a representative of a Turkish-based company, Atlas, which has officially signed up to a 49-year lease to operate a golf course on land designated by the Ministry of Culture and Tourism.
The plans are centred on an area of land at Mercimek, which borders the Zonguldakllar estate and close to the Sultan Kent and Konya Kültür housing estates on the Akbük road.
The area covers 173 acres of land on which there will be allocated a clubhouse, an 18-hole golf course and a holiday village with a capacity of 420 beds.
Mr Kinaci, a map engineer based in Milas, confirmed the project would cost $40 million (approximately £20 million) – with the golf course costing close to $10 million.
He said: “I can confirm to Voices Newspaper that Atlas has signed a 49-year lease to operate a golf course and hotel project on the land at Mercimek.
“The project has been put to public consultation and there are no objections.”
He added: “As far as we are concerned, once all the legalities are complete, Atlas will build the first golf course in Didim. It will be a major boost to tourism to the whole area.”
Atlas is a company predominantly in the steel and shipbuilding industries in Turkey. This project is believed to be their first foray into the golf tourism business.
Mr Kinaci said: “We are moving ever closer to reality. We are being extremely cautious as we want to get everything right and ensure that the news we give is accurate, clear and concrete to the public.
“We would not want to raise people’s hopes unnecessarily, but things are beginning to happen.”
He declined to give any time schedule on developing the course or when Atlas hoped to open the golf course and hotel facilities.
Seda Türk, Didim council’s planning department manager, and Meltem Öz, Didim Council’s city planner, confirmed Atlas’ interest was more than just a ‘passing one’. And they confirmed that it would provide a big boost to the tourism of the area.
On a separate note, Mayor Mümın Kamaci said representatives of an unnamed Swedish company had visited Didim council offices this week to look at the potential of building a new golf course in the area.
He said that the company had been given a number of options and they had departed back to Sweden to ‘mull over’ the proposals.
Monday, September 22, 2008
Thursday, September 4, 2008
Jet2Turkey
Located on Turkey's southwestern Mediterranean coast in the Mugla Province, Dalaman is the ideal destination for tourists visiting the seaside resorts to the west and east of Dalaman such as Fethiye, Marmaris, Koycegiz, Oludeniz, Dalyan and Hisaronu. With culture, nightlife and wonderful beaches, holidays in Dalaman have something for everyone.
Flights will be from Leeds Bradford and Manchester and will start in Summer '09 so register your interest now and we will let you know before the seats go on sale so that you can plan ahead and get the best deals for your trip to Dalaman next year!
Flights will be from Leeds Bradford and Manchester and will start in Summer '09 so register your interest now and we will let you know before the seats go on sale so that you can plan ahead and get the best deals for your trip to Dalaman next year!
Thursday, August 21, 2008
Didim
Prospective investors in Turkey were delighted with the recent news that the government’s temporary ban on the issue of title deeds (Tapu) to foreigners has been lifted. Now that the Turkish government has had time to re-draft the relevant law, title deeds are being processed as usual. This is welcome news for foreign investors, especially now that mortgages are more readily available in Turkey - the essential elements for overseas property investors are firmly in place.
The government’s move will reassure prospective investors looking for a good short, medium or long-term investment. The changes to the law are not expected to make any significant difference to individual foreign property investors because they primarily affect foreign companies rather than the growing numbers of foreign investors who usually buy property in officially zoned areas around cities, town and holiday resorts.
Turkey remains a popular investment location, especially now that a number of lenders are offering mortgages to non-residents. Ken Thorkildsen, Director of Obelisk Private Finance, says that Turkey’s mortgage market is evolving, particularly since the passing of the country’s new mortgage law in 2007 which allows lenders more freedom in their lending practices. “Prior to the 2007 Mortgage Law, mortgages were only available to Turkish nationals, at high, double-figure, interest rates,” explains Ken, “now non-resident property owners can take advantage of multi-currency mortgages with low fixed rates. Mortgages are available to citizens of countries with whom Turkey has a reciprocal arrangement, such as the UK and Ireland. There are a handful of lenders offering mortgages to non-residents and that is set to grow as demand increases from foreign investors.”
Now that the Tapu ban has been lifted, Land Registry offices across Turkey have restarted processing applications for the transfer of title deeds to foreign nationals. This is cause for celebration amongst investors, particularly those interested in buy-to-let. Recent survey results published by the Daily Telegraph and undertaken by independent travel group, Cooperative Travel, show that Turkey has pushed Spain from its top position as favourite holiday location for Brits, partly because of the over-valued euro, but also because the cost of living is a fraction of what it is in the UK.
Turkey is a popular tourist and investment location for a variety of reasons, not least because it is now better served by low cost airlines, making access easier and more cost effective. Most importantly, property in Turkey is still significantly cheaper than other similar locations. Now that mortgages for non-residents are gradually becoming more available and the government has passed its new Tapu law, investment in Turkey has been given the green light.
The government’s move will reassure prospective investors looking for a good short, medium or long-term investment. The changes to the law are not expected to make any significant difference to individual foreign property investors because they primarily affect foreign companies rather than the growing numbers of foreign investors who usually buy property in officially zoned areas around cities, town and holiday resorts.
Turkey remains a popular investment location, especially now that a number of lenders are offering mortgages to non-residents. Ken Thorkildsen, Director of Obelisk Private Finance, says that Turkey’s mortgage market is evolving, particularly since the passing of the country’s new mortgage law in 2007 which allows lenders more freedom in their lending practices. “Prior to the 2007 Mortgage Law, mortgages were only available to Turkish nationals, at high, double-figure, interest rates,” explains Ken, “now non-resident property owners can take advantage of multi-currency mortgages with low fixed rates. Mortgages are available to citizens of countries with whom Turkey has a reciprocal arrangement, such as the UK and Ireland. There are a handful of lenders offering mortgages to non-residents and that is set to grow as demand increases from foreign investors.”
Now that the Tapu ban has been lifted, Land Registry offices across Turkey have restarted processing applications for the transfer of title deeds to foreign nationals. This is cause for celebration amongst investors, particularly those interested in buy-to-let. Recent survey results published by the Daily Telegraph and undertaken by independent travel group, Cooperative Travel, show that Turkey has pushed Spain from its top position as favourite holiday location for Brits, partly because of the over-valued euro, but also because the cost of living is a fraction of what it is in the UK.
Turkey is a popular tourist and investment location for a variety of reasons, not least because it is now better served by low cost airlines, making access easier and more cost effective. Most importantly, property in Turkey is still significantly cheaper than other similar locations. Now that mortgages for non-residents are gradually becoming more available and the government has passed its new Tapu law, investment in Turkey has been given the green light.
Saturday, August 9, 2008
disneyland
Turkey is to build a Disneyland resort near the town of Oren, 35 kilometres south east of Milas, after reaching a deal with all parties concerned in just 3 days. Disneyland Turkey, which will rival Eurodisney Paris, is to be situated just 90 minutes from Didim.
The complex is expected to be constructed in under 2 years, planning was completed after officials visited Eurodisney Paris and Germany’s Heidi Park. It will be built over an area of 1.3m square metres and will employ a “cast” of almost 17,000 staff.
According to the news, reported in Turkey’s Hurriyet daily, all the permission from 74 authorities has been granted and construction will commence after the proposal is signed by the Council of Ministers.
Project manager, Tekin Erdogan said “The electricity station in Oren had a negative effect on tourism in the area. It was struggling to bring any tourism investment to the town. We decided a different angle was needed to attract both investors and holidaymakers. This will be bigger than the Disneyland resort in Paris.”
He also stated that there will be 5 hotels of up to 7 stars with a total capacity of 8,000; a marina is also being built close to the resort.
Animation shows with cartoons heroes, the entertainment facilities, Turkish-Ottoman and Selcuk architectural examples are projected to attract an estimated 12,000 visitors daily. People will be able to visit the Turkish Disneyland via the marina. There will also be scheduled ferry services from selected locations to the fun park.
