Tag Archives: real estate
2015 set to see strong growth in demand for prime properties in Spain
The international financial markets are expected to be a key driver in the uptake of Spanish prime residential property during 2015, according to a new analysis. The latest market reports from Lucas Fox International Properties, suggest there has been an increase in demand from UK, US and Swiss buyers thanks to the rise of the dollar, pound and Swiss franc against the Euro. Conversely, the number of Russian investors is expected to dwindle as the rouble goes further into free fall in 2015. ‘With unemployment falling, the economy growing faster than predicted and property reaching the bottom, 2015 is set to be a pivotal year for Spain's property market. Prices are on average 40% below what they were since the start of the crisis in 2007 and we predict a slow and steady recovery. This is an opportune time to invest,’ said Lucas Fox co-founder Alexander Vaughan. The report says that prices in Barcelona have stabilised in the past 12 months and new international interest is impacting on demand for prime residential property. 2015 is expected to be the most significant year of recovery for the prime market in Barcelona since 2007. Lucas Fox sales data shows that Middle Eastern buyers accounted for 12.5% of all purchases during 2014, followed by the Spanish and French both at 11%, the Germans at 8% and the British at 7%. The bulk of prime market property purchases in Barcelona during 2014 was for investment use with two out of five buying for that reason, whereas in2013, the main reason for buying was for use as a primary or secondary residence. The number of transactions in 2014 increased over 2013, with more properties above €1 million selling than in the previous year. ‘We see 2015 as the recovery year for the Spanish prime residential property market, driven mainly by increasing numbers of overseas buyers. We expect that those who were deterred by falling prices during the past seven years or so, will enter the market, enticed by some real opportunities,’ explained Vaughan. ‘Prices have fallen by up to 40% in some areas of the city but, in the last 12 months, these prices have stabilised. Some recent figures suggest that, in some of the most desirable areas of the city such as Eixample and the beachfront, prices for the best properties are starting to creep up again. The key change in the Barcelona Residential market during 2015 will be the return of quality new build residential developments which have not been seen on the market for several years and where demand currently outstrips supply,’ he added. In the Costa Brava, foreign investment in residential property has grown significantly. In 2010, foreign investment in new housing properties accounted for 9% of the market. In 2014, foreign investment represented 26% of the market. Price movement in the prime residential property market for the Costa Brava region is not expected in 2015. However, sales volume is predicted to increase particularly… Continue reading
UK rental market returns to growth, latest rental index shows
Residential rents for new tenancies in the UK increased by 2.5% during first month of the year, according to the latest figures to be published. It means that the rental market has returned to growth with nine out of 12 regions covered by the HomeLet rental index reporting rising rents, taking the average rent in the UK to £889 or £707 excluding Greater London. The figures show the highest growth occurring in the East Midlands, Scotland and East Anglia with rents rising 6.2%, 5.7% and 5% respectively. Only the North East of England, Northern Ireland and the West Midlands have seen a decline in rental prices,’ the index data also shows. Overall the index report says that after a period of seasonal adjustment towards the end of 2014, which saw rental prices falling in many parts of the country, the rental market has started 2015 with a return to growth. The average rent in the UK is now £889, compared to £867 at the end of 2014, and £799 in January 2014. A breakdown of the figures show that the average rent in the East Midlands is now £617, a monthly rise of 6.2% and an annual increase of 7.2%. In Scotland it is £651, a month on month rise of 5.7% and year on year up 9.4%. East Anglia has seen a monthly rise of 5% but year on year average rents are up only 1.6%, taking the average to £762 while in the South West the average is £830, up 3.5% month on month and up 10.2 compared with January 2014. Yorkshire and Humber has seen rents rise by 3.2% month on month and 10.1% year on year to £613. Greater London has seen the steepest rise with average rents reaching £1,425 in January, up 2.3% month on month and an annual rise of 13.4% while other regions have seen more muted rise with Wales seeing a month on month rise of 2.3% and an annual rise of just 1% to an average of £586. The North West saw a month on month rise of just 0.8% and an annual rise of 5% taking average rents to £650 while the South East was up 0.7% month on month but over 12 months average rents were up 4.2% to £873. Everywhere else saw rents fall month on month, down 1.1% in the West Midlands to £635 but the region has seen rents rise by 4.8% year on year. In North East they were down 2.6% month on month to £518 but up 2.6% year on year. Northern Ireland has had the poorest performing rental sector. Average rents were down 0.5% to £556 and down 2.3% year on year, the only annual decline in the whole of the UK. Continue reading
New home building in Australia set to increase in 2015 before falling off
New house building in Australia is forecast to increase for a third consecutive year in 2014/2015 with growth of 7.7%, according to the latest outlook report from the Housing Industry Association. This level of growth would take commencements to a record level of 195,936 but the HIA also believed that this is likely to represent the peak in the current cycle, although the heightened uncertainty that comes with breaking records means further growth shouldn’t be ruled out. Indeed, the HIA central forecast shows that after three consecutive years of strong growth, dwelling commencements are set to decline by 5.7% in 2015/2016 and a further 4.7% in 2016/2017. It also says that from a national perspective, renovations investment continues to disappoint and only grew by 0.5% in 2013/2014, from a decade low. Renovations activity is forecast to grow by 0.2% in 2014/2015. However, the report suggests that momentum to the renovations recovery should build in coming years and projects an increase of 2.8% in 2015/2016, followed by a growth of 3.2% in 2016/2017, taking the value of renovations to $30.3 billion. Meanwhile, the latest data from the Australian Bureau of Statistics shows home prices continued to rise at a sustainable rate during the December 2014 quarter, up 1.9% on the previous quarter. Compared with the same period 12 months earlier, home prices were 6.8% higher. Established house prices increased by 7% over the past year, with other types of dwelling seeing growth of 6.1%. ‘The ABS figures show that dwelling price growth is now comfortably sustainable. In inflation adjusted terms, the rate of home price growth is now around 5% annually,’ said HIA senior economist Shane Garrett. ‘This is exactly the kind of home price growth that prevails over the long term. Australian home price growth is now striking the right balance. The housing industry has played a vital role in bringing price growth onto a more even keel,’ he explained. ‘During 2014, new home commencements reached the highest level on record. This has been a vital factor in assisting housing affordability, as well as providing crucial support for demand in the domestic economy,’ he pointed out. ‘We need to ensure that new home building is allowed to make a full contribution to improving affordability and living standards in the economy. The current design of taxation in the residential construction sector is not consistent with this goal. We need to see greater urgency in terms of easing the tax burden on new housing, and we look forward to potential remedies being included in the forthcoming Tax White Paper,’ he added. Continue reading
