Russian Buyers Increasing in Overseas Property

A survey carried out across several major Russian overseas property exhibitions has found that almost 2 thirds of Russian investors are preparing to complete purchases in the next 6 months.

The results of 3 surveys carried out at major aiGroup property investment shows found that 71% of Russian investors are planning on completing their purchases in the next six months.

Kim Waddoup, chief executive of aiGroup also said that the exhibitors at all three shows had reported "stronger than ever interest in their properties".

Russians, once a massive force in overseas property had dropped off during the financial crisis, but are now coming back with a vengeance. The rush on overseas property is part of a wider trend of capital flight from Russia as those in the emerging market seek out safe zones for their cash.

Central Bank chairman Sergei Ignatyev has estimated $49.3 billion has left the country in the first nine months of the year, already outstripping 2010’s figure of £35.3 billion. $13 billion of capital left Russia in September alone…70% of the third-quarter total.

As far as buying overseas property goes, the Russians favourites have changed a little since the boom time. Russians were known for favouring destinations within a short-haul flight, and with a similar culture/background to their own, with Bulgaria and Ukraine being very popular, although Spain has long been the favourite.

According to a survey of 499 investors conducted by International Residence at the Moscow International Investment Show in March, Spain is still the favourite, followed by Bulgaria and Turkey is the newcomer in third place.

US Contract Cancellations Increase, but Sales Figures Are up

Sales figures for residential property in the US are up, in spite of contract cancellations increasing substantially. Latest data from the National Association of Realtors shows sales of single family homes, townhomes, condominiums and co-op's increased by 1.4% in October to 4.97 million, compared to 4.9 billion in September. Year-on-year sales have increased by 3.5% compared to 4.38 million homes sold in the year ending October 2010.

These figures would be even better had sales not being negatively affected by this increase in contract cancellations. These are due to various factors including failed mortgage applications, loss of employment and bad home inspections. Cancellations rose by an incredible 33% in October compared to 18% in September.

Although the sales figures are slowly rising, Lawrence Yun, chief economist at the NAR thinks the market is still operating at a lower level than desired in spite of improving factors which include rising rents, increased affordability and the creation of new jobs, and feels many people who want to buy new homes are having their plans thwarted.

At the moment there are 3.33 million homes on the market, and stock levels are falling steadily with October showing a 2.2% fall leaving an eight month supply. The market reached its peak in July 2008 when they were 4.58 million homes on the market.

Some areas are also seeing a shortage of foreclosures, especially in lower priced homes where multiple bidding on desirable property is becoming more commonplace. This has prompted realtors to ask for foreclosures to come on the market at a faster rate because they have buyers ready to purchase, and giving credit to investors would help absorb inventory at a faster rate.

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Britons Account for 29% of International Sales in Turkey

The latest Turkish Land Registry Office data shows Britons now account for an incredible 29% of foreigners purchasing property in the country, with the Germans accounting for 23% and Greeks accounting for 9% of international buyers. According to experts most of these buyers will use their own national currency in which to invest in property, and apparently this isn't always the wisest choice.

Certain areas of the country attract certain groups of buyers, as property around Alanya and Antalya is a popular with Northern Europeans, and as such is often priced in euros, while other areas which tend to be dominated by the British such as Altinkum are often priced in sterling.

This is down to agents pricing property in a currency which is more likely to hold its value on the global stage rather than local currency. From the overseas buyer’s point of view, it is easier to purchase property priced in their local currency rather than having to worry about converting it into Turkish lira, but this may not be the best way forward.

Overseas buyers can often just as easily make an offer in Turkish lira, and may discover that using a currency exchange specialist could ultimately cost them less than paying in their own local currency.

Currency exchanges often have extremely competitive rates for people transferring large amounts of currency, beating the banks by a considerable margin, so while it's possible to bargain down the price of property it is worth bearing in mind that you may also be able to negotiate paying in a more favourable currency.

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Spanish Property Prices Are Still Falling, but the Costas Are Perennially Popular

Property prices in Spain are still declining, but the Costas have always been popular with international buyers and prices in these regions are seeing lower price falls.

According to Tinsa, who is one of Spain's leading appraisal companies, prices have fallen most in regional capitals, and have declined by an average of 8.1% to the year ending in October.

Prices in metropolitan areas have declined by 7.5%. However prices on the Mediterranean coast have fallen by 6.9%, while the Canary Islands and the Balearic Islands have seen price declines of just 3.4%. Property prices have fallen by 30% on the coast and by 20.5% in the islands.

Data from the Department of Housing paints a slightly different picture as it shows property prices fell by an average of 5.6% to the year ending in the third quarter.

This data shows prices having fallen by 9.1% in Costa Dorada, by 8.5% in Madrid and by 8.3% in Murcia. Prices increased in Tenerife and Extremadura by 1.7% and 1% respectively, but data from the Department of Housing is usually regarded as being pretty unreliable.

However the declining prices are attracting overseas buyers, with Russians proving to be the most ardent purchasers followed by the Scandinavians, Dutch and Belgian buyers. One of the most popular regions is Murcia due to the new Paramount theme park, the new international airport at Corvera and the prospect of the AVE train network extension.

Work on the new theme park is due to begin in March next year, and the new international airport will see a number of scheduled services next spring. Work on the train network extension is also expected to begin next spring as the European commission has deemed the link to be a priority, and as such it will receive financial backing.

Moscow Rated As Top City for Property Investment

London has lost its number one place as being the most attractive European city for property investment, according to the latest annual European Regional Economic Growth Index report from LaSalle investment. Apparently Moscow now has greater potential.

Even so the report believes that medium-term demand for European property will remain high in major cities that have high levels of wealth such as London, Munich and Paris, but London has fallen to second place due to poor GDP growth and employment growth, while global financial concerns have also impacted the city.

In spite of this London still has a far higher wealth and better business environment that Moscow and is generally a dynamic and mature market. Next year's Olympic Games is predicted to further boost its popularity, creating more jobs and continuing the regeneration in the area.

All in all the outlook for Northern European countries is still considered to be strong, and emerging Eastern European markets are also predicted to do relatively well over the next few years. The picture isn't so rosy for southern European countries that are already deeply in debt.

Moscow rose from 10th place to second place in last year's annual report, before rising to the top spot this year, but LaSalle still thinks many foreign businesses will be deterred from investing due to the negative business environment.

Munich was again rated number three just ahead of Paris due to its good business environment scores and higher growth levels. Germany is also notable for having the most number of cities in the top 20 which is due to its economic strength.

Australia's House Prices Fall for the Third Straight Quarter

Property prices in Australia have fallen for three straight quarters due to increased borrowing costs, but there are signs this decline could be bottoming out as September marked the smallest price decline in seven months. Homes in capital cities fell by just 0.2% while regional home values increased by 0.1%, and experts think the trend of downward prices may be reversing.

House prices in capital cities have decreased by 4.2% this year while apartment prices have fallen by 1.4%, with Brisbane proving to be the worst performer so far this year, although all the signs are that it could be the first to see prices recover as home values increased by 0.4% in September.

Adelaide did even better with prices up by 0.5%, while more resilient markets such as the Sydney and Canberra saw the largest price declines with prices down by 0.6% and 0.5% respectively.

Economists are also hopeful that interest rates will be gradually reduced which could help to revive the first-time buyers' market, although most are predicting a recovery will come by the middle of next year. Another hopeful sign for the housing market is the fact that auction clearance rates are stable and there are less signs of discounting. Financing is also becoming easier.

The decline in house prices in Australia is certainly good news for all the Brits wanting to move to the country, as apparently the Overseas Guides Company has seen a 160% increase in the last quarter. Australia is seen as being particularly attractive as there is a skills shortage so certain professionals will find getting visas to live and work a relatively straightforward process.

Foreign Buyers in Singapore Increase by 16%

According to government figures, the number of foreigners owning private property in Singapore has increased by 16% during the first six months of this year, compared to an increase of just 12% for the whole of last year.

Some people are concerned that locals may be out priced by foreigners from the housing market, but the National Development Minister Khaw Boon Wan has pointed out that locals still accounted for 80% of private home purchases this year.

The Singaporean government recently imposed cooling measures to try to prevent the market from overheating, and although these are already having an effect the full impact won't be felt for a while.

The rate of price increases in residential property is already slowing as prices have increased by 6% so far this year compared to the 18% recorded during last year.

The Singaporean government also intends to continue supplying sufficient land so housing developments can be built for those Singaporeans who wish to own their own homes. Last year the government released land for 10,000 units while this year it has released land for more than 14,500 units.

At the moment there are about 34,000 unsold private homes which is equivalent to 2 years of demand, but the government intends to keep up with their land sales program until the market stabilises, especially as it will be some time before the new supply is available. The government has also pledged to build more affordable housing and expects the country's supply of rental flats to reach 47,000 with an additional 3,000 units being added next year.