Babakn Olcaysu who is the licence owner of the Oren Investment Concept said “The government has given its full support to the project. We got all the permissions in just 3 days. The project is expected to cost $3.2 billion. Babakn added:” This will attract tourists from all over the world, and will be of great benefit to all cities around it.”
The complex is expected to be constructed in under 2 years, planning was completed after officials visited Eurodisney Paris and Germany’s Heidi Park. It will be built over an area of 1.3m square metres and will employ a “cast” of almost 17,000 staff.
According to the news, reported in Turkey’s Hurriyet daily, all the permission from 74 authorities has been granted and construction will commence after the proposal is signed by the Council of Ministers.
Project manager, Tekin Erdogan said “The electricity station in Oren had a negative effect on tourism in the area. It was struggling to bring any tourism investment to the town. We decided a different angle was needed to attract both investors and holidaymakers. This will be bigger than the Disneyland resort in Paris.”
He also stated that there will be 5 hotels of up to 7 stars with a total capacity of 8,000; a marina is also being built close to the resort.
Animation shows with cartoons heroes, the entertainment facilities, Turkish-Ottoman and Selcuk architectural examples are projected to attract an estimated 12,000 visitors daily. People will be able to visit the Turkish Disneyland via the marina. There will also be scheduled ferry services from selected locations to the fun park.
Babakn Olcaysu who is the licence owner of the Oren Investment Concept said “The government has given its full support to the project. We got all the permissions in just 3 days. The project is expected to cost $3.2 billion. Babakn added:” This will attract tourists from all over the world, and will be of great benefit to all cities around it.”
Wednesday, July 30, 2008
tax
If you propose to invest in property abroad or take a more permanent step and live abroad, tax planning is one of the most important considerations. Obtaining tax advice – and this should be from a professional tax adviser with knowledge of tax regulations both in your home country and the country where you plan to invest – before you make any investment decisions means that you can make the most of opportunities to reduce your tax liabilities.
Within the general tax considerations of owning assets abroad is the question of inheritance tax, an aspect that many property investors tend to overlook. However, this is one area that has wide implications for the future of your heirs. Careful inheritance tax planning can make the difference between your heirs continuing to enjoy your investments or losing them to pay a large inheritance tax bill.
While inherited assets in some countries attract no inheritance taxes, in other countries taxes can be higher than 80%, particularly if the beneficiary is not a close relative. It is therefore very important to bear this in mind when making investment plans. A further issue to consider is that regardless of the country you choose to invest in or move to, you may still be liable for inheritance tax in your home country. “Inheritance tax rules have important implications for investors,” comments Ken Thorkildsen, Director of Obelisk Private Finance. “If you do not plan your inheritance tax carefully, you may find that your heirs face high tax bills both in the country where you invested and in the UK.”
In general, resident heirs pay less inheritance tax than those who are non-resident and many countries also offer generous deductions or total exemptions for beneficiaries who are direct relatives, e.g. spouse, children or parents. This is the case in Andalucía, home to the Costa del Sol, where recent legislation means that direct heirs who have been resident in the region for 5 years, are exempt from inheritance tax on assets up to the value of €175,000. Ken welcomes this recent development which he believes “has hugely positive implications for the resident ex-pat population in one of Spain’s most popular investment destinations.”
Laws on inheritance tax are complicated and inheritance tax regulations vary in individual countries. For example, Spanish law rules that in the case of a married couple, 50% of the net assets are liable for inheritance tax on first death, whereas under UK law, a married couple may be liable for 100% of the assets minus allowances. Basic familiarity with a country’s tax regimes and its implications should be a high priority for the global property investor. This coupled with expert guidance from a tax expert, can make a substantial difference to the planning of an investor’s estate and by extension, to the beneficiaries. “An essential aspect of owning assets in more than one country is to draw up a will in each country,” advises Ken. “This helps speed up the inheritance process and makes things much easier for your heirs.”
Given the complexity of inheritance regulations and the fact that in many countries they are in a state of constant change, Ken offers the following advice: “No action should be taken without consultation with a professional tax adviser. While there are many ways of reducing inheritance tax liability, only an expert can offer guidance on the right ones for you and your particular situation.”
Within the general tax considerations of owning assets abroad is the question of inheritance tax, an aspect that many property investors tend to overlook. However, this is one area that has wide implications for the future of your heirs. Careful inheritance tax planning can make the difference between your heirs continuing to enjoy your investments or losing them to pay a large inheritance tax bill.
While inherited assets in some countries attract no inheritance taxes, in other countries taxes can be higher than 80%, particularly if the beneficiary is not a close relative. It is therefore very important to bear this in mind when making investment plans. A further issue to consider is that regardless of the country you choose to invest in or move to, you may still be liable for inheritance tax in your home country. “Inheritance tax rules have important implications for investors,” comments Ken Thorkildsen, Director of Obelisk Private Finance. “If you do not plan your inheritance tax carefully, you may find that your heirs face high tax bills both in the country where you invested and in the UK.”
In general, resident heirs pay less inheritance tax than those who are non-resident and many countries also offer generous deductions or total exemptions for beneficiaries who are direct relatives, e.g. spouse, children or parents. This is the case in Andalucía, home to the Costa del Sol, where recent legislation means that direct heirs who have been resident in the region for 5 years, are exempt from inheritance tax on assets up to the value of €175,000. Ken welcomes this recent development which he believes “has hugely positive implications for the resident ex-pat population in one of Spain’s most popular investment destinations.”
Laws on inheritance tax are complicated and inheritance tax regulations vary in individual countries. For example, Spanish law rules that in the case of a married couple, 50% of the net assets are liable for inheritance tax on first death, whereas under UK law, a married couple may be liable for 100% of the assets minus allowances. Basic familiarity with a country’s tax regimes and its implications should be a high priority for the global property investor. This coupled with expert guidance from a tax expert, can make a substantial difference to the planning of an investor’s estate and by extension, to the beneficiaries. “An essential aspect of owning assets in more than one country is to draw up a will in each country,” advises Ken. “This helps speed up the inheritance process and makes things much easier for your heirs.”
Given the complexity of inheritance regulations and the fact that in many countries they are in a state of constant change, Ken offers the following advice: “No action should be taken without consultation with a professional tax adviser. While there are many ways of reducing inheritance tax liability, only an expert can offer guidance on the right ones for you and your particular situation.”
Saturday, July 26, 2008
mortgages
Garanti Bank has begun to offer a new “non resident mortgage” to foreigners looking to purchase property in Turkey. With the new service the bank will enable foreigners to obtain lira or foreign exchange indexed loans with a maximum 240-month maturity. Foreigners will also be able to obtain loans of YTL 500,000 or the equivalent amount in foreign currency
Saturday, July 19, 2008
Tapu
A circular concerning the implementation of a bill regulating property sales to foreigners was issued Thursday. The circular restarted the process of property sales to foreigners, which had been suspended April 16 after the Constitutional Court's annulment of the existing legislation created a legal loophole.
The regulation enables foreign companies, which had previously been granted rights equal to Turkish ones to purchase real estate on the basis of the Foreign Direct Investment Law-No. 4875, to own real estate by permission of the governor's office. The regulations, which will come into effect in three months, will determine the basic aspects of how to receive this permission. As a result, no land will be sold to the companies concerned until then.
Meanwhile, companies operating in foreign countries and foreign real persons will be able to own up to 10 percent of the land within a building scheme. In addition, the area that foreigners can own will be restricted to two and a half hectares and demands by foreigners that surpass these limits will be rejected, according to the new amendment.
Parliament passed the bill regulating property sales to foreigners on July 3 after it was revised taking into consideration the Constitutional Court's annulment of previous legislation.
The regulation enables foreign companies, which had previously been granted rights equal to Turkish ones to purchase real estate on the basis of the Foreign Direct Investment Law-No. 4875, to own real estate by permission of the governor's office. The regulations, which will come into effect in three months, will determine the basic aspects of how to receive this permission. As a result, no land will be sold to the companies concerned until then.
Meanwhile, companies operating in foreign countries and foreign real persons will be able to own up to 10 percent of the land within a building scheme. In addition, the area that foreigners can own will be restricted to two and a half hectares and demands by foreigners that surpass these limits will be rejected, according to the new amendment.
