Property in South-East Asia Set to Boom

According to Jones Lang LaSalle, the property markets in Southeast Asia could begin to boom. The firm believes there are several factors which will influence the markets, including growing affluence and urbanisation in these countries, which will result in an increased demand for housing as well as commercial property and infrastructure.

In addition this should lead to increased tourism both from within the region and outside, and it's expected there will be considerable demand for property in developing countries such as Laos and Myanmar. here should also be an increased demand for hospitals and clinics, as more these affluent societies begin to focus on improving health.

Education is another sector expected to see increased demand, as there will be an additional need for schools and colleges as well as the associated housing and infrastructure.

However Jones Lang Lasalle has pointed out changes will need to be made to land ownership laws in order to encourage investment. This means there will be a need for increased transparency and professionalism within the property sector. At the moment there are a number of differences between the countries regarding foreign property ownership, and these need to be managed more efficiently in order for opportunities to be maximised.

Economies such as Laos and Cambodia have only recently opened up, and although there are numerous business opportunities investors need to feel confident about conducting transactions in such countries. If these difficulties can be ironed out then the property market can develop more quickly, and more money can be invested into countries in South-East Asia.

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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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.

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.

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.

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.

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.

Malaysian Property Market Recovering Rapidly

Malaysia’s property market anticipates growth in the upcoming year as the economy enjoys stability and growth as well, peaking the interest of overseas investors. This is good news for Malaysia as much of the world has been hit pretty hard by economic struggles.

The Fourth Malaysian Property Summit is scheduled to be held on January 18^th, 2011 in Kuala Lumpur and will include various speakers from fields such as developers, property owners, bankers, investors, and economists. Talk of property investment potential will likely be a main topic.

James Wong, a property consultant, says that there is a huge demand for property in Kuala Lumpur and Penang. As property prices rise, it is important that the government come up with incentives to boost income to help the growth of the economy as property market and the economy oftentimes go hand in hand.

It will be essential that the Economic Transformation Programme set clear guidelines on Private Finance Initiatives so that proper funding can come from private initiatives.

It is reported that market prices have set record highs and the interest rates remain low presently. Investors from all over the world are interested in this prime location. Chinese investors already invest highly in Australia and Singapore and buyers are hopeful that they will be seeing more of such investors in Malaysia. Along with China, investors from Singaporean and Hong Kong are also interested in Malaysian properties.

It will be interesting to see just how much growth Malaysia will see in the upcoming year.

American Property Market: Volatile but Bountiful in Opportunities

The US property market is probably the most volatile in the 1st world right now. We have reports of prices falling, and we still have tens of thousands of homes being repossessed every week, some reports talk of falling repossessions because of the freeze, other's say the freeze was barely a blip. On the other hand mortgage interest rates are at all time lows and most reports concur that sales are increasing in most regions.

Volatility aside, few can deny that the US market is currently abundant with opportunities, and that these opportunities are in their best presented to foreigners, or certainly out-of-state buyers. Foreign and out of state buyers needn't care about the effect that the rock-bottom price they are paying for a distressed or repossessed property, only that the price they are getting for will increase their rental yield (rents haven't fallen as fast as sale prices, and there is no such thing as a distressed rental -- not now anyway). Not to mention the potential capital growth when America finally gets back on her feet.

And what an opportunity it is:

The dozens of repossessions don't only increase availability of property at rock bottom prices, but they also increase the number of people and families in demand of rental accommodation. Thus, investors can buy in at low prices and with a large pool of potential tenants.

In fact, there is an even better way to invest...

Shrewd investors, developers and anyone else with the cash to do so, have decided to cut out the void between buying and finding a tenant, they are buying distressed homes and renting them back to the original owner. This is why we are currently seeing so many tenanted deals coming across the Atlantic. The average yield on the tenanted deals is 6%.

There is nothing average however, about the Village at Town Centre development in Orlando, offering tenanted 3 bedroom apartments just minutes from Disney World from just £47,300. Understandably, net yields of 10% are currently being achieved.

Confidence Increasing in Overseas Property

We have all heard reports that the low interest rates in the UK are causing more people to look to overseas property. The latest report to confirm this trend comes from the latest Worldwide Property Group confidence tracker; a survey of those considering buying overseas property.

The survey found that 71% of potential overseas property buyers said that the current level of rates had increased their desire to purchase a property, 64% said that they are benefiting from the continuing low level of interest rates. Interestingly.

73% respondents said that they felt that now is a good time to buy property overseas showing that confidence is returning. 68% of respondents said they are actively considering buying a property overseas.

Asked which regions they were most interested in, respondents came up favouring the US, Caribbean, and Brazil, followed by the traditional European destinations like Spain, France and Italy, with Portugal also getting a mention.

