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In February world’s leading news-agencies were releasing articles related to the condition of property markets in 2009. Messages were appearing regarding the recovery on certain markets and continuing decline on the others. Besides that, various forecasts for 2009 have appeared and some main events of 2008 were summed up.
Snakes and ladders
At last, British housing prices, which had been in decline during the last year, started to rise. According to British largest mortgage bank Halifax, national residential property prices in January increased by 1.9% in comparison to the preceding month. The average price of a British home has reached Ј163,966.
Besides that, Aberdeen Property Investors experts claim that the UK commercial real estate will be showing best returns in Europe during the fi ve coming years. According to their forecasts, national offi ce property will provide 6% returns during 2009-2013. For Eurozone countries the present indicator will work out 4% on the average for Central, and 2% for Eastern Europe. In the retail property segment annual return will amount to approximately 6.5% for British real estate and 3.5% for Eurozone countries
CB Richard Ellis analysts claim Austrian commercial property market to be one of the most stable and attractive markets in Europe. In Q4, 2008 Austrian commercial real estate investment volume increased by 50% quarter on quarter, reaching 640 million euro. CBRE experts did not register the present trend in the majority of other European states. Besides that commercial property rental price in Vienna increased by 7%, up to 23.5 euro per a square meter. Rental yields in Austrian capital worked out 5.5%.
Also CBRE experts think that Vietnamese commercial property market, in comparison to other countries, was least subject to the impact of global economical downturn. Stable vacancy rates, that reach 2-3.5% depending on the Grade (in many healthy offi ce markets elsewhere in the world, vacancies as high as 8-13% are considered to be quite normal), and high occupancy, which works out almost 100%, both speak in favor of CBRE experts point of view.
Speaking of residential property markets it is necessary to mention the forecast made by Real Estate Appraisers Association in Israel. According to this forecast, property prices in most demanded regions may stabilize in the second half of 2009, and in 2010 prices in prime locations can be expected to reach their 2007 peaks. The Association chairman, Erez Cohen, claims that property appreciation will happen only in central Israel, in regions that are in most demand. Housing prices in northern and southern Israel will most likely continue to stagnate.
In other Mid-eastern state, United Arabian Emirates, the value of projects suspended or cancelled worked out 275 billion dirham ($75 billion). This is mainly related to local elite housing and commercial properties.
CentarNekretnina.net, a portal dedicated to Croatian property, after surveying 150,000 property units, concluded that average national housing prices have slightly fallen. Thus, in Croatian capital, Zagreb, the decline in December worked out 0.5% compared to the preceding month. Market experts expect the depreciation rate to increase in Q2 2009. The reason behind that are high interest rates and stricter loan conditions.
In this respect we would like to specify the data provided by US largest online property appraiser, Zillow.com. According to the present data, national home values plummeted by $6.1 trillion in comparison to 2006 peak. In 2008 U.S. property depreciated by $3.3 trillion. $1.4 trillion were lost in the fourth quarter of the last year. The price decline was registered on 21 out of 161 U.S. regional real estate markets.
Elite property prices in the US also decline. This leads to growth of interest expressed by foreign property buyers – people from Dubai, Russia and the UK. Thus, this January barely 20 elite property units were sold in such luxurious neighborhoods of Los Angeles as Beverley Hills, Belle-Air and Malibu. In some cases the actual transaction sum worked out only 50% of the initial cost.
Nigerian elite property is also becoming cheaper. For example, now a land parcel in Lagos, former Nigerian capital, suburbs costs $1.3 million, down from $1.7-1.9 million. Nigerian experts claim that price reduction doesn’t mean a market meltdown; they say that this is just a correction necessary to adjust for the current economical situation. According to local market professionals a 15-30% price reduction is possible in the premium property segment.
According to data published by South African Bank FNB, national residential property prices fell 4% in January, 2009 compared to the preceding month. FNB experts report that the rate of price decline has increased in 2009: last December RSA housing prices declined by 2.1% in comparison to November.
What should the markets expect in 2009
Last week has brought a variety of forecasts for the current year. According to Jones Lang LaSalle experts the volume of European, Mid-eastern and African (EMEA) hotel investments in 2009 will decline to 5 billion euro, down from 7.8 billion euro in 2008 and reach its 10-year-low.
Auditing fi rm PricewaterhouseCoopers and a non-profi table organization Urban Land Institute have polled 500 European property market experts and came up with a list of Top European Cities for Real Estate, 2009. It should be noted that four German cities – Munich, Hamburg, Berlin and Frankfurt - occupy spots in Top-10.
Informational-analytical portal Global Property Guide has recently published a rating of cities most attractive from the buy-to-let point of view. The fi rst position in the present rating is occupied by Moldavia’s capital – Kishinev.
Besides that the present portal has also prepared a list of the most expensive housing located in world’s capitals and large fi nancial centers. The leading position is occupied by Monaco’s capital – Monte-Carlo – with $45,713 per a square meter (Further on that in “Prian.ru” portal’s article: Overseas Property Trend of the Week).