Parliament passed the bill regulating property sales to foreigners on July 3 after it was revised taking into consideration the Constitutional Court's annulment of previous legislation.
Thursday, July 17, 2008
Fadesa
One of Spain's major developers, Martinsa Fadesa, has filed for voluntary administration after failing to renegotiate a €150m (£119m) loan earlier this week. The company reportedly owes The debts of around €5bn (£3.98bn).
company said in a regulatory filing that it had lodged a petition for court administration, marking the start of Spain’s largest bankruptcy process since the introduction of new rules in 2004.
It follows the rescue in March of Immobiliaria Colonial by by creditor banks, which swapped debt for equity held by the controlling shareholders in Spain’s second-largest property company.
Martinsa Fadesa is the latest in a long line of Spanish property companies to run into difficulties, following the collapse of the Spanish housing market last year, after a decade or so of booming activity. Many small construction companies and property developers have either filed for protection or been absorbed by larger groups. The number of companies entering administration this year has more than doubled compared with 2007, according to lawyers.
“Filing for voluntary administration is the best way to avoid aggravating a crisis situation that could become irreversible and have serious repercussions on creditors and all shareholders' interests," said a spokesperson. "The company, along with its administrators, will from now on focus in revenue-generating, through the sale of assets and land management and restructuring the company so the project can be revived.”
company said in a regulatory filing that it had lodged a petition for court administration, marking the start of Spain’s largest bankruptcy process since the introduction of new rules in 2004.
It follows the rescue in March of Immobiliaria Colonial by by creditor banks, which swapped debt for equity held by the controlling shareholders in Spain’s second-largest property company.
Martinsa Fadesa is the latest in a long line of Spanish property companies to run into difficulties, following the collapse of the Spanish housing market last year, after a decade or so of booming activity. Many small construction companies and property developers have either filed for protection or been absorbed by larger groups. The number of companies entering administration this year has more than doubled compared with 2007, according to lawyers.
“Filing for voluntary administration is the best way to avoid aggravating a crisis situation that could become irreversible and have serious repercussions on creditors and all shareholders' interests," said a spokesperson. "The company, along with its administrators, will from now on focus in revenue-generating, through the sale of assets and land management and restructuring the company so the project can be revived.”
Thursday, July 10, 2008
Market
News in the foreign press pertaining to Turkey's real estate sector experienced a surge in the aftermath of the approval of a bill by Parliament on July 5 that regulates property sales to foreigners. The attention paid to Turkey's real estate sector, which is characterized by low prices, has been increasing, wrote British newspaper The Times, adding that prices in the sector are expected to skyrocket if Turkey manages to join the European Union.
“It is possible to purchase a property on Turkish shores at a relatively low price of 35,000 sterling (pounds). Does this sound attractive to you?” wrote the paper. “A clever couple can buy a property with a little amount of deposit and with two credit cards. Credit-card companies provide the opportunity of zero interest rates for 15 months period for those with high credit rankings,” The Times wrote.
The paper emphasized that prices in the country's real estate sector are far lower than that of the EU average. “British customers have started to settle in Turkey's popular cities such as Istanbul and coastal areas such as Antalya and Bodrum in the aftermath of the opening of Turkey's real estate market to foreign customers in 2003. The investors expect an increase in the prices of the country's real estate market if Turkey becomes a member of the European Union,” wrote the paper.
“It is possible to purchase a property on Turkish shores at a relatively low price of 35,000 sterling (pounds). Does this sound attractive to you?” wrote the paper. “A clever couple can buy a property with a little amount of deposit and with two credit cards. Credit-card companies provide the opportunity of zero interest rates for 15 months period for those with high credit rankings,” The Times wrote.
The paper emphasized that prices in the country's real estate sector are far lower than that of the EU average. “British customers have started to settle in Turkey's popular cities such as Istanbul and coastal areas such as Antalya and Bodrum in the aftermath of the opening of Turkey's real estate market to foreign customers in 2003. The investors expect an increase in the prices of the country's real estate market if Turkey becomes a member of the European Union,” wrote the paper.
Wednesday, July 9, 2008
Parador
Parador Properties, which had a number of overseas operations, including Cyprus, has gone into voluntary administration.
The company was once considered to be one of Europe’s top estate agents. It used to fly prospective purchasers to their desired destinations and offered advice about specific areas and communities. Simon Lambert and managing director Jack Hamilton founded Parador in 1998.
Parador’s PR company, Quay West Communications, announced: “It is with regret that Parador Properties has announced that, due to the downturn in the overseas property market, it has gone into voluntary administration. This does not affect property purchases by any of its clients, as all contracts were made between the individual client and the builder; Parador Properties acted only as an introductory agent.”
The company was once considered to be one of Europe’s top estate agents. It used to fly prospective purchasers to their desired destinations and offered advice about specific areas and communities. Simon Lambert and managing director Jack Hamilton founded Parador in 1998.
Parador’s PR company, Quay West Communications, announced: “It is with regret that Parador Properties has announced that, due to the downturn in the overseas property market, it has gone into voluntary administration. This does not affect property purchases by any of its clients, as all contracts were made between the individual client and the builder; Parador Properties acted only as an introductory agent.”
Thursday, July 3, 2008
Tapu
A DRAFT bill seeking to expand the scope of the law regulating property sales to foreigners was today (THURS) endorsed by Parliament.
The bill, which was discussed in Parliament last week, has been taken back to the Justice Commission at the last minute.
Amendments for opening up properties in prohibited military zones and strategic regions (lands) to foreigners through permission from governor's offices were sent to the Justice Commission for ratification.
This was passed, and sent back to Parliament which duly gave the title deeds lawchanges the nod. They now await being rubber-stamped by President Abdullah Gul.
During previous meetings in Parliament, the ruling Justice and Development Party, or AKP, was forced to withdraw the regulation expanding the scope of property sales due to opposition pressure.
The regulation, which was taken back to the Committee at the last minute, enables private business enterprises in Turkey launched or contributed to by foreign investors to exercise the rights for immovable and limited property for conducting their operations enumerated in main contracts.
The same principal will be valid in case immovable properties are transferred to another company with foreign investment or in case an immovable owned company with national capital becomes foreign owned through share transfer.
Acquisitions of companies in strategic properties under Article No 28 of the Law on Prohibited Military Zones and Security Zones and in military zones, security zones and some strategic lands enumerated in the same law, will be subject to the permission of governor under whose jurisdiction the related property falls.
The demand for permission will be decided after an evaluation of the acquisition's conformity with the country's security and operation field, in the commission established with the participation of related representatives within the governor's office.
The draft bill handled by Parliament for property sales to foreigners, maintains foreign persons and institutions can possess immovable lands, 10 percent of the total land, within the frameworks of zoning implementation plan and piecemeal plan, while the regulation expands the scope of possessing properties.
The bill, which was discussed in Parliament last week, has been taken back to the Justice Commission at the last minute.
Amendments for opening up properties in prohibited military zones and strategic regions (lands) to foreigners through permission from governor's offices were sent to the Justice Commission for ratification.
This was passed, and sent back to Parliament which duly gave the title deeds lawchanges the nod. They now await being rubber-stamped by President Abdullah Gul.
During previous meetings in Parliament, the ruling Justice and Development Party, or AKP, was forced to withdraw the regulation expanding the scope of property sales due to opposition pressure.
The regulation, which was taken back to the Committee at the last minute, enables private business enterprises in Turkey launched or contributed to by foreign investors to exercise the rights for immovable and limited property for conducting their operations enumerated in main contracts.
The same principal will be valid in case immovable properties are transferred to another company with foreign investment or in case an immovable owned company with national capital becomes foreign owned through share transfer.
Acquisitions of companies in strategic properties under Article No 28 of the Law on Prohibited Military Zones and Security Zones and in military zones, security zones and some strategic lands enumerated in the same law, will be subject to the permission of governor under whose jurisdiction the related property falls.
The demand for permission will be decided after an evaluation of the acquisition's conformity with the country's security and operation field, in the commission established with the participation of related representatives within the governor's office.
