International Real Estate Professional Study

International Business Times reports;
A survey of more than 360 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants has revealed the emerging top earners for the real estate sector in 2012.

Residential real estate is the second top investment for the year 2012 across the Asia Pacific Region, the study revealed.

It said that in spite the weak global housing market this year better prospects are to be seen in 2012, although caution and planning are still the keys to success.

Apartments. Interviewees favoured investing in multifamily property development, which can be class A, value-enhance class B, develop from scratch, purchase in infill areas, acquire in gateway cities, or hold in lower-growth markets. "Even buy class C and upgrade, spend a little more, hold a little longer-demand will be there."

The only caveat: avoid severely affected housing markets where a surfeit of empty single-family homes will compete as rentals.

Fortress Malls, Infill Shopping Centres. Aptly named fortress malls, near upscale suburban neighbourhoods and strategic highway intersections, continue to concentrate the top brand chains and attract more shoppers away from their weakening competition-centres situated near older or more commodity class housing districts. These types of property development attract necessity shoppers to anchored centres with leading supermarket and drug store chains. Investors are in for steady cash flows.

Coastal Port Industrial Space. Global trade will power export activity around the nation's primary seaboard ports, where traditional big-box warehouse distribution assets rebound after experiencing uncomfortably high vacancies. All eyes focus on which East Coast cities can position themselves to capture Pacific container-ship traffic slated to come through a widened Panama Canal in 2014. Some winners will turn into new industrial hubs, but first need to dredge harbor channels to handle deep-hulled vessels. Miami, Charleston, Savannah, and Norfolk look like prime contenders, and New York/New Jersey will not be left out. Houston should pick up business along the Gulf Coast.

Business Center Hotels. ULI and PwC said that 2012 will be within that the point in the real estate market cycle where lodging makes sense. But only the major 24-hour cities attract consistently strong combinations of business and tourist travelers to sustain occupancies and advance room rates during the week, as well as into weekends. Middle-market hotels without food and beverage service lure budget-conscious travelers without outsized operation overheads, enhancing bottom-line results.

Real estate in emerging economies outperform Eurozone and UK

Property markets in the more dynamic economies of South America, Asia and Eastern Europe are outperforming those in the UK and Eurozone, says the RICS Global Property Survey for Q2 2010.

Occupier demand is rising in the majority of countries across the globe with the notable exception of the UK and Eurozone countries where the tough measures that have been taken to reduce fiscal deficits appear to be having a more pronounced impact on the appetite of businesses to take up new space.

Significantly, France is bucking the negative Eurozone trend with more material signs of an upturn in sentiment towards real estate reflecting, in part, the relatively resilient performance from the domestic economy. Significantly, surveyors in the US reported a rise in tenant demand across all three sectors for the first time in three years.

Brazil is leading the way with the net balance of surveyors reporting a rise in occupier demand moving from 70 percent to 85 percent with markets in Peru and China also performing well. By way of contrast, demand in the UK turned negative for the first time in a year with the net balance falling from a positive 14 percent to a negative 4 percent while the net balances in Spain, Germany and Greece are all in negative territory.

Transactions fell in the UK for the first time in a year with the net balance of surveyors reporting a fall in activity sliding from a positive 24 percent to a negative 5 percent. More surveyors again reported a drop (than a rise) in activity in the UAE and Greece.

Indicators in China still remain strong despite measures introduced by the Chinese government to address the property boom. Indicators for occupier demand, rental expectations and the number of investment bidders per property all remain firmly in positive territory.

Elsewhere in Asia, the latest numbers from India suggest a strong showing from real estate in the second quarter despite the increase in interest rates.

Looking forward into the third quarter of 2010, sentiment towards capital values is particularly strong in France, Peru and Brazil while surveyors are most optimistic on rental increases in Brazil, Hong Kong and Peru.

