Spanish property market picking up

Recent research into the Spanish property market indicates that it will recover before the economy which is the reverse of what usually happens. Developers in the country are increasingly optimistic with Taylor Wimpey de Espana reporting an increase of 25% in the number of properties sold in 2010 when compared to 2009. This has resulted in most of the stock being sold.

Customer enquiries increased by 27% in the third quarter of 2010 and primarily came from people looking for retirement and holiday homes. This increase in sales and interest has prompted Taylor Wimpey to start development in three new sites in Spain where 30% of the properties have been sold off plan already.

Spain will always remain a hugely popular country for British holidaymakers and those looking to retire there or to purchase second homes, and although the downturn did affect demand homes in sought after locations are continuing to sell well. These include homes in the Costa del Sol and Marbella. Although the Spanish government has reported a glut of homes for sale in less popular regions some Spanish property developers are refuting these numbers. Official reports say there are about 1 million unsold properties whereas the developers say there are just 350,000 unsold homes.

It remains to be seen which reports are true and many believe that rental yields here will continue to fall before picking up later on in the year. But if the property market here is beginning to turn around and then investors might wish to begin researching seriously now before the traditional upturn in house sales in the spring.

Slovakia property market bottomed out

As Slovakia continues to recover from the economic downturn house prices appear to have bottomed out, and are down 15.8% from their peak prices. Property increased in value here from 2006 to 2008 with rises averaging from 14% to 35% annually. Although prices appear to have bottomed out consumer demand is still weak and may be affected by rising unemployment levels.

During the downturn in the economy contracted by 4.7% but is now recovering as it grew by 3.8% during the third quarter in 2010. Interest rates in Slovakia are quite favourable as they declined throughout 2010; however the banks remain cautious about lending. A new government was elected in June 2010 and is expected to be good news for the economy as it has promised to return the country to the high growth rates it previously enjoyed and has also pledged to reduce the budget deficit.

At its highest point the economy grew by 10.58% in 2007 and is estimated to have grown by 4.1% in 2010. While analysts believe the outlook for Slovakia is good they do not think that property prices here will increase rapidly, but that the growth will be slow and sustainable. Rental yields on property here are also quite low as although the system used to be rent-controlled it was abolished in 2005 but the decree was never implemented. It remains to be seen if the new government is willing to tackle such a sensitive issue.

Slovakia was formerly part of Czechoslovakia and is considered a very stable and liberal economy having undergone eight years of reforms under the centre right coalition which was led by Mikulas Dzurinda. These reforms earned it international praise and undoubtedly helped smooth its entry into NATO and the EU.

Vietnam appealing to foreign investors

Vietnam is becoming more appealing to foreign investors and was recently ranked fourth in the world of emerging global real estate markets by the Association of Foreign Investors in Real Estate. This influential group collectively holds more than $627 billion of property throughout the world. While Brazil, China and India were still in the top three places Vietnam was a surprise fourth having previously been unranked in 2010.

Much of the increased appeal is thought to be due to the rapid growth of the property market and Vietnams open door policy to foreign investors. The second largest tower in Asia is due to be built this year in the capital of Hanoi and will cost $1.2 billion, and new construction is beginning to take place throughout the country. Vietnam has enjoyed strong economic growth and aims to become an industrialised country within the next 10 years.

However the governing Communist Party realises the need to restructure the economy and to speed up the growth which started some 25 years ago. Some of these state owned enterprises have grown too fast and are suffering from poor infrastructure and an unskilled workforce which is something that has been recognised by the governing party and which they are determined to address.

These factors look unlikely to deter foreign investors who view the economy as having recovered well from the global recession. Urban centres are likely to increase and to attract overseas companies which will aid the current rapid growth of middle-class citizens who are most likely to want to spend their new found wealth on new homes.

Property prices in the Philippines recover

Property prices in the Philippines are recovering due to overseas workers sending money home to buy houses. Prices had dropped since the economic downturn leading many to see an opportunity for a bargain; this has caught many industry specialists unawares as no one expected such a fast rebound. While property sales in 2008 and 2009 totalled P100 billion, this figure is expected to triple this year as rising demand increases prices.

About 10% of the population work abroad and the money they send home is equal to more than 10% of the annual GDP. This percentage is set to increase as more and more Filipinos are securing higher paid jobs in the media, engineering and medicine. The money they earn abroad can secure them a middle-class lifestyle at home, but the salaries in the Philippines are currently much lower than those that can be earned by working abroad.

