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.