The draft bill handled by Parliament for property sales to foreigners, maintains foreign persons and institutions can possess immovable lands, 10 percent of the total land, within the frameworks of zoning implementation plan and piecemeal plan, while the regulation expands the scope of possessing properties.
Mortgages
A Turkish bank has introduced a new product in housing credits, "Mortgage with Low Installments," to the market, reported daily Milliyet yesterday.
In Finansbank's new mortgage program, installments start at YTL 500, according to authorities at the bank. The installments are determined on the basis of triple combinations, such as, YTL 500, YTL 750 and YTL 1,000, and increase on a two-tiered basis, such as YTL 500 for the first two years, YTL 750 for the second two years and YTL 1,000 for the remaining period.
Consumers are provided with the opportunity to choose the appropriate amount of credits and the payment plan that best fits their incomes. "Finansbank's new product encompasses an installment plan that has not been implemented until now and, therefore, this new product is the first of its kind in housing credits," said Erkin Aydın, Finansbank Mortgage and Personal Loans group manager.
In Finansbank's new mortgage program, installments start at YTL 500, according to authorities at the bank. The installments are determined on the basis of triple combinations, such as, YTL 500, YTL 750 and YTL 1,000, and increase on a two-tiered basis, such as YTL 500 for the first two years, YTL 750 for the second two years and YTL 1,000 for the remaining period.
Consumers are provided with the opportunity to choose the appropriate amount of credits and the payment plan that best fits their incomes. "Finansbank's new product encompasses an installment plan that has not been implemented until now and, therefore, this new product is the first of its kind in housing credits," said Erkin Aydın, Finansbank Mortgage and Personal Loans group manager.
Saturday, June 28, 2008
stats
Recent property statistics confirm that Brits just cannot get enough of overseas property. Figures released by the Association of International Property Professionals (AIPP) claim that in 2007, the British spent a staggering £246 billion on homes abroad, a 21% increase on 2006.
Spain still tops the favourite destination chart – Spanish homes accounted for over a quarter of all purchases – but newer markets are fast emerging as investor favourites. According to a survey carried out by property investment company, Obelisk, Bulgaria, Turkey and Romania head the list of preferred countries for investment in bricks and mortar.
Savvy investors have seen high capital growth and strong rental yields in their property investments, but this is by no means always the case. Media reports continually highlight the flip side to property investment and horror stories involving purchases abroad appear almost daily.
Overseas property investment is not something to be taken lightly, but there are certain steps you can take to ensure that investment in a home overseas does not end in tears. By applying a combination of thorough research, due diligence and canny financing, buying a property abroad should have a happy ending.
Research holds the key to success. Only careful analysis of the myriad of factors involved in a purchase means you can be sure of walking into an investment with your eyes wide open. Aspects such as the local and national economy, the tourist industry and property market history are all essential when it comes to making an investment decision.
At Obelisk, a world leader in overseas property investment, they take their research very seriously. “We believe that an investor should only commit to a purchase when they have enough information to base their decision on” advises James Gonzalez, Market Analyst at Obelisk. “Our comprehensive in-house research and analysis ensures our clients receive the most secure investment opportunities.”
Hand in hand with exhaustive research should be due diligence. This means you avoid falling victim to a property with no planning permission or to a developer going bankrupt. It also ensures you get what you paid for. “One of the main pitfalls of property investment is lack of financial and legal security” warns James. “At Obelisk, no project is released unless it has met our compulsory due diligence criteria.”
Following research and due diligence, careful financial planning, guided by experts, makes the difference between laughing or crying all the way to the bank. Remortgaging your current property is often the easiest way to become a cash buyer, but taking out a mortgage on your investment property may cost you less. However, you need to consider the fees and costs involved throughout the process to make sure you incur minimum costs but achieve maximum gain.
Ken Thorkildsen, Director of Obelisk Private Finance, adds, “The number of mortgage products available abroad is increasing for non-resident property buyers. But in order to secure the best solution at the most competitive rates, it is essential to seek the advice of overseas finance specialists. At Obelisk Private Finance, we source only the most competitive products from those available in countries throughout the world.”
If you are among the thousands of British owners of properties abroad or planning to join them, apply the tried and tested formula of research, due diligence and wise financing. Then write your own happy ending.
Spain still tops the favourite destination chart – Spanish homes accounted for over a quarter of all purchases – but newer markets are fast emerging as investor favourites. According to a survey carried out by property investment company, Obelisk, Bulgaria, Turkey and Romania head the list of preferred countries for investment in bricks and mortar.
Savvy investors have seen high capital growth and strong rental yields in their property investments, but this is by no means always the case. Media reports continually highlight the flip side to property investment and horror stories involving purchases abroad appear almost daily.
Overseas property investment is not something to be taken lightly, but there are certain steps you can take to ensure that investment in a home overseas does not end in tears. By applying a combination of thorough research, due diligence and canny financing, buying a property abroad should have a happy ending.
Research holds the key to success. Only careful analysis of the myriad of factors involved in a purchase means you can be sure of walking into an investment with your eyes wide open. Aspects such as the local and national economy, the tourist industry and property market history are all essential when it comes to making an investment decision.
At Obelisk, a world leader in overseas property investment, they take their research very seriously. “We believe that an investor should only commit to a purchase when they have enough information to base their decision on” advises James Gonzalez, Market Analyst at Obelisk. “Our comprehensive in-house research and analysis ensures our clients receive the most secure investment opportunities.”
Hand in hand with exhaustive research should be due diligence. This means you avoid falling victim to a property with no planning permission or to a developer going bankrupt. It also ensures you get what you paid for. “One of the main pitfalls of property investment is lack of financial and legal security” warns James. “At Obelisk, no project is released unless it has met our compulsory due diligence criteria.”
Following research and due diligence, careful financial planning, guided by experts, makes the difference between laughing or crying all the way to the bank. Remortgaging your current property is often the easiest way to become a cash buyer, but taking out a mortgage on your investment property may cost you less. However, you need to consider the fees and costs involved throughout the process to make sure you incur minimum costs but achieve maximum gain.
Ken Thorkildsen, Director of Obelisk Private Finance, adds, “The number of mortgage products available abroad is increasing for non-resident property buyers. But in order to secure the best solution at the most competitive rates, it is essential to seek the advice of overseas finance specialists. At Obelisk Private Finance, we source only the most competitive products from those available in countries throughout the world.”
If you are among the thousands of British owners of properties abroad or planning to join them, apply the tried and tested formula of research, due diligence and wise financing. Then write your own happy ending.
Saturday, June 14, 2008
Turkey
Just as Turkey looks as if it is shaping up to become the next major holiday-home and investment destination, its government has stopped title deeds being issued to foreigners.
Safe as houses: Bodrum Castle overlooks the lively old town. The peninsula is popular with British and Turkish buyers alike
The country did it for six months in 2005, too, in an attempt to prevent large tracts of rural land being bought up. The latest ban - announced in April and awaiting ratification in parliament - has a similar purpose, limiting foreign ownership to 10 per cent of the land in any town.
Agents selling in Turkey expect the restriction to be lifted soon. "I don't see it as a problem, as you could never expect to receive your title deeds within three months anyway," says Julian Walker from Turkish property specialist Spot Blue. "For anyone buying now, the suspension will have ended by the time they reach completion."
Even 10 per cent foreign ownership of land is a high figure that is unlikely to ever be met, Walker points out. "Even in Spain, 95 per cent of sales are to the domestic market. In Turkey, there are 77,000 foreign property owners out of a population of 77 million, which is 0.1 per cent, so 10 per cent is light years away," he says.
"You have to remember Turkey is a poor country, 20 years behind the West in its property market, laws and business practice. And even though finance is available, it is also still typically a cash market."
advertisementApart from this blip, Turkey's property market is proving resilient, with prices expected to rise by 10-15 per cent this year, says Knight Frank.
The currency exchange company Moneycorp reports that British interest in Turkish property has trebled in the past year. A NatWest survey of mortgage lenders predicts that Turkey - where 22,650 Brits own property - will be the third most popular
destination for UK buyers in the next three years, with most sticking to the area between Kusadasi on the Aegean coast and Alanya on the Med.
