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23/12/11 BRAZIL: Why invest in Brazil?
Global tourism is expanding rapidly and Brazil is working hard to secure a significant and growing share of the market. With some of the most diverse and stunning landscapes on the planet, Brazil really does have it all - miles of deserted tropical beaches, rainforest, fascinating culture, modern and exciting cities and a climate that suits everyone.
In an effort to position itself as a leading tourist destination, the country has in recent years invested heavily in infrastructure with new roads, airports and drainage systems in addition to historical heritage restoration and environmental preservation.
With living costs at a fraction of many first world nations including the UK, even a luxury holiday in Brazil can cost very little. Of course the living costs are also a major attraction to increasing numbers of Europeans who are choosing to settle here.
The North East coast in particular is seeing the construction of several luxury holiday resorts, and a new international airport at Natal set to open in 2010 (the 4th largest in the world) will enable the region to cope with the anticipated increase in visitor numbers. Surprisingly the flying time from London to Natal is much the same as that to Miami.
Currently, Brazilian property is probably as cheap as it will ever be, and with huge capital growth potential, Brazil is a property investor's paradise. |
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23/12/11 BRAZIL: Property investors from around the world are flocking to Brazilian shores with a view to snapping up real estate, in anticipation of future capital growth.
The Brazilian property market has got a lot going for it. The country is attracting a lot of inward investment, has one of the world's fastest growing economies, a rapidly emerging mortgage market, a general shortage of quality homes, and has been selected to host the 2014 football World Cup and 2016 Olympic Games. This will lead to the construction of new and improved infrastructures and homes across Brazil.
One local expect projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country's burgeoning economy, and the pending introduction of mortgages to overseas nationals.
Investment banking firm Goldman Sachs believes that Brazil's economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) nations over the next few years.
Brazil's economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet property and land prices still remain a fraction of those found in more developed nations.
The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to £11.5bn on building a million new homes in Brazil between now and 2011.
However, potential high property investment rewards are not with out their risks, as crime and corruption still remains widespread in Brazil. |
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23/12/11 BULGARIA - a major increase in activity in the Bulgarian property market, as Russia's enter to pick up bargains on properties in popular tourist locations
According to reports there has been a major increase in activity in the Bulgarian property market, as Russian's enter to pick up bargains on properties in popular tourist locations.
Bulgaria property has always been famed for being among the cheapest in the world, and as such reports suggested that it would fail to benefit from the bargain buyers currently active in the market.
However, Bulgaria's property market suffered badly from over-supply and sellers outnumbering buyers in the latter half of 2008. Now that almost every European property market has some problems with oversupply or stunted demand, the playing field has been levelled and Bulgaria property has a chance of coming out of the crunch in better shape than it went in.
Bankso has become somewhat of a dirty word in overseas property investors minds, but there are currently a lot of good opportunities on off plan properties in Pamporovo, and other new emerging markets. The coast at Sunny Beach has retained its popularity as a bargain holiday home destination among eastern Europeans.
There are also literally thousands of fixer-uppers in Dobrich, Yambol, Kavarna and throughout the country, priced from £7,000 upwards. These could easily be done up into very rewarding residential buy-to-lets. However, these are very time costly investments and not for the faint-hearted armchair investor. |
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Bulgaria has turned to golf, a sport not too popular in the country until now, looking to attract affluent tourists, AFP reported on February 14 2008
"Without quality golf courses Bulgaria will remain a cheap destination. It will continue to attract tourist flows, but without any major impact on the economy."Bulgaria has turned to golf, a sport not too popular in the country until now, looking to attract affluent tourists, AFP reported on February 14 2008.
"Golf tourism development is very important - the regular tourist usually spends from 50 to 100 euro a day, while the golf tourist would rather spend from 400 to 500 euro," according to Kuncho Kunchev, an investor in the Black Sea Rama golf complex in Balchik, quoted by AFP.
"Without quality golf courses Bulgaria will remain a cheap destination. It will continue to attract tourist flows, but without any major impact on the economy", he said.
