renters are paying is €1,368 while in Cork the average is €889 and €818 in Galway, according to Irish property website Daft.ie.
Rents are being driven higher by the supply and demand dynamic. At the beginning of August there were just 4,600 units available for rent compared with 6,800 on the same day a year earlier. On August 1 st 2009 there were around 23,000 properties to rent across the Republic. However, there are less than 2,000 properties available for rent in Dublin today.
Ireland has a huge rental market with more than 700,000 people living in leased housing and apartments. Identified at the beginning of the year as an investment hotspot for property investors, Dublin’s rental market has seen supply issues constraining growth in recent months.
The additional uncertainty introduced by the government’s lack of action on rent increases has led to a dip in sentiment for Irish property among investors. Overseas buyers in the country have the additional issue of a weak euro that is currently diverting significant wealth to stronger dollar and sterling markets.
Unless the Irish government take a firm stance on the issue of rising rents and directly address the rising issue of affordability among the renting population, the rental market is likely to remain constricted. Lack of supply in an uncertain economic framework is not a reliable investment instrument and is not likely to appeal to a savvy investor’s risk appetite at the current time.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreHome Sales Improving and Buyers Getting Older in the US
According to data released from the US earlier this week, new home sales are at their highest levels since 2008, bringing homebuilder confidence back to its height of 10 years ago with mortgage applications steadily increasing.
Economist say there are clear indications that the US housing market if finally starting to be a real boost to the national economy for the first time in a decade, instead of dragging it down and hampering growth as it has been.
However, there is a real difference in today’s real estate market than before the recession with American home buyers getting older and buying bigger homes. According to US Census data the median age of a homebuyer in the States has gone from 35 to 43 since 1985. When the housing boom was nearing its peak in 2005, the median homebuyer’s age was 39 and is now 43, the data reveals.
” We consistently tell that story of people delaying homeownership, ” says Skylar Olsen, senior economist at US property portal Zillow . ” People are delaying things that pre-date homeownership, like getting married later and having children later “.
Construction is picking up to meet the demand for larger homes among middle aged buyers in the US, with many seeking homes with at least 200m² with new homes typically having that space available, according to analysis by the National Association of Home Builders . The same research shows that back in 2000, the typical American home for sale had around 165m2 of living space.
Multi-family homes are also booming in the US as people buy homes as investment properties to rent out. In the late 1980s, people would rent for four years before purchasing their first home. Now it’s at least six years.
With large homes translating into boosted profits for America’s construction sector, it’s not surprising that stock market funds that track homebuilders are soaring this year. The iShares US Homes Construction ETC, SPDR S&P Homebuilders ETF and iShares Residential Real Estate Capped ETF are all up about 6% or more in 2015. That’s much better than the overall stock market performance, which is negative for the year.
The other common explanation for this big shift in American real estate is that young people have too much debt to buy homes, especially from student loans. However, economists at Zillow took a look at the probability that someone would buy a home with zero debt all the way up to $50,000 from student loans and found that higher student debt had almost no impact on the decision to buy a home.
America has seen a similar pattern emerge in its housing market that has been witnessed elsewhere in the world, like the UK for example. American pension savers can invest in vehicles known as Individual Retirement Accounts (IRAs), allowing them to making real estate purchases to hold as assets to grow wealth for later years.
Similarly in the UK, pension savers were boosted earlier this year when changed in regulations came into force allowing pension holders to release lump sums beyond the age of 50 to spend as they wish. This led to a surge in sales of income generating property assets in the UK and a dramatic increase in the number of more mature private landlords throughout the country.
Whatever the reasons for increasing home sales in the US, it has to be great news for the economy and also for the dollar which continues its marathon run of strength against major currencies. However there are concerns that this growth may not be sustainable and that unless the demand for affordable family housing is met, there could be trouble ahead.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreImproved Outlook for Malaysian Real Estate in 2016
According to a survey by Malaysian property portal iProperty.com, 2016 is set to show significant improvement in the country’s ailing property markets. The iProperty.com Asia Property Market Sentiment Survey (H2) 2015 reveals that Malaysia’s domestic market is still hampered by affordability issues and many respondents indicated they are most likely to have saved a down payment within the next two years.
Malaysia’s property market has softened considerably this year due to cooling measures implemented by its government including stricter and more stringent loan requirements. According to a report published by Malaysia’s Real Estate and Housing Developers Association (REHDA) , loan rejection rates in the country have been reported to be as high as 70%, negatively impacting the country’s property market.
REHDA suggests buyers are finding it difficult to purchase affordable homes. Apart from narrowing down the selection criteria where the margin of financing (MOF) is often below 90%, the debt servicing ratio (DSR) has also been made more restrictive by central bankers Bank Negara Malaysia (BNM).
Goods and Services Tax (GST) was implemented across the board on 1st April 2015 and while a pre-GST sales rush was anticipated, property transactions in the first quarter of the year fell by 4.6% from 92,900 for the same period in 2014, based on year-on-year transactions.
New property prices are estimated to have increased by 3.97% due to higher material costs and developers are estimated to have increased their prices by approximately 4%. A new government ruling allows developers to claim a 6% rebate for GST while still being able to pass the surcharge on to purchasers.
