Tag Archives: real estate
First time buyers and university accommodation boosting Welsh property market
First time buyers and parents investing in property for their offspring going to university are among the factors boosting the residential housing market in Wales, a new report suggests. Across Wales first time buyer numbers are up, particularly in the new build markets in Cardiff and Newport, according to the latest spotlight report from real estate firm Savills which covers the South of Wales. Savills deal book data for South Wales shows 49% of buyers were aged under 40 in 2014 and other sources confirm the trend, with the Council of Mortgage Lenders (CML) data for Wales covering the final quarter of 2014 showing a 14% year on year increase in loans to first time buyers compared to a 4% rise in home mover loans over the same period. Official data also shows that the Help to Buy Wales scheme has assisted almost 1,400 completions since it was launched in January 2014 of which 74% were sales to first time buyers. Indeed, the average age of buyers in the scheme is 30, with an average sale price of £178,000. Some £48.7 million of the available £170 million funding has been spent so far, and a Government announcement on the possible extension of the scheme beyond the scheduled March 2016 closing date is expected later this year. The report explains that along with the boost provided by Help to Buy, the wider economic recovery has led to an improvement in market sentiment, with potential buyers more confident and finding mortgage availability much improved. ‘Help to Buy can also be credited with opening up the idea of purchasing a new build for younger buyers who may not have considered it previously,’ the report added. According to the report flats are the most popular new build product in Cardiff, due to first time buyers and downsizers both being key markets. In Cardiff flats make up over 70% of the new property sales recorded by the Land Registry in the year to February 2015 compared to 15% across Wales as a whole. Even in the cities of Swansea and Newport less than a quarter of new homes are flats, reflecting the unique nature of Cardiff’s market. The report also says that in Cardiff it is the city’s universities that are a key driver of activity, with parents buying property for their student children. ‘Good yields and strong demand for rental property around the university sites mean that these are often kept as investments following graduation,’ the report says. It also points out that Cardiff is expected to have the fastest growing population in Wales, according to the official projections, adding over 20,000 households a year on average over the next 25 years. ‘Our projections show a majority of these will be added in the private rented sector. The number of households in the private rented sector in the city doubled between 2001 and 2011, and we expect that further increases are likely,’ the report added. Indeed, Cardiff is… Continue reading
Cyprus close to resolving long running property title deed fiasco
Home owners in Cyprus who have been affected by the country’s title deed fiasco over many decades are a step closer to the situation being resolved with hopes high of a recovery in the property market. Laws to ensure that title deeds are passed directly to buyers must be in place by the end of this week as demanded by the European Union, the European Central Bank and the International Monetary Fund. Failure to do so would mean that the country will not receive the next instalment of its €500 million euro crisis bailout and it will be welcome news for thousands who still have not received the deeds to their homes that were built years ago. The Council of Ministers has approved a new law which is now on its way through the Cypriot Parliament. Not only will it help those who have never received title deeds it could also be a stimulus to the country’s struggling property market. To help boost real estate investment, the government has unveiled a number of major incentives benefitting buyers and sellers. Anyone buying property in Cyprus from now until the end of 2016 will qualify for a 50% discount on the property Title Deeds transfer fees tax. There will also be no capital gains tax when those who buy in this timescale want to sell in the future, a saving of 20%. Agents are hopeful it will lead to more enquiries from overseas buyers. One, Ideal Homes International, has seen a rise in interest from British buyers. ‘UK buyers are particularly excited about what they can get for their money, given the strength of the pound so far this year,’ said director Chris White. ‘Cyprus' historical relationship with the UK means that there are many aspects of life there that UK buyers feel comfortable with, everything from similar legal systems to driving on the left. Contracts are written in English and everyone speaks English too, which creates a sense of familiarity for UK buyers,’ he explained. He pointed out that people considering retirement in Cyprus are encouraged by the country’s many tax incentives and in particular by the fact that private pensions are taxed at just 5%. The tax environment is also beneficial to those looking to open a business in Cyprus. The property market on the Mediterranean island is improving after years in a downward spiral. According to official figures from the Department of Lands and Surveys, the number of property sales in Cyprus rose by 22% in July when compared with a year earlier. In Paphos, which is very popular with British buyers, the number of sales was 30% higher than in July 2014. But the market does have a lot of recovering to do. The latest Cyprus property index from the Royal Institution of Chartered Surveyors shows that during the second quarter of 2015 the Cyprus economy showed some signs of stability but unemployment remained at a historical high level and given prevailing economic… Continue reading
Prices and sales continue downward in Dubai
Residential property prices in Dubai continued to fall in the third quarter of 2015 continue to decline and sales are also falling, the latest published data shows. The Phidar Dubai Real Estate International Demand Index (REIDI) fell significantly in the first half of the year, which, according to the firm is driven primarily by currency fluctuations. According to Jesse Downs, managing director of Phidar Advisory, there is a lower level of international buyers coming to the market and this is related to currency exchange. She pointed out that in the first half of 2015 the midpoint exchange rates for all currencies included in the REIDI are down against the dollar compared to 2014, except the Chinese Yuan and Hong Kong Dollar. ‘This is not a measure of actual capital flows, but a real time indicator intended to assess the propensity for attracting capital inflows into Dubai real estate,’ she added. Sales volumes for apartments and single family homes were down in July compared to the previous month, but up compared to July 2014. However, Downs said that this is likely due to seasonal travel patterns shifting around the holy month of Ramadan. Overall in the first half of 2015 apartment transaction volumes were up 3% compared to the same period in 2014, but transactions for single family homes, also referred to as villas, were down 3.2% compared to the first half of 2014. Apartment lease rates decreased a nominal 0.4%, while sale prices decreased 2.7%, pushing yields up to 7.4%. Lease rates for single family homes decreased 1.3% and sale prices decreased 2.6%, which pushed yields up to 4.8%. ‘The increase in yield is a positive and necessary trend in Dubai real estate. Especially in the context of global volatility, this is part of a healthy and necessary, market correction,’ Downs said. But she believes that the most significant finding was in a statistical analysis of the relationship between currencies and Dubai real estate prices. ‘Analysis reveals a significant relationship between three key foreign currencies and Dubai real estate prices. Unsurprisingly, the key currencies are the Indian Rupee, the British Pound and Pakistani Rupee. Changes in Dubai property prices appear linked to fluctuation of these currencies. So, currency trends may help us to understand and forecast local property prices,’ she concluded. Continue reading