Bulgaria's Black Sea coast and its mountain resorts are popular among more "modest" tourists from Western Europe and those from the former Soviet countries. At the same time savvy investors have anticipated Bulgaria's strong potential as a golf destination.
Climate and nature are similar to those in Spain, one of the most popular golf destinations in the world. Only three golf courses are now functioning in Bulgaria, but 15 are in the pipeline. |
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Bulgaria Leads Balkan Property Boom
Twenty years ago, few Brits would have been able to find Bulgaria on a map, let alone tell you anything about the country. Today, hundreds of Brits own property there and thousands more visit this Balkan gem every year.
Bulgaria has undergone an investment revolution over the last decade, meaning that property buyers looking for a good return and a holiday home are very keen to purchase in this former Communist state.
But what makes Bulgaria so attractive to investors; after all, isn't it possible to find similarly priced property in other Balkan countries such as Romania, Croatia and Serbia? Well, Bulgaria has led the way by building a number of high quality residential complexes that are available at low prices, in areas that are very attractive to tourists.
Bulgaria has become more and more established as a tourist destination for the Brits; both in the summer, for the black sea resort coastal regions which have a Mediterranean like temperature and beaches and internationally renowned golf courses; and also as a winter destination to the mountain regions of the Pirin, Rila and Rhodopa which offer skiing from 2000-2500m and have a ski season that lasts from December to May.
Bansko, now Bulgaria's premier ski resort has been well received by British ski tourists who are looking for a great value ski trip which is vastly cheaper than going to France, Austria or Switzerland, and also a more culturally exotic destination. The fact that Bankso is now a well marketed and well known ski resort which is frequently featured in the ski press and national papers means that more and more skiers and snowboarders are heading out there. Bulgaria also has an enviable stretch of coastline along the Black Sea which attracts both holidaymakers and those looking to buy property in Bulgaria alike.
Cheap flights have also assisted Bulgaria's rise in popularity, creating a quick, easy and affordable route for Brits. Demand for real estate is also coming from the increasing number of international buyers who are working for multinationals in Bulgaria's capital, Sofia. This demand is helping to push up the design and build quality of new developments in the city.
As a well-marketed holiday destination with increasing tourist numbers for both winter and summer seasons, newly built infrastructure and cheap, quick connections to the UK, it's no wonder that Bulgaria leads the Balkans by offering one of the best property investments in Europe |
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Bulgaria's residential property market is showing unexpected resilience to the impact of the credit crisis.
Home owners in many parts of the world have reason to worry about the implications of the international credit crunch. In Bulgaria they do not. Bulgaria's residential property market is showing unexpected resilience to the impact of the crisis thanks to investment by east Europeans and increasing numbers of local buyers.
Interest from foreign investors remains high as they are aware that Bulgaria still has the lowest property prices in the European Union, says Michail Chobanov, chief executive of Sofia-based Bulgarian Properties.
Investors from Russia and Romania have started to replace the British and Irish buyers who were the first to put the Black Sea coast and Bansko, a ski resort south of the capital Sofia, on the international second-home map.
"The credit squeeze has had an impact mainly in the US and the UK, while the market in the past six months has been driven predominantly by investors from Russia, Romania, Poland and Ukraine," says Rossen Dimov of Rockarch Estates, a London-based property consultancy.
Russians and other east Europeans, who filled Bulgaria's Black Sea resort hotels in the communist era, are returning as buyers of holiday homes. While no official statistics are available, local estate agents say sales to east Europeans, whether of low-priced apartments or high-end villas in gated developments, have shown a significant increase this year.
"I chose Bulgaria because it's close enough to drive to if I want, and I feel at home - all the older people speak Russian. And it was affordable, unlike the prices here," says Pavel Sinelnikov, a businessman in St Petersburg who bought a two-bedroom apartment at Golden Sands, the second-largest Black Sea resort.
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Bulgaria Europe's Third Biggest Property Hotspot
A new research has ranked Bulgaria as the third most attractive residential investment destination in Europe.
The study carried out by Global Property Guide (GPG) compared several factors, which were judged to contribute to the attractiveness of buying residential property.
