New York City relatively unaffected by the US housing meltdown

photo credit: WTL photos

The sub prime issue and the looming recession are continuing to ravage the real estate market all over the US. This fact has been indicated yet again in a new report released by the US government in April which states that new home sales fell in March 2008 to their lowest level in more than 16 years. The report states that the median price of a new home sold in March was $227,600 which reflects a drop of 13.3% from the same period for 2007. The last time that the median new home price fell this sharply was in July 1970 when it fell 14.6%.

However, New York City seems to be bucking this trend. According to another report released by The Real Estate Board of New York this week, the real estate market in New York City is still going great guns and the average sale price of a New York City home has in fact jumped 28% to $853000 in the first quarter of this year as compared to $669,000 in the first quarter of 2007. This increase has been attributed to the rising sales in Manhattan apartments, both condos and cooperatives, where the average price has climbed 41% to a record $1.6 million compared with $1.1.million in the first quarter of the previous year.

Stephen Spinola, the President of the Real Estate Board of New York went on to add that the sales in the several new luxury condo developments was adding to this price increase as well as it was feeding the pent up demand for housing in a city which has limited space and which has just recently witnessed the construction of many new condos. Moreover many of these condo developments are high end developments which target the wealthy, who are relatively unaffected by the slowing economy. He also stated that the real estate market in New York City was also being further buoyed by foreign investors who currently find the market extremely appealing due to the favorable exchange rate caused by the rapidly weakening American dollar.

Number of foreign real estate investors in New York City growing in leaps and bounds

Pam Liebman, CEO and Vice President, of the real estate firm, the Corcoran Group confirms that Europeans currently make up 30% of all buyers in certain areas of New York City like Midtown West and the financial district where many of the new condo developments are currently being built. She adds that these European buyers are a welcome addition to the city’s legendary diversity and glamour.

While native New Yorkers worry about the slowing economy and their dwindling 2008 bonuses, Europeans who are coming to New York City in droves on week-end shopping sprees, are now adding a new apartment to their shopping lists, which previously included more mundane products like premium jeans and Apple ipods.

Radar Logic, the data and analytics business that analyzes residential real estate in major US metropolitan areas like New York City, states that the number of foreign investors participating in the New York real estate market has doubled in the last two years.

A large number of these foreign buyers are from France, Italy and Britain and they are eager to invest their Pounds and Euros in Manhattan’s real estate market. This investment has been further facilitated by the spate of new condo construction taking place in New York City currently.

New condo construction has facilitated this buying spree as well

Brokers from New York City’s leading real estate firms like Halstead property, Coldwell Banker Hunt and, Brown Harris Stevens say that without these foreign buyers it would be difficult to sell these new condo developments which are now regularly coming up for sale on the market. Condo sales have risen dramatically in Manhattan and have shown an increase of 22% from 2005 to 2006 and 66% from 2006 to 2007 according to a report on Radar Logic.

Five years ago the scenario was very different as foreign buyers were unable to buy into New York City’s real estate market which was until then largely dominated by cooperatives whose boards have been traditionally averse to foreign buyers. These European buyers who seem to be snapping up these new condo developments are thus protecting the real estate market in New York City from the housing slowdown currently being witnessed in other parts of the US.

Foreign buyers prefer new condo developments

In addition, foreign buyers seem to favor new condo developments for their many amenities and their flexible rules which allow these units in these developments to be easily rented out so that they give returns immediately (unlike cooperatives that don’t allow their units to be rented out). The foreign buyers have until now have tended to concentrate on the new condo developments located in Manhattan only even if they were not located in traditional ‘residential’ areas. However, now these buyers are even venturing out to the outer boroughs of New York City like Brooklyn and Queens.

Foreign buyers close the deal fast

New York City’s Realtors welcome these foreign buyers, who tend not to spend too much time on making up their minds and are likely to close the deal fast, as they seem to treat an investment in a New York City property akin to an investment in a stock or a bond.

The weak dollar has thus created a win-win situation for all concerned, for the European buyer, it presents an opportunity to pick up an investment property in the greatest city of the world at a discounted price, and for the developers and realtors in New York City, it has given them a ready market for their constantly increasing stock of new condo developments.