US Homebuyers Struggle to Find Their Dream Home

The US housing market is now encountering a new problem, as after years of oversupply in the market now has a dearth of attractive properties for sale.

At the end of September there were just over 2.19 million homes for sale, according to Realtor.com, which is a reduction of 20% on September 2010, and although on the face of it are falling inventory should be a good thing as it increases competition for suitable homes, the reality is slightly different.

Estate agents are finding people are pulling their homes off the market and are choosing to wait until prices recover. There are fewer foreclosures for sale as banks have been dragging their feet against foreclosing on properties ever since the controversy over irregularities surfaced last autumn, but demand remains soft and there is still a shadow supply of distressed property which is estimated at around 1 million.

These homes will gradually come onto the market over the next few years further constraining price gains. The decline in the number of properties the sale also means that less deals are being struck between buyers and sellers as buyers are cautious about paying too much while sellers feel they may be underpricing their homes.

In September housing inventory is for Miami were down 49% compared to a year ago, while in Phoenix this figure was 48%. Tampa, Florida has seen a reduction of 33% and Atlanta has seen a fall of 30%, while in Detroit this figure is 28%. While some homeowners are still looking for their dream home, others have given up completely, and property experts think this shortage of attractive, well priced homes is affecting sales more than sluggish demand.

Oman Property Market Is Doing Well, Buoyed up by Economy

The property market in Oman is doing pretty well according to a new survey from Cluttons. This is mainly due to the recovering economy and high oil prices, and the private sector has employed 20.7% more people between 2008 and 2010, leading to increased demand for properties.

Oman was hit by the global recession, but now the economy is expected to recover nicely, and government income has grown by 29% during the first six months of this year.

Much of this increase in revenue is down to rising oil prices, but good employment figures show the economy is in a relatively healthy state.

Demand for residential property in the Muscat region has remained steady, and it is anticipated this demand will rise as the economy continues to strengthen. Established areas such as Madinat Qaboos and Qurum are still very popular, and coastal areas such as Ghubrah North and Azaiba are becoming increasingly more attractive due to a number of new developments in recent years.

The Cluttons report is predicting a two tier property market will develop, with well-designed properties showing relatively high occupancy rates and stable rental values, while those properties which are less well built and designed will show a decline in occupancy rates and rental values.

Those properties which are well-designed with high quality amenities are in high demand and tenants would rather choose a smaller higher quality property than a less well built property in a better area. All in all the report is quite positive about the outlook for residential property in Oman, but does comment that it is still heavily dependent upon oil revenue for its main income.

Construction Spending Unexpectedly Rises in the US, but the Housing Market Remains Flat

Spending on construction rose in August due to an increase in state and local government spending, giving a 1.4% gain which reversed the 1.4% loss in July. The construction industry is also up 1.4% compared to July 2010 which is its first positive reading of the year.

Building of multi-family homes such as townhouses and apartments has increased, which is greater evidence of how the housing market has changed as more Americans are choosing to rent rather than buy. Even so, spending on public construction was down 5.3% compared to August 2010 which is mainly due to budget cuts.

The housing market continues to struggle, and work began on 571,000 new homes in August which is the weakest figure for three months. Most experts don't expect the housing market to improve in the near future, and purchases of new homes reached a six-month low in August even though prices fell by an average of 7.7% compared to August 2010 which is the largest fall since July 2009. The problem is that distressed properties still appear far more tempting to potential buyers.

The Federal Reserve is aiming to cut borrowing costs and to kick start housing and refinancing, and last month it announced it would take additional steps to reinvest maturing mortgage debt into mortgage backed securities instead of Treasuries. However government agencies remain under pressure to cut their spending, especially as property tax collections which is the main source of income for many cities and counties fell by 1.2% during the second quarter, which is the third consecutive decline.

Norwegian Homes Are the Greenest in the World

Research by the Royal Institute of Chartered Surveyors has shown that Norway is the top country in the world for reducing carbon emissions in the built environment. Brazil is second, while the UK comes in third, but apparently there is still considerable room for improvement. Australia and China come in fourth and fifth, but Russia Luxembourg and Canada are bottom of the list, with Greece and South Africa just above them.

Although the bottom of the list shows little movement, there has been considerable change in the middle ranking is. Between 2008 and 2010, Finland, Sweden, France, the USA, Belgium and the Slovak Republic have made improvements, while India, Italy and Ireland have slipped further down the rankings.

The RICS Global Zero Carbon Capacity Index has looked at 34 individual countries over the last three years to see how they are progressing in their carbon reduction policies.

The UK has a considerable number of carbon reduction policies in place which accounts for its high ranking in the index, but doesn't do so well in the residential sector where it remains one of the worst performers, although it is gradually improving. Norway has been top of the ranking for three years running, but Brazil has moved up six places due to its high contribution of renewable energy and low energy use. In contrast,

Germany has slipped down the rankings due to its poor performance in residential energy use and is now the fifth worst performer. This particular index has remained pretty stable from year to year due to the lead time and investment required in renewable energy infrastructure to make any appreciable difference to a country's energy use.

Home Sales in California Increase in August

The number of home sales in California increased by 8.8% in August compared to July, and by 10.2% compared to August 2010, and all in all an estimated 37,734 homes were sold throughout the state.

The average number of sales for August is 48,344 according to DataQuick who has been keeping statistics since 1988. Sales reached an all-time low in 1992 with just 29,764 homes being sold and an all-time high of 73,285 in 2005.

The median price for a Californian home was $249,000 in August, a decrease of 1.2% compared to July, and a decrease of 4.2% on August 2010. House prices have decreased for 11 months in a row after 11 months of increases.

The lowest price for this housing cycle was recorded in April 2009 when prices were just $221,000, compared to the peak in early 2007 of $484,000, and property prices are still being affected by the large number of distress sales which accounted for more than 50% of the resale market in August.

Foreclosures accounted for 34.6% of existing house sales last month, down from 35.6% in August 2010. The highest recorded figure for foreclosures was in debris 2009, at 58.5%. Shop sales accounted for 17.8% of resales in August, down from 18% in August 2010.

Homebuyers are also taking out smaller mortgages, as the typical mortgage payment for August was just $982, which is the lowest amount on record, down from $1045 in August 2010. This is a massive 64.4% less than the peak of the current cycle which was reached in June 2006.

Israelis Protest over Rising Property Prices and Rents

Israelis have been protesting over rising property prices and rents since mid-July, and although the initial protest began in an upmarket section of Tel Aviv, it has now spread to Jerusalem, Haifa and Beersheba.

Property prices here have increased by around 40% during the last three years, and this is partly due to the fact that planning and construction here is extremely slow. Property prices increased by 13.7% between April 2010 and April 2011, which is around triple the rate of inflation, and in the Knight Frank Global House Price Index for the first quarter of this year, Israel was ranked fourth behind Hong Kong, India and Taiwan.

Rents have also increased substantially, and many Israelis are now complaining that Tel Aviv has become a city for the rich. Demand for housing has often exceeded supply in Israel, but the situation has become much worse over the last few years due to low interest rates and easier access to housing loans and mortgages.

The economy here is in pretty good shape and is expected to grow by around 4.8% this year, meaning that many more Israelis are looking to buy better homes. The property market here is somewhat unique, as 93% of the land is owned or managed by the government which dates back to the founding of the nation in 1948 and a policy designed to preserve the Jewish state. Most property sales here tend to be long-term leases, so the government has unusually high control over the way the land is used.

Builders have to negotiate large amounts of bureaucracy in order to gain construction permits, and this has constricted the supply of apartments, increasing the prices.

The Israeli Prime Minister Benjamin Netanyahu has promised to cut red tape, and has also pledged to build 50,000 new homes during the next 18 months, but the protesters are asking for rents to be regulated and property prices to be curbed.

Malaysians Taking Advantage of Exchange Rates to Buy up Properties Abroad

Malaysians are taking advantage of favourable exchange rates to buy properties abroad, especially in Britain and the United States where the value of sterling and the dollar has declined over recent months.

Apparently several major estate agents who market international properties have noticed the number of Malaysian buyers has been increasing steadily over the last three years, with figures peaking during the first six months of this year.

It's not just favourable exchange rates which make overseas property so attractive to them, as property prices in Malaysia are soaring, especially in the major cities and towns. This has led those with cash to spare to look towards other countries where prices have dropped significantly over the last few years, and which offer much better value.

London is perennially popular, as are university towns in the US as they offer great rental potential. Properties in Florida, Michigan and Las Vegas are proving to be very popular as they yield higher returns, especially in the case of Florida and Michigan, as both these states have a high student population.

Most Malaysians are buying property for rental purposes, although they are able to stay in the country so long as they have the necessary visa.