Commenting on the figures, Kevin Wilkes, Managing Director of the Worldwide Property Group said: “The results of this survey make for very positive reading. I am delighted to see that confidence in property both in the UK and overseas has reached such a high level. It is also very interesting to see that with all the fantastic opportunities currently available around the world, it is still the more traditional markets that draw the most interest. This is valuable information as it enables us to offer exactly what our clients want.”

Distressed US Investment Property Supplies Increasing

Sales of distressed and bank owned property accounted for some 24% of all US home sales in the second quarter, down from 31% in the first quarter, according to the latest data from Realty Trac.

Of this bank owned properties accounted for 15% of home sales in the second quarter, and properties in some stage of mortgage distress for 9% of sales. This is down from 19% and 12% respectively in the first quarter.

This shows that sales are dropping. But the number of properties sold after receiving a default or auction notice was up 5% from the previous quarter, although it was 20% lower than last year. This would seem to suggest that supply may be rising.

Discounts on distressed and repossessed US properties are also falling, which also suggests that supply may be rising. According to the Realty Trac data, the average discount on sales of properties in default or scheduled for auction was 13% in the second quarter, down from 16% in the first quarter, and 19% in the second quarter of last year.

The average discount on bank owned properties in the second quarter stayed at the running average of 31%.

While supply of distressed and repossessed US properties rising is bad news for the US housing market, because their heavily discounted sale prices are factored into future valuations of other houses in the area, it is not such bad news for the droves of investors from across America and around the world who are getting some seriously good deals on US property.

Azure Overseas are currently marketing the Village at Town Center, a development of luxury condos just a few minutes away from Orlando's main attractions. The price of just £47k for a 3 bedroom unit is evidence of the fantastic investment potential of discounted US properties. Think of the yield you could make renting that out on a PPPN basis.

Property Investment Not as Simple as Many Think

Property investment is a lot more diverse than many people give it credit for. Many people think it is a comparatively simple investment class compared to say stocks and shares, but when you break it down it is not so simple.

Firstly there is commercial and residential property investment. They are then further sub-divided into offices, retail and industrial property investment on the commercial side, and local and overseas property investment on the residential side. Overseas property investment can then be subdivided into residential and holiday rental investments. And we haven't even covered tenures or property debt investments yet.

Commercial property investment is most often the purchase of an office, retail or industrial space, to rent out to one or more companies -- usually on a long-term lease -- for an annual figure of between 4% and 8% of the purchase price. The 4% to 8% is known as the rental yield.

Residential investment usually works on the same principles, but the number of variables is much greater.

There is buy to let investment, which tends to mean the purchase of a local property or properties for the purposes of renting out to residential tenants or holiday makers. Buy to let investments usually yield between 4 and 6 percent, but can be much higher in the right set of circumstances; namely massive repossession volumes in an area, which reduce prices and increase rental demand.

Then there is overseas property investment. This is perhaps most diverse of all, because, as well as having to choose property class, location and tenure, we also have to choose country, region and also whether we want to let residentially or to holiday makers.

The huge choice usually gives way to higher yields for the shrewdest investors. This is especially true at the moment, because of the massive price reductions in many countries, including up to 60% off repossessed property in America and Spain etc.

Why is Turkey Property Such Hot News Right Now?

Turkey's profile as an international destination of choice for tourists, holiday home buyers and even holiday property investors (fly-to-letters). It used to be that one of the main reasons to recommend buying property in Turkey was because EU membership was on the horizon, but since then Turkey has become a strong and powerful package all on its own, and property there is predicted and capable of growing and earning strong rental yields with or without EU membership.

We haven't really published a guide like this since things changed so drastically, and we thought that now would be a good time to do so. But why is Turkey so hot?

Economy Growing Faster than Rest of Europe

According to Turkstat data Turkish GDP grew 11.7% in the first quarter of this year compared to the same quarter of last year. This follows a growth of 6% in the final quarter of last year. Comparing this to Spain which contracted –1.3% and –3.1% respectively, the UK which shrank  –0.2% and  -3.1% respectively, Germany which grew 1.5% in Q1 following a –-2.2% contraction in Q4, France which grew 1.2% following a 0.5% contraction, and Italy which grew 0.5% following a 2.8% contraction, you can see why the Turkish economy is becoming such hot news.

A strong economy means a strong currency, healthy inflation (if carefully managed) and therefore growing property prices.

Strong Tourism Growth

The latest data on tourism from the tourism ministry shows that Turkish tourism grew 9.6% in the first half of this year, compared to the first half of last year. While the British travel industry is reporting a struggle, the Turkish tourism ministry shows that any drop in British visitors is being more than compensated for by growth in visitor numbers from Russia, Syria, Iran and Bulgaria

Tourism growth is one of the most important factors in the success of the Turkish property market. Again this is because most buyers are buying holiday homes and almost all of them will plan to rent it out for an additional income.