While Malaysia’s property market has achieved relative stability compared with the bull run of recent years, it is perceived that this is largely due to the economic situation in the country and not because of the implementation of GST. Domestic buyers are increasingly unable to enter the property market at affordable levels which has resulted in market stagnation in certain regions of Malaysia.
However, respondents to the iProperty.com survey were largely of the opinion that economic recovery will continue at a modest pace, allowing them the opportunity to purchase property in the next 1-2 years. The government has stepped up construction activity to meet the critical demand levels for affordable housing and when supply increases, prices should ease a little in the domestic market.
In terms of foreign investment in Malaysian real estate, the fall in the ringgit in recent quarters has attracted considerable investment in the country. However, foreigners are only allowed to buy high-rise units priced at least €200,000, reserving availability of family homes for local homebuyers.
REHDA President Datuk Seri F D Iskandar said that Malaysia’s property market should take advantage of increased interest from foreign buyers and promote their properties in overseas markets. He feels that as foreigners look for upmarket properties in specific areas, their value will remain buoyant, he told a media briefing on the property industry in September.
Meanwhile, Iskandar expects property price hiccups for high-rise buildings, apartments and condominiums due to the weakening of the ringgit. ” The prices of certain construction materials have actually gone up but that of residential buildings shouldn’t as most of the components are locally sourced. However for high-rise buildings, components like lifts, escalators and air-conditioning are still imported. Definitely, there would be hiccups in terms of prices for high-rise projects, ” he said.
Article by +Roxanne James on behalf of Propertyshowrooms.com
read moreDemand Remains High for Thai Real Estate
Despite the sluggish economy, demand for real estate remains strong in Thailand with the nation currently leading the region in the hotel residence boom, the property investor’s vehicle of choice in 2015.
Economists predict the real estate market will grow by 5%-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) .
Last Tuesday, 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.
The cuts will take effect this month for both new and resale properties in Thailand .
Thai Condominium Association president Prasert Taedullayasatit said the tax incentives, if they took effect this month, would boost the overall housing market in the fourth quarter by 20%-30%, boosting full-year housing market values 12.6% from last year.
Investment in hotel residences has 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 new 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 moreEgypt Lures Foreign Investors with Currency Devaluation
Egypt has allowed its currency to weaken to a record low, seeking to attract foreign capital and replenish reserves that dropped the most in almost four years during September, while the black market premium to buy dollars surged.
The Egyptian pound weakened 1.3% to 7.9301 per dollar after the country’s central bank devalued it by the same margin at a regular dollar sale to local lenders, according to prices compiled by Bloomberg. That takes the currency’s decline for the year to 9.8%, making it the worst performer in the Middle East behind Algeria’s Dinar.
Foreign reserves in Egypt plummeted last month due to one-time expenses such as expanding the Suez Canal, upgrading the country’s electricity grid and repaying debt to foreign oil companies, central bank governor Hisham Ramez said in a televised interview on Saturday. Egypt has burned through just under $6bn of loans received from Gulf Arab allies in April and is now seeking $3bn from the World Bank to support its budget.
” The central bank needed to allow the pound to lose some value as a basic step toward correcting the decline in its foreign currency base, ” said Hany Farahat, a senior economist at Cairo-based CI Capital, a unit of the Egypt’s biggest listed bank, adding that the devaluation ” should continue throughout this week, otherwise the move would be just insignificant “.
Outside the banking system, the Egyptian pound tumbled to a record 8.484 to the dollar, according to the average quote of seven currency dealers surveyed by Bloomberg last week in Cairo, Alexandria and Aswan That compares with 8.204 on Thursday and represents a 5.6% premium over the official rate, the most since January, according to the weekly surveys.
The devaluation of Egypt’s currency has been predicted by analysts since the beginning of the year and there is rising opinion that it has still to reach fair value for foreign investors. There is a common belief among real estate buyers in Egypt that there is another anticipated decline of the pound’s value, but the timing is unknown which has consequently delayed investment due to uncertainty of future impacts on cost and revenues.
Investors are also concerned about existing restrictions on US dollar deposits in Egypt’s banks and the complex process of transferring foreign currencies from inside the country, which represent the most significant challenges facing investments, over and above currency declines.
On the second day of Egypt’s Economic Development Conference back in March, Egypt signed agreements and memoranda of understanding with international companies worth $158bn, signalling one of the best years for foreign direct investment to come. However, subsequent large-scale investment has been delayed while international investors eye Egypt’s market with uncertainty as to where its currency will find its level.
Egypt’s government has made considerable investment into its domestic residential market in attempts to satisfy the need for more than half a million homes for its rapidly expanding population , contributing to the woes of its currency last week. The strategy was for foreign investment to step up to support government spending, with a balanced injection of capital in the nation’s real estate markets.
However, as a wait-and-see attitude prevails among foreign investors at least for a few weeks, it is difficult to say which way Egypt’s property market will go. Recent real estate market activity has seen shortage of housing supply pushing up property prices, although transaction volumes have been high among foreign buyers nevertheless. At the current time, investors are reluctant to make decisions borne out of uncertainty, particularly due to the considerable impacts further currency devaluation may have on margins and capital value.
Article by +Roxanne James on behalf of Propertyshowrooms.com
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