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Positive outlook for overseas buyers in the Caribbean and Central American
Property sectors in the Caribbean and Central America are set to grow in 2015 with the quality of life, good value for money and stability attracting more people to these regions, it is claimed. According to an analysis by 7th Heaven Properties the Caribbean region has reinforced its appeal to property buyers and investors, particularly in the face of social, economic and political volatility in other regions. ‘Many investment locations such as the Turks and Caicos, the Bahamas and the Cayman Islands experienced strong growth last year and we expect 2015 to be the year that the Caribbean real estate market as a whole turns a corner,’ said Walter Zephirin, managing director of London based 7th Heaven Properties. ‘A growth in enquiries from prospective buyers indicates a renewed confidence in the region and sales levels on many islands are returning to pre-crisis levels,’ he explained. He pointed out that locations across the Caribbean and Central America are benefiting from an upturn in the US, Canada and the UK, resulting in an increase in visitor arrivals, tourist spend and property sales. ‘A growing pipeline of new projects, significant infrastructure investments and a thawing in relations between the USA and Cuba are also expected to provide an additional boost to the region,’ he added. The firm believes that a positive economic outlook for the Caribbean and Central America region, with GDP forecast to grow 5.8% in Panama and 4.8% in the Dominican Republic in 2015, will attract property investors. There has been a series of announcements relating to new luxury residential developments in multiple locations, including Antigua, Costa Rica, Honduras and Panama and of government programmes to incentivise property buyers, including Citizenship by Investment in Antigua and Barbuda, Grenada and St Kitts and Nevis as well as retirement programmes in Belize and Panama. On top of this there has been an increase in direct flights to destinations including Costa Rica, the Bahamas, the Dominican Republic and St Lucia improving access for tourists and property buyers as well as recent and on-going investments in private jet terminals and airport upgrades. Royal Westmoreland, a gated community and golf estate on the west coast of Barbados has just launched a fractional ownership option in response to feedback from regular rental guests who said they simply don’t have the holiday time to commit to full ownership. Kim Goddard, head of sales at Royal Westmoreland, said that the fractional ownership program allows for purchasers to own just the time they intend to stay at the resort. The property is held freehold/deeded in a third party trust in the Isle of Man, governed under UK commonwealth property law, and ownership shares in the villas are fully transferable, and sellable. ‘We often find that potential purchasers might have the means to buy full ownership but are constrained by the amount of holiday time they have to utilise their home at this point in time. So for them this is a savvy way of… Continue reading
Research reveals lack of knowledge of planning issues in the UK
Uncertainty over planning grey areas is fuelling the housing crisis in the UK with 60% unable to correctly define the Green Belt and a third believe building on green field is prohibited in all cases. The research from planning consultancy Iceni Projects, also reveals that nearly 90% of the population have no knowledge of, or do not understand, the National Planning Policy Framework (NPPF). Iceni is calling on the property industry and government to raise awareness of planning legislation and housing policies after new research shows a mammoth lack of knowledge amongst the general population on key planning issues. ‘Our research shows that there is a fundamental lack of understanding on key issues of planning policy, such as a misunderstanding that Green Belt must always be green,’ said Andrew Gale, director at Iceni Projects. ‘In addition, three quarters of respondents know little or nothing about housing policy in their local area. This is having a major impact on the industry’s ability to delivery much-needed housing and commercial space,’ he explained. Iceni’s survey found that over half the population oppose building on Green Belt, even though a significant group, 60%, do not even know what Green Belt is. ‘It is a grey area across communities in the UK, and we believe these serious misconceptions are a barrier to investment and growth. If the industry is to make any headway in narrowing the housing gap and delivering the facilities required to keep the UK a competitive economy, we need to take urgent action to educate and inform the public,’ said Gale. ‘We are therefore urging the government and industry to follow suit and ensure important decisions on new developments are made on the basis of a clear understanding of planning terminology,’ he added. The firm says that action is clearly wanted by the public with 68% of respondents supporting steps to make it easier for people to get involved in the planning process and 77% saying they do not know how to get involved in the planning process. The research also found that 60% of the population believe the Green Belt is not built on, where in reality much of the Green Belt already has buildings on it and there is huge confusion over whether the Green Belt is green with a 30% saying it is a type of green field, where in fact the Green Belt is not necessarily even ‘green’. Some 86% of respondents do not know how much of the UK’s surface is urban, with 58% overestimating and 27% saying they do not know, when in fact only 7% is urban, according to data from the UK National Ecosystem Assessment, 2012. Continue reading
Rental market expected to be stronger than sales in some parts of London
This year is expected to bring fewer sales and more letting transactions, with strong rental markets across London’s Midtown, City and Docklands, a new report suggests. There will be a two tier sales market with demand for properties up to £1 million continuing to attract buyers and a slower market at prices over £1 million, according to the latest report from property advisors and development consultants Hurford Salvi Carr. However, as the market slowed in 2014, two segments of the market bucked the trend, it reveals. ‘Demand for entry level one bed apartments continued to outstrip supply so that it will be no easier to buy a pied a terre in Central London in 2015 than it was in 2014,’ the report says. The other segment to buck the trend was Docklands, where demand strengthened, as buyers looked to East London, to deliver value for money, although plentiful supply kept a lid on price increases. Over the whole year, property prices rose by an average of 4% in 2014 in City, Midtown and Docklands. Strong demand from UK buy to let investors is expected in 2015 with a concentration on sub £750,000 levels where returns are most attractive. The firm also says that buyers from the UK dominated the residential markets in 2014, accounting for almost 70% of sales, in comparison to 54% in the first half of 2013 and 61% in 2013. Other European buyers also increased their share by a small margin but the big shift was in the proportion of Asian nationals, which dropped from 17% of sales in 2013 to 7% in 2014. Almost 70% of tenants who rented homes through Hurford Salvi Carr in 2014 were overseas nationals. Overall the split was 32% British, 31% other European and 37% from elsewhere in the world with Asians being the most dominant group within that. The Docklands attracted the highest proportion of British tenants at 43%, whereas Midtown attracted more Asian tenants and the City attracted more American tenants. The most common occupation for a tenant is in the financial sector, closely followed by students. The financial sector was more prevalent in the City and Docklands, where it made up over 30%, while students were by far the most common group in Midtown, where they accounted for 62% of all lettings. The relatively high proportion of Asian tenants in Midtown reflects the demand from overseas students at top universities such as UCL, King’s College and LSE. Continue reading