Other key points include:

• New development starts are rising in Brazil, Peru and Argentina
• Surveyors report first declines in Japanese yields since 2007 on uptick in investment demand
• Investment bidders per property rose at a faster pace in the US
• Capital values are still declining in Ireland, Spain and Greece
• Occupier enquiries are strong in Brazil and Republic of Ireland
• UAE indicators are less negative than in Q1
• Rents are now increasing in the Ukraine

The real estate world continues to be split broadly speaking between the emerging and developed economies. Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity. Meanwhile in many of the latter, fiscal retrenchment allied to bank deleveraging continues to place significant obstacles in the way of a meaningful recovery in the commercial property market.”
Simon Rubinsohn, RICS chief economist

Foreign Property Investors Committed to the US but London Emerges as Top Spot,

Foreign investors in real estate are committed to the US as their preferred property investment opportunity, it is claimed in a new survey.

The sentiment is underscored by a dramatic increase in the number of respondents identifying the US as best for capital appreciation. Over half, some 51%, said so in the 18th annual survey from the Association of Foreign Investors in Real Estate (AFIRE). This is up from 37% in 2008, 26% in 2007 and 23% in 2006.

The survey of the association's 200 members that own more than $842 billion of real estate globally including $304 billion in the US, also found that the last time respondents' perceptions for US real estate were this strong was in 2003 when the percentage was also 51.

The UK is the second best investment prospect for capital appreciation, receiving 30% of votes, with China in third at 10%.

'Although foreign investors expressed every intent to resume investing in 2009, like everyone else, their plans were sidelined by a paralyzed marketplace with no precedent and limited investment opportunities,' said Werner Sohier, AFIRE chairman.

'However, new money is becoming available and the survey points to an increased focus and interest in a few select markets for 2010, especially London and in the US, where prospects appear to be brightening,' he added.

Investors also said that they plan to increase US allocations above 2009 levels by 62% for equity and 83% for debt and at least half the survey respondents report a stronger appetite for both debt and equity investments in the US than in other countries.

US cities representing the best investment opportunities were named as Washington DC in first place followed by New York, San Francisco, Boston and Los Angeles in fifth place.

The top five emerging markets were named as China, Brazil, India, Mexico, and Turkey. However green attributes are becoming more influential. Some 14% said green issues significantly influence their decision‐making when considering a property while 70% said green attributes were somewhat of an influence. In the 2009 survey, the numbers were 12% and 60% respectively.

Top Tips For Overseas Property Investment

Its All Been Said Before But Its Worth Reiterating

1.Do as much research as possible. If you Google 'Bulgaria property as an emerging market' you will find many positives sites - if you google 'collapse of Bulgarian property market' you will find just the same number.The truth will be different for different areas of Bulgaria and for different types of property. Read ALL of the bumph for the full view.
2. Do your own searches before you contact anyone, so that you know and agree what you want. There is no need to get involved in the inspection flight and hard sell route if you can spend a few free hours on the internet, and then in correspondance with the broker.
3.Off plan can provide a good investment but ensure you know what you are buying, the sq footage and style.
4. Buy a property you like, where you will want to visit often and that you wont mind funding in the leaner letting periods.
5. Try to search just beyond the already popular and top tourist areas. If you are looking at this as an investment property you need to get in at the start of an up and coming area, where you have an expectation of price increase in the future.
6. Buy a property in a place that is popular with locals as well as tourists, to ensure the widest audience for resale.
7. What are the local amenities? If you are going to let the property other holiday makers may not appreciate the solitary house at the top of the mountain you fell in love with.
8. Where is the nearest airport. Do the budget airlines fly there? Weigh it up.If it costs £1000 to plus jabs and malria tablets, you will have fewer enquiries but you may be charging more rent on a cheaper purchase.
9.View the property and surrounding areas out of season. Have you been to Barmouth in January? DO you know what the rainy season looks like?
10.Check planning laws before looking and especially before putting in an offer. It is pointless having the vision if you will not be able to make alterations.
11. Check the inheritance laws of the country where you are buying eg in France your property will pass straight to your children not your spouse.Invest in that extra will.
12. Always take independent advice.
13. Try to learn some of the language of the country you are moving to. It can make acceptance and all areas of life much simpler.

Emerging Markets: Iraqi Kurdistan Property For Sale

Damac have the following development in Kurdistan. A first-of-its-kind, fully integrated modern community in Erbil. Tarin Hills is the first fully self-contained master planned community to be developed across 170 million sq. ft. of land. A conglomeration of residential, retail, commercial, hospitality, entertainment, health and sports components interwoven within the picturesque terrain of Erbil in Kurdistan region of Iraq. The Kurdistan Regional Government is putting $325 million in the expansion of the Erbil International Airport.