Technorati Tags: New York property, New York real estate, US property, US real estate, real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

It sounds like an extreme scenario, but unless you want to face the future risk of losing your home, always check the finer details to make sure everything is in order before you commit to buy property.

When you’re buying a home abroad or an investment property, it’s easy to get carried away with the dream. But don’t forget to carry out all the necessary checks, or your dream could get shattered.

There have been several newsworthy cases in Spain recently, for example, where houses have been found to be built illegally and later deemed necessary to be removed - which is impossibly hard to accept when you have invested good money in your property and maybe even made it your home. Sadly, the latest country to face a similar situation is Bulgaria.

Bulgaria’s Directorate for National Construction Supervision (DNCS) has recently announced that 193 properties are to be demolished due to being illegally constructed. All the properties are located along the coastline, in the north (94 properties) and on the southern coast (99 properties), many of them beachfront restaurants and outlets.

The move comes after the Spatial Planning of the Bulgarian Black Sea Coastline Act came into force on 1^st January 2008. By law, anyone who had erected illegal buildings on the beaches needed to voluntarily demolish them within a month of the law coming into force. Unsurprisingly, not everyone was keen to do so, whilst others may unknowingly be living or working in buildings which they didn’t know had gone up illegally.

Since the end of February, two expert panels from the DNCS have been busy inspecting properties and have so far identified 193 that fail to meet the strict Bulgarian guidelines. The demolition squads have now arrived and started knocking down the illegal real estate.

Whilst it’s sad to see buildings being destroyed in this manner, it serves as a warning for all property buyers and investors to carefully check all details, or get a lawyer to do so on their behalf, before they purchase an investment property or home to ensure they don’t get caught out.

Technorati Tags: Bulgaria property, Bulgaria real estate, real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

photo credit: srbyug

While the real estate market in the UK has seen better times, there still is money to be made in the buying and selling of homes in the United Kingdom. Where can you make money you ask? Well, the luxury home real estate market looks to be a promising property investment in the UK in recent times. As luxury homes do cater to people who appreciate the “finer things” in life, buying and selling such a property is slightly different than the mainstream real estate market. Further, since these luxury investment properties are now more affordable, now may be the time to take advantage of some great investment opportunities.

Unless you have been sleeping under a rock, you are without a doubt aware that there is a slowdown in the UK real estate market.

That said, some luxury homes have sold for some pretty astounding prices this year. For instance, Off Plan Property reported just last month that the world’s most expensive property sold off plan in the prestigious St James region of London … for over 115 million pounds!

Even more recently, the Birmingham Post reported that a luxury concept home was sold off plan for approximately two million pounds near Lichfield - more specifically the house is located four miles from Lichfield and 15 miles from Birmingham. The house, itself, is an ultra modern one and it boasts of just over 4,375 square feet of living space.

Some of the impressive features in this house will include five bedrooms and five bathrooms, heated floors, an infinity pool, sliding panel windows, and an open fireplace.

The house is also eco friendly and will feature solar panels, heat exchange, geo-thermal heat pumps, and rainwater recovery. Further, all the timber used in the house will come from sustainable resources.

Why was this particular property investment so popular?

Apparently the uniqueness of the property and the attention to detail were the key selling points for this house.

“Once it is finished, I believe it will become a new landmark in the area,” said Miles Tydeman, a Lichfield selling agent - as told to the Birmingham News.

Further, this agent was also impressed that this property had very particular specifications. For instance, the fact that all of the teak wood should be from sustainable sources was one of the details that particularly impressed him.

What about luxury homes in general as a property investment?

Well, with prices lowering in the real estate market, now may well be the time to invest in luxury investment property.

Ben Stein, an actor, economist and lawyer, recently said the following about luxury real estate during a speech at a Luxury Real Estate Spring Retreat:

“Real estate is the only good which is both a consumption good and an investment good,” Stein noted. “Real estate is the best investment in the history of the world. Buy low and sell high, just like the stock market. Prices are low now, which means anybody who is smart will be investing now.”

All in all, if proper research is conducted beforehand (as it should be), the UK luxury real estate market looks to be like a promising property investment.

