Foreclosure rates in an area of one US state are up 40 per cent and show no signs of slowing due to lending patterns. Tennessee’s Memphis Daily News reports the April number of foreclosed homes in Shelby county is up by 40.1 per cent compared with the same month last year.

Analysts used information from real estate company Chandler Reports and found 608 homes were foreclosed last month, even higher than a total of 545 from March. Quoted by the publication, executive director of the Frayser Community Development Corp Steve Lockwood said:

“Conventional wisdom is that it’s going to be tough for another year and a half, just because of the lending patterns.”

Foreclosed home auctions in other states have seen starting bids as low as $1,000 as real estate investors and first-time buyers attempt to snap up cut-priced properties.

The majority of the high Memphis number involved single-family homes.

Earlier this month the Memphis Area Association Realtors (MAAR) reported home sales in the area have dropped by 17.3 percent compared to the same time last year.

MAAR President John Snyder said: “While market activity remains brisk, elevated inventory and higher levels of foreclosures will continue to put pressure on pricing in the near-term.

“Buyers continue to have excellent opportunities in today’s market and should take advantage of these conditions while they can.”

MAAR has more than 5,000 members and is Tennessee’s largest Realtor organisation.

photo credit: robertpaulyoung

One of the world’s biggest shopping centres is nearing completion and is expected to attract even further real estate investment in a development hot spot. The Dubai Mall is to finally open in August and will feature an area of around 1.1 million square metres and around 1,200 shops.

Developers Emaar Malls said the ambitious site would become the

“premier lifestyle destination of choice”

when it opens its doors to the public. Retail outlets at the massive installation are in the process of being fitted out and organsier are hoping for 30 million visitors in its first year.

Chairman of Emaar Mohamed Ali Alabbar said:

“Business growth is about seizing the right opportunity at the right time. With The Dubai Mall, we are creating a unique combination of several niche malls. The mall will include two anchor department stores and 120 food beverage outlets, with the total space covering the equivalent of 50 football pitches.

Jim Badour, Emaar CEO said:

“The Dubai Mall will revolutionise the modern shopping experience by introducing several new and innovative leisure and entertainment concepts to the region.

“We are creating a new lifestyle destination that will energise the retail, tourism and consumer audiences.”

Emaar’s ambitious plan is to become one of the world’s most valuable companies by 2010, and has more than $4 billion worth of investments in malls. When complete, it is hoped the latest venture will further boost the area’s already booming real estate investment industry.

UK Property investors are focussing their interests on lettings as the sales market falters, a new reports says. Statistics from the Royal Institute of Chartered Surveyors (RICS) shows owners are turning back to renting properties that have failed to sell.

Many appear to be taking advantage of rising rental yields while they wait for the effect of the credit crunch to abate. RICS spokesperson James Scott-Lee said:

“The sales market’s loss is the lettings market’s gain.

“Some would-be sellers are retreating from selling and letting or re-letting their properties as they wait for mortgage lenders to offer buyers more favourable lending criteria.”

He added rent rates are rising and called the lettings market

“increasingly lucrative”.

A total of 28 per cent more chartered surveyors reported a rise rather than a fall in tenant lettings, up from 17 percent in the last quarter. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries.

The organisation’s latest figures could show a way out for some property investors who have failed to sell on homes. As the housing market continues to fall, more and more would-be first-time buyers are likely to be heading into rented property, presenting a promising potential income boost for some investors.