Australia is also proving popular, in spite of the strength of the Australian dollar, as the property market is seen as being stable and offering good returns on investments.

The country is proving to be particularly popular with young Malaysian professionals who are looking to diversify their investments and achieve early financial freedom. The majority of properties sold to overseas buyers cost between AU$500,000 and AU$800,000.

More Signs of Possible Stabilisation in US Housing Market

Residential property prices in the US decreased to the year ending in June, but prices are now falling at a much slower pace, leading to hopes that the market might be stabilising. The Standard & Poor/Case Shiller index fell by 4.5% from June 2010, which is slightly less than the 4.6% decline in values predicted by economists.

Values dropped by 0.1% in June which is the same percentage decrease as in May, and is viewed as a sign that the deterioration in the housing market is finally slowing. This is positive news, but it seems as if a full recovery is still several years away due to the number of foreclosures that are still pending, high unemployment rates and strict lending rules.

Economists don't expect house prices to rebound strongly even when the recovery finally picks up pace, especially as a recent report showed that consumer confidence in the US in August was at its lowest level since October 2008 which is mainly thought to be due to concerns over job prospects.

Property prices declined by 5.9% in the second quarter of 2011, compared to the second quarter in 2010, but they increased by 3.6% when compared to the first quarter of 2011 before seasonal adjustment, and by 0.1% after seasonal adjustment.

All of the 20 cities in the index showed a year on year decline to June, with Minneapolis registering the largest drop at 11%. Washington fared the best with just a 1.2% drop in prices.

In a recent speech, Ben Bernanke, Federal Reserve Chairman, expects the economy to improve during the second half of 2011, and said that the central bank would be able to aid the recovery if necessary, and that housing will stabilise.

Now's the Time to Buy Property in the US

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, affordability in the United States is now at a 20 year high, with an incredible 75% of homes in the country being affordable to families earning the national median income of $64,200.

Even though homes are affordable to the majority of the population, and interest rates are at an all-time low, and the housing market is still being held back by constraints on credit and worries over the economy. In spite of this some housing markets in the country are beginning to stabilise and there are some signs of green shoots.

The most affordable area in the US is the Youngstown-Warren-Boardman area which is on the Ohio and Pennsylvania border. An amazing 94% of homes here are within reach of those earning a median income. Other areas showing high affordability include Lakeland-Winter Haven in Florida and Syracuse in New York.

All these factors make the US extremely attractive to investors, especially as the number of renters is rising.

There are signs that increasing numbers of first-time investors are choosing to dip a toe into the market, and while it is a good time to buy, those new to the property investing game should be aware of the potential pitfalls and should make sure they only invest in an area that they know reasonably well, and that they investigate the local rental market thoroughly before committing to their purchase.

While the market is good for investors, those who are unable to pay in cash are also facing problems finding funding. According to the National Association of Realtors, 19% of homes sold during May and June were sold to investors, up from 13% on the previous year.

Increased Interest from Wealthy Europeans Looking for Holiday Homes

Apparently more wealthy Europeans are looking for property overseas, especially those from the Netherlands, Norway and Germany. This is quite a change as previously the market has been dominated by Asian and Middle Eastern investors.

An international real estate search agency, Quintessentially Estates has seen an increase of 50% on searches compared to the same time last year. They feel that this increase in interest could be due to the low interest rates throughout the Eurozone, and the current turmoil on the stock markets which is causing many to turn to property as it has traditionally been seen as a safe haven, and is always good for the long-term investor.

One of the most popular countries for investors is France, which is always popular for second home buyers. However beleaguered Portugal, Greece and Italy are also proving popular, with investors hoping for a real bargain in spite of the risk that property prices here could fall in the near future. Brazil is also becoming more popular as its economy continues to thrive, and the Caribbean and Indian Ocean are also top of many people’s wish lists.

Although European buyers are increasing, American and British buyers are holding back, and this is probably due in no small part to their economic troubles and the weakness of their currency. British buyers are intending to look at property outside the Eurozone, while Americans are more likely to concentrate on their home markets where prices have declined by up to 50% in some states.

Foreign Investors Buy $82 Billion Worth of US Property Year-On-Year

In the 12 months to March, foreign purchasers bought $82 billion worth of US property, which is an increase of 24% on the previous year, according to figures from the National Association of Realtors. Canadian buyers accounted for 23% of these sales, with China accounting for 9%, while the UK, Mexico and India all accounted for 7% each. Brazilian and Argentinian buyers, if counted collectively accounted for 5% of all sales, up from just 2% in 2010.

The attractions of America property are easy to see as the weak dollar and falling prices make it easy for overseas buyers, who frequently paying cash to pick up a real bargain. According to property website Zillow, and prices fell by 8.2% during the first quarter, while Standard & Poor's/Case Shiller index shows prices are down by around 33% since their peak in July 2006.

Apparently overseas buyers accounted for 8% of the American housing market which was worth $1.07 trillion to the year ending in March 2011, and half of the sales which were worth $41 billion were to immigrants who have moved to the country in the last couple of years, while the other half of sales were to international investors. A notable proportion of high-end properties are now sold to Russian buyers who see it as a status symbol to have a luxury property in the US, and the number of billionaires in Russia is increasing as out of the 214 newcomers to Forbes magazine list, 31 were from Russia, and Moscow now has 79 billionaires compared to New York's 58.

EasyJet Gives Boost to Holiday Homeowners in Spain

Low-cost airline easyJet has just announced a new programme of 20 new flights to Europe from Southend International airport in Essex, with five of those flights going to the Spanish Costas. The new flight schedule is due to take effect in April 2012, and fares could cost as little as £26.

These flights are bound to be hugely popular as the routes include Malaga, Majorca and Alicante, and should be a great boost to anyone who owns a holiday home in these areas.

Having cheap and easy access to holiday property is essential, and the estimated 800,000 people who will fly into Spain from Southend will be looking for somewhere to stay which is great news for anyone choosing to rent out their property, as well as those looking for somewhere to buy.

Sales of property in Murcia have already started to increase, albeit slowly due to the Paramount branded theme park which is due to be built in the region. It's certainly a great time to buy as property is at its cheapest for a decade, and local estate agents are hopeful that prices have finally bottomed out.

The new theme park is due to open in 2014, and has been predicted to attract up to 3,000,000 tourists annually. Although this may have a positive impact on property prices closer to the time of opening, as yet property prices are not rising. It looks as if some people are waiting for construction work to begin before taking the plunge to buy a holiday home here.

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Increased Demand for US Holiday Homes

Although house prices in many regions of the US are still falling, the luxury holiday home sector is proving to be far more resilient. A number of estate agents are reporting that they are receiving far more enquiries than they have had for years.

It certainly looks like a good time to buy provided you intend to invest for the long term, as property which was once out of reach to many is now far more affordable. A three-bedroom home in Vail, Colorado which changed hands for $3.3 million in 2008, was sold in February for just $2.5 million.

Another property on Hilton Head Island, South Carolina previously sold in June 2006 for $1.2 million, was bought for just $750,000 in April this year.

Overall the average price for holiday homes was $150,000 in 2010, which is a reduction of around 25% since 2006, however homes in the multimillion dollar range have fared much better, and this sector is recovering much more quickly.

The recovery of the second homes market hasn't gone unnoticed, as on Palm Beach Island, Florida, sales have increased by 50% to the year ending June 30, while sales in the Hamptons have risen by 59% during the second quarter compared to a year earlier. Sales in Aspen, Colorado have increased by 10% to the year ending May 31.

In spite of these figures being very encouraging, there is no suggestion of a property boom, as the types of properties which are selling well are those located near water or near ski slopes. Properties in less desirable areas are still taking a long time to sell. Another problem is financing, as banks tend to be much warier about second home mortgages, particularly the so-called "jumbo" loans which are more than federally guaranteed limits.

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Sellers in Spain told to set realistic prices to achieve sales

According to a property expert in Spain, people need to be more realistic when pricing their property if they really want to sell. José Luis Jimeno, who is the managing director of Noteges, a property education website feels that many owners of Spanish property have failed to grasp how far prices have fallen here, and he thinks that some sellers may need to drop their price by as much as 50% in order to attract a buyer.

Anyone trying to sell property on the coast may need to cut their price even further as there is a huge oversupply of residential properties in these areas. Unfortunately Jimeno also thinks that prices could have further to fall, and although he understands that this isn't a good time to sell, those who have no alternative need to do everything possible to attract a buyer.

Latest reports from the Spanish property market index confirm that this gloomy view as they reveal property prices in Spain fell in June compared to May, and the largest decreases were seen on the Mediterranean coast where prices dropped by 8.7%. The Balearics fared a little better as prices fell by 7%, but prices in the major cities fell by 7.3%.