• A fully gated community with security fence, checkpoints, high-tech screening at entrance gates and around-the-clock security patrols
• Located along the main road are 4 blocks of shopping centres
• Business Hotels and Country Lodge Hotels
• Country Club & Spa
• Sports Club and Health Centre
• Golf course
• Cafes and restaurants
• Supermarkets
• Pharmacies
• Food court and entertainment area
• A mall that houses international brands and anchor stores
• Ample parking
• 24-hr maintenance services
• Housekeeping services

The Top 10 Countries to Buy Property in 2008

Theres always a new list of top ten property investment destinations. Thuis one is from http://www.rodthomasblog.com/. They are always worth a look whether it is for ideas or confirmation that you did the right thing!

The Top 10 Countries to Buy Property in 2008

Where was the hottest spot to buy property in 2008? As 2008 has just ended, that makes us wonder where the year has taken the property investing world. There have been a great number of ups and downs and 2008 has been financially challenging for many countries. So where have the Brits been buying when buying abroad? Is it worth it to invest in countries that are showing economic hardship?

Could this be an opportunity to take advantage of and get a good market deal? So many questions arise when you begin to talk of such topics. Europe has some great countries for investing and if you’re looking to broaden your portfolio with some new properties, here are 10 countries to consider:

Bulgaria- This country really hit the map in 2007 and since then has continued to grow in popularity for investors. Both foreign and domestic investors alike are joining in the rage of Bulgarian property and now are a great time to get in on the action before it’s too late. This is a great time to buy for short to medium term projected growth.

The Belgravia, Lozenets, Sofia.
Studio Apartments
Price: €73,766



Croatia- Here’s another European country that’s making its way on the map as far as investment properties go. This is a great opportunity for commercial as well as residential properties and it is projected to do well into 2009 also. There is also a strong tourism market in Croatia, adding to the reasons to choose this country when expanding your property portfolio.

Cyprus- This country is on the surge of growing property prices and there is no sign of it dropping anytime soon. This is one reason it’s a hot choice for investors looking to build their properties abroad. You are virtually guaranteed to make your money back and some when you buy in Cyprus.


Czech Republic- There are many cities in this country that offer wonderful opportunities for investors. Whether you’re looking to buy and rent or resell, you will find profits in this country. Property price growth and rental prices have steadily went up in past years and throughout 2008.


Estonia- In and around the capital of Tallinn there are many real estate opportunities for someone looking to grow in 2008. Local demand and prices are rising making 2009 a profitable year for Estonia and those who invest in it.
Hungary- This is a country that’s been steadily growing since the early 2000’s and 2008 looks to also be a profitable year for those who invest in it.

Latvia- The economy of Latvia is one of the fastest growing in Europe making it a hot investment choice for real estate. They are also expected to receive one of the five largest wage increases in the world. This boom in the Latvian economy means more money for people to buy or rent properties.

Poland- Here’s another nice choice for investing in 2008. This country is currently undergoing growth with the help of the European Union and this is a fine time to get in on the profits this growing country has to offer.

Gorczewska Park, Poland, Warsaw.
1 bedroom Apartments, 47sqm
Price: € 132,418



Romania- This is an exciting country with low real estate prices and a great number of exciting, creative properties available. It’s more than worth it to check out properties in Romania.

Bonaire, Bucherest, Romania.
2 Bed Apartment, 108sqm.
Price: € 111,760


Turkey- Prices of Turkey property are going up which is good news for investors who want to get in before ’08 is over and see profitable turnarounds in ’09 and the years to come.

Astrum Towers, Istanbul, Turkey.
1 bedroom apartments 34 sqm.
Price: € 44,438

Vietnam:2009 will be a year to invest

After an unprecedented period of growth, Vietnam’s real estate market came crashing back to reality in 2008. The market has adjusted, but is now the right time to invest?

Vietnam has received much attention in recent years, and until recently everyone was talking about its’ potential as a tourist destination, entry into the World Trade Organization, or the normalization of diplomatic ties with the United States. Analyzing the future potential of a country that seems to be following in China’s hallowed footsteps of rapid growth had become a pre-occupation of many market commentators.