Bulgaria came in third with 10.6% gross rental yields, reform on track, low prices, but very high transaction costs on purchase.
Slovakia grabbed the first spot with inexpensive house prices, very high GDP growth, low rental income tax and no capital gains tax on long-term property holdings.
Second came Turkey, whose major attractions are the strong GDP growth and the dynamics of the housing market. |
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2010 has been described as a "realistic date" for Bulgaria to adopt the single European currency.
The year 2010 has been described as a "realistic date" for Bulgaria to target adopting the single European currency.
Use of the euro in Bulgaria could be good news for Bulgarian property investors, as it is likely to add stability to currency exchanges and strengthen the economy as a whole.
The 2010 target was set by Yavor Dimitrov, representative of the Bulgarian National Bank, the Sofia Echo reports.
Mr Dimitrov was taking part in a forum on Bulgarian finance being incorporated into a "united Europe".
During the meeting the National Bank head said that the country''s economy is currently stable and enjoying growth â€" activity that has been supported by widespread interest in the Bulgarian property market.
There are certain factors that still require work, Mr Dimitrov said, such as the acceptance conditions pertaining to the euro and the political aspects of a single European currency.
He expressed hope, however, that when these issues are resolved Bulgaria will be able to make an efficient transition into the eurozone.
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Bulgaria the latest European hotspot for British investors hoping to buy an overseas property.
Bulgaria has emerged as the latest European hotspot for British investors hoping to buy an overseas property, a new report has revealed.
According to Moneycorp's new Foreign Focus Index (FFI), 12 per cent of Brits buying abroad are seriously considering Bulgaria and are spending around 90,000 EUR (61,000) on a typical property.
The popularity of this eastern European country has been attributed to a number of factors including cheap flights, winter skiing and summer sun.
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Bulgaria is as popular as France on the property investment market
Bulgaria is as popular as France on the property investment market, the British magazine "This is Money" claims.
A new report of Moneycorp Company shows that 12% of the investors want to purchase estates in Bulgaria and only 2% more choose France as an investment target.
Bulgaria's popularity has been increased because of its sunny seaside and the development of Bansko ski resort.
The developers from North Britain, West Midlands and Wales prefer to buy properties in Bulgaria because it is much cheaper. |
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More young people than ever are turning to overseas property investment as a more affordable and potentially lucrative investment option.
Steve Langan, UK managing director at Hiscox, said: "More young people than ever before are finding their route into the UK property market blocked and are turning to overseas property investment as a more affordable and potentially lucrative investment option.
"In the 1980s, Yuppies started to push UK property prices up and the signs are that 20 years later the BARBies could do the same for property prices abroad.
"We are already insuring thousands of homes abroad and we are seeing a strong rise in the number of foreign properties being bought."
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Dubai has agreed a licensing deal to create a Universal-branded theme park in Dubai set for a grand opening in 2010. It will feature Universal-themed rides and attractions, as well as 4,000 hotel rooms, 100 restaurants, retail outlets, and office space and residential units.
NBC Universal has announced a licensing deal to create a Universal-branded theme park in Dubai set for a grand opening in 2010.
The US$2 billion-plus project by Dubai developer Tatweer-dubbed Universal City Dubailand-will feature Universal-themed rides and attractions, as well as 4,000 hotel rooms, 100 restaurants, retail outlets, and office space and residential units.
The project will be located on a 22 million-square-foot parcel in booming Dubai Attractions will include ones based on the films "Jurassic Park" and "King Kong." The park will be divided into four "zones," including Hollywood, Metropolis, Adventure and Cartoon zones.
"There is no doubt that the new project will contribute to highlighting Dubai as a global tourist destination, providing the tourism sector-one of Dubai's most active sectors-with a strong drive to further diversify the economy," Tatweer executive chairman Saeed Al Muntafiq said.
Universal operates theme parks in California and Florida. It has licensing agreements with parks in Japan and Spain, as well as a park in development in Singapore. |
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23/12/11 EGYPT: A return in demand from domestic and foreign buyers is contributing to a restoration in confidence in the Egyptian housing market.