In its attempts to double tourist numbers to 10 million by 2010, the Turkish government is investing in infrastructure and attractions, including new golf courses in Dalaman and Belek.
It is also encouraging new air routes and airport expansion. EasyJet now flies to Dalaman and Istanbul, BA to Antalya. A new international airport at Edremit will open up areas around Ayvalik, north of Izmir - until now, despite good beaches, great windsurfing and attractive property, the preserve of Turkish buyers.
Beyond its appeal as a value-for-money location for holiday homes - outside pricier Istanbul or Bodrum, the average two-bedroom apartment costs £35,000-£90,000 - Turkey is also drawing investors to Istanbul, where new development is taking place on both sides of the Bosphorus.
Prices average about £700-£900 per square metre, with studios from £40,000 in developments such as Life Studio near Ataturk international airport (through The Right Move Abroad), or Astrum Towers, six miles from the airport, which agent Regnum predicts will see annual growth of 30 per cent.
So, this Christmas - or whenever the restrictions ease - why not vote for Turkey?
BODRUM FAR FROM HUMDRUM
Lively resorts, leisure facilities and low-priced newbuild properties make the Bodrum peninsula one of Turkey's best-known areas for British visitors, while quieter spots such as Yalikavak and Gumusluk appeal to wealthy Turkish property buyers wanting £1m-plus villas.
"Bodrum is one of the most popular coastal regions," says Jane Griffiths, managing director of Regnum, "and Turkey's appeal is widening to take in growing numbers of Eastern European holidaymakers as well as British. Small apartments can achieve rents of £300 a week."
Safe as houses: Bodrum Castle overlooks the lively old town. The peninsula is popular with British and Turkish buyers alike
The country did it for six months in 2005, too, in an attempt to prevent large tracts of rural land being bought up. The latest ban - announced in April and awaiting ratification in parliament - has a similar purpose, limiting foreign ownership to 10 per cent of the land in any town.
Agents selling in Turkey expect the restriction to be lifted soon. "I don't see it as a problem, as you could never expect to receive your title deeds within three months anyway," says Julian Walker from Turkish property specialist Spot Blue. "For anyone buying now, the suspension will have ended by the time they reach completion."
Even 10 per cent foreign ownership of land is a high figure that is unlikely to ever be met, Walker points out. "Even in Spain, 95 per cent of sales are to the domestic market. In Turkey, there are 77,000 foreign property owners out of a population of 77 million, which is 0.1 per cent, so 10 per cent is light years away," he says.
"You have to remember Turkey is a poor country, 20 years behind the West in its property market, laws and business practice. And even though finance is available, it is also still typically a cash market."
advertisementApart from this blip, Turkey's property market is proving resilient, with prices expected to rise by 10-15 per cent this year, says Knight Frank.
The currency exchange company Moneycorp reports that British interest in Turkish property has trebled in the past year. A NatWest survey of mortgage lenders predicts that Turkey - where 22,650 Brits own property - will be the third most popular
destination for UK buyers in the next three years, with most sticking to the area between Kusadasi on the Aegean coast and Alanya on the Med.
In its attempts to double tourist numbers to 10 million by 2010, the Turkish government is investing in infrastructure and attractions, including new golf courses in Dalaman and Belek.
It is also encouraging new air routes and airport expansion. EasyJet now flies to Dalaman and Istanbul, BA to Antalya. A new international airport at Edremit will open up areas around Ayvalik, north of Izmir - until now, despite good beaches, great windsurfing and attractive property, the preserve of Turkish buyers.
Beyond its appeal as a value-for-money location for holiday homes - outside pricier Istanbul or Bodrum, the average two-bedroom apartment costs £35,000-£90,000 - Turkey is also drawing investors to Istanbul, where new development is taking place on both sides of the Bosphorus.
Prices average about £700-£900 per square metre, with studios from £40,000 in developments such as Life Studio near Ataturk international airport (through The Right Move Abroad), or Astrum Towers, six miles from the airport, which agent Regnum predicts will see annual growth of 30 per cent.
So, this Christmas - or whenever the restrictions ease - why not vote for Turkey?
BODRUM FAR FROM HUMDRUM
Lively resorts, leisure facilities and low-priced newbuild properties make the Bodrum peninsula one of Turkey's best-known areas for British visitors, while quieter spots such as Yalikavak and Gumusluk appeal to wealthy Turkish property buyers wanting £1m-plus villas.
"Bodrum is one of the most popular coastal regions," says Jane Griffiths, managing director of Regnum, "and Turkey's appeal is widening to take in growing numbers of Eastern European holidaymakers as well as British. Small apartments can achieve rents of £300 a week."
Friday, June 13, 2008
Turkey
British visitors to Turkey are up 18.75%, according to the latest figures from The Turkish Culture and Tourism Office (TCTO).
The figures for January to April 2008 show that Turkey is maintaining a healthy increase in visitors arriving from the UK, having increased by 18.75% to a total of 205,879. This compares with 173,379 for the same period in 2007.
Predicted to be amongst the top three leading tourist destinations in the Mediterranean by 2020, Turkey is also one of the fastest growing second-home property markets in the world. The number of visitors to the country has seen a sharp increase over the same period last year, signalling a strong upturn in the fortunes of the Turkish tourist industry and indicating a resurgence in Turkey’s appeal to its expatriate citizens.
Irfan Onal, Director for the Turkish Culture and Tourism Office in the UK, commented: “We are incredibly pleased to see the number of travellers to Turkey continue to grow. Buying property in Turkey is increasingly becoming a very attractive proposition as people choosing to buy a Turkish property are finding that their homes currently represent fantastic value for money. There are several projects underway to ensure the continuing development of infrastructure and services in a bid to prepare for the increasing number of visitors to Turkey.”
The figures for January to April 2008 show that Turkey is maintaining a healthy increase in visitors arriving from the UK, having increased by 18.75% to a total of 205,879. This compares with 173,379 for the same period in 2007.
Predicted to be amongst the top three leading tourist destinations in the Mediterranean by 2020, Turkey is also one of the fastest growing second-home property markets in the world. The number of visitors to the country has seen a sharp increase over the same period last year, signalling a strong upturn in the fortunes of the Turkish tourist industry and indicating a resurgence in Turkey’s appeal to its expatriate citizens.
Irfan Onal, Director for the Turkish Culture and Tourism Office in the UK, commented: “We are incredibly pleased to see the number of travellers to Turkey continue to grow. Buying property in Turkey is increasingly becoming a very attractive proposition as people choosing to buy a Turkish property are finding that their homes currently represent fantastic value for money. There are several projects underway to ensure the continuing development of infrastructure and services in a bid to prepare for the increasing number of visitors to Turkey.”
Tuesday, May 27, 2008
Alicante construction
There has been a significant slowdown in the number of new homes being constructed in the Alicante region in Spain, with just 489 new housing starts recorded across the province between January and April this year.
The number of new homes built in Alicante during the first four months of this year is 96% down on the average of 13,000 new homes recorded during the corresponding period over the past seven years. This is according to the provincial association of real estate promoters (PROVIA).
The fall in construction levels should help overcome the existing oversupply of homes in the region, with some 50,000 new homes currently unsold and lying empty.
Last year there were 25,619 new housing starts in the province, while 32,125 local residential properties were completed – the lowest level for eight years. At the peak of the last construction boom in 2004, there were 45,000 new housing starts.
The number of new homes built in Alicante during the first four months of this year is 96% down on the average of 13,000 new homes recorded during the corresponding period over the past seven years. This is according to the provincial association of real estate promoters (PROVIA).
The fall in construction levels should help overcome the existing oversupply of homes in the region, with some 50,000 new homes currently unsold and lying empty.
Last year there were 25,619 new housing starts in the province, while 32,125 local residential properties were completed – the lowest level for eight years. At the peak of the last construction boom in 2004, there were 45,000 new housing starts.