Last year however, attention turned to the slumping stock market, falling residential prices, rampaging inflation and slowing growth forecasts. While many investors may have retreated, those with longer term objectives have maintained their commitment, albeit slower in the short term, with belief that the future is still bright for this frontier market.

For a country of 86 million people, the real estate market remains grossly undersupplied across all sectors, even with GDP growth forecasts cut back to 5.5 percent for this year, the majority of Vietnamese still believe they are in the midst of an exciting, growth economy.

Residential Market
After an unprecedented period of growth, Vietnam’s residential property market is finally returning to some semblance of reality, with pricing adjustments dictated by economically sound market forces and not rampant speculation. Lines of excited buyer’s queuing overnight to purchase condos off-plan are now a distant memory, with the family gold safely returned to the mattress.

Increasingly tighter fiscal policy during 2008, combined with the worsening global economic climate, is helping restore normality. The high-end luxury apartment market has fallen off considerably following the speculative switch from stocks to real estate, and is estimated to have dropped 40-50 percent since its pre-Tet 2008 (the Lunar New Year) peak. Not surprisingly, developers are also on the back foot having, in many cases, been carried away on the wave of speculative fervor, and are now delaying or pulling out of projects they perhaps would never have attempted in more stable market conditions.

With continuing and significant undersupply across most residential market segments, 2009 is likely to see momentum building once again and prices for completed properties edge consistently higher from their current, post-speculative levels.

Opportunity
Despite the global economic issues, the fundamentals that have attracted significant FDI remain strong. Vietnam’s young entrepreneurial population, undersupply across most real estate sectors, and improving legal infrastructure and government policies all bode well for continuing and long term economic growth.

Customer Understanding
Even though the real estate market remains undersupplied, new developments will require an additional level of customer understanding to ensure their success. This understanding of customer needs and how they relate to a particular project can be categorized through the following research objectives:

Identifying and sizing key segments and market opportunities through an analysis of the competitive set.
Profiling and prioritizing potential buyers through Demographic and Psychographic profilingof a project’s primary target market and key flanker markets.
Developing positioning and pricing strategies for each primary market and key flanker markets.
Any research study should enable developers to determine the potential sales/leasing opportunities and any constraints relating to the proposed development. This better assists the understanding of the profitability of different customer segments, and how better to invest resources to capture and retain the best of them. Knowledge of the needs and profitability of target customer segments is less susceptible to imitation than are the features and amenities of a particular property and will go a long way to effectively position and differentiate the end product. Robust marketing strategies also now needed to be well thought through and executed to achieve sales success.

Financing
With inflation under control, interest rates are now following the global trend in an effort to stimulate growth. For a country with less than 10 percent of the population using bank accounts and far less borrowing, the deleveraging of the West will be less prevalent in Vietnam. As base rates reach single digits a new generation of buyers should be emerge, unlocking the middle class aspiration to own a home.

However, though the fall in interest rates could stimulate bank lending in market sectors that were up until now ‘cash rich’, banks will likely remain cautious and will likely only lend on completed developments or, at the most, on developments that will be completed in the very near future.

Construction Costs
As the global slow down eases the pressure on commodity prices and construction costs in Vietnam have also eased. The global economy slowdown and market volatility are the key drivers for the decrease in construction costs this year, most commodity’s will see a price drop but certain commodities (Iron Ore, Copper and Coal) may increase due to manipulating supply.

The reductions in construction costs along side limited GDP growth will mean a slow down in projects. Contractors will be more competitive forcing suppliers to be more competitive when pricing material.

Outlook
The introduction of affordable mortgage financing, lower construction costs and a better understanding of customer needs across Vietnam’s residential market should present opportunities for economically sound developers.

The biggest question is now will pricing reduce further. It was an unprecedented year of turbulence for the Ho Chi Minh City residential market. Prices continued to accelerate sharply in early 2008 before plummeting after the Tet holiday. During the second half of the year prices continued to fall but at a steadier rate, down 15 percent, 39 percent and 30 percent from Q1 to Q4 for elite, prime and executive condominium, respectively. Cushman & Wakefield’s research indicates that few successful transactions have been completed in the elite resale market.

There is no certainty that prices will not fall further, but it is becoming clearer that 2009 will be a year to invest.