Technorati Tags: UK property, luxury property, luxury real estate, property investment, off plan property, UK real estate, investment opportunities

photo credit: cesargp

Life in Portugal’s favourite golfing region, the Algarve, is going up a notch, as the first ever six-star residential resort and hotel is launched. The Palacio da Quinta property development will be located in the exclusive Golden Triangle, next to the Quinta do Lago Estate, one of the world’s top 10 destinations. The Algarve is a beautiful coastal region in Portugal, which is already highly favoured by tourists, golfers, property investors and second home owners and boasts numerous golfing opportunities and a great climate.

The Palacio da Quinta development will be making the most of the benefits Portugal’s Algarve region already offers, but adding a whole new element of its own. Eighty luxurious apartments and penthouses will be set within 17 acres of lush sub-tropical gardens. Also on the property will be a six-star hotel and residents will be able to make use of a private chef and butler, 24-hour concierge service, chauffeur service, private jet and yacht quarter.

In addition, the resort will feature all the leisure amenities you’d expect, such as indoor and outdoor swimming pools, a health spa, gourmet restaurants, bars, designer boutiques, a tennis academy, cinema and golfing. Not surprisingly, property on such an exclusive development carries a luxury price tag, with one bedroom apartments starting at £800,000.

The developers behind the lavish property development are the Imocom group. Alejandro Martins, chairman, said, “The Palace is set to become one of the most sought after addresses in Europe, taking Algarve living to a whole new level of international opulence.”

The UK unveiling of Palacio da Quinta is taking place in London at 11-12 St James Square from 30^th April to 1^st May 2008, from 10am to 8pm. If you’re interested in attending, call 0800 085 6907 for further details.

Technorati Tags: Algarve real estate, Algarve property, Portugal real estate, Portugal property,   off plan property, property investment, luxury property

photo credit: Ү

A close neighbour of Dubai, Abu Dhabi is fast becoming another key property investment hotspot in the United Arab Emirates.

As the capital of the United Arab Emirates, (UAE) Abu Dhabi is the largest and richest of the seven emirates. About 95% of the UAE’s oil reserves are located here, so Abu Dhabi is a major producer of oil and has made much of its money from this. A major new airport costing in the region of £3.5 billion is currently being developed and the emirate has a blueprint for development in action, called Plan Abu Dhabi 2030.

But where Dubai has already grown and developed at a fast pace, with many lavish and extravagant real estate developments, the pace of growth in Abu Dhabi has been much steadier. In fact, the blueprint is helping them learn from the mistakes Dubai made and grow at a better pace. That said, there are many exciting new projects on the go.

One example is a stunning 7-star luxury business hotel, incorporating four towers of residential property (villas and townhouses), a commercial tower, private marina and canal promenade which is being designed by Gensler and built by developer Tameer Holdings. The Tameer Towers will be located on Reem Island, just off the coast of Abu Dhabi, and will be a very eye-catching development when completed.

If you’re interested in finding out more about the benefits of buying property in Abu Dhabi, then it may be worth tuning in to Real Estate TV on Sunday 27^th April at 10pm. They have a programme scheduled in their Next Best Thing series which is concentrating solely on Abu Dhabi. The channel is located on Sky channels 273 and 274, on demand on Virgin TV and online at Real Estate TV.

Technorati Tags: Abu Dhabi property, Abu Dhabi real estate, Dubai real estate, Dubai property, property investment, off plan property

Off-plan real estate developments usually involve a new build apartment block or rows of contemporary-style houses, but what if you could invest in homes planned for a listed building or classic structure, perhaps even a football ground?

When Arsenal Football club first announced it was to up sticks from the ageing Highbury Stadium and moved to a new home at nearby Ashburton Grove, questions were raised about what would happen to the 38,000-seater arena where the team had played home games since 1913. That same arena is now undergoing transformation into 711 apartment properties in a project called Highbury Square - one of the most innovative and ambitious property conversions London has ever seen.

Less than 10 per cent of the real estate development is still available to purchase off-plan as of April 2008, with prices starting at £345,000. Properties will include terraces and balconies, a 24-hour concierge service, plus a fitness centre and swimming pool.

Stands intact at Highbury Square

Remarkably, the original shells of the four massive stands have been preserved and are successfully being converted, with the stadium’s pitch becoming a stunning two-acre shared landscape garden for lucky residents to enjoy.

The East Stand was once, ironically, partially at the root of the club’s expansion problems as it is a listed building, but is now one of the most attractive sides of the development, which is expected to be fully complete this summer and sure to tempt more than gunners fans.