On average Spanish property prices fell by 6.6% in June when compared to June 2010. The number of sales is also dropping as the National Statistics Institute in Madrid showed that numbers declined by 18.3% in May compared to May 2010, and that the number of transactions had fallen for three consecutive months.

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Spanish theme park is set to open sooner

The new Paramount theme park in Murcia is apparently scheduled to open a year earlier than originally planned. It had been scheduled to open in 2015 but construction plans have been brought forward due to increased interest from foreign investors and the anticipated opening of the new international airport in Murcia. The completion of the airport which will have capacity for 3 million passengers a year, including many who currently use the airport at Alicante was vital in securing this theme park. The theme park will be huge as it will include several Disney type worlds and six, four and five-star resorts as well is a 15,000 seat auditorium.

It's now expected that work will begin early in 2012 and will be completed by 2014. The new airport is due to open in spring 2012, and should ensure that Murcia is well and truly on the tourist map. Estate agents are already experiencing increased interest from those seeking to buy property due to the enhanced rental opportunities which will be available in the near future.

Foreign investors who have taken an interest in the theme park include the Russian billionaire and casino operator Oleg Boyko, who visited Murcia earlier on in the year to assess the areas potential. Another €1.3 billion are needed to complete the Paramount theme park, but there are to be several international roadshows in the UK, the UAE and China later on in the year, and it's anticipated that these should raise the necessary funds to complete the park and the attached retail complexes. The completion of this project will also coincide with a new high-speed AVE rail link to Murcia.

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Egypt’s Muslim Brotherhood Campaigning for September Elections

Egypt’s Muslim Brotherhood group, which has formed the Freedom and Justice Party, is campaigning hard ahead of September’s elections as it hopes to win up to half the parliamentary seats. It is basing its campaign on a plan to trim the country’s deficit which would bring foreign investors back into Egypt.

Before the uprising in February, the Brotherhood was one of the largest opposition groups. Its leader, Khairat el-Shater is quoted as saying “It’s always better for any country to build on the basis of investment and not loans.”

Interest payments on public debt account for 22% of spending, up from 20% last year. It is the third largest bill, after wages and subsidies. In fact Egypt’s spending on debt costs more than the combined costs of health care, education and housing. The average yield on public debt is estimated to increase from 10.7% last year to 12.5%.

The Muslim Brotherhood was founded in 1928, and after decades of suppression is now speaking out about its views on governing the country. The group is well aware that some foreign investors may be put off by a government that has a large Muslim Brotherhood representation, and they want to reassure investors that they are business owners and professionals.

Egypt is already taking steps to cut international borrowing, and has turned down a $3 billion loan from the IMF, preferring instead to get finance from domestic borrowing and aid from Arab countries. The UAE has already pledged $3 billion of support for Egypt. The economy in Egypt is expected to expand by 3.2% this year, and although this is the lowest rate for about a decade, it is still better than many western countries.

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Florida Property Market Continues to Show Signs of Improvement

The Florida property market continues to show signs of life, as sales of condominiums in Miami have increased by 46% over the last year, and sales of family homes have improved by 20%.

In May, sales of condominiums increased by 1.1% on April while house sales increased by a respectable 5.4%, according to a report from Miami’s Association of Realtors. An incredible 60% of closed sales were cash transactions, while international sales accounted for 60% of this figure. International sales accounted for 90% of new construction sales.

It’s not just Miami that is seeing a turnaround in the market, as sales throughout the whole state have increased. Condo sales have increased by 17%, while single family home sales have increased by 3%.

According to Jack Levine, chairman of the National Association of Realtors, the performance of the housing market in Miami is exceeding expectations, with sales now at their highest levels since the boom years.

At the moment there is just a 7.4 month’s supply of housing, as both international and American buyers take advantage of bargain prices. However the high number of foreclosures and short sales is continuing to have an effect on the market, as 57% of all closed sales during April were distressed in some way.

The good news is that prices seem to be gradually recovering in Miami, as even though prices for single family homes in May were 8% lower than a year ago, they had increased by 7% from the previous month. Condominium prices were 1% lower compared with a year earlier, but had increased by 7.4 compared with April.

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Liguria Proving Alluring to Foreigners

Competition for homes in Liguria, Tuscany and Umbria is currently fierce and is driving property prices up as homeowners search for the perfect Italian holiday home.

Apparently Germans are spending around €300,000, and 76% of British buyers are looking at property in the €300,000-€500,000 price range. However the Russian buyers are willing to spend the most, at around €900,000 for that perfect property.

Property values in the country have held up rather well during the global economic downturn, and 61% of local estate agents expect the market to get even better over the next couple of years.

Buyers are increasingly willing to pay up to €17,000 a square metre for properties in popular Ligurian towns such as Santa Margarita Ligure. This might indicate that foreign buyers are now choosing to purchase property in smaller towns and villages rather than the major cities.

The attractions of Liguria are easy to see as it has achieved a record number of Blue Flag beaches, and in fact in 2011 was awarded the most blue flags out of all the regions in Italy. The region is also bordered by the Ligurian Sea, the Alps and the Apennines and is home to the famous seaside resorts of Portofino and Cinque Terre.

This location means that it has a mild climate year-round and is pleasant to visit even in the dead of winter. Temperatures in winter time are generally between seven and 10°C, while summer temperatures tend to be between 23 and 24°C. Liguria also has the distinction of being the birthplace of pesto.

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Portuguese Property Bargains on the Way

According to a leading currency exchange firm, the election of the social Democrat government in Portugal will bring about a new era of austerity in the country which should see property prices falling even further. The coalition government in the country is due to implement the austerity package being demanded by the EU in return for their £70 million bailout.

While this might seem reasonable enough, the Prime Minister, Pedro Passos Coelho has promised that his government will make even more cuts, with the idea being that deficit reduction targets will be met ahead of time, attracting investors back into the country. Cuts include selling off public services, higher health care costs and a reduction in unfair dismissal compensation.

It's expected that all this will have a negative effect on Portugal property prices as households will have less money to spend, but should prove attractive to foreign investors, especially those looking to buy property in popular destinations such as the Algarve.

Although Portugal has a similar deficit crisis to that of Greece and Ireland, it is slightly different in that the property market here has had very little effect on these problems. There has been far less re-mortgaging and high loan to value ratio loans available to the Portuguese, and in fact the country exhibited one of the most stable rates of loan default during the worst of the economic crisis. At the height of the boom in 2007 the non-performing loan barometer was just 4%, and this figure decreased to 3% last year.

South Africans Choosing Smaller Homes

People trying to sell South African homes currently have to discount prices by between nine and 12% in order to achieve a sale, according to Lew Geffen, chairman of Sotheby's International Realty in South Africa. He feels the most likely cause is the recent apprehension over elections, long school holidays and an increasing aversion to take on more debt.

Levels of household debt in South Africa are still at high levels, and with food, fuel and electricity costs forecast to rise, buyers are choosing not to take on such large mortgages, even if they can. The majority of South African households have an annual income of around R192K which puts them firmly into the lower income property buying market. This means they can comfortably afford homes costing up to R1.4 million.

As a result there has been increasing demand for smaller high-density housing in metropolitan areas. The affordability of homes has improved since 2007 and 2008, but people are definitely becoming more interested in keeping the costs of homeownership down, and are mindful about the prospect of interest rate rises by the end of the year.

There are also signs that banks will not lend on properties whose price is overinflated, so anyone asking an unrealistic price is less likely to achieve a sale. In general homebuyers are not particularly motivated to move at the moment, and are more likely to do so if they think they are getting a bargain. The market was bolstered to a certain extent by the effects of the 2010 FISA World Cup and the interest rate cuts late last year, but now these influences have run their course.

Moroccan Property Market has Sustainable Growth

According to CB Richard Ellis the property market in Morocco has sustainable growth for a number of years to come and the managing director, Karim Beqqali, feels the country has been successful in attracting a large amount of investment into holiday homes.

The property market in Morocco has been affected in the past by the global economic downturn, and this had a severe impact on the second home market which had previously been buoyant.

However it has been largely untouched by the recent unrest in parts of the Middle East with most analysts feeling it's far enough away to be unaffected by these problems.

Good economic growth in Morocco has resulted in a healthy local market, and a rapidly expanding middle-class is giving greater impetus not only to the residential property market but also the commercial property market.

Morocco plans to promote coastal tourism through six new coastal resorts which are collectively called the Azur Plan. These results will eventually create more than 100,000 beds of which 73,000 will be hotel beds.

The plan was implemented before the global economic crisis, and since then some international developers have had to transfer projects to local operators.

At the moment Marrakesh is the primary tourist destination in Morocco and the city has managed to attract many world-class hotel brands and has over 5.5 million overnight stays year. However the property markets within the other three major cities of Tangiers, Casablanca and Rabat have also experienced strong growth in recent years.