Overseas property markets
Global residential property prices appreciated at a slower rate of growth in Q1 2008, rising 6.1% against capital growth of 9.2% in Q4 2007 and 9.8% during the same period last year, according to Knight Frank’s latest Global House Price Index.
Bulgaria once again recorded the greatest annualised price growth, with average prices up 31.5%, while average property prices in Iceland appreciated by 19.1%.
"Bulgaria continues to confound market fears of oversupply and has so far proved immune to the deceleration seen in much of the continent (Europe)," says Knight Frank's head of research, Liam Bailey.
However, just 20% of the property markets covered in the Index recorded double digit house price growth, compared to 35% a year ago.
Bailey adds: “The Knight Frank Global House Price Index shows that while house price growth in Europe and America continues to slow or even fall, pockets of strong growth remain."
Europe:
Since Q2 2007, Bulgaria has been the best performing location in the Knight Frank Global House Price Index. While the rate of growth in the price of flats was lower than in previous quarters, it was nonetheless maintained at over 30%, again being driven by the performance of areas bordering Romania such as Ruse and Vidin, as well as the capital Sofia, where annual price inflation exceeded 60%.
Jersey has been included in the Knight Frank Index for the first time. The British Crown dependency has seen price growth accelerate to 28%. Over the last quarter, prices of property in the capital rose by nearly 10%, with the average property costing nearly £475,000.
A location where previously high rates of growth have slowed is Russia. Price inflation has fallen from an annual rate of 30% to Q4 2007 to 22% in Q1 2008. St Petersburg has continued to see growth rates outpace those in the capital.
Iceland’s economy has cooled significantly over the last year, however, the country’ sproperty market remains robust.
Sweden continued to see strong house price inflation, with the year-on-year rate of growth of 9.1% only marginally lower than that of the 10.6% observed in Q4 2007. The highest rates of growth have occurred in the north of the country, at over 13%.
Neighbouring Norway has seen growth decline significantly to the lowest rate since Q3 2003: annual growth to Q1 2008 was just 3.8%, compared to 16.4% the same period a year earlier.
House price inflation in Finland is at a similar rate to Norway and its lowest rate since Q2 2002, although the slowdown has been much less dramatic, and price inflation has less volatile over recent years.
Denmark has seen the worst performance in house price growth, with prices falling by almost 1% across the country, while the Copenhagen market saw prices fall by 10%. However, many areas are still seeing positive growth, such as Aalborg, which recorded a rise of 7% to Q1 2008.
Croatia has also seen growth moderate over the last quarter. The annual rate of growth fell to 7% from nearly 12% the previous quarter. Property in Zagreb remains marginally more expensive than coastal properties.
Other European markets outside the UK have seen a similar trend. Spain continues to take a battering in the press, despite having seen one of Western Europe’s strongest performances of 3.8% annual growth. However, this is the lowest rate of price inflation since 1997, and there are undoubtedly serious concerns over the Spanish housing market and its impact on the Spanish economy.
Neighbouring Portugal appears to have escaped the market boom and bust cycle that has afflicted Spain: the highest growth rate seen in residential property prices over the last 12 years was 8.7% in 1999. After seeing slowing growth in late 2006 through to early 2007, price growth picked up in Portugal in the year to Q1 2008 to reach 3.8%.
After a fairly dramatic appearance on the Knight Frank Index in the fourth quarter of 2007, price growth in Poland has slowed significantly, with annual rates to Q1 2008 at 3%, a sudden reversal of fortune from the 22% observed to Q4 2007. The price of houses has been rising faster than the price of apartments, which in some locations have seen price falls. The rapid rate of apartment construction in recent years means that across the country there is a shortage of houses, which consequently hold their value better than property in the oversupplied apartment sector.
The residential market slowdown occurring in much of Europe has not bypassed France. The price boom that occurred in France over a four year period from 2002 to early 2006 definitely appears to be over. The rate of annual price growth to Q1 2008 slipped to 2.5%. The greatest growth – 4.8% - was recorded in the South East. The lowest capital growth occurred in Central and Alpine France, up 1.4%.
Property prices in Germany fell by over 5% on a year on year basis. However, the new build residential property prices are not falling as fast as those for resale property.
Austria has also seen price growth slow, although the 1.2% annual growth nationally to Q1 2008 hides marked regional disparities. Growth in Vienna accelerated during the latter half of 2007, rising from 4% in the summer to 5.4% to Q1 2008.
In Hungary, property price growth has been below 4% since early 2005, and the latest quarters figures are no different, with annual growth of 1.2%.
Switzerland’s stable growth in house prices continues, albeit at the extremely low rate of 0.4%, lower than the current rate (1%) of CPI inflation. The peak of Switzerland’s housing market cycle occurred at the end of 2002, where price inflation reached a dizzy 5.5%.
The UK housing market is experiencing its most significant slowdown since the early 1990s, with prices in Q1 2008 approximately 1.1% below their values last year.
The dramatic reversal of fortune in the Baltic markets towards the end of 2007 is still reflected in Q1 data. The price of apartments in Riga, the Latvian capital fell by nearly 6% during the quarter, marginally less than the decline in prices observed during the previous two quarters. The annual decline in prices reached 20% with prices per m² falling to just under €1,400, down from the €1,700 peak reached in Q2 2007.
Estonia is also continuing to see apartment prices fall, the 11% decline in values to Q1 2008 was marginally less than the 14% drop seen to Q4 2007. Over the quarter values fell by around 3%.
Lithuania remains the most stable Baltic market with a price rise of 0.5% over the course of the year.
In Ireland house prices have continued to fall. Nationally prices across the country fell by nearly 9% over the year to Q1 2008, an acceleration of the 7.3% decline observed in the previous quarter.
Asia Pacific:
Singapore’s property price growth has slowed marginally during the last quarter. Annual growth to Q1 2008 was 29.9%, down from the 31% increase of the previous quarter.
Hong Kong’s price growth has crept up to rival that of Singapore, recording nearly 29% growth in the year to Q1 2008.
In China, property prices house prices in 70 cities rose 11.7% year-on-year in the first quarter: 0.8% higher than the growth recorded in the previous quarter.
Over the 12 months to Q1 2008 Australia recorded annual house price growth of 13.8%, compared to 8.6% for the 12 months to Q1 2007, moving its Global House Price Index ranking up six places.
The Americas:
In the United States, the Knight Frank Global Index shows a house price decline of -0.03%, although the OFHEO data based on all transactions including mortgage refinancing is less pessimistic and volatile than other US house price indices. California and Nevada led the way in terms of house price deflation, with prices decreasing by 10.6% and 10.3% respectively. The Midwest states of Wyoming and Utah led the market with growth of 6.3% and 5.6% respectively.
Canada has seen a slowdown in the rate of house price inflation over the 12 months to Q1 2008. House price inflation has more than halved from Q1 2007 to Q1 2008 from 12.6% to 6.1% and moving down three places in the Knight Frank Global House Price Index. Despite Canada’s slowing house price inflation at a national level, some areas are still performing extremely strongly. In Saaskatoon, house prices rose by almost 50% to Q1 2008, whilst in Regina, and in Winnipeg, prices rose by 28% and 15% respectively. Vancouver saw price growth akin to the national average, with 6.1% over the 12 month period.
Africa:
South Africa saw house price inflation of 8.8% over the 12 months to Q1 2008, a noticeable slowdown from the same period a year earlier which revealed growth of 13.6%. Political instability in the region, particularly in Zimbabwe and Kenya, may adversely affect any international investment in South Africa
Bulgaria once again recorded the greatest annualised price growth, with average prices up 31.5%, while average property prices in Iceland appreciated by 19.1%.
"Bulgaria continues to confound market fears of oversupply and has so far proved immune to the deceleration seen in much of the continent (Europe)," says Knight Frank's head of research, Liam Bailey.
However, just 20% of the property markets covered in the Index recorded double digit house price growth, compared to 35% a year ago.
Bailey adds: “The Knight Frank Global House Price Index shows that while house price growth in Europe and America continues to slow or even fall, pockets of strong growth remain."