Buying something as unique as this could be seen as a way of not only getting your hands on an exciting property investment but also as a method of preserving the past and helping to support the character of the local area. And, of course, converting a large building into homes is sometimes far less costly than constructing it from the ground up. Imagine the cost of putting up four massive apartment buildings at Highbury from scratch.

Property conversions are common in London, thanks to the capital’s long-standing and increasingly chronic lack of space. Naturally, Highbury Stadium is not the only old building undergoing a residential revolution. Although already complete, the former Trebor Mints factory conversion in Katherine Road will give you an idea of what is becoming increasingly fashionable among developers and property investors alike.

A spectacular 1930s monolith, it is now 65 residential properties and office units with the addition of two extra new floors and a daylight-filled courtyard in the middle of the building. And the ‘Trebor Quality Sweets’ lettering on the exterior has even been restored to its former glory.

Live in a former gin business

Forced in part by space limitations, London continues to set the standard with similar property conversions. How about a new home in a former gin distillery? Although no alcohol appears to be included with any new property purchases at the simply named ‘Distillery’ project close to Canary Wharf.

Former home to Old Seager gin, this exciting property investment opportunity integrates part of the site’s listed architecture and remodelled warehouse to produce a mixed-use development. Its website quotes Ken Livingstone, current Mayor of London, as calling it ‘an exemplar of process and design in London.’

The building’s apartments will feature oak finishes, open studios and duplexes, plus a ’sky gallery’ in the building’s upper floor to create panoramic views. £225,000 is the starting price if you are interested in investing in one of these properties, with completion earmarked for 2010.

Monolithic Mills converted to apartments

Outside of London a northern mill or factory conversion seems a regular and apparently attractive bet. Leeds and Manchester, once at the hub of the industrial revolution, both boast their own financial districts, with Leeds’ banking haven the biggest area of its kind outside of the capital.

As such the textile mills that once housed the world’s first organised heavy industry are a potential goldmine for property developers keen to convert them into apartments for young professionals settling either side of the Pennines.

Elisabeth Mill, Houldsworth Village, Stockport, is being turned into 138 apartments by specialists Millshomes. The site is a grade II listed former cotton mill and currently in the second stage of a two-phase conversion. If Victoria Mill, phase one, is anything to go by, Elisabeth Mill will feature exposed brickwork, penthouses, high ceilings and uninterrupted views. £139,359 is a discounted starting price for these property investments, with all units done and dusted by August 2009.

Over in Leeds, the vast Bank Mills building, once empty, grim and redundant, is now the subject of a transformation into Roberts Wharf, by City Lofts. Additional new build properties are also being added here, to create 198 new Conran-designed loft apartments plus 13,000 sq ft of office space. Some of these properties are already completed and a few units are left off-plan, with £90,000 and up the asking price and full completion down for October this year.

Other property conversion innovations

The same property developer is behind Springfield Mill, Nottingham, in the east Midlands. Once the home of lace production, it is now a four-storey apartment development with 105 units. Work is underway already with June 2008 the finish date. Again, an element of Jasper Conran design is as standard.

Manor houses and hunting lodges prove popular candidates for more rural conversions. The Mulberry Green Collection, Essex, will feature seven apartments in a listed manor house, once gutted by fire but now set to be a luxurious set of homes starting at £299,950.Work on this project is set to get under way this year.

As the NHS continues a programme of selling off older sites, hospital conversions might also make future property investment opportunities. School conversions are also common. Victorian school buildings lend themselves well to homes with high ceilings and airy windows. Parts of Leicestershire and Nottinghamshire in the east Midlands are in the midst of an educational cash investment from the Government. The borough of Melton in the former and Bassetlaw in the latter are undergoing schemes that could see large school buildings up for grabs in the not-too-distant future.

Although rare gems, conversion properties off-plan could become more common as developers seek to minimise costs in the current economic climate - and what better way to preserve the past while laying down a future property investment?

Technorati Tags: property investment, apartments, building conversions, real estate, property UK, real estate UK, real estate investment, off plan property, off-plan property

photo credit: s_zeimke

The real estate boom in Dubai is by now a well-known phenomenon. This small Principality has become the commercial, financial, transportation, tourism and cultural dynamo of the Middle East. Investors in Dubai properties come from all over the world and Dubai has been transformed from a desert backwater, which at the turn of the 20^th Century relied upon fishing and goat-herding, into a world-class urban center.

