Tag Archives: real estate
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
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
Rental prices in UK up by 2.6% in last 12 months
Private rental prices paid by tenants in the UK rose by 2.6% in the 12 months to January 2016, up from 2.5% in the year to December 2015, the latest index shows. The data from the Office of National Statistics (ONS) reveals that rental prices grew by 2.7% in England, 0.3% in Wales and 0.8% in Scotland with rents up the most in London at 3.9%. It means that overall rents are up 0.1% in annual terms compared with the year to December 2015, and up 0.7% compared with the annual price increase in January 2015. The regional breakdown of the figures shows that annual rental price growth varies, rising in Yorkshire and The Humber from 0.8% to 1.2%, and in the North East from 0.6% to 0.9%, whereas it fell in Wales from 0.7% to 0.3%. Rental growth in Scotland has gradually slowed to 0.8% in the year to January 2016, from a high of 2.1% in the year to June 2015. Rental prices in England show three distinct periods, increasing from January 2005 until February 2009, then decreasing from July 2009 to February 2010, and increasing again from May 2010 onwards. When London is excluded, England shows a similar pattern but with slower rental price increases from around the end of 2010. Since the beginning of 2012, English rental prices have shown annual increases ranging between 1.4% and 3% year on year, with January 2016 rental prices being 2.7% higher than January 2015 rental prices. Excluding London, England showed an increase of 2% for the same period. A shortage of suitable properties combined with strong demand, both from people priced out of the housing market and those who prefer to rent, lies behind these increases, according to Steve Bolton, founder of Platinum Property Partners. He believes that the Government is taking an enormous gamble on the private rental sector through its announced changes to buy to let investment and this could affect prices and growth. ‘Ending tax relief for landlords and levying a higher rate of stamp duty will ultimately increase investor’s costs, forcing many to push tenants’ rents up to remain profitable. Standards may also be reduced, with landlords having fewer funds to invest in the quality of their property. In some instances, landlords will be forced to sell, adding additional strain to private rented sector housing stock,’ he explained. ‘It is hard to see how the proposed changes will benefit prospective first time buyers. The biggest barrier to homeownership is a lack of adequate property supply, and discouraging buy to let investment will do nothing to alleviate this. With prices standing at such high levels, first time buyers need to raise a substantial deposit and as rental prices continue to grow this will become ever more difficult,’ he added. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, believes that the traditional January uptick in activity and a scramble by second home and buy… Continue reading