There are no restrictions for overseas buyers and Morocco is easily accessible from a number of major European cities. Prices have declined slightly in the wake of the economic crisis, but now seem to have stabilised.

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Rising Interest Rates are Unlikely to Affect Brazilian Home Sales

Brazil's third largest homebuilder says Brazil property sales are unlikely to be affected by increased borrowing costs so long as the interest rate is kept below 14%.

Duilio Calciolari is the new chief executive officer of Gafisa SA. which is Brazil's third largest homebuilder, and doesn't feel there should be any significant impact if rates go up to 14% to control inflation.

The bank has already raised interest rates to 12%, but employment is extremely strong and banks are becoming ever more willing to finance mortgages. An estimated 9.1 million Brazilians intend to buy property this year, all of which bodes extremely well for Gafisa.

The unemployment rate in Brazil hit a record low in December at just 5.7%, and was 6.5% in March which is the lowest ever recorded rate for that month. The Brazilian president, Dilma Rousseff recently said that the economy is near full employment.

However as the economy continues to expand, the rate of inflation is also accelerating and is now running at 6.51% which is the highest rate since 2005 and above the target range set by the government. A recent central bank survey of 100 economists revealed that most expect the interest rates to end the year at 12.5%.

Mortgage lending grew by 51% in 2010, compared with a 2.6% decline in the US and a 12% increase in Mexico. Property prices have risen significantly since 2008, with prices increasing by 113% in Rio de Janeiro and 91% in São Paulo. In spite of these hefty increases Calciolari doesn't think the housing market is at any risk of a bubble and the prices are just a structural correction due to the increasing mortgage market.

Singapore Safe as Houses for Investors

Sales of residential homes in Singapore have reached a five-month high as they increased 29% last month due to many foreign buyers seeing the country as a safe place in which to invest. This is because of the recent earthquake in Japan and the continuing political unrest in the Middle East regions.

Sales of new homes rose from 1,386 in March to 1,788 in April which is the highest level since 1,915 homes were bought in November. However this figure has dropped since a previous high of 2,208 recorded a year earlier.

According to Donald Han, managing director at Cushman and Wakefield, this shows that consumer confidence is still high both locally and internationally, and that Singapore is still seen as a highly desirable investment destination.

The economy in the country grew at an annual rate of 23.5% during the first quarter and homes are now at record prices in spite of the government's attempts to curb speculative buyers. The government has extended the period for sales tax liability on home sales from 3 to 4 years and has also raised the down payment necessary for second mortgages.

This hasn't stopped investors as most intend to hold onto their properties for longer term and are not buying them just to flip them. It remains to be seen if the government will introduce any more measures, and much depends on property price figures for the second quarter.

There is growing discontent amongst Singaporeans who are unable to afford property in the city and this led to the People's Action Party losing votes and seats during general elections held earlier in May.

http://www.bloomberg.com/news/2011-05-16/singapore-april-private-home-sales-rise-to-five-month-high-on-haven-status.html

Property Sales in Phoenix Rise to Record Highs

The number of sales in Phoenix has risen to a record high during the first quarter of 2011, largely due to cash buyers and investors purchasing distressed property. Foreclosure sales and short sales are still accounting for a huge portion of the market and the median sale price is still dropping.

Sales figures for March showed that 10,352 new and resale properties were bought which is up a staggering 44.3% from the previous month, and 7.5% from March 2010 according to DataQuick who track property trends nationally through public property records.

It's normal to see a sharp rise in sales between February and March as the property buying season gets underway in earnest, but this year's increase is larger than normal. The average increase would be about 30% according to records kept by DataQuick since 1994. The March sales figures were the highest for that particular month since March 2007 and are just 1% short of the average number of sales for this month.

In spite of this, sales of new properties are at their lowest levels for 14 years as builders are unable to compete with bargain priced foreclosure properties.

A huge 41.2% of all property transactions in March were for homes costing less than $100,000 which is up from 40% in February and 30.6% in March last year. Property investors bought 47.1% of homes sold in Phoenix, and this is the highest level for any time during the last decade.

The median price of property in Phoenix was $119,000 which is down 11.9% from March 2010. Foreclosure sales accounted for 53.1% of property purchases in March, down from 66.2% in March 2009.

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House Prices Increased in Colombia in 2010

The housing market in Colombia was especially strong in 2010 which is partly due to the burgeoning economy and partly because of the peaceful transition to a new president. It's expected that house prices will continue to increase this year and Colombia's investment rating was upgraded in March to investment-grade.

The average house price rose by 9.25% in 2010 with the average price of a new apartment increasing by 9.57%, and the price of new homes increased by 5.69%. Three cities in particular showed strong price increases last year, which were Bucaramanga with increases of 15.2% year-on-year, Bogota with increases of 10.5% and Barranquilla with increases of up to 8.6%.

Colombia has a housing deficit of around 2.4 million homes with 185,000 new homes being needed annually. There are signs that this demand is partially being met as housing approvals reached 153,903 last year, with this high level being partly accounted for by the reduction in construction costs.

The Colombian economy grew by 4.3% last year up from 1.5% in 2009. The growth during the last quarter of 2010 was especially strong, and as a result of this there was a 3.2% increase in the consumer price index during the first quarter of this year, but this is still within the central banks 2% to 4% target.

The country gained a new president in August 2010, Juan Manuel Santos, who succeeded Alvaro Uribe. Santos was formerly the Minister of defence and his main priorities include improving relations with Ecuador and Venezuela and reducing the high levels of unemployment.

Recent Foreign Ownership Laws Helping Property Market in Cambodia

Recent laws allowing foreigners to own apartments and condominiums were introduced last year and have already had a positive effect on the property market.

However it still remains a little sluggish, even though the number of property transactions tripled since the foreign ownership law was approved by King Norodom Sihamoni in May 2010. The tax revenue from property transactions increased by 60% to US$19.5 million up from US$12.2 million in 2009.

Un Mouy, of Two Town Company, who is the developer of Bal Resort said that 80% of the project has already been sold with 60% of it being sold to overseas buyers. He credits the new law for these good sales figures. It's the same story for the Camko City megaproject who has sold increasing numbers of condos to foreigners since the new law was passed.

It's estimated that as much as 70% of luxury property in Cambodia is reliant on overseas investors. The law had been amended as far back as 2005 to allow foreign investment in buildings, but was never put into practice due to Cambodia experiencing a property boom.

During the property boom the price of residential property rose by about 25% to 40% annually between 2004 and 2007. At first this property boom was confined to popular regions such as Phnom Penh and Siem Reap, but it soon spread right across the country.

The construction boom in Phnom Penh was largely fuelled by overseas investment with the government favouring wealthy developers. However it remains against the constitution for foreigners to own land even though it can be held on long leases and through majority-owned local companies incorporated in Cambodia.

Turkish Property Market Predicted to Become Even Hotter

The Turkish property market is predicted to be extremely active this year due to increased confidence from foreign investors, and the number of developments being launched this summer. The figures released by the Turkish Real Estate Investing Partners Association (GYODER) show that foreign investments increased by 40% last year with sales worth $2.5 billion. To put this in perspective, sales between 2006 and 2008 totalled $3 billion.

Although there are regions of high supply, in general Turkey has not fallen into the trap of other Mediterranean countries of oversupply. Another Turkish strength is its 8300 km of beautiful coastline, offering property buyers a huge choice of location and property type, so just about everyone can find a home to fit their budget. The Bodrum peninsula is increasingly popular, not least because of its good connections to the rest of Europe. First Choice Airways, Thomas Cook and EasyJet all have regular flights to Bodrum, while Monarch will begin twice weekly flights from Manchester next month.

It's easy to see why Bodrum is popular as it's an ancient fishing village with a great deal of history which appeals to culture vultures, but it's also a lively town plenty of restaurants and bars. Gumusluk is close to Bodrum but offers a much more relaxed style of living, and the area is especially popular with divers and families attracted to the blue flag cleanliness of the beaches. Property prices are still very competitive in Turkey, especially when compared to other Mediterranean countries whose property markets have suffered greatly in the global economic downturn.

Azure Overseas are currently marketing a new property on the Bodrum Peninsula. The Village II offers high quality apartments featuring mod cons like air conditioning, internet and sattelite tv, in a fantastic resort complete with Gym Centre, Beauty Spa, Turkish Bath complex, Swimming Pool, Children Swimming Pool, Pool Snack Bar, Restaurant/Café, Market, and Childrens Playground. As an example of the value the development offers 1 bedroom apartments with a 5% rental guarantee for less than £40k.

Mallorca is Beating the Mainland

Buyers are choosing to look at property on Mallorca rather than the mainland with the visitor numbers and enquiries having steadily increased over the last year.