How much longer this will continue remains to be seen as the demand for luxury homes in the Philippines is increasing as the Asian Pacific economy continues to boom. One of the top places to buy homes in the Philippines is Makati as many multinational corporations based here leading to strong rental returns. The close proximity of all amenities combined with safe neighbourhoods has made this area extremely popular.

The economy here is thought to have grown by 7% in 2010, with last year's peaceful elections boosting investor confidence. The sound economic platform combined with low interest rates and an expected ratings upgrade by the international agencies is beginning to attract a lot of foreign investment.

Brazil Property has Bright Future

Brazil is an emerging market and has proven to be a hot spot for property investors in the last year or so. In 2010 Brazil had a tremendous year economically as well as in the real estate sector, though some predict that things will slow down in 2011.

Recent figures show that perhaps Brazil’s property market hit its peak, but the potential still exists for further growth. From September to October 2010, the average home price fell 3.53 percent and there were 25.6 fewer houses sold.

These statistics do not surprise experts, as Brazil has experienced such a rapid increase. At some point, the market growth hits its peak and a slowing down will occur.

The real estate organization EMBRAES reports that since 2008, the average value of a one, two, three, and four bedroom apartments in Sao Paulo is worth more than 50 percent more now when compared to the previous two years.

Some say that the slowing of the market is simply a sign that the market is returning to normal after a surge of real estate over the last couple of years. The supply and demand are closer now and experts think that the market is where it ought to be now.

Overseas investors have been very interested in Brazilian property and they are expected to continue to invest in the market. With low unemployment, income growth, and a strong economy, property investors see the potential of a high return yield in the years to come as property prices increase.

Additionally, the Olympic Games and FIFA football World Cup are planned to be held in Brazil this year which will boost confidence in the area as well.

Housing Market in Bangkok Still Expected to Grow

The housing market in Bangkok experienced rapidly rising prices during the first half of last year which were mainly attributed to Government incentives which came to an end last March. Prices increased in spite of political unrest in April and May which did not cause panic selling although it did delay some projects. Many new housing developments were begun last year, and although prices are expected to continue increasing they will not rise as rapidly as last year. Surveys have shown that that there is not an oversupply in the Bangkok condominium market and that property investment is can be expected to give an average total yield of 11.5 % per year.

New regulations brought in this month prohibit banks from lending more than 90% of the value on new condominiums costing less than 10,000 baht. These measures were brought in to deter property speculators who were finding the terms just too attractive to resist. Condominiums in the city have an average 21% vacancy rate, although investors should do their research thoroughly as some areas are showing much higher occupancy rates. Ramkhamhaeng has an occupancy rate of 91% and gives a total yield of 11.7%. Occupancy in Ratchada-Lat Phrao is 86% and gives a total yield of 11.9%.

The most popular properties are one-bedroom units with the market for larger units being slower. These larger units may offer some appeal to investors as developers have been offering extra incentives such as furniture packages and guaranteed yields. Demand has remained high enough to deter developers from offering discounts.

Stability Expected in Las Vegas Property Market in 2011

Economists and executives in the Las Vegas area have predicted that the property market in 2011 will be about the same as it was in 2010 but anticipate a rebound in 2012. Las Vegas is a sought after destination for retirees and home prices are affordable right now, bringing in overseas investors as well.

The rather high unemployment rate of 14 percent as well as a rather weak economy has kept the property market from significant growth the past couple of years, but analysts have confidence that within the next couple of years the economy will improve and more jobs will be available.

The market is doing better than it has in the past couple of years. In 2008 there was a 33 percent drop and in 2009 there was a 22 percent drop. Last year, in 2010, there was a 3 percent drop, which means that the property market is growing stronger.

Chief economist Lawrence Yun of the National Association of Realtors states that the economy is slowly improving across the nation and more jobs are out there. He believes that Las Vegas will benefit from such factors.

Yun also stated that he believes that the amount of foreclosures will remain about the same. The abundance of foreclosures have brought in a good number of real estate investors, especially foreign ones, who are buying approximately 40 to 50 percent of the homes in the area. Las Vegas has international appeal with an abundance of leisure activities that draw in tourists from all around the world.