10.02.2009
Snakes and ladders
At last, British housing prices, which had been in decline during the last year, started to rise. According to British largest mortgage bank Halifax, national residential property prices in January increased by 1.9% in comparison to the preceding month. The average price of a British home has reached Ј163,966.
Besides that, Aberdeen Property Investors experts claim that the UK commercial real estate will be showing best returns in Europe during the fi ve coming years. According to their forecasts, national offi ce property will provide 6% returns during 2009-2013. For Eurozone countries the present indicator will work out 4% on the average for Central, and 2% for Eastern Europe. In the retail property segment annual return will amount to approximately 6.5% for British real estate and 3.5% for Eurozone countries
CB Richard Ellis analysts claim Austrian commercial property market to be one of the most stable and attractive markets in Europe. In Q4, 2008 Austrian commercial real estate investment volume increased by 50% quarter on quarter, reaching 640 million euro. CBRE experts did not register the present trend in the majority of other European states. Besides that commercial property rental price in Vienna increased by 7%, up to 23.5 euro per a square meter. Rental yields in Austrian capital worked out 5.5%.
Also CBRE experts think that Vietnamese commercial property market, in comparison to other countries, was least subject to the impact of global economical downturn. Stable vacancy rates, that reach 2-3.5% depending on the Grade (in many healthy offi ce markets elsewhere in the world, vacancies as high as 8-13% are considered to be quite normal), and high occupancy, which works out almost 100%, both speak in favor of CBRE experts point of view.
Speaking of residential property markets it is necessary to mention the forecast made by Real Estate Appraisers Association in Israel. According to this forecast, property prices in most demanded regions may stabilize in the second half of 2009, and in 2010 prices in prime locations can be expected to reach their 2007 peaks. The Association chairman, Erez Cohen, claims that property appreciation will happen only in central Israel, in regions that are in most demand. Housing prices in northern and southern Israel will most likely continue to stagnate.
In other Mid-eastern state, United Arabian Emirates, the value of projects suspended or cancelled worked out 275 billion dirham ($75 billion). This is mainly related to local elite housing and commercial properties.
CentarNekretnina.net, a portal dedicated to Croatian property, after surveying 150,000 property units, concluded that average national housing prices have slightly fallen. Thus, in Croatian capital, Zagreb, the decline in December worked out 0.5% compared to the preceding month. Market experts expect the depreciation rate to increase in Q2 2009. The reason behind that are high interest rates and stricter loan conditions.
In this respect we would like to specify the data provided by US largest online property appraiser, Zillow.com. According to the present data, national home values plummeted by $6.1 trillion in comparison to 2006 peak. In 2008 U.S. property depreciated by $3.3 trillion. $1.4 trillion were lost in the fourth quarter of the last year. The price decline was registered on 21 out of 161 U.S. regional real estate markets.
Elite property prices in the US also decline. This leads to growth of interest expressed by foreign property buyers – people from Dubai, Russia and the UK. Thus, this January barely 20 elite property units were sold in such luxurious neighborhoods of Los Angeles as Beverley Hills, Belle-Air and Malibu. In some cases the actual transaction sum worked out only 50% of the initial cost.
Nigerian elite property is also becoming cheaper. For example, now a land parcel in Lagos, former Nigerian capital, suburbs costs $1.3 million, down from $1.7-1.9 million. Nigerian experts claim that price reduction doesn’t mean a market meltdown; they say that this is just a correction necessary to adjust for the current economical situation. According to local market professionals a 15-30% price reduction is possible in the premium property segment.
According to data published by South African Bank FNB, national residential property prices fell 4% in January, 2009 compared to the preceding month. FNB experts report that the rate of price decline has increased in 2009: last December RSA housing prices declined by 2.1% in comparison to November.
What should the markets expect in 2009
Last week has brought a variety of forecasts for the current year. According to Jones Lang LaSalle experts the volume of European, Mid-eastern and African (EMEA) hotel investments in 2009 will decline to 5 billion euro, down from 7.8 billion euro in 2008 and reach its 10-year-low.
Auditing fi rm PricewaterhouseCoopers and a non-profi table organization Urban Land Institute have polled 500 European property market experts and came up with a list of Top European Cities for Real Estate, 2009. It should be noted that four German cities – Munich, Hamburg, Berlin and Frankfurt - occupy spots in Top-10.
Informational-analytical portal Global Property Guide has recently published a rating of cities most attractive from the buy-to-let point of view. The fi rst position in the present rating is occupied by Moldavia’s capital – Kishinev.
Besides that the present portal has also prepared a list of the most expensive housing located in world’s capitals and large fi nancial centers. The leading position is occupied by Monaco’s capital – Monte-Carlo – with $45,713 per a square meter (Further on that in “Prian.ru” portal’s article: Overseas Property Trend of the Week).
Provided by prian.ru
10.02.2009