The sales and marketing director of Taylor Wimpy de Espana, Ignacio Osle believes this is because the island has so much to offer with beautiful architecture, a wide range of sport and leisure activities and wonderful beaches. The island's capital, Palma de Mallorca was recently voted one of the five best towns for travel and tourism in 2010 by Exceltur.

The airport at Palma de Mallorca is the third busiest in Spain and handles more than 21 million passengers, and the airlines have been quick to respond to this increased demand with new flights beginning this year.

Ryanair will begin operating flights from Birmingham while EasyJet will be flying from Manchester. Jet2.com is due to start flying from Glasgow and Eastern Airways will be flying weekly from London Oxford airport from this June.

Mallorca is also becoming more popular with cruise ships and received over 500 last year while a 28 million Euro designated birth is currently under construction and will be able to accommodate up to 5 larger ships.

The Balearics as a whole have seen 145% increases in property sales last year when compared to 2009. Average asking prices in Mallorca are the second highest Spain at €428,300, although overall, asking prices have dropped over the last two years as the market has realigned itself.

Taylor Wimpey has two new developments on the island, one of which is to the north of the island eight few minutes from a Pollensa beach while the other is to the south-west of the island at Las Altos del Golf in Andratx.

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Dubai on the Upturn?

The recent instability in nearby Arab countries is proving beneficial to Dubai as it’s increasingly being seen as a safe haven within this region.

Dubai enjoys political stability, an open economy, and as such the Department of Economic Development has said it is seeing increased interest from businesses and recorded a 17% growth in licenses granted in 2010 which followed cuts in minimum capital requirements. Citigroup is also forecasting growth of up to 4% in 2011 with 6% in 2012.

This growth is most easily seen in the airports and hotels. Passenger numbers passing through the international airport in January rose by 10% year-on-year. International freight volumes rose by 3.9%.

Hotel occupancy is up to 81% even though there are new hotels opening all the time. Some of this is probably due to the unrest as room occupancy in Beirut and Cairo fell by 40% in January and February, while Bahrain's rates fell by 20% in February.

This newfound optimism is also spreading to the property market and the current abundance of empty residential and commercial property is attracting many new arrivals, not least because of the preferential leasing rates being offered.

At the moment the property regulator is reviewing units planned for completion up until 2016; trying to fit supply to demand, while estate agents say that the numbers of transactions are increasing as interest from North Africa in particular shows strong growth.

However some experts believe the long-term picture remains uncertain due to the political instability in the region. There is the worry that some investors may view Abu Dhabi and Mumbai as offering greater opportunities for longer term gains.

Columbia can offer a luxury lifestyle for a bargain basement price

Colombia is increasingly drawing attention from property investors as it has much to recommend, particularly the city of Medellin. This city is now very safe, with a cosmopolitan atmosphere combined with perfect year-round weather. It has all the big city amenities you would expect such as a modern metro system, two airports and world-class shopping and restaurants, yet property prices here are still low. This is put down to the stain left by drug lord Pablo Escobar who died 12 years ago.

It is possible to buy a luxury apartment in a good neighbourhood for around $80,000, while a luxury penthouse can cost less than $150,000. The works out to around $79 per square foot which is incredibly low considering the beautiful location and quality of living offered in Medellin.

While prices here have remained fairly steady there is evidence that this may be changing as more international buyers are looking for somewhere new to invest. Many of these international buyers are drawn to the country by the good rental returns of between 5% and 11%, averaging at 7%.

Medellin city is committed to public architecture and has a number of beautifully designed libraries, schools and parks which have helped to turn around at some of the poorer neighbourhoods. The city, like the country as a whole has worked hard to reverse the previously negative image.

Brazil gets tough on land ownership

The Brazilian government is to toughen up an existing law in a bid to prevent overseas investors from acquiring agricultural land. It will mean that they will be unable to buy controlling shares in companies that own large amounts of land in the country.

A law was passed in 1971 which severely limited the outright purchase of rural farmland by foreigners or overseas companies, and under it no one was able to own more than one fourth of a county, and no more than 10% nationally which was meant to protect food security.

In fact this new law is to be passed due to fears that foreign governments such as China were likely to be interested in purchasing agricultural land in emerging markets to increase their own food security, especially with the worry of increasing food prices throughout the world. World food prices hit an all time high in February.

The Brazilian government has watched China, Korea and the Gulf States buy up land in Africa and does not want to allow this to happen here.

While Brazil is interested in attracting capital investment in order to increase its world exports it does not wish to relinquish control to other countries and views this as being a sovereign risk. It is estimated that foreigners currently own 4.5 million acres of land in Brazil, and this has grown by 11.5% since just 2008.

It is not yet known when this law will be implemented as the process has been ongoing since President Lula da Silva asked ministers to tighten it up last year.

Making your money go further in Ecuador

Ecuador is not somewhere that is widely considered by investors, but has much to offer, not least a lifestyle that has been compared to California in the fifties.

Ecuador coastlines are some of the world’s most unspoiled and affordable, yet they still offer all the modern amenities such as shopping malls, good restaurants and medical clinics.

Little wonder then, that Ecuador is fast being discovered by overseas buyers, many of whom are from the US, lured in by the cheap cost of living and low priced property. In Ecuador it is possible to buy a retirement residency on an income of just $800 a month. This status has a long list of discounts attached, some of which can be as much as 50%, including reduced air fares, goods and services.

The city of Salinas -- Ecuador’s biggest city -- is 90 miles from Guayaquil, and is a popular holiday spot with native Ecuadorians. It has great facilities for boating including  a yacht club, as well as surfing, sunbathing and fishing, and ample opportunities for fine dining in the evenings.

It has a mixture of neighbourhoods, with the north being more vibrant, while the south is quieter and more family oriented. It’s possible to buy an apartment close to the beach and an exclusive yacht club for $124,0000 which is just over $100 per square foot.  The same price will buy a three bedroom, three bathroom hilltop house with ocean views in nearby Ballenita.

For just a little more ($170,000), it’s possible to buy a 3410 square feet home with five bedrooms and access to a pool, not to mention gorgeous ocean views. With prices like these it is easy to see why this place has such appeal for retirees.

Overseas Property Investors Returning to Market Says Lloyds TSB

Lloyds TSB International research reports that overseas property investors sat out some during the recession, but with property prices falling and falling, many of them are now beginning to re-enter the market having much more confidence and finding some amazing deals.

Some British investors have held off during the last three years, watching as some property prices have fallen up to 40 percent. Research reveals that sales are still sluggish in some areas, but optimism remains that sales will pick up as more investors enter the market.

According to the National Federation of Estate Agents in France, property prices in France increased in 2010, which is the first time since 2007 that values have gone up. Additionally, the Germany real estate group, IVG, reports from the latest research that Spain’s property market is expected to recover at a quicker pace than the rest of the economy.

Barry Luhmann, head of lending at Lloyds TSB International, states that some of the markets that were hot in 2007, such as Spain and the US, are now full of deeply discounted deals.

Spain’s average housing prices have decreased 23 percent since the 2007 peak, although key tourist destinations such as Ibiza and Costa Blanca have seen as much as a 40 percent decrease. Such declines in prices have British buyers evaluating their finances and the market much more seriously.

As the economy improves, investment interest will increase not just in Spain, but all around the world. As the economy shows more signs of stability, the real estate sector will see noticeable, positive changes as well.

American Economy Showing Signs of Recovery

According to the Federal Reserve, America’s labor market is showing improvement this year due largely to increasing retail sales and a strong growth in manufacturing.

In its Beige Book report, the Federal Reserve reported that all Districts are reporting some improvement, as labor market conditions improve and are growing considerably. This news beats the last survey, which was January 12^th, which stated that the job market was “firming somewhat.”

The central bank in Washington has reported that the economy has continued to expand moderately. Many regional banks, including San Francisco and Philadelphia, are describing their regions and economies as growing stronger and experiencing moderate growth. In fact, eleven of the Federal Reserve’s 12 regional banks have reported a good amount of growth, with only Chicago reporting a slight decline in growth.

The last meeting in January among policy makers saw optimistic views on the economy, but still there was some dissatisfaction with job growth. A plan to purchase $600 billion in Treasuries through June was proposed, with hopes of increasing economic growth.

According to Michael Moran, Chief Economist at Daiwa Securities America, Inc, the manufacturing sector is strong and growing well. Cities such as Boston, Cleveland, Minneapolis, and Dallas reported “noticeable improvements” and have high expectations for continued growth and recovery.

Regarding the Labor Department, it is reported that the world’s largest economy added 190,000 jobs in February, which is the most jobs added since May of 2010.

Regarding the real estate sector, the Beige Book reports that it is varied and overall it is not growing nor digressing, but optimism remains for a year of growth and recovery for 2011.

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Brazil Property Attracts Increasing Investment

If you’ve been keeping up with Brazil the past year or so then you’ll already know that with a booming and growing economy, the property market has been the source of great interest in overseas property investors.