Europe:
Since Q2 2007, Bulgaria has been the best performing location in the Knight Frank Global House Price Index. While the rate of growth in the price of flats was lower than in previous quarters, it was nonetheless maintained at over 30%, again being driven by the performance of areas bordering Romania such as Ruse and Vidin, as well as the capital Sofia, where annual price inflation exceeded 60%.
Jersey has been included in the Knight Frank Index for the first time. The British Crown dependency has seen price growth accelerate to 28%. Over the last quarter, prices of property in the capital rose by nearly 10%, with the average property costing nearly £475,000.
A location where previously high rates of growth have slowed is Russia. Price inflation has fallen from an annual rate of 30% to Q4 2007 to 22% in Q1 2008. St Petersburg has continued to see growth rates outpace those in the capital.
Iceland’s economy has cooled significantly over the last year, however, the country’ sproperty market remains robust.
Sweden continued to see strong house price inflation, with the year-on-year rate of growth of 9.1% only marginally lower than that of the 10.6% observed in Q4 2007. The highest rates of growth have occurred in the north of the country, at over 13%.
Neighbouring Norway has seen growth decline significantly to the lowest rate since Q3 2003: annual growth to Q1 2008 was just 3.8%, compared to 16.4% the same period a year earlier.
House price inflation in Finland is at a similar rate to Norway and its lowest rate since Q2 2002, although the slowdown has been much less dramatic, and price inflation has less volatile over recent years.
Denmark has seen the worst performance in house price growth, with prices falling by almost 1% across the country, while the Copenhagen market saw prices fall by 10%. However, many areas are still seeing positive growth, such as Aalborg, which recorded a rise of 7% to Q1 2008.
Croatia has also seen growth moderate over the last quarter. The annual rate of growth fell to 7% from nearly 12% the previous quarter. Property in Zagreb remains marginally more expensive than coastal properties.
Other European markets outside the UK have seen a similar trend. Spain continues to take a battering in the press, despite having seen one of Western Europe’s strongest performances of 3.8% annual growth. However, this is the lowest rate of price inflation since 1997, and there are undoubtedly serious concerns over the Spanish housing market and its impact on the Spanish economy.
Neighbouring Portugal appears to have escaped the market boom and bust cycle that has afflicted Spain: the highest growth rate seen in residential property prices over the last 12 years was 8.7% in 1999. After seeing slowing growth in late 2006 through to early 2007, price growth picked up in Portugal in the year to Q1 2008 to reach 3.8%.
After a fairly dramatic appearance on the Knight Frank Index in the fourth quarter of 2007, price growth in Poland has slowed significantly, with annual rates to Q1 2008 at 3%, a sudden reversal of fortune from the 22% observed to Q4 2007. The price of houses has been rising faster than the price of apartments, which in some locations have seen price falls. The rapid rate of apartment construction in recent years means that across the country there is a shortage of houses, which consequently hold their value better than property in the oversupplied apartment sector.
The residential market slowdown occurring in much of Europe has not bypassed France. The price boom that occurred in France over a four year period from 2002 to early 2006 definitely appears to be over. The rate of annual price growth to Q1 2008 slipped to 2.5%. The greatest growth – 4.8% - was recorded in the South East. The lowest capital growth occurred in Central and Alpine France, up 1.4%.
Property prices in Germany fell by over 5% on a year on year basis. However, the new build residential property prices are not falling as fast as those for resale property.
Austria has also seen price growth slow, although the 1.2% annual growth nationally to Q1 2008 hides marked regional disparities. Growth in Vienna accelerated during the latter half of 2007, rising from 4% in the summer to 5.4% to Q1 2008.
In Hungary, property price growth has been below 4% since early 2005, and the latest quarters figures are no different, with annual growth of 1.2%.
Switzerland’s stable growth in house prices continues, albeit at the extremely low rate of 0.4%, lower than the current rate (1%) of CPI inflation. The peak of Switzerland’s housing market cycle occurred at the end of 2002, where price inflation reached a dizzy 5.5%.
The UK housing market is experiencing its most significant slowdown since the early 1990s, with prices in Q1 2008 approximately 1.1% below their values last year.
The dramatic reversal of fortune in the Baltic markets towards the end of 2007 is still reflected in Q1 data. The price of apartments in Riga, the Latvian capital fell by nearly 6% during the quarter, marginally less than the decline in prices observed during the previous two quarters. The annual decline in prices reached 20% with prices per m² falling to just under €1,400, down from the €1,700 peak reached in Q2 2007.
Estonia is also continuing to see apartment prices fall, the 11% decline in values to Q1 2008 was marginally less than the 14% drop seen to Q4 2007. Over the quarter values fell by around 3%.
Lithuania remains the most stable Baltic market with a price rise of 0.5% over the course of the year.
In Ireland house prices have continued to fall. Nationally prices across the country fell by nearly 9% over the year to Q1 2008, an acceleration of the 7.3% decline observed in the previous quarter.
Asia Pacific:
Singapore’s property price growth has slowed marginally during the last quarter. Annual growth to Q1 2008 was 29.9%, down from the 31% increase of the previous quarter.
Hong Kong’s price growth has crept up to rival that of Singapore, recording nearly 29% growth in the year to Q1 2008.
In China, property prices house prices in 70 cities rose 11.7% year-on-year in the first quarter: 0.8% higher than the growth recorded in the previous quarter.
Over the 12 months to Q1 2008 Australia recorded annual house price growth of 13.8%, compared to 8.6% for the 12 months to Q1 2007, moving its Global House Price Index ranking up six places.
The Americas:
In the United States, the Knight Frank Global Index shows a house price decline of -0.03%, although the OFHEO data based on all transactions including mortgage refinancing is less pessimistic and volatile than other US house price indices. California and Nevada led the way in terms of house price deflation, with prices decreasing by 10.6% and 10.3% respectively. The Midwest states of Wyoming and Utah led the market with growth of 6.3% and 5.6% respectively.
Canada has seen a slowdown in the rate of house price inflation over the 12 months to Q1 2008. House price inflation has more than halved from Q1 2007 to Q1 2008 from 12.6% to 6.1% and moving down three places in the Knight Frank Global House Price Index. Despite Canada’s slowing house price inflation at a national level, some areas are still performing extremely strongly. In Saaskatoon, house prices rose by almost 50% to Q1 2008, whilst in Regina, and in Winnipeg, prices rose by 28% and 15% respectively. Vancouver saw price growth akin to the national average, with 6.1% over the 12 month period.
Africa:
South Africa saw house price inflation of 8.8% over the 12 months to Q1 2008, a noticeable slowdown from the same period a year earlier which revealed growth of 13.6%. Political instability in the region, particularly in Zimbabwe and Kenya, may adversely affect any international investment in South Africa
Timeshares in Dubai
UAE group Emaar has announced that it plans to enter into the timeshare market, to cater for the robust growth in tourism.
Emaar Hospitality Group, a business subsidiary of Emaar Properties, will soon unveil its timeshare roster encompassing serviced residences and custom-designed resorts in Dubai, some of which may appeal to property investors.
The company also plans to expand its timeshare business to other countries, including Morocco, Jordan, Saudi Arabia, India, Turkey, Egypt and Indonesia.
“The timeshare market in Dubai is poised for exponential growth with booming inbound tourists driving the demand for spacious accommodation that hotels cannot fully meet,” said Mohamed Ali Alabbar, chairman, Emaar Properties. “Emaar already has an extensive hospitality and leisure portfolio featuring several hotels and serviced apartments. Additionally, we plan to develop dedicated timeshare resorts. Emaar is finalising the modalities of the timeshare business in line with the guidelines of the Dubai Government and also putting in place a special team to support the initiative.”
A number of other companies are expected to follow Emarr into the timeshare sector of the property market. The government in Dubai is currently drawing up a legal framework to assist companies entering into the sector.
Marc Dardenne, CEO, Emaar Hospitality Group, explained: “A recent survey by NorthCourse Research Firm reveals that Dubai, followed by Sharm El Sheikh and Makkah, is the most preferred timeshare location in the Middle East region.