Legal reforms set the stage-foreign freehold property ownership

There is no doubt that encouraging this real estate explosion has been the policy of Dubai’s government. Public policy decisions and legal reforms by Dubai’s crown prince, Sheikh Mohammed Al Marktoum, have, in important respects, set the stage for the property boom in Dubai. In May 2002, a decree was issued allowing foreigners to buy and own freehold property in selected areas of the city. The government announced its intent to further liberalize the property ownership laws, stimulating foreign investment. In March 2006, Dubai’s government issued a law permitting foreign ownership of properties in designated areas of Dubai.

The need for reforms to protect off-plan investors in Dubai properties

The Dubai property market kettle may have overheated, however and the Emirate has become increasingly concerned about its international reputation as a safe place to invest. Many real estate sales in Dubai are off-plan sales, and there was real concern that investor’s money - often that of foreign investors - might not be going where it was expected to go. Property investors had no guarantee that the installments they were remitting to the developer were being used to construct the particular development in which they were investing. There was also no assurance that a particular stage of construction would be reached before the next payment was due. A widely-publicized recent example of this unfortunate phenomenon was the Damac Properties Palm Springs fiasco that we have discussed on this blog. The time was ripe for the Dubai authorities to do something to win back the confidence of property investors and give them peace of mind. And they did.

Dubai’s Escrow (Trust) Account Law promises to restore confidence in real estate

In an effort to bolster international confidence in the Dubai property market, Dubai instituted its Escrow (Trust) Account Law (Law No. 8 of 2007). This law enacts major changes in the manner in which real estate development is managed in Dubai. What have been called the “freewheeling” days of Dubai real estate seem to have come to an end with the institution of this law, which puts very strict controls on how developers can use money paid to them by off-plan property purchasers.

The Escrow/Trust Law is administered by Dubai’s land department (DLD) and an agency called the Real Estate Regulatory Authority (RERA), has been established by the department to regulate activities relating to Dubai real estate, including the Escrow law itself. Under this law, all funds received by property developers have to be administered through an “escrow” or “trust” account, opened with a financial institution which is approved by the DLD. The developers must be registered, and the registration process requires that the developer satisfies a number of conditions before it can even open the trust account and begin selling property. These include the filing of architectural plans and a financial statement in compliance with the law, among other things.

The Dubai Escrow/Trust Law also has a provision that requires the developer to hold back five per cent of the total value of the trust account for one year in order to cover claims for defects arising from the construction of the project.

The law also provides for stiff fines and imprisonment for violations and provides for a developer’s registration to be cancelled under a number of circumstances.

Needed reform or skunk at the garden party?

So now everybody’s happy, right? Well, not quite. The new Escrow/Trust Law certainly could have the effect of throwing a fair amount of cold water on property development in Dubai. This isn’t a bad thing, of course, if the real estate market is overheated and speculation-driven. But there is certainly concern that the stringency of this new law, and the expense of complying with it, will cut down the number of players who are able to afford to participate in this market. Some legal experts are predicting that the new law will present problems for property developers who usually release payments in stages to contractors. Often such payments come from the money received from purchasers. There are predictions that the restrictions imposed by the new law could cause delays in projects, particularly because the shortages of labor, expertise and materials in Dubai often permit contractors to drive hard bargains.

Nevertheless, the predominant view expressed in the Middle Eastern news media is that the Escrow Law is a badly needed reform that will solidify Dubai’s place as a venue for international real estate investment.

Thailand’s Escrow Law

Thailand is another country with an exciting real estate market has passed, but not yet implemented, an Escrow Law. The same concerns about protecting the investor and preserving the reputation of the country as a place for investment motivated the passage of Thailand’s law and many of these same concerns about the effects of the new law are being raised there. Some lament that the increased costs imposed by Thailand’s new law will seriously reduce the number of participants in that burgeoning real estate market.

All things considered, I see these laws as positive developments, however. It would seem that there is nothing more important to an emerging property market than its reputation for investment safety. These Escrow Laws may have some undesirable consequences, but they put first things first. It will be interesting to watch how things play out in both Dubai and Thailand.