James Austen is associate director - project marketing for Consultants Cashman & Wakefield (Vietnam).


S T R E N G T H S
The targets that the Vietnamese government have set themselves for 2010 are to increase GDP annually by between 7.5 and 8 percent:
With a new law to allow foreigners 70-plus years of leases, Vietnam has become one of the most open markets in Asia
Property prices have doubled in 12 months, nearly tripled in some cases over the past 18 months
40 foreign investment funds will disburse $20 billion worth of capital into the market in 2008
Statistics showed that 85 per cent of the FDI capital flown into Ho Chi Minh City in the first 11 months of the year was pumped into real estate
Analysts say that the real estate market would see the growth rate of 20-30 per cent in 2008
Tourism is a spearhead national industry which brought about US$3.5 billion in 2007


W E A K N E S S E S
The country is suffering from the worldwide surge in the cost of fuels and foodstuffs
The country has witnessed many wars along it’s history
The Communist Party remains the single political force
Infrastructure development is currently one of Vietnam’s main problem from property investors’ point of view
Territorial rivalries between China and Vietnam
http://www.empadvisers.com/pages/vietnam-strengths-and-weaknesses

Tunisia – Dubai of the Mediterranean?

Tunisia does not trip off the tongue for overseas property investment and is currently mightily overshadowed by near neighbours Morocco and Egypt in the property press, however with the presence of major Middle East property investors, mainly from Dubai and other UAE nations, the country is set to make a big impact. Property prices are low, even as low as Morocco was five years ago, and the country feels exotic yet European, affordable yet upper-class and will appeal to a broad spectrum of end users. The bonus is that unlike some far-flung destinations, a property in Tunisia is both a future income generator as well as being close enough to actually hop on a plane and enjoy the wonderful beaches and culture,

North Africa’s smallest nation, Tunisia, has a Mediterranean-facing coastline and lies directly south of Italy’s Sardinia tucked between Algeria on the west and Libya to the east. Thanks to a sharp right-angle turn on its shoreline, Tunisia has 1,400km of coastline and it is this asset, together with its strategic location, which has propelled the nation on to the global stage and attracted considerable foreign investment, particularly from the Middle East.

A colourful hotchpotch of architecture from Roman ruins to nineteenth century French colonial boulevards and a patchwork of landscapes from cork oak forests through to olive groves, vineyards and mile-upon-mile of undulating Sahara desert, Tunisia more than makes up for its size in terms of diversity. The sandy beaches front an impressive infrastructure of luxurious hotels, modern international airports, chic boutiques and jet-set marinas whilst the barren south has long-been the chosen setting for blockbusting films including Star Wars, Raiders of the Lost Ark, Monty Python’s Life of Brian and Minghella’s The English Patient.

Life in Tunisia is very relaxed, tolerant and open. Women’s rights are better catered to than anywhere else in the Arabic world allowing western-style clothing, participation in sport and no barriers to taking part in business or Government at a senior level. Alcohol is freely available and widely drunk by locals and tourists alike.

As tourism becomes more important, leisure facilities are springing up at a significant rate, particularly around the honeypot resorts of Hammamet and Monastir, and Tunisia now boasts six golf courses, two of which have 27-holes, international diving centres and plenty of yachting clubs. Two significant projects currently underway, Mediterranean Gate ‘Century’ City and Tunis Sports City, both funded by Dubai investment at 25 billion USD and 5 billion USD respectively, will bring further golf courses and marinas, world-class sporting academies, Olympic grade facilities, business and leisure hubs as well as thousands of residential units and hotel beds.

While buying a property in Tunisia may not be the obvious choice, expect nothing short of positive global headlines and economic fortune from Tunisia over the coming years, and your investment will be rewarded in spades.

Emerging Markets; get in at the beginning

Investment Property Sales in Emerging Markets

As an investment asset, overseas property is as popular as ever. If you are looking to invest in property for the future contact us for up-to-date market information. Finding suitable 'buy to let' property, holiday or retirement home or development opportunities in emerging property markets requires a service that recognises the need for attention to detail. Planning with your tax and investment advisers is a service which we will add value to your property decisions.