23/12/11 EGYPT: A return in demand from domestic and foreign buyers is contributing to a restoration in confidence in the Egyptian housing market.
House prices and rents are beginning to rise in the country, supported by strong economic growth.
To this end, the size of the housing market is expected to grow by about 14 per cent over the course of 2010, with property values increasing by around ten per cent by the end of the year.
Individuals looking for Egyptian property may be interested to learn that foreign demand from second homeowners is rising.
This is mainly due to the country's tax-friendly laws. Current legislation prescribes that no tax will be enforced to non-resident property owners, aiming to encourage investment from overseas property buyers.
or this market, the buying opportunities in Egypt - and particularly the newly-built opportunities - can be conceptually divided into three areas: Cairo, the Red Sea, and the Mediterranean Coast. |
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According to Property Wire, Egypt is becoming a preferred
destination for international property investors
Economic experts are forecasting good days ahead for Egypt's economy with an expected increase of 6.8 percent in
the gross domestic product (GDP) over the next one year.
This forecast could add fresh vigour to the already
burgeoning property industry of the north African country.
According to Egyptian government estimates, the GDP will
increase by 7 percent in the 2008-09 fiscal year; however a
survey of leading economists by Reuters pegged it at 6.8
percent. The major reason for the government's higher
estimate is the fact that foreign direct investment in
Egypt continues to grow strongly, riding on its real estate
market.
The favourable tax regime which does not require property owners to pay
stamp duty or capital gains tax is one of the biggest
factors bringing in foreign buyers, the agency said. If the
influx trend continues, Egypt's economy could grow strongly
in the next few years. So its a simple choice ..keep your
money in the UK where it is very likely to devalue as the
economy worsened or invest in a market which is still
booming and will do so for the foreseeable future.
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Egypt is proving to be a highly popular location among foreign property investors, according to experts.
The BuyAssociation website said the north African country is currently attracting buyers from places as diverse as the UK, Russia, Italy and France.
This means that interest for property in Egypt is likely to remain high, even if demand from one particular consumer base falls off.
Paul Collins, property editor at the online portal, commented: "It is a really strong investment proposition, because it has the potential to keep on growing."
He added that easyJet''s recent introduction of cheap flights to Turkey suggests that the tourist market is likely to experience further growth.
As a result, investors could potentially collect strong rental returns in the main tourist hotspots.
According to Gulf Weekly, Egypt''s Red Sea and Mediterranean coastlines are proving to be very popular with overseas property buyers.
The publication said this is largely because of they are attracting a large number of leisure travellers.
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01/06/10 FLORIDA: America continues to be named as one of the best destinations for Britain's to invest in property. For a start we have the safety aspect, America has the same core values and principles as the UK, or near enough.
20/02/10 FLORIDA: America continues to be named as one of the best destinations for Britain's to invest in property. For a start we have the safety aspect, America has the same core values and principles as the UK, or near enough.
What's more in the land of the free we can buy what we want, where we want (barring a few minor caveats in some states) and on finance if we want -- though that is, as we know somewhat limited in the current climate.
America has taken some stick because of the weak pound; before Britain's could get two dollars for every pound, now they are looking at more like a dollar and 60 cents. However, that still gives them the means to buy a property and a half what they could afford in the UK.
Yes, it is true, rental income comes back in through the same conversion rate, which then gives us a reduced amount. However, bigger properties are tending to attract the bigger yields at the moment; analysts believe this is because wealthier people have been less affected by the crunch. Thus, Britain's are likely to be able to find an American property in their budget, with a higher yield than a UK property.