Technorati Tags: Dubai Escrow Law, Dubai property, Dubai real estate, real estate, real-estate, off plan property, off plan, property investment, real estate investment, overseas property

 
photo credit: reidmix

The global credit crunch and the subprime mess is finally beginning to have an impact on the Real Estate Industry in India, which until now has been experiencing an unprecedented boom due to the explosion of the pent up demand for housing in India. Easy availability of credit, along with the booming Indian economy and the stock exchange as well as the influx of overseas funds in recent times had led to a situation in which demand had easily outstripped supply, and this situation was further aggravated by the scarcity of developed land. In such a situation, developers ruled the roost and were able to command whatever prices they wanted, as there seemed to be ready buyers at every price band. This has led to sky-high seemingly unaffordable property prices in many areas of the country.

In November 2007, Citibank sold an apartment in the posh NCPA building located in South Mumbai’s Nariman Point area to a London-based non-resident Indian for a cool Rs.34 crore ($8.5 million) which works out to a rate of over Rs. 97,000($2431) a sq foot. This deal had set the property market in South Mumbai on fire as developers subsequently pushed up prices of off plan luxury developments in South Mumbai to hold out for prices which ranged from Rs.40,000($1002)- Rs one lakh ($2505)a square foot.

Investor sentiment affected

At these rates, the property prices per square foot in South Mumbai are equal to if not higher than the prices in prime areas of New York City like the Upper East side, where new luxury developments like the Georgica and the Brompton are currently retailing at $1400-$1500 a square foot. However the scenario has changed somewhat in the past four months as the market sentiment has been badly affected following the massive drop in the Bombay Stock Exchange in January 2008. The Stock Market continues to be volatile until today and the pervading market sentiment has also affected the relatively insulated sector of ultra-luxury developments. Projects like Orbit Arya at the tony Nepeansea Road in South Mumbai where apartments are priced at Rs.62,000($1531)per square foot have not recorded a single sale in recent months.

Liquidity Crunch

The Stock Market volatility has not only affected the sentiment but it also affected the availability of liquidity as well. It was this liquidity crunch in the market that led Dubai-based Indian development group Emaar MGF to withdraw its planned IPO in February 2008. The group had initially proposed to mop up Rs.6500 crores ($1.3 billion) with their issue at which shares were initially offered at Rs. 610-690 ($15-$17) but these prices were then twice revised down to Rs.530-630 ($13-$15). However the group then decided to cancel their IPO in order to wait for a time when investor confidence was restored in the market. Recent rumors in the market have indicated a further cash strain at the company as it was recently forced to roll over its short term borrowings from mutual funds.

It is not only Emaar MGF which has been affected by these adverse market conditions but many small developers and medium builders who had hoped to mop up liquidity in a booming IPO market in order to pay for their expensive plots have now been forced to borrow funds from aggressive non banking finance companies at untenable high interest rates in order to remain viable, as banks have seemingly shut their doors to builders. Large developers like Omaxe and DLF who had managed to raise funds through successful IPO’s in 2007 have deeper pockets and are relatively unaffected until today.

Rise in the prices of materials

To further add to the developer’s woes, the prices of steel and cement have also increased greatly during the last year. This has led to a huge increase in cost of construction, as a result of which developers in cities like Pune have decided to increase the per-square foot charge for residential properties by between Rs.50 ($1.25) and Rs 400($10.0251) from the end of April in order to cope with the increased costs of materials and the heavy taxation that has been imposed on them by the Pune Municipal Corporation.

The Promoters and Builders Association of Pune (PBAP) has also appealed to the Central Government to intervene and curb the rises in prices of cement and steel. The developers feel that the high prices of these commodities have given them no choice but to increase the price of their properties. However they also fear that at such high prices soon, nobody will want to buy a flat in Pune, as there is a growing resentment amongst the middle class and this will lead to a slump in the real estate sector. This sentiment has been echoed in a recent report conducted by the Macquire Research that predicts that cities like Gurgaon, Noida and Pune prices in the coming here are expected to fall by 5-15% as these markets are overheated and supply has outstripped demand.