“Better regulation has been the key challenge of the timeshare business in Europe, where the business is most booming with over 1.3 million timeshare owners as of 2006. However, Dubai is already one-step ahead in terms of timeshare business by having a governmental framework to follow. This will give impetus to Emaar Hospitality in adopting a structured approach with a focus on segmentation of timeshare business – the key to meeting the requirements of Dubai’s eclectic tourist profile.”
Emaar Hospitality Group, a business subsidiary of Emaar Properties, will soon unveil its timeshare roster encompassing serviced residences and custom-designed resorts in Dubai, some of which may appeal to property investors.
The company also plans to expand its timeshare business to other countries, including Morocco, Jordan, Saudi Arabia, India, Turkey, Egypt and Indonesia.
“The timeshare market in Dubai is poised for exponential growth with booming inbound tourists driving the demand for spacious accommodation that hotels cannot fully meet,” said Mohamed Ali Alabbar, chairman, Emaar Properties. “Emaar already has an extensive hospitality and leisure portfolio featuring several hotels and serviced apartments. Additionally, we plan to develop dedicated timeshare resorts. Emaar is finalising the modalities of the timeshare business in line with the guidelines of the Dubai Government and also putting in place a special team to support the initiative.”
A number of other companies are expected to follow Emarr into the timeshare sector of the property market. The government in Dubai is currently drawing up a legal framework to assist companies entering into the sector.
Marc Dardenne, CEO, Emaar Hospitality Group, explained: “A recent survey by NorthCourse Research Firm reveals that Dubai, followed by Sharm El Sheikh and Makkah, is the most preferred timeshare location in the Middle East region.
“Better regulation has been the key challenge of the timeshare business in Europe, where the business is most booming with over 1.3 million timeshare owners as of 2006. However, Dubai is already one-step ahead in terms of timeshare business by having a governmental framework to follow. This will give impetus to Emaar Hospitality in adopting a structured approach with a focus on segmentation of timeshare business – the key to meeting the requirements of Dubai’s eclectic tourist profile.”
Cesme Property
The Aegean city of İzmir's Çeşme district, which is a popular holiday resort, has never lost its value, said Levent Okudan, who has been an effective player in the real estate sector for the past 14 years.
“Çeşme is as valuable as a diamond. Russian billionaire Roman Abramovich's purchase of Çiftlikköy Kum Beach also helped increase the town's popularity,” said Okudan, adding, “There also is a talk of Mustafa Koç (a prominent Turkish businessman) purchasing a large property for tourism-related investments.”
Çeşme and Alaçatı will be undisputable stars of tourism within the next 10 years, claimed Okudan. He said he envisions houses similar to those in Majorca, which will include pools and a helicopter pad, adding that such works need to be implemented in order for Turkey to compete in tourism with Greece and Italy.
“Primarily, we need to expand the tourism season in Çeşme to 12 months. In order to do that we need to implement golf tourism. Secondly, although we own the best thermal resources in the world, we currently are unable to benefit from those. We need better promotion for the world to get to know us,” Okudan said.
“The government and the municipalities need to invest in high quality hotels and increase VIP tourism in those locations,” he said, adding, “Another way to improve tourism in the district is to establish a private airport for small planes and helicopters to serve businessmen and especially foreign multimillionaires. We need to prioritize infrastructure."
“Çeşme is as valuable as a diamond. Russian billionaire Roman Abramovich's purchase of Çiftlikköy Kum Beach also helped increase the town's popularity,” said Okudan, adding, “There also is a talk of Mustafa Koç (a prominent Turkish businessman) purchasing a large property for tourism-related investments.”
Çeşme and Alaçatı will be undisputable stars of tourism within the next 10 years, claimed Okudan. He said he envisions houses similar to those in Majorca, which will include pools and a helicopter pad, adding that such works need to be implemented in order for Turkey to compete in tourism with Greece and Italy.
“Primarily, we need to expand the tourism season in Çeşme to 12 months. In order to do that we need to implement golf tourism. Secondly, although we own the best thermal resources in the world, we currently are unable to benefit from those. We need better promotion for the world to get to know us,” Okudan said.
“The government and the municipalities need to invest in high quality hotels and increase VIP tourism in those locations,” he said, adding, “Another way to improve tourism in the district is to establish a private airport for small planes and helicopters to serve businessmen and especially foreign multimillionaires. We need to prioritize infrastructure."
Tuesday, May 13, 2008
Land valuations in Turkey
WASHINGTON, May 1, 2008 – The World Bank today approved a loan equivalent to US$203 million to the Government of Turkey for the Land Registry and Cadastre Modernization Project. The Project will improve the effectiveness and efficiency of the land registry and cadastre services.
"The Project constitutes a next generation of Bank operations in the area of land management and cadastre, where the country already has a well functioning property rights regime, but is striving to take the land registry and cadastre data use to the next level by spreading its benefits to people, businesses and multiple sectors, and facilitating better access to real estate information through the e-government platform,” said Wael Zakout, Sector Manager and Task Team Leader for the Project. “This project will also help improve customer service by reducing the time taken to register a property transaction to a few hours, and develop property appraisal function in line with international standards.”
The project will (i) renovate and update cadastre maps to support digital cadastre and land registry information; (ii) make the digital land registry and cadastre information available to public and private entities (iii) improve customer services in land registry and cadastre offices; (iv) improve human resources in the Turkish Land Registry and Cadastre Agency (TKGM); and (v) develop policies and capacity to introduce best international practices in property valuation in Turkey.
While the Turkish Cadastre and Registration system is considered one of the most effective in the region and registration of property transactions is done within one day in many offices, there are still many shortcomings to be addressed to ensure that the system modernizes to reach the same service level as in the European countries. Many of the Cadastre and Land Registry offices rely on manual systems, with old documents, some of them dating back to the Ottoman times. In addition, the TAKBIS system (Turkey’s computerized Cadastre and Land Registry Software) runs in only 140 out of the 1000 offices.
The most challenging aspect is that cadastral maps continue to be in a paper format, vary in accuracy and consistency, and are not linked to the national network. This makes it difficult to support E-government applications as cadastre maps serve as a base mapping for many government applications. Furthermore, in many localities maps are out of date and do not correspond with the ground locations and areas, differing sometimes by up to 10 meters.
The project will be funded by an IBRD flexible variable spread loan. It will have a maturity of 23.5 years including a 5 year grace period.
"The Project constitutes a next generation of Bank operations in the area of land management and cadastre, where the country already has a well functioning property rights regime, but is striving to take the land registry and cadastre data use to the next level by spreading its benefits to people, businesses and multiple sectors, and facilitating better access to real estate information through the e-government platform,” said Wael Zakout, Sector Manager and Task Team Leader for the Project. “This project will also help improve customer service by reducing the time taken to register a property transaction to a few hours, and develop property appraisal function in line with international standards.”
The project will (i) renovate and update cadastre maps to support digital cadastre and land registry information; (ii) make the digital land registry and cadastre information available to public and private entities (iii) improve customer services in land registry and cadastre offices; (iv) improve human resources in the Turkish Land Registry and Cadastre Agency (TKGM); and (v) develop policies and capacity to introduce best international practices in property valuation in Turkey.
While the Turkish Cadastre and Registration system is considered one of the most effective in the region and registration of property transactions is done within one day in many offices, there are still many shortcomings to be addressed to ensure that the system modernizes to reach the same service level as in the European countries. Many of the Cadastre and Land Registry offices rely on manual systems, with old documents, some of them dating back to the Ottoman times. In addition, the TAKBIS system (Turkey’s computerized Cadastre and Land Registry Software) runs in only 140 out of the 1000 offices.
The most challenging aspect is that cadastral maps continue to be in a paper format, vary in accuracy and consistency, and are not linked to the national network. This makes it difficult to support E-government applications as cadastre maps serve as a base mapping for many government applications. Furthermore, in many localities maps are out of date and do not correspond with the ground locations and areas, differing sometimes by up to 10 meters.
The project will be funded by an IBRD flexible variable spread loan. It will have a maturity of 23.5 years including a 5 year grace period.
Subscribe to:
Posts (Atom)