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

Iceland Property Investment at Bargain Prices

As a result of the financial situation in Iceland, many attractive opportunities are presenting themselves and conditions for investors are highly favourable at this time. Because of the favorable exchange rate investors with foreigh currencies have far more purchasing power. In the last 12 months property prices in Iceland have gone down by 21% because of the crisis. There is a need for foreign currency and many interesting opportunities have surfaced because of bankruptcies. Land prices have plummeted and availability of prime sites at lower prices have increased. Prices in the construction industry have fallen increasing competition and bidding wars in the construction and service sectors.

In spite of all this, future prospects are good in the medium term, the International Monetary Fund and other financial institutions are predicting a full recovery within a number of years. If you have been waiting for a good investment opportunity to come you way then Property investment in Iceland will give you fantastic returns.

Investing in a foreign country is always a complex procedure. Buying a property in Iceland involves dealing with compexities and local idiosyncracies and you need a uniquely qualified local agency to handle. You need to contact an agency which has experience in handling transactions in an international context and which can act on behalf of overseas clients to make the whole process smooth, understandable and reliable. It is essential that their core business is estate agency and advisory in property purchases, and that they have experience in setting up property companies and holding companies, and related activities. They have to be legally qualified and chartered for handling sales of commercial and domestic property, ships and automobiles. They should be able to handle all or part of the purchase or sale of real estate.

If you are looking for something for sale in iceland then look for someone that can offer practical assistance in assessing, preparing and realising investments, particularly those involving property purchases. A company that offers comprehensive and flexible range of services will help you to identify and realise some of the many opportunities that are now becoming apparent.

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.