Builders trying to drum up sales with freebies

In the suburbs of Mumbai medium sized developers like Mantri, Lok, and Nahar have started offering discounts and sweeteners ranging from stamp duty relief, free modular kitchens, free interiors free top of the line laptops and free parking to attract reticent buyers to their already launched projects. This scenario is also been replicated in Delhi and in Bangalore as well. In Bangalore, the marketing arm of the Magnolia group called Orange Properties has for the last six months been offering fantastic discounts to attract buyers.

Some of their recent offers promised a Maruti SX4 car free with every 1500 sq ft booked at one of their projects located in Bannerghatta in Bangalore. These apartments are priced at approximately Rs.42 Lakhs ($105,000) and a Maruti SX4 retails currently for 6-8 lakh ($15000-$20,000) so the offer represents a substantial discount. The group had also previously offered an Audio A4 worth 30 lakhs ($75000) to every buyer of a villa at their Magnolia Brooksville project and a ½ kg of gold for buyers of flats at their Hinduja Lake Front Estate project.

Real estate analysts believe that these discounts are just the first step towards a more visible price correction, so if you have been feeling priced out of the Indian real estate market and you have a fairly long investment horizon, you might want to keep an eye on the developments in the Indian Real Estate sector for the next few months which may offer you the chance to buy a property at a discounted price in a premier city.

Technorati Tags: India property, India real estate, real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

photo credit: pfala

With the exchange rates fluctuating, markets changing and scare stories in the press, it’s understandable that you may be wary of property investment abroad. But according to currency brokers HiFX, changing exchange rates needn’t be a negative factor and can be used as a useful negotiation tool to get real estate prices down - if you know how.

1. Use the exchange rate to negotiate hard on your property deals

“Most buyers work to a budget and changes in the Euro/Sterling exchange rate have led to people reviewing what properties they can afford,” says Mark Bodega, from HiFX. “Rather than assuming that because costs have gone up preferred properties are out of reach, buyers should remember that a drop in demand will mean vendors are also feeling the pinch.” This means that buyers are in a good position and can have a go at negotiating property prices.

2. Fix the exchange rate before you pay for your property investment

It’s also worth trying to arrange a forward contract, where you fix the price of the property by fixing the exchange rate. A forward contract means that you buy the currency now and pay for it later.

“We always remind clients that they’d never agree to buy a property in the UK without knowing the final cost. But if you agree to buy an overseas property without fixing the exchange rate at the start, that’s exactly the gamble you’re taking,” says Mark.

3. Get the foreign exchange experts in to help you

If you want to get the best deal on currency exchange for your next property investment, then shop around. High street banks don’t always offer the best deal on foreign exchange, plus there are often extra charges and commission fees to pay, so it’s worth exploring the options available from specialised brokers.

4. Sort out ongoing payments in advance

Don’t forget that if you’re investing in property with the intention of moving abroad, you’re likely to need regular currency transfers. For example you may need currency for making overseas mortgage payments on your property, paying school fees or for pension transfers. By arranging a Regular Payments Abroad Service in advance, the exchange rate can be fixed for up to two years, which may well save you money in the long run.

Technorati Tags: foreign exchange, exchange rates, real estate, real-estate, property investment, real estate investment, overseas property

photo credit: ndrwfgg

New figures released in Turkey have highlighted the most popular areas where foreign nationals buy property - and top of the list is Muğla.

The figures, published by the Land Registry General Directorate in Turkey and reported in newspapers such as the Turkish Daily News, show that 73,000 foreigners now own properties in the country, equating to 38.42 million square metres. The province of Muğla, which is home to towns such as Bodrum, was revealed to be the most popular place for British buyers to purchase property, closely followed by Antalya and Aydin.

The province of Muğla has 12,865 foreign owners of land and property and 10,039 of these are from the UK. In fact, the total amount of land owned by Britons here is a massive 2.66 million square metres. The other major groups of foreigners buying in Muğla are from Germany, Denmark, Ireland and America.

Other than Brits, Turkey is favoured by German buyers and, in particular, they seem to make a beeline for Antalya. In Antalya 6,424 Germans own 4,890 units of property, which amasses to 1.25 million square metres. Britons seem to like Antalya too, as they own 777,786 square metres of property in the city.

Interestingly, the report showed that there are still many areas of Turkey where no foreign nationals own any property or land. This includes the cities of Agri, Bitlis, Hakkari, Mus, Sirnak, Ardahan and Igdir.

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