Tag Archives: investment
Prime property market in Gibraltar offers value for money on global stage
After several years of strong growth Gibraltar, a British overseas territory on the southern tip of Spain, is seen as offering good value for prime property, according to a new report. Indeed, prime property prices have increased by 15% from 2013 to 2015 with demand driven by Gibraltarian, UK and other international buyers, says the new analysis from international real estate firm Savills. It points out that Gibraltar is among an elite and small club of territories within Europe with special and unique governance, independence and tax status. A self-governing territory with a population of 32,000, bordering a much larger neighbour, it draws parallels with Monaco. Hybrid centres of business and leisure and located in the Mediterranean, both have the characteristics of ‘city’ and ‘resort’ and each has developed an international professional services sector and are centres of commerce in their own right. Prices in these territories appreciated at a time when other national markets in neighbouring countries have been languishing. Comparisons with Monaco only go so far, the report explains. Gibraltar has its own unique characteristics, history, culture, and has developed on its own path. Emerging later on the global stage, Gibraltar’s prime property market still offers value when compared to rival jurisdictions, the report says. It explains that diversification in Gibraltar’s economy has supported economic growth, generated wealth in the local economy and spurred a wave of new development. ‘Entirely new market tiers have opened up to attract the global wealthy. The hybrid nature of Gibraltar as a conurbation, destination and recreation location diversifies risk while maximising the market for property. This comes at a time when the prime markets of many world cities are at a high plateau,’ the report says. It points out that as Monaco and Hong Kong are becoming the preserve of only the super-rich, Gibraltar has the potential to fill a gap in the Mediterranean for high net worth individuals at various levels. ‘While it may not yet have the cachet of Monaco, proposed new developments, the right investment and infrastructure could propel Gibraltar onto the circuit of the global wealthy Gibraltar offers certain tax advantages for those wealthy individuals who make it their primary home. The territory levies no inheritance tax, wealth tax or capital gains tax,’ the report explains. Gibraltar’s prime markets are dominated by two nationalities: those from the UK, and those from Gibraltar, who have accounted for 39% and 34% of buyers in the last three years, respectively. The remaining 26% come from across the European Union and the rest of the world, and include Swiss, Germans, Russians and Australians. It describes Gibraltar as a place to relocate to, not as a second home market. Some 79% of the prime market is for main residences, while there is also an active investment market, accounting for 20% of sales. Investors favour smaller apartments, the average size being 81 square meter with an average price of £436,000, compared to 120 square meters… Continue reading
Property prices in England and Wales up over 7% year on year
Residential property prices in England and Wales increased by 2.5% in January and are not 7.1% higher than a year ago, the latest index shows. This takes the average house price in England and Wales to £191,812 but the average price in London is much higher at £530,409, according to the data from the Land Registry. The house price index also shows that the number of property transactions has decreased over the last year. From August 2014 to November 2014 there was an average of 81,656 sales per month. In the same months a year later the figure was 78,652. The January data for London shows a monthly increase of 2.8% and year on year growth of 13.9% the North East saw the smallest annual price increase of 0.2% while Wales recorded the greatest monthly price rise of 3.7% and the North East also saw the most significant monthly price decrease with a fall of 1.6%. Within London the borough with the highest annual price rise was Hillingdon with a ise of 15.5% and Hillingdon also experienced the highest monthly price increase at 2.4%. Camden saw the smallest annual increase of 3% and Camden and Islington both recorded the only monthly fall, each seeing prices down by 0.4%. The number of properties sold in England and Wales for over £1 million in November 2015 increased by 14% to 1,091 from 953 in November 2014. The number of properties sold in London for over £1 million in November 2015 increased by 9% to 657 from 601 in November 2014. In the months August 2015 to November 2015, repossession volumes averaged 409 per month. This is a fall compared to the same period a year earlier, when volumes averaged 801 per month and the report says that repossession volumes appear to be exhibiting a downward trend. The region with the greatest fall in repossession sales was the South West with a decrease of 78% from November 2014. All regions experienced a decrease in the number of repossession sales in November when compared with the same period a year earlier. Continue reading
UK would be less attractive to property investor if it left the EU, new poll suggests
Property investors have warned that the UK would be a less attractive place to invest were it to leave the European Union, according to findings of a new survey. The survey of investor clients by global property advisor CBRE reveals that sentiment has hardened against leaving the EU in the three years that the poll has been taken. This year’s results show a reduction in those who think exiting the EU would make no difference to investment from 33% in 2014 to 21%. The proportion of respondents who think the UK would be a slightly worse place to invest has risen from 32% in 2014 to 46% in the latest poll, bringing the total that think the UK would be a worse place to invest to 73%, up from 69% last year. The UK will hold a referendum on whether to remain in the EU on 23 June and CBRE believes investors and occupiers are likely to behave during the referendum campaign in the same way as they did in Scotland during its 2014 independence referendum by delaying decisions until after the vote. However, after Scotland voted to stay in the UK there was a ‘catch up’ effect and CBRE expects the same for the UK, assuming that it decides to remain in the EU. ‘Property investors have, over the past three years, become increasingly gloomy about the impact of the UK leaving the EU. The UK has experienced record property investment in the last few years and the property investors we surveyed fear that a Brexit would adversely affect the attractiveness of the UK as an inward investment destination,’ said Miles Gibson, head of UK research at CBRE. ‘David Cameron’s reforms are likely to be useful, but not decisive, in affecting public sentiment. The most important concession that the Prime Minister has secured is to ensure that non-Eurozone countries are not discriminated against within the EU’s single market. This aims to ensure that key parts of the UK economy, particularly financial services, can continue to operate from the UK rather than having to move to the Eurozone,’ he added. The report shows that the majority of experts feel that the UK would suffer economically from exit, but estimates of the impact on growth vary substantially. The majority view is that the UK property market would suffer an adverse ‘demand shock’ were it to vote to leave the EU. Finally, the report argues that reductions in labour availability arising from migration controls will vary substantially because some sectors are more dependent on migrant labour than other. The food and hospitality sectors, for example, could be very exposed to labour market restrictions. The financial services sector is also exposed because of the potential change in the regulatory environment, and in terms of trade with the EU. Continue reading