Recently, it has been reported that Brazil’s government is ensuring that the growth of the economy will remain stable by taking steps to keep it sustainable. It has also been reported that the government is planning on $30 billion in cuts, which will result in a reduction in defense spending as well as the hiring of civil servants coming to a halt.

With Brazil’s exploding and excessive growth, cuts are necessary to keep the country at a sustainable level. Guido Mantego, Brazil’s Finance minister, stated that the cuts are aimed at slowing down the growth but not too much as to stop the growth completely.

Brazil’s economy grew by 7.5 percent in 2010 and inflation is rising. The country has been very popular globally, with property investors taking notice and investing in the country hoping to increase the value of their investment portfolios significantly.

Experts anticipate that the expanding economy and property market will continue to be favorable for the next five to ten years. Additionally, the Property Price Index will soon be out, which will compare different types of properties in Brazil, such as residential and commercial. Experts believe that this index will be key to monitoring the market and help avoid bubbles and property crashes in the future.

Romania Property Market Seeing Increased Foreign Interest

Romania is seeing more and more interest from overseas property investors, as the property market works towards recovery. Investors seem to have a good deal of confidence that the property market in Romania will be worth the investment over the long haul, as property values are expected to increase over the years. According to Vission House, overseas property investors are “quicker and more determined” to sign sales contracts than residents of Romania.

With the property market beginning to show more signs of life in certain regions of the world, Romania is no exception. Plenty of foreigners who work in Romania, who normally rent homes, are purchasing homes due to the low prices and affordability. They are looking at it as an investment opportunity or perhaps they may end up staying in Romania. Either way, the decision to purchase saves them money when compared to renting.

The northern part of the capital city, Bucharest, is seeing a pick up in the purchase of apartments, as the prices are thought to be at their lowest sales prices. Rental vacancies are quite low so property investors believe investing in apartments is a safe and wise investment.

Just recently, the Bucharest Stock exchange listed one of central and Eastern Europe’s largest property restitution funds and experts hope that this will give an added boost to the property market, as this may draw even more foreign investors to the area.

Within the next two to three years, property experts believe that they will see Romania’s economy and property market strengthen and grow.

German Property Offers Excellent Value for Money

It seems as if you get a lot more house for your money in Germany these days, as home prices set at more affordable prices have peaked the interest of a rather large number of people.

The general consensus as to the reason German property seems to be such a bargain is that there is a steady growth in supply of homes. You can get a very nice four bedroom, three bath with a garage, sauna, pool, and garden in the suburbs of Berlin for under $600,000 Euros. This price has peaked the interest of foreign investors looking to purchase in the area.

When compared with similar properties in Britain, Australia, and New Zealand, Germany’s prices are quite the bargain.

Why have German house prices been able to remain stable and more affordable? According to an analysis by the German property market, the reason is because Germany’s property market has never had a big boom or crash.

Before the global financial crisis, when property markets in other countries soared, Germany’s prices actually fell. In the 7 years between 2000 and 2007, Spain’s home prices soared 94 percent, New Zealand 80 percent, and Britain’s increased 80 percent, while Germany’s home prices actually decreased by 18 percent.

Germany’s property market has been marked with stability over the years.

What distinguishes Germany from other countries is that it has built more houses and flats then other countries and has zoned more land for development to be sure that there is a continual and steady supply of housing. Additionally, German builders and developers are able and willing to make sure that the building process is smooth sailing, taking into consideration supply versus demand.

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Cypriot government urged to act over title deeds

The Cypriot government has been urged to take action over the issuing of title deeds which would help to revive the property market. While the Cypriot banks are financially sound the property market in the country represents more than 40% of the loan collateral, and there is concern that the island is not competitive enough when compared with other European countries who have already lowered their interest rates and property taxes to encourage foreign investors.

Property in Cyprus underwent a ten-year boom period until 2008 but has since suffered a decline which can be attributed to a number of different reasons; these include the fact that many overseas buyers were British, and the decline in value of sterling against the Euro has made investments more expensive, and buyers in general are being much more cautious about their purchases. The property laws in Cyprus are not as transparent as they need to be even if the government is now trying to rectify that situation, and Cyprus are currently has about the highest interest rate in Europe.

Property prices in Paphos have dropped by up to 30% of the last three years; although there are signs that the market is recovering property sales are still well below those achieved during the boom. There are some important property developments taking place in Cyprus which include luxury villas and residential properties, golf courses and marinas. While some of these projects are expected to be completed very shortly, others will not be available for another couple of years but can be expected to greatly boost the appeal of the island, especially as a new seaport is planned that will cater for the large cruise ships that cannot currently dock using the present facilities.

Slovakian Economy Growing Strongly

Slovakia is experiencing economic growth after a long and hard struggle due to the global financial crisis. The current economic recovery is seeing average house prices fall only 1.36 percent as observed in the third quarter of 2010. There has been a 15.8 percent decrease in house prices from the time of the housing peak.

Slovakia saw significant housing growth from 2006 to 2008, with increases ranging from 14 percent to 35 percent annually. Since the end of 2008, and the global financial crisis, prices have continually been dropping. Last year, in 2010, Slovakia began to see the economy grow stronger largely due to renewed export demand and the economy grew by 3.8 percent.

Apartment prices during Slovakia’s property boom increased about 87 percent between 2005 and 2008, but have since decreased since the onset of the global financial crisis. Last year saw a little improvement in apartments, but villas and flats are still struggling.

Interest rates have been decreasing gradually throughout 2010 and as of November, the average mortgage loan rate was 4.68 percent for a floating or fixed rate and 4.64 percent for a fixed rate.

Slovakia’s economy struggled during the financial crisis and saw it’s GDP drop to a 4.66 in 2009. Unemployment was significantly high last year, in 2010, at a rate of 14.1 percent.

Last year a new free-market government promised Slovakia good news economically. The Ministry of Finance anticipates that the deficit will be cut to 4 percent this year and to below 3 percent by 2011. According to experts, Slovakia’s future looks promising as the International Monetary Fund reports that the economy expanded by 4.1 percent in 2010.

Boost to Qatar's property market

The recent announcement that Qatar will hold the 2022 World Cup would already seem to be having a positive effect on the housing market.

Ivanka Trump flew out to Qatar to meet with potential property partners within hours of the announcement from FIFA. Coreo, which is one of Qatar's largest estate agents, has already reported an increase in the number of enquiries from foreign investors who are looking to get in early to make the most of any capital growth.

The announcement has proved to be of particular interest to British buyers.

Prior to the announcement the demand for residential property had not been high as investors had tended to shun Qatar in favour of Dubai.

Qatar needs to make substantial investments into infrastructure which will include new transport links and man-made beaches as well as football stadiums, and they are already reported to be behind with the building.

It's estimated that it will create tens of thousands of jobs which will potentially be filled by workers from overseas who will all need accommodation and this is expected to push rents higher which will in turn affect property prices.

While Qatar is one of the richest nations in the world it did not escape the recent downturn and property prices are estimated to have fallen by up to 40% in 2008. Foreign investors can buy freehold properties within four designated areas and are able to buy leasehold homes in 19 regions throughout Qatar.

The Lusail Iconic Stadium is set to host the opening ceremony and final match, and has a capacity of 86,000, and a studio in the new coastal Lusail City currently costs £135,000.

Investment in Spanish Property Expected to Pick Up in 2011

Spain’s property market is expected to draw investors this year and perhaps even the next couple of years due to predictions that its economy will experience more stable growth.

CEO Pere Vinola stated to Reuters last Wednesday that there would be significant opportunities in Spain because it will be easier to rotate portfolios.

Also reported was that Spain’s savings banks have had a lot of change and have consolidated to more than half their numbers to clean up their balance sheets.

The ailing property market has had its negative effect on banks and the economy as a while, but experts believe that the market will be beginning to pick up this year.

Experts also believe that the Spanish property market will recover quicker from its debt crisis than the wider economy because of low rent prices and the demand for properties increasing. Spain is in strong demand for tourism and people looking for vacation property, retirement homes, or second home.

Rents are low right now and may even continue to see slight decrease for awhile but it is predicted that an increase will occur this year, according to Thomas Beyerle, IVG’s head of corporate social responsibility and research.

Developers are hoping that the positive reports are true, as plans to push forward with construction of properties move forward. According to Taylor Wimpey de Espana, a large developer in Spain, 25 percent more properties sold last year, in 2010, than the previous year. This is good news for developers, as the percentage of completed and built property stock being sold comes in at nearly 100 percent.

A good example of the kind of investment property that will draw investors: Azure Overseas is currently marketing 2 bedroom 2 bathroom apartments in Costa Calida at just £121k. The bank repossessed properties are available with 100% finance and an interest rate of just 2.5%.

