Tag Archives: real-estate
Monaco real estate sales market reaches new records, latest analysis shows
Monaco’s residential real estate market experienced a record year in 2014 and a weak euro is seen as offering buyer opportunities, according to the latest property analysis report. The number of residential sales exceeded their 2007 peak for the first time in 2014, with a combined value of €2.4 billion and according to the report from international real estate firm Savills prices are stable and Monaco remains one of the world’s most expensive property markets. In total, 555 residential properties traded in the resale market in 2014, putting the number of deals 21% above 2007 levels, however, in US dollar terms the Principality has slipped to second place behind Hong Kong, due to a weak euro. The very upper tiers of the market have been the most liquid, and as a consequence transactions in euro terms reached new records. Some €2 billion of property traded in the resale market in 2014, compared to the previous peak of €1.1 billion in 2008, an increase of 91%. While total sales volumes by both number and value have reached new highs, average prices have remained static. ‘This, set against a weak euro has made Monaco property look cheaper to some foreign buyer groups, particularly those with US dollars,’ the report says. For example, a €2 million property cost US dollar buyers $2.16 million in April 2015, compared to $2.77 million in April 2014, a reduction of 22% in a year. The same €2 million property to a British sterling buyer cost £1.44 million in April 2015, compared to £1.65 million a year prior, a reduction of 12%. Investors have been active in the €1 million to €10 million bracket, seeking easy to manage properties to feed into the rental market. Monaco benefits from a range of end users, and second home purchasers and those seeking primary residences in the super prime segment have been active too. The report points out that Monaco is unusual in that almost all of its residential stock could be considered ‘prime’. The ‘mainstream’ housing stock, in which many of its workers live is found in bordering French towns. Given Monaco’s restricted space, 95% of its housing stock is in the form of apartments, with villas making up the balance and the Principality has a large rental sector, much of it institutionally owned and let to Monégasque residents. In the ultra-prime sales market British, Russian, and Middle Eastern buyers have been especially active in the last year. Monaco’s ultra-prime residential markets are focused in Monte Carlo, around the famous Place du Casino. The most desirable area is Carre D’Or, followed by neighbouring Fontvieille, which also offers a variety of commercial uses. Sought after buildings can be found throughout the Principality, with the majority of new ultra-prime schemes developed in outer districts due to limited land availability in the ultra prime core. The report concludes that the unique offering of Monaco’s global appeal and its extremely limited land supply will all combine to keep… Continue reading
Prime London lettings market sees demand exceed supply post-election
The prime London lettings market has experienced a complete shift this month from a quiet lull before the election to a mass influx of new applicants registering since polling day. The latest market report from agency W.A. Ellis, part of the JLL Group, indicates that while the mid-term break is normally a quiet period this year the firm has seen a 20% increase in tenancies starting year on year with the seasonal student market in full swing and demand exceeding supply. However, Lucy Morton, director at the firm, pointed out that when trying to secure accommodation for the start of the school year in September, few landlords will agree to their property sitting empty until then so it may be necessary for students to wait until July or August before starting their search, or take their chosen property now in order to secure it. ‘Our market share in super prime continues to rise month by month with huge success in the super prime sector of the London lettings market recently,’ she explained. This included a six bedroom house in Herbert Crescent with a guide price of £8,950 per week and a seven bedroom house in Justice Walk with a guide price of £8,500 per week. ‘This time last year we informed you of Mayor of London Boris Johnson’s launch of the London Rental Standard (LRS). People differ in opinion as to whether this scheme has been a success or not, however, the Mayor’s office has pointed to figures showing 331 lettings agents managing an estimated 121,000 properties have already signed up. We fully support the initiative,’ added Morton. Continue reading
Residential property prices in Dubai still falling, latest analysis suggests
Residential real estate prices in Dubai continued to fall in the first six weeks of the second quarter of this year compared to the first three months of 2015, according to the latest data. However it is not necessarily bad news, according to the mid quarter research report from Phidar Advisory. ‘The ongoing erosion of sale prices is a healthy correction. The more significant concern is the scale and nature of the upcoming launched and announced projects,’ said Jesse Downs, the firm’s managing director. The report shows that apartment lease rates decreased a nominal 2.4%, while sale prices decreased 1.5%, marginally tightening yields. Lease rates for villas decreased 0.6% and sale prices decreased 2.9%, which pushed up yields slightly. In the first five months of 2015, apartment transaction volumes were down a modest 1.5%, compared to the same period in 2014. SFH volumes contracted almost 25%, over the same period. This is based on initial transaction data from the Dubai Land Department, which is subject to revision. The report references income specific supply-demand imbalances. The most vulnerable segment is housing supply with current annual rents of AED100,000 to AED160,000 per annum, which could be oversupplied by up to 40% in five years. ‘If we consider only under construction and launched projects, the majority of the development pipeline is justified due to sufficient total demand,’ said Downs, who added that over building in the middle high income segment is likely to increase competition and lead to supply reordering. The potential for total market disequilibrium increases significantly when adding announced projects into the supply pipeline, the report points out. Total market vacancy could reach 11% by 2020. Factor in a healthy frictional vacancy and the total vacancy rate converts to a 7% oversupply. ‘There is an opportunity to reposition upcoming products to meet the city’s anticipated housing needs. If current announcements convert into launches, the probability for instability by 2020 will increase significantly,’ concluded Downs. Continue reading