How do you make real money? Most investors answer that if you put your money into brilliant companies, brilliant sectors and brilliant countries, then hang on, you’ll end up rich. We disagree. When something is that good, most people know about it already and your purchasing price is going to reflect that, which will limit your returns even if things go as well as the market expects.

The key to wealth is to make investments “where outcome exceeds consensus expectations”. If the consensus is that something is a basketcase and it turns out instead to be merely mildly mad, or even a recovery candidate, “it’s a sure-fire way to garner riches”. The more widespread the pessimism about an asset class, the more the odds are stacked in favour of “the early and the brave”.

Britons looking to expand their portfolios in emerging overseas property markets have been advised that they could face lower returns if they wait and follow the crowd.

Off Plan International has said that individual investors face being crowded out of the market if they wait just one or two years after a market has become more well-known.

However, the firm acknowledged that it was usually better to look at the capital city of a country, adding that press coverage and word of mouth encouraged investors to move to particular places.

"My advice for people if they are looking to invest in small value, one or two properties, is to look at capital cities within a country. They are more expensive than other parts of the country but you are not going to lose," noted an Off Plan International spokesperson.

"If you are a smaller investor, in a place that's been a hot spot for a year or two, you need to be careful where you invest.

"In areas where there is a lot of investment going off, where there is a great choice of properties, it may not be the best place for an individual," the spokesperson concluded.

For foreign property investors or those resident outside the UK, we also provide special guidance on tax and management of property investments in the UK.

Time for investment is now whilst these markets are still not on the lips of every investor.
These emerging markets offer a one off opportunity to benefit from low prices that are set to rise as the interest and demand increases.

Overseas Property Developers

Property Marketing & Sales

At any given time, three general factors affect the sale of an overseas property:

The economic market conditions
The location of the property
The market competition - other property like yours competing for the same buyers

These three factors are in a constant state of flux. Interest rates rise and fall, neighbourhoods gain or lose desirability, and as properties are placed on the market, the pool of active buyers changes. No-one can control these factors and wait until all the conditions are perfect. However, they can be maximised to a seller's advantage.

When selling your properties we can offer you an advantage:
A targeted viewer
A captive audience
An opportunity to make multiple impressions
Preparation for market

Sellers' information packs: By ensuring that the legal issues are dealt with at the earliest stages we can help you avoid delay and expense later in the transaction.Our service ensures that all relevant due dilligence documentation is gathered in readiness for the eventual sale so as to meet the latest relevant legal requirements.
Valuations: In order to avoid the risks of undervaluing or overvaluing the property it is vital to have the views and expertise of property experts who can advise on local and national economic conditions and trends, as well as take account of special factors.
Property Marketing: We prepare a detailed set of particulars with measurements and select the best buyers for your property. Our expertise will ensure that the property is shown to the market in a way that attracts the right buyer prepared to agree to the terms you want
Property viewings & Negotiations: The assessment of suitable buyers for your property is the service of most value to those not used to selling property. We make the enquiries and checks that are vital to making a deal happen. By establishing relationships with potential buyers we are able to recommend those who may be able to meet your needs and to save time and cost which can be lost through abortive and fruitless negotiations.
Contracts & Exchange: Through the provision of the information pack much of the initial delay can be avoided and our ProgressTracker service means you can keep up to date on the progress of all related matters such as finance and chain related transact

Get the Right Advice

Who should own the property?

Getting this question of ownership wrong is probably both the most common and the most expensive mistake people make when buying property overseas. There are many people who could be made the legal owner of the property or, as the case may be, the shareholders in the company that owns the property. The best choice is, often, not obvious.

Getting this wrong can cost you tens of thousands of pounds/euro/dollars of totally unnecessary taxes, during your lifetime and on your death.Most local lawyers will be unable to help you make this decision as it involves an understanding of both the local AND your own legal, tax and inheritance systems.Investmment Property Sales can help with all of these issues.

What are the options?

There are many ways to purchase a foreign property as an investment. These include:

in your own name alone
in your name and in the name of your co-purchaser(s)
wholly or partly in your children's
names or in the name of somebody
whom you would like (eventually!) to inherit the property from you
in the name of a limited company,
whether English, 'local' or "off-shore"
via your SIPP/SSAS pension fund
via an investment fund (REIT, PUT etc)
via an investment club
via a trust