Nicaraguan property bargains

Nicaragua is steadily increasing in popularity as a tourist destination, as numbers have risen during the last three years. One million tourists visited Nicaragua last year and it's rated as one of the top 10 destinations for 2011 by Lonely Planet. It has been tipped for a property boom since the beginning of the turn-of-the-century, and speculators invested heavily in beachfront land during the first half of the decade. Many of these investors were from the US and are now having to sell their property due to the declining prices in the US market.

This has increased the chance of bargains and it's now possible to buy a two-bedroom condo right on the beach for hundred and $179,000, while a condo in an established development just a short stroll from the beach can be bought for just $45,000.

There are several good reasons to buy here as the popularity of this country can only increase. It's very easy to get to as it's just a short connecting flight from many major US cities, and as yet is wonderfully un-spoilt and makes an ideal destination for anyone who appreciates outdoor life in outstanding natural beauty.

Nicaraguan has everything as it has volcanoes, virgin rainforests, colonial cities and exotic wildlife and would probably appeal to eco-tourists. It’s easily as attractive as the far more popular and commercial Costa Rica but it's just not as well-known. The cost of living here is very low so that tourists and residents can both enjoy eating out without breaking the bank. It is only a matter of time before this country is properly discovered and becomes a major tourist destination.

New Canadian mortgage rules may affect market

Foreign mortgage insurance companies have only been allowed to operate in Canada since May 2006, and with these new regulations came a more liberal view of borrowing practices. Prior to this date it was impossible to get a mortgage without making a minimum 25% deposit, but now it became possible to get mortgages without deposits, and also to repay these mortgages over a 40 year term.

This had the effect of heating up the property market, so in the summer of 2008 the government took steps to cool it by reducing the maximum mortgage term to 35 years alongside a requirement of a 5% deposit. These actions had the effect of protecting Canada from the worst of the US sub-prime mortgage market as the government also purchased the billions of dollars’ worth of insured mortgages in order to give the banks breathing room.

The housing boom in Canada was able to continue due to low interest rates, prompting the government to introduce minimum deposits of 10% for homeowners while investors must make a deposit of 20% or more. New laws introduced last week will take effect in March and will lower the mortgage terms to 30 years which some feel may dampen down the housing market.

While this may be true there are certain areas that may always buck the trend, especially in ever popular Vancouver. The average price of a home here it over $1 million, and a dilapidated property recently went on the market for just over $1 million, but created such interest that the eventual selling price was over one and a half million dollars. Part of the reason for high prices here is the popularity of the city with investors from the Far East who have money to spare from their own booming economy.

Malaysian Property Market to Grow in 2011

Property experts report that the Malaysian property market will strengthen and grow in 2011 and according to Malaysian’s Valuation and Property Services, property transactions are predicted to rise above RM 100 billion (US $32.8 billion) when compared to RM 96.77 billion (US $31.7 billion) last year.

Malaysia is experiencing a rebound economically after facing a couple tough years due to the global financial crisis. This economic recovery has given the overall property market a boost, especially the residential market, which is giving the market some forward momentum.

Residential and commercial properties have risen in the last year. Between July and November 2010, properties purchased in the residential sector increased 15.5 percent to RM22.6 billion (US$7.4 billion) when compared to the same time period in 2009. The percentage of commercial properties purchased increased 22.4 percent in the same time period to RM9.78 billion (US$3.2 billion).

Experts are optimistic that a housing bubble will not occur in the near future. Incentives are out there to help propel movement such as offering first-time home buyers a stamp duty exemption of 50 percent for homes under RM350,000 and 100 percent loans to purchase homes below RM220,000.

Positive growth has been recorded in various areas throughout Malaysia. The highest growth recorded was in Pulau, Penang, which increased 9.7 percent. Kuala Lumur, Selangor, and Johor have also showed moderate growth at 8.2 percent 7.2 percent, and 3.6 percent. These areas have been experiencing steady, continual growth throughout the past three years, with figures coming in between 20 and 50 percent.

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Paris Property Prices Outstripped Rest of France in 2010

Paris property prices enjoyed double-digit increases last year as opposed to the rest of France where prices remained more or less static. In the Paris metropolitan area prices rose by an average of 12% which compares very favourably with a rise of just 0.6% throughout the rest of France, and there is little doubt that continuing low interest rates helped to fuel this rise with rates at their lowest levels since World War II.

The housing boom in France lasted 10 years from 1997 to 2007 with the price increases peaking in 2004. When the economic downturn began to bite prices decreased by nearly 12% in 2008, but apartment prices in Paris had risen 115% during the boom meaning some investors still enjoyed excellent capital growth returns. The rent index which rose by just 29% during this period. Although initial rents can be set freely they can only be revised once a year and there are strict limits as to how much they can be increased by due to the INSEE rental index.

This means that the rental market within France is constrained as there have been certain periods where the allowed rent increase has been below the rate of inflation. In addition there is quite a large social housing sector which holds about 17% of the housing stock, while 21% is held by the private rental market. However the number of people who choose to rent a home rather than buy is much higher in France than in the UK, and rental property in Paris will always be in demand due to the high numbers of people who choose to move there for work.

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Brazil Property Investors Happy on Rentals Waiting for Growth

Brazil, known for being popular among tourists, has property investors highly interested in capitalizing on its low home prices and positive economic outlook for the next several years.

Property prices are falling and reports state that the prices may have already peaked in the largest city. In October of last year, home prices dropped 3.53 percent compared to September. Additionally, there was a 25.6 percent decrease in the number of homes sold.

Falling home prices are not keeping local and overseas investors away though. They are confident that the real estate market will turn and in the upcoming years their investments will be worth it.

In the meantime they will enjoy the residual income that fattens their wallets each month as the rental property remains stable and many are opting to rent these days due to the unstable economy around the world.

Brazil’s economy is strong and it is expected to continue to grow in 2011 and according to research by the Association of Foreign Investors in Real Estate Market (AFIRE), Brazil’s investment property market is one of the hottest places to invest right now.

Brazil has ranked fourth in a list of countries that are predicted to have a great chance of recover, coming in right behind the UK, China, and the USA.

Joao Crestana, president of Sao Paulo SECOVI, states that Brazil’s market is returning to normal following a period of time when supply just wasn’t in competition with demand. He looks for 2011 to be more equal and stable.

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Has the Bulgarian Property Market Bottomed?

Experts are claiming that the Bulgarian property market may have bottomed, making now a good time to reconsider property investment in the country. The market has had a tough time, arguably one of the toughest, not least because its downturn started well before the rest of us. This has led to prices falling up to 50% in the coastal resorts, and 20% in the cities according to those behind the claims. Not that I disagree.

Has the market bottomed? I don’t know and the truth is no one will ever really know when a market hits its absolute rock bottom, in fact by the time we realise that it has we will be the latecomers who have long missed the worm. The best way is to make your own judgements based on growth potential, value for money and macro-economic fundamentals.

In Bulgaria we certainly have low prices, in fact according to the Global Property Guide property  prices in Sofia are currently around 1,759 EUR per sqm, compared to 2,354 EUR per sqm in Belgrade, Serbia, 2,406 EUR per sqm in Vilnius Lituania, and 2,748  in Ljubljana, Slovenia.

This would seem to suggest that Sofia property, and that of other parts of Bulgaria is running undervalue. However, Bulgaria’s downturn bit first because of oversupply and the deep recession and drop in foreign demand caused by the global financial crisis certainly never helped that. So, it may well be the time to buy in some places, but I would still be inclined to do some length research into supply and demand in any areas I looked at.

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Brazil Property Enjoying Sustainable Growth

While some countries have suffered heavily as real estate bubble’s were abruptly popped, other’s have remained stable and stayed on track for a steady trajectory of long term growth.

Brazil property is a prime example of this. Throughout 2009 when we all had realised the hopes that most emerging markets would avoid property market crashes were in vain, Brazil was frequently mentioned as a hotbed of potential growth, with big names like Sam Snell acting as patron saints.

The latest big name to put his weight behind Brazil as a property investment hotspot is Donald Trump, who has just entered into a joint property development venture in the country, and told the Los Angeles Times that he felt investing in the country to be a safe bet.

Another, Warren Buffet stated to Fox News that Brazil could just become “one of the world’s greatest investment opportunities in modern times.”

The former President Luiz Inácio Lula da Silva was highly committed to fuelling growth in the property and housing market. His increasing the maximum mortgage repayment term from 12 to 30 years, and the Minha Casa Minha Vida (My House My Life) scheme, have helped the youngest and those on a low income to buy a house.

It is predicted that the Brazilian economy will have grown 7.5% in 2010, making it one of the fastest growing economies in the world. 100 economists recently predicted that growth will slow next year, to a still-very-strong 4.5%. With da-Silva's protégé having taken the helm experts predict this growth to continue being channelled into housing market growth.