Tag Archives: real estate
Improved economy and political stability boost Cairo property markets
All sectors of the Cairo real estate market have witnessed a positive performance and improved sentiment during the first three months of 2015 due to stronger confidence and investment appetite created by increased economic and political stability. A new analysis from international real estate firm JLL says that this confidence is most clearly illustrated by the recent announcement of the mega real estate project Cairo Capital which will serve as an extension for New Cairo and will draw the centre of gravity further to the East of the existing city. The report shows that residential sale prices have continued to increase across Cairo in the first quarter of the year with office rents increasing in New Cairo and retail rents edging further upwards over the past quarter. The hotel sector has also recorded improved performance with tourist numbers and hotel occupancy rates improving. The performance of both the tourism sector and other parts of the real estate market are expected to continue to benefit from increased levels of foreign investment into Egypt, committed at the recent Economic Summit in Sharma El Sheikh in March 2015. The report points out that Cairo’s residential market continues to recover with improved sales figures as a result of the recovering economic and political sentiment. Apartment and villa sale prices increased during 2015 across all the areas monitored by JLL as many residential developments have few units left and have increased prices accordingly. Performance in the rental sector remains more mixed, with some properties experiencing an increase while others are experiencing a reduction due to the unstructured nature of the rentals market in Egypt. An extra 31,000 units are planned to be delivered during 2015 of which 11,000 are in New Cairo and 19,000 are in the 6th of October. ‘The positive economic outlook arising from the Economic Summit is expected to result in additional investment in the residential sector, strengthening the market further in 2015,’ the report says. During the first quarter of the year some 250 units were completed in Al Rehab City, New Cairo, in addition to 640 units in the Zayed complex, increasing the current supply to around 106,000 units. A further 31 residential developments are expected to complete in the rest of 2015 ten of which will be in the second quarter, adding an extra 30,000 units to the current supply. The report points out that the Palm Hills Development is notable, with five of their developments planned to be delivered in the second quarter alone. ‘Despite this additional supply, the positive sentiment is expected to result in increased selling prices over the coming year,’ it adds. Cairo’s office market witnessed a slight improvement during the first quarter of 2015 as rental rates increased significantly in New Cairo due to relatively higher demand. Rental rates in Central Cairo and West Cairo remained unchanged. The major completion in the first quarter of2015 was Park Avenue located on the Cairo… Continue reading
Home lending falls in UK month on month and year on year, latest CML data shows
Lending to home owners in the UK fell in February compared to the previous month and compared to February 2014, the latest data from the Council of Mortgage Lenders shows. The number of loans advanced totalled 40,600, down 1% on January and 16% compared to the same month in 2014. These loans totalled £6.8 billion, which was down 3% on January and 13% on February last year. Lending to first time buyers was down 1% month on month and 16% compared to February 2014 with just 18,700 totalling £2.7 billion, which was down 4% on January and 13% down on February last year. Home movers were advanced 21,900 loans, a decline of 2% compared to January and 16% down year on year. These loans totalled in value £4.1 billion, 2% down on January and 13% down compared to February 2014. Remortgage lending also decreased month on month with 21,500 loans advanced, down 16% on January and 14% down on February 2014. The value of these loans at £3.3 billion also decreased month on month by 20% and was down 11% year on year compared to February 2014. Even the buy to let sector, considered to be buoyant at present declined. There were 15,900 buy to let loans in February, down 13% on the previous month but up 11% on the same period in 2014. These loans came to £2.2 billion in value, down 12% compared to January but up 16% on February 2014. Paul Smee, director general of the CML, blamed seasonal factors for dampening house purchase lending activity in February but admitted the general election could be making people wait and see. ‘This typical seasonal trend may also be exacerbated by uncertainty ahead of the general election, but we still expect to see an upturn in the spring and summer months. Buy to let, in contrast, has shown year in year lending increases, due almost completely to remortgaging which is typically strong in the buy to let market. Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook Bank agreed that there could be a general election effect with the forthcoming poll creating a feeling of uncertainty combined with the continued impact of tighter lending criteria on owner occupiers. ‘As part of this, we are seeing the more specialist buy to let market stabilising, with less rapid, but still robust, growth than in previous years. As professional investors continue to expand their portfolios and add value by refurbishing or renovating, the signs are there for a continuing strong mortgage market. In order to ensure market sustainability, brokers should always encourage responsible borrowing by clients,’ she added. Continue reading
UK residential property market activity strong as valuations rise
Last month saw the strongest activity on record for property valuations in any month since 2007, up 36% on a monthly basis and annual growth of 42%, new data shows. After a 36% increase in activity on a monthly basis, the total number of valuations carried out in March 2015 has grown by 42% compared to March 2014. First time buyer activity increased by 33% in March compared with the previous month and was up 40% from the same month last year, according to the latest research from Connells Survey and Valuation. Activity on behalf of those further up the property ladder also saw rapid growth, but at a slower pace than for first time buyers. Valuations on behalf of established home movers picked up by 32% on a monthly basis and by 23% over the last 12 months. ‘New announcements like the Help to Buy ISA have combined with existing government schemes to boost interest from first time buyers. In the short term this is mainly about sentiment, but extra support has been consistently focused at this end of the market for years now, with a longer term impact too,’ said John Bagshaw, corporate services director of Connells Survey & Valuation. The data also shows that remortgaging in March has outperformed the overall housing market, posting 54% growth on an annual basis, following a 33% month on month rise and Bagshaw pointed out that record low interest rates are likely to stay for several more months. ‘Many households with a mortgage that seemed extremely competitive just a few years ago could find it in their interests to refinance, even to the security of a fixed rate. Such a recalibration of the mortgage market is working alongside a resurgent property purchase market to stoke demand for valuations,’ he explained. ‘Of course a little further ahead, there is still the prospect of interest rate rises. In fact deflation caused by a volatile oil price could make a turning point for interest rates more dramatic as and when this occurs. So there is no space for complacency although that isn’t stopping people looking for the best deals,’ he added. With by far the strongest monthly increase, buy to let activity in March was 54% stronger than in February. This takes the number of valuations carried out on behalf of buy to let landlords to levels 64% ahead of March 2014. The firm believes that landlords are responding to a pick-up in demand from tenants and a noticeable improvement in rental yields in some hotspots. It’s also possible this is another artefact of a booming jobs market, as people move to take up jobs. ‘Landlords are generally low LTV borrowers who tend to have reliable finances away from their property investments, so for lenders they offer a sound investment in a similar way to many… Continue reading