Of course the capital growth potential is also a factor. Many analysts are forecasting a stronger return to growth in the US housing market than in the UK, despite the recent growth in the latter -- especially in places like Orlando and Chicago. |
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23/12/11 FLORIDA: Getting a bargain property in the sunshine state
If you want a bargain, buy a holiday home in Florida - estate agents say prices are 50% to 60% down on their highs of four years ago. The downturn in the US has been longer and deeper than in Europe. An analysis of prices for Guardian Money by the British Homes Group - a large estate agency specialising in discounted holiday homes and based in the Florida town of Kissimmee - says that in its part of the sunshine state, 19,000 homes are for sale at an average of 51% of 2005 values. |
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Vultures are buying up property in Florida
Evidence is mounting that "vultures" are moving into some U.S. markets, snatching up depressed property. Nowhere is that more obvious than in Florida, a favored spot for international buyers. The number of existing homes sales in Florida rose 24 percent in September over a year earlier, the first increase in three years, according to the latest Florida Association of Realtors report. Sales of condos rose 11 percent. |
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Florida's strong job growth and positive demographics will continue to support the demand for new homes
A flattening of the decline in the number of new home starts as well as a decrease in the number of total housing inventory indicates the Orlando area is heading in the direction of a necessary correction in the market. However, the high percentage of finished vacant inventory remains troublesome, said Crocco.
Although housing sales slowed, lot production continued through the end of the first quarter. In most areas of Central Florida, as in many other Florida markets, the ratio of lots to starts has reached an all-time high. In the short term, this situation warrants some attention; however, the long-term outlook remains bright.
Florida's strong job growth and positive demographics will continue to support the demand for new homes, as reflected in the pace of new home closings, said Crocco. However, home pricing must be perceived as more affordable in order to recapture demand from retirees and first-time buyers.
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01/06/10 WORLD PROPERTY NEWS REPORT: The recovery in global real estate markets is playing out rapidly in 2010, faster than forecast at the end of last year, and has now reached a crucial inflection point in terms of sustaining momentum, according to the latest "Global Vision Update" research report.
There have been clear signs of markets for prime properties stabilising and recovering in the first five months of the year. They're doing better than we expected in our Global Vision annual strategy paper at the end of 2009, but are now reaching a crucial turning point for the upside. Our analysis suggests that real estate values are not yet being affected by the sovereign debt problems in Europe and we think investors may see returns at the upper end of their expectations in the next few years.
Following the greatest global financial and economic crisis since the 1930s, it is axiomatic that any market outlook will be hedged with a fair degree of risk and uncertainty. A specific risk for real estate investment is the scale of market debt that needs to be refinanced over the coming years.
Against this background, real estate investors with a low appetite for risk will want to continue to focus on the retail and industrial sectors, which tend to exhibit more stable returns in a downturn and to outperform in the early stages of the recovery. Investors with a slightly greater appetite for risk may wish to note that the latest Global Vision forecasts show a recovery in office markets sooner, and a little stronger, than previously projected.
Global economic growth prospects appear to have improved. ING Economics forecasts global economic growth at 3.3% in 2010, with the U.S. now expected to grow by 3.0%, the Euro Zone by 1.2%, Japan by 2.6% and China by 11.0%. Anticipated Euro Zone growth has been reduced by 20 basis points as a consequence of the uncertainty arising from the Greek sovereign bond crisis.
In the period between 2011 and 2013, forecasts unleveraged average global investment returns of 10.9% a year for offices, 10.6% for the industrial sector and 9.8% for retail properties. For all three sectors the forecast returns are at, or above, the 7% to 10% per year range that institutional investors typically indicate they are looking for from core direct real estate investments.
For a generic low risk investor following a core/core plus real estate investment style, an investor might favour tactical investments in the Americas in prime properties, due to the higher yields (capitalisation rates) the U.S. has historically delivered compared with other markets and the strong prospects when the recovery comes.
In Asia Pacific, economic conditions are stronger; real estate markets recovered earlier, and thus attracted investor interest leading to more intense competition for assets.
In Europe, the UK property market is bouncing back, albeit with some doubts about the sustainability of the pace of the recovery. Elsewhere in Continental Europe, the sovereign debt crisis means the economic outlook seems less certain than it did a few months ago, although certain markets such as France are recovering and prime yields are showing signs of stabilisation and rebound.
This is a time for cautious optimism and steady, but measured, accumulation of assets by real estate investors. The economic recovery seems more firmly established, albeit with risks remaining, principally the transition from the support offered by various government stimuli into more usual conditions. There are opportunities emerging in all regions but we continue to favour the stronger growing parts of the world - in the U.S. and parts of Asia, for example. Market timing and careful asset selection will be critical for successful investments. |
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It comes to the classic question for property investors - buy now or wait?
