PWC Declares American Property Market is in Recovery Mode

PricewaterhouseCoopers has declared from a recent report that the property market in America is in the mode of recovery and investors are the ones who are really leading the way. From all the reports over the last couple of years, this latest report seems to be the most encouraging, as the data indicates that confidence is returning to property investors.

According to data from the PwC Real Estate Barometer, the commercial real estate market is doing considerably well and will continue as long as confidence among businesses and consumers continues. The office and multifamily housing sector are expected to show positive signs of recovery by the end of this year.

The retail sector is not expected to do quite so well this year, but experts believe that next year will begin to see more recovery. There are some inflation fears and consumers are not spending as much right now, but investors are beginning to have more interest in distressed retail properties, as they believe it is a good time to purchase now before the market stabilizes.

Surprisingly, the luxury retail sector is showing signs of recovery, as people with a great deal of money are not afraid to spend it at this time. Some are surprised, but the retail sector is doing better than many expected, as many thought the boost wouldn’t come till at least the year 2013.

With the commercial real estate sector doing so well, and the retail market beginning to show small signs of recovery, experts believe that the increase in transactions will give the economy the added boost it needs.

Growth Predicted in US Commercial Property

According to a recent report by PricewaterhouseCoopers LLP, the United States commercial property sales are expected to increase within the next few years, as more and more property investors gain confidence in the market as a whole.

According to this quarterly survey, job growth, as well as higher business and consumer optimism, are encouraging purchasers to get into the market now with the interest rates where they are. By waiting, interest rates could increase, as well as push prices up in the office, industrial, multifamily, and retail sectors.

Everyone is awaiting recovery of the real estate industry, and as confidence grows among investors, the better will be the results for the industry. The long wait has caused some investors to become more eager to get back in there.

According to an index from the Massachusetts Institute of Technology Center for Real Estate in Massachusetts, commercial real estate prices surges 19 percent in 2010. Estimates from real estate experts believe that commercial property transactions could increase up to 40 percent this year, to $135 billion.

Additonally, the PricewaterhouseCoopers report stated that with low interest rates and stiff competition among buyers, the chances of getting good returns on investments are favorable. In 27 of 31 office markets, capitalization rates decreased.

It is estimated that within the next two years, most industrial markets will improve, with 86.2 percent expected to be in recovery by 2012 as demand surges. With supply and demand becoming more balanced, vacancy rates should decrease and the rental industry should increase.

The multifamily sector has been doing quite well due largely to more challenging lending restrictions and limited home buying opportunities. As a result, demand for apartments have increased and are expected to continue for the next couple of years.

http://www.bloomberg.com/news/2011-03-21/deal-volume-to-drive-u-s-commercial-real-estate-recovery-pwc-survey-says.html

Spanish Property Market Shows Signs of Improving

Spain joins various other countries beginning to see more favorable property market conditions this New Year. Statistics revealed by the Ministry and Public Works and Transport of Spain, Spain’s real estate market is experiencing noticeable growth, which is a good sign that it is indeed recovering from the financial crisis.

Backing this growth is data from Spain’s government regarding total property sales in 2010. 491,000 real estate transactions occurred in 2010, which is 5.9 percent higher than the previous year. Since the financial crisis began in 2008, Spain’s fourth quarter of 2010 experienced the most market success, with figures coming in at 14.2 percent. Experts look favorably on this jump and anticipate the growth to continue throughout 2011.

Spain is also becoming more popular with overseas buyers, as overseas transactions have jumped 20.6 percent. The Alicante province is of particular interest among foreign buyers, as the number of sales increased by 24.3 percent. An additional 11 autonomies have reported that apartment sales have increased, while 6 areas indicate that demand is decreasing.

Basque County reports a 30 percent increase in growth, while Murcia reported 16.3 percent. Popular beach destinations such as Costa del Sol and Costa Blanca have reported increases as well, with Costa del Sol increasing 7.5 percent. Andalusia is currently Spain’s largest real estate market, with 88,000 transactions recorded, followed by Valencia, Catalonia, and the region of Madrid.

Spain is experiencing a growth in tourism as well, which will help with property market growth. Local real estate agents believe that 2011 will experience greater growth and stability and have a favorable year.

China aims for quality, not quantity GDP growth

For the last five years the economy in China has grown around 11%, but now the Chinese leadership has stated that its GDP target for this year is 7%. It's hoped that lowering GDP growth expectations for help keep inflation at 4% or less. This may be tough as the price of raw materials and resources is rising rapidly, and it also remain to be seen if this growth rate of 7% is realistic, as a growth rate of 8% has been set for the last seven years and has always been exceeded.

The leadership is thought to have set this target not only to try to cool the economy but also to maintain a balanced economy as it is aiming more towards domestic led consumer growth rather than cheap exports, investment and heavy manufacturing. It is hoped this policy will enable a more even distribution of income growth and a lower balance of payments current account surplus, and has raised income expectation for both rural and urban citizens to more than 7%, up from 5%.