Marinas, Resorts and Success Stories

The volume of positive news relating to the overseas property market in Turkey is about the biggest in the world right now. Each week we hear of a new marina, new investments, new hotels from Hilton, Marriott, and other success stories, with very few if any negative news to temper it. For instance, there have been no reports of developments cancelled, or investors out of pocket, or certainly no more than in any market.

Thus, each week confidence in the Turkish property market grows. In a risk averse world confidence is a main driver of sales, and that is why Turkey's fortunes continue to improve.

Turkish Property Investment Making the News

Turkish property is currently among the most talked about in the world of overseas property, and for all the right reasons.

There are two main stories in the past week: Global Property Guide stating that the average rental yield on Turkish property is 5.48 per cent, which is much higher than the yields on offer in France (3.85%), Spain (3.81%) and Portugal (3.63%) and reports on the massive numbers of British people owning property in Turkey.

According to the Turkish Land Registry's latest figures, 32,000 Britons own Turkish property covering 6 million square meters. This is twice the area of property owned by Germans (3.5 million square meters), which is significant because Germany is Turkey's largest tourism market. The report received coverage in the Telegraph.

These reports follow several other features on the draws of Turkish property to appear in the national press, including one article calling the Turkish resort town Belek the next Algarve. If this had been a few years ago it would have been insignificant, but now, when the press is being extra cautious in its praise, this is all a big testament to the potential of Turkey.

Speaking of potential, nearly all the articles you read about Turkey, especially in the industry press, talk about the investment potential of Turkish property. However, this potential is being missed out on at the moment, because the majority of buyers are lifestyle buyers, with investment being a secondary consideration on their minds.

Sure, the majority of these people are still benefiting from the investment potential, because they are renting out their property when they or their family and friends are not using it. But the keywords there are "when ... are not using it", meaning they are not realising the maximum potential return from investment in Turkish property.

EU Construction Output Increase Bodes Well for German Property Investment

EU construction output grew 6.8% in March compared to February. This is the largest growth seen in the EU construction sector since the crisis hit. In fact, all the other rises have been lower than or a little over the 1% mark.

According to the data, from Eurostat, construction output rose on a monthly basis in thirteen of the fourteen states that provided data. The largest increases were recorded in Germany (+26.7%), Hungary (+5.5%) and the Czech Republic (+4.7%). Sweden was the only country to register a monthly contraction of -0.4%.

In the annual data it is a different story. Construction output for the entire EU was down 5.2% in March compared to last year, and the only countries to register an annual growth were the United Kingdom (+9.2%) and Germany (+2.6%). The largest decreases were registered in Romania (-23.1%), Bulgaria (-20.9%), Slovenia (-19.7%) and the Czech Republic (-19.1%).

This is the latest positive data on the EU economy, god knows it needs it after the debts of Greece blew up in everyone's face. According to recent reports, European property markets are starting to improve, and this is likely a major factor in the construction growth.

The growth in Germany is particularly interesting, because it confirms recent reports of major demand for retail and commercial spaces in the country. This will obviously fuel the residential markets in areas where the new construction is taking place. It is also good news for the German economy, which -- more than most places -- is a big factor in the shape of the property market.

In Germany only a little over 40% of the population owns their own home, and some 48% live in rented accommodation at full price. For this reason the property market is heavily restricted, with landlords only able to raise rents if wages are increasing. Thus, German property investments are most profitable when the economy is doing well.

View German property for sale

MIPIM Picks Out a Few Overseas Property Investment Hotspots for 2010

According to an article in Overseas Property Professional, the recent MIPIM property investment seminar highlighted very few investment hotspots.

Apparently residential property in Asia is where we should all be investing. One example given was Vietnam, which has a developing tourism industry, but that is not where to invest, according to a David Blackhall of VinaCapital Real Estate, it is the local residential housing projects which have the biggest growth opportunities.

I have to say, I would be very disappointed to have had to pay good money to go to MIPIM just to pick up that pearl of wisdom in the Trends in Asia Pacific Property Markets seminar, something which is pretty much common knowledge among anyone with even a passing interest in overseas property markets.

Asian population and economic growth is among the fastest in the world, and in most countries the demand for affordable housing among the newly employed is growing far faster than developers can keep up with; so it doesn’t take a rocket scientist to work out that affordable housing is a good investment in any of those countries – Vietnam being one of them with bells on.

The South-East Europe – Riding Out the Storm seminar was apparently very tough on the region it spoke of, pointing out roaring liquidity problems and massive price falls in almost every country in the region. Bulgaria, Romania and Greece were picked out as among the worst performers.

