Tag Archives: yahoo
Africa’s growth cities attract increased foreign real estate investment
An increased numbers of international investors are investigating opportunities in African real estate markets, attracted by the continent’s startling economic and demographic growth prospects, it is claimed. According to a new Africa Report 2015 from international real estate firm Knight Frank, the population of Africa will quadruple to over four billion by 2100, with nearly one billion of these people in Nigeria alone. It argues that could be the single most important demographic trend that will shape the world over the course of this century and by 2100 nearly 40% of the world’s population will live in Africa, with the large majority of these being in the continent’s fast growing cities. Nigeria is now the largest economy in Africa with GDP estimated at $594.3 billion, followed by South Africa at $341.2 billion and overall Sub-Saharan Africa is one of the world’s most rapidly developing economic regions, and it is projected that 13 of 20 fastest growing global economies over the next five years will be in Africa. According to the report Luanda in Angola has one of the highest prime office rents in the world at US$150 per square meter per month, driven by demand from the oil and gas sector, and an extreme lack of availability. Luanda’s population is forecast to increase by more than 70% from 2010 to 2025 period, while Dar es Salaam, Kampala and Lusaka are expected to double. ‘Allied to strong economic growth, this is creating increased demand for good quality real estate of all types,’ the report says. It also points out that the retail sector has seen a huge increase in activity as a result of the rise of the urban middle class and the expansion of South African retailers such as Shoprite and Pick n Pay into the rest of Africa. Modern shopping malls are a relatively new concept in much of Africa, but a spate of new malls has been developed in key cities such as Accra and Nairobi. ‘The growth of Africa’s cities and economies will do much to define the global socio-economic landscape over the coming decades,’ said Matthew Colbourne, Knight Frank international research associate. ‘These major long term trends are driving the construction of high quality real estate across the continent. The most visible demonstration of this is the rise of the modern shopping centre concept in cities such as Nairobi, Lagos and Accra, but there are development opportunities in all property sectors,’ he explained. ‘Large volumes of good quality commercial and residential property are needed to support the continuing African growth story, presenting excellent opportunities for global funds looking to diversify or enter into African markets,’ he added. The report also points out that Africa’s growth potential has led to a notable increase in activity involving overseas investors and South African funds over the last two years. For example, Chinese investors’ involvement in large scale development and infrastructure projects across Africa has been particularly eye-catching…. Continue reading
Survey reveals 88% of people in London have had a bad time from estate agents
Over 4.4 million in the UK feel that an estate agent had broken promises with more people in London having a bad experience than any other part of the country, new research has found. Indeed, in London 15% felt an estate agent broke their promises and 88% said they had a bad experience with an estate agent, more than any other region in the UK. While, overall 9% of the UK felt there was a lack of transparency from estate agents. The research by estate agency, Strawberry Star, also found different age groups experienced different issues. For example, 8% of 25 to 34 year olds felt pressured into buying a house by an estate agent, twice the national average. It also found that the top frustration for just over 7.5 million people across the UK is ‘the agent’s overriding interest’ in commission rather than concentrating on finding the right property for their client, with 18% of respondents in London stating so. Strawberry Star said it is offering a new approach and clients will able to choose how much of the commission fee they pay, depending on their experience of the service from the pre-sale stage to post sales service. Dorian Beresford, the firm’s chief executive officer, said the aim is to place an overriding level of attention on the relationship value behind the sale or purchase of a property, as opposed to purely the transactional value it holds. ‘Consumers both at home and overseas continue to be dramatically underserved by their agents. The level of unsatisfied customers here in the UK is astonishing and representative of the frankly abysmal service delivered by many in the industry,’ said Beresford. ‘We feel it is our obligation to redress the balance and put the power back into the hands of the public by literally putting our money where our mouth is. No tie-in periods, no false promises and if the client is not delighted by our service they get to choose how much of our fee to pay,’ he explained. The firm has a headquarters in central London, offices in Singapore and Hong Kong and plans for a further 25 UK offices are in the pipeline with expansion into India, China and the Middle East also on the cards over the next five years. ‘We put people over property and ensure every single one of our clients, whether owners, occupiers or investors from the UK and abroad, feel that they are receiving a personalised service and are dealing with people that genuinely care about what matters to them. This commitment stands throughout every stage of the buying, moving, selling and letting process,’ added Beresford. The firm believes that the UK will continue to be popular amongst Asian real estate investors with Singapore and Hong Kong based investment now accounting for 90% of international purchases in the London new build market alone. Continue reading
Low housing supply in the US squeezing affordability
Rental affordability is as bad as it's ever been across the United States, in part because there are not enough new, affordable homes to meet demand, new research suggests. Overall, renters can expect to spend 30.1% of their income on rent, while home buyers can expect to spend about 15.3% of their monthly income on a mortgage payment, according to a study by real estate analyst Zillow. It also found that affordability is worst in fast growing cities that have fallen behind in building homes to keep up with population growth. The firm’s latest rental index is up 3.4% year on year to $1,355 per month while its property price index is up 4.9% to £178,700. Affordability is best in places that either have slow population growth such as Detroit or have met new growth by building new housing units. Chicago, for example, permitted 906 new housing units in 2012 and 2013 for every 1,000 new residents between 2013 and 2014. The index report says that in Chicago renters can expect to spend about 31% of their income on rent, while homebuyers there can expect to put 13.9% of their income toward house payments. It suggests that it is easy to see how San Francisco has become one of the country's least affordable housing markets. Zillow's analysis showed that for every 1,000 new residents, there were just 193 new housing units permitted. Residents of the San Francisco metro can expect to spend 44% of their income on rent, or 39.2% on a monthly mortgage payment. The short supply is no secret to policy makers. The mayor of San Francisco, for example, has pledged to add 30,000 housing units by 2020 and a Boston city report made a similar recommendation to meet demand with 53,000 new housing units by 203o. ‘As the economy continues to improve, more Americans are slowly moving off of their buddies' couches and out of their parents' basements into homes of their own, first likely as renters and then eventually as home buyers,’ said Zillow chief economist Stan Humphries. ‘Unfortunately, the supply of affordable homes, especially affordable rentals, is insufficient in many areas to meet this growing demand. As a result, the competition for those homes that are available can often be fierce, driving up prices and contributing to worsening affordability,’ he explained. ‘More construction will help ease the crunch, and getting a mortgage is also getting easier, which will help more current renters transition to home ownership and further ease rental inventory shortages. But these fixes won't happen overnight,’ he added. Since 2000, rents have grown at roughly twice the pace of incomes. Partially as a result, the percentage of Americans citing cheaper housing as a reason they moved to a different home has almost doubled since then, from 5.6% to 9.6% currently, according to the US Census Bureau. Over the past several years, renting, historically a budget minded choice, has become increasingly less affordable. Meanwhile, recovering home prices, along with historically… Continue reading