It comes to the classic question for property investors - buy now or wait? One answer is to buy now if you are buying a property for investment as the bottom cannot be that far off. One poster points out that if you buy now and rent out then the property is providing you with and income even if the valuation drops slightly.
The other attitude is that statistics can be spun to prove a point. Some believe that a rise in sales from one month to the next means very little, least of all a sign that the bottom of the market is being reached.
Others point out that with a huge backlog of foreclosures in the pipeline the bottom of the market in severely hit areas like Florida and Las Vegas could be some time away yet.
So how do you identify the bottom of the market? That question is posed on the indianrealestateforum.com site. The answer - well there isn't really one. As this post shows any answer has to be based on assumptions. One suggestion is that property prices will stay at the bottom for some time and that there will not be a sudden upward swing in prices.
'Don't get panicked by the bulls who are still telling you that if you don't jump and grab today, you will miss the bus. The bus is still to arrive at the terminus and when it does, it will stick around for quite a while so you can get in at leisure when you have ensured financial strength,' seems an appropriate piece of advice for the current climate.
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23/12/11 TURKEY: UK residents are showing increased interest in buying property in Turkey.
23/12/11 TURKEY: UK residents are showing increased interest in buying property in Turkey.
In particular, property in nations outside the eurozone, such as Turkey and Egypt, are attracting attention as they are often cheaper than countries which have adopted the euro.
The fact Turkey is not in the eurozone is one of its main benefits from a property investors' point of view. People wanting to buy property abroad tended to look straight to the European Union during the boom years, however, this is set to change post-crash.
With many countries in Europe having been downgraded, many facing a downgrade, and some even having been downgraded and facing being downgraded again, Turkey is standing out as a good country to invest in.
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01/06/10 TURKEY:
Japanese capital investment bank Nomura, named Turkey the "comeback king" of the year 2010 in terms of growth rate and economic potential.
Japanese capital investment bank Nomura, named Turkey the "comeback king" of the year 2010 in terms of growth rate and economic potential.
One of the largest names in investment banking, Nomura's report underlined Turkey's growth performance outdoing those of the Czech Republic, Hungary, Romania and Ukraine.
The report stating, "Turkey can be considered as the "comeback king" of the year with its highest of all growth expectancy", also cites the possibility of an upgrade in country rating over the next two years.
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Turkey provides a ray of hope.
Just when we thought that the global property gloom & doom was never-ending, we appear to see a ray of hope emerge. That ray right now is on Turkey. With most global markets suffering from oversupply, price hikes and rising interest rates, Turkey shows us that there is indeed hope.
It is hard to stay positive amongst all the gloomy reports and while we could easily hike information up and turn them into hype, it would be an outright lie. So when we heard that Turkey is showing rising residential prices after the government decided to relax foreign ownership restrictions in 2005, we were delighted to hear this.
In the past 5 years, Turkey's property market has appreciated by an average of 7 percent annually. One reason we are seeing this is because of Turkey's popularity as a tourist hot spot for German's, Brits and Greeks.
Just in the past year alone, 27 million tourists have taken time out in Turkey to enjoy the sun, sand and warm weather. The country is rich in history and the locals are friendly and helpful, always happy to stop for a chat.
With some of the best coastlines in Europe, it is no wonder the total tourist figure has risen 10 percent since 2007. More and more people are starting to see the great value in this diverse destination.
This demand has spiked short term accommodation in resorts across the country, helping to boost the local real estate market.
With low cost of living and a relative stable and healthy economy, Turkey offers a lot to potential property buyers. If you are from the US, Canada, most EU countries and some Latin America and Asian countries as well as Africa, you can buy property freely in Turkey.
Another bonus is the ease of access property owners have to the rest of Europe. While Jones Lang LaSalle classes Turkey as a "low transparent" property market, tourism will continue to fuel the market in years to come.
All the market needs is sustained supply to prevent a glut of properties like in other once booming markets. Which is much harder said than done. |
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