Turkey on the other hand was picked out as the exception to the rule. According to those in the know the worst of the crisis is over in Turkey, and while liquidity problems remain, growth is expected to resume this year. Turkey’s population growth of 1.2 million per year was highlighted as a massive strength for residential investment.

Serbia and Ukraine were also highlighted as worthy of investment in the South East Europe region.

Bulgarian GDP Down 5% in 2009, Property Market Looking Up?

Official government figures have revealed that Bulgarian GDP shrank some 5% in 2009. That is of course bad, but given that many economies in the world shrank by that amount or larger, putting it in the proper context it can easily be viewed as a positive for Bulgaria, which some (most if we’re honest) analysts predicted to contract by much more. The IMF predicted a 6.5% contraction for example.

The statistical institute had previously said that the economy contracted 5.1% last year, so the latest data is a revision upwards. What wasn’t revised upwards was the fact that the contraction accelerated on a quarterly basis throughout the year, with the final quarter being the worst.

According to the data the Bulgarian economy contracted by 3.5% in the first quarter, 4.7% in the second quarter, 5.4% in the third quarter, and 5.9% in the final quarter.

The government is expecting a further 2% contraction for this year, which is what it has based its forecast on.

Meanwhile Bulgaria property is becoming more popular. According to data released by leading portal Primelocation, searches for Bulgarian property increased by over 50% in January.

Bulgaria property is known as being some of the lowest priced in the world. Thus, with the level of research that today’s buyers are known to be doing this presents the chance of getting some exceptional value for money on carefully chosen properties. There have been reports of oversupply, but to a lifestyle buyer after a quality ski resort property for example, that doesn’t necessarily matter all that much if that are able to get a really good deal/

Germany Rated One of Best for Property Investment in 2010

Germany continues to be rated as one of the top property investment markets for 2010. In fact: the number of people sharing this view has risen to 80% from 66% last year. This is one of the key findings of Ernst & Young Real Estate’s annual trend survey of some 100 companies and investors. That said: another finding was that over 80% of the respondents do not believe the market has bottomed in terms of demand, space, and payment behaviours.

Survey participants included banks, closed-end real estate funds, real estate stock corporations/REITs, institutional investors, investment companies, opportunity/private equity funds, insurance companies and residential real estate companies.

'Although the transaction volume is set to increase for the first time since the beginning of the crisis, major commercial portfolio transactions and distressed sales are currently not anticipated,' said Hartmut Fründ, Managing Partner of Ernst & Young Real Estate GmbH. 'The market is still going through a period of consolidation,' he added.

Other statements from Ernst & Young partners confirmed what we said in yesterday's post; that residential property (buy to let) is attracting more attention from institutional investors than it has for years.

Partner Christian Schulz-Wulkow said that the residential sector is currently very popular: 'Residential property entails less risk and it has become a considerably more attractive proposition for institutional investors,' he said.

Another finding that was particularly interesting, was the fact that only a minority of those surveyed expected sovereign wealth funds and banks to be active buyers in 2010. In 2008 these buyer classes were among the most active in the German market -- especially in Berlin. The majority believe that family offices and institutional investors, most notably insurance companies, special funds and open-ended funds, will continue to be key buyer groups in 2010.

Opportunity and private equity funds, real estate stock corporations and international funds are seen as the biggest seller groups in 2010. Non-property companies and the public sector will make occasional sales only, according to the majority of respondents.

View German property for sale

Predictions Confirmed So Far, So Sales Set for Big Increase in February… Maybe anyway

Today two things I had thought to be true about overseas property, were confirmed to be true.

A: I had been watching and reading, and surmising that rental rates had not fallen as fast as prices have, thus rental yields would mostly have improved around the world.

Today Invesco confirmed that rental yields across Europe were running higher than their long term averages.

B: from various sources and events -- not least the fact that investment oriented destinations began to dominate the top 10’s of various overseas property portals -- I had reckoned that the number of investors actively purchasing overseas real estate had increased in the final quarter of last year.

Today, the Royal Institute of Chartered Surveyors confirmed that indeed the number of people buying overseas property as an investment as oppose to a lifestyle choice had indeed increased in the final quarter of last year.

Now, if my other big predictions come true, that 2010 will be a good year for overseas property, and that sales will increase from February, it will be even better.

In fact, now that you mention it (yes, I know you didn’t but…) one of them already has. According to an article in Overseas Property Professional an agent in Sharm El Sheikh has been selling Sharm property to overseas buyers at a rate of 1 per day since the beginning of the year.

So, watch this space for the next big prediction, in fact… why wait: in 2010, I am forecasting a resurgence in the resort markets of Koh Samui and Phuket.