The Chinese leadership is determined to raise the living standards for those citizens on low incomes. A plan is already underway to build 36 million affordable homes within the next five years. This may seem an extraordinary number until you consider that the population of China is 1.3 billion. Beijing is due to continue spending on upgrading the infrastructure and social services for low income families. China also needs to address its shortage of energy, especially as plans may be underway to relax the one child per family ruling.

Indian Realty Exhibition to Target NRI UAE Investors

India will be having a two-day exhibition, Times Realty India 2011, in Dubai, March 11-12 and is expected to see some large Indian real estate companies present. The exhibit intends to assist the non-resident Indian community who live in the United-Arab Empire to learn more about investing in the Indian property market.

Exclusive Indian residential and commercial projects will be showcased and plenty of information will be available for those interested in learning the ropes of property investments. Companies will be able to network and share information with each other as well.

According to the President of Mind Space, Mr. M I Sait, the real estate sector in India is very stable and reliable and a perfect place for investments. The market is highly dynamic and the economy is strong and growing continually.

One of the goals of the Times Realty Exhibition is to bring together builders and investors face to face to discuss the wonderful investment opportunities in India. A few of the showcased projects will include India Bulls, Hirananandani, Nirmal Estate, Earth Infrastructure, ERA Landmark, Sipra, Spire World, Canopy, and Akar Creations.

India is a key region for investors to find affordable luxury homes and the demand for homes is increasing. As the demand continues for affordable housing, developers are beginning to build in newer areas and build properties that are suitable for all budgets. These homes will be built to include landscaped gardens, as well as swimming pools. The Times Realty is expecting a good turnout for the exhibition, as more and more foreign investors are seeking a more lucrative market.

Polish Property Set for Boost through Tourism

Poland is still viewed as a developing economy, as it has a low cost of living and a large population. As yet it hasn't garnered much interest from the tourism industry, but this looks set to change in the very near future. Footballs Euro 2012 competition is being held in the Ukraine and Poland, and is likely to bring in thousands of tourists who have never visited the country before.

Poland is about to start promoting the country ahead of the games, with a new campaign about to be unveiled. It has already invested substantially in infrastructure which includes new motorways and airports in preparation for 2012.

The country is investing far more money into the tourism industry, and looks set to become a major destination which will undoubtedly affect property prices.

At the moment prices are still low, but all this looks likely to change, not only because of the tourism opportunities but also because the economy is showing signs of growth.

The economic growth in Poland more than doubled last year, and this was largely helped by increased consumer spending and the recovery in Germany which is one of the country's main trading partners. Wages in Poland have begun to rise, and employment increased by 3.8% in January when compared with January 2010.

Foreigners are allowed to buy condominium units in Poland, but buying land is more difficult as a permit from the Ministry of Internal Affairs is required. Rental yields for apartments average 5.38%, and buying costs are generally quite low at between 5% and 10%, with all costs being borne by the buyer.

Asia Leading Growth in Property Investment and Development

At the recent fifth annual City Development Meeting in HCM city, Lim Lam Yuan, President of Singapore’s Institute of Surveyors and Valuers stated that the Asia Pacific region is currently the leading area in global property market recovery since the global financial crisis.

Additionally, Yuan added that this region is seeing more and more wealthy men and women connect with this region and desire prime property for investments as well as lifestyle reasons.

Due to being the world’s most populous region, as well as a continued influx of people, Asia is emerging as an attractive destination for property developers. The continued increase in population, as well as plentiful economic resources and low costs has made this region superior in comparison with other nations in Europe or the United States.

China’s property market has been growing rapidly with sales totals reaching over 4.7 trillion yuan last year. This number is much larger that 2009’s total of 4.3 trillion yuan. Interest rates were as low as 0.36 percent. The rental market has seen some progression as well, with rentals for private residential properties experiencing a 17.9 percent increase.

India’s property market is doing quite well also. Due to excellent infrastructure, a well-polished legal system, and a high number of doctors and engineers, India is a prime location for investment opportunities.

India has been experiencing more investments in its country, with increased residential development, new construction and new town planning, mall development, and hospitality and office/industrial space development and management.

Colombia tipped for growth

Colombia has been tipped for growth since 2009 when the acronym CIVETS was coined by the Global Forecasting Director, Robert Ward for the Economist Intelligence Unit. The acronym stands for Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. These countries were singled out for attention because they have a young population, have managed to control inflation and have a relatively sophisticated banking system already in place.

This is certainly true of Columbia, and out of all these countries it has the best infrastructure already in place which will enable rapid economic growth. It has also managed to achieve consistent GDP growth for over 70 years and has never experienced hyperinflation, and in fact inflation has been kept within single digit figures since 1999. The GDP growth from 2002 to 2007 averaged out at 5% a year which was mainly due to increased foreign investment, export growth and reforms in the energy sectors. The country has large mineral and energy reserves, especially coal and natural gas.

Columbia has managed to triple its exports during the last six years which was largely due to the Andean Trade Promotion and Drug Eradication Act. During this time period exports grew from $13 million in 2003 to $32 million in 2009. It has successfully increased tourism numbers even at the height of the global recession. Tourism numbers throughout the world fell by 4% in 2009 while in Colombia it increased to 10.2% in the same year. The Columbian government actively encourages overseas investors as it is looking to increase business opportunities within international markets.