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Demand from overseas buyers in the Alps rising, says latest index report
Demand for Alpine property is rising, spurred on by a more resilient Eurozone, greater clarity over tax and the second home cap in Switzerland, as well as a weaker euro, the latest index report says. Val d’Isere and Meribel in France have seen the biggest annual growth in property prices with a rise of 5.8% and 4.5% respectively, according to the 2015 Ski Property Index from international real estate firm Knight Frank. The index, which tracks the price performance of prime ski chalets across 15 key resorts in the French and Swiss Alps, indicates that prime sales activity in the French Alps is focussed between €1.5 and €2.5 million with resorts such as Chamonix and Courchevel 1550 increasingly popular. It also shows that the number of sales completed in Megeve in the first half of 2015 was double the number of sales agreed during the whole of 2014 and adds that previous uncertainty in the Swiss market is giving way to renewed optimism as clarity emerges surrounding taxation and the second home cap. Overall it says that the market is broadly stable with only 13% percentage points separating the strongest and weakest performer and currency movements have played a pivotal role in determining demand across the region. French resorts occupy the top five rankings this year as uncertainty surrounding Lex Weber in Switzerland dampened sales, and as a result price growth. In the past year ski homes in Europe’s top resorts have continued on the same trajectory that they have been following since 2008; no radical acceleration or deceleration just small single digit shifts year on year. Overall, the index proved largely static with only a marginal 1% fall recorded in the year to June 2015 and explains that in the case of a resort like Val d’Isere, for example, the length of its ski season explains its long standing appeal, particularly with British buyers. Few other Alpine resorts can guarantee sufficient snow to ski during both the Christmas and Easter holiday periods, it continues and in Meribel’s case, a combination of its location in the heart of The Three Valleys and its pricing explains its annual growth. Meribel provides better value than Courchevel 1850, but can compete with 1550 and 1650 in terms of facilities. Investment in the form of new residential developments such as Olympe in Les Allues and Point de Vue in Meribel Village has also helped to build confidence amongst buyers. In real price terms, the exclusive resorts of Courchevel 1850 and Gstaad come out on top, with prime prices typically around €25,000 and CHF30,000 per square meter respectively. A prime ski chalet in Gstaad is, on this basis, four times the price of an equivalent property in the French resort of St Gervais. The report also shows that in the French Alps, the focus of sales activity in the last 12 months has been within the €1.5 million and €2.5 million price bracket. The super prime market at… Continue reading
Docklands and surrounding area in London seeing mini property boom
London’s soaring technology, creative and financial industries are fuelling a mini property boom in locations such as Canary Wharf, Docklands, Greenwich and Blackheath, it is claimed. Property prices rising in some parts such as Blackheath increasing more than 50% faster than during the downturn, according to a new report from lettings and estate agents Chestertons. Prices rose in the first half of the year by 2.6% in Greenwich, 3.4% in Canary Wharf and Docklands 14.4% in Blackheath, according to Land Registry data, while Canary Wharf sales din the first nine months of 2015 were 7% higher than in the corresponding period of 2014. Meanwhile, development is soaring, buy to let investment is booming and many landlords are capitalising on the fierce demand for corporate lets, which can typically realise up to 50% more rental income than standard tenancies. ‘Sustained price growth makes Docklands and slightly adjacent areas such as Greenwich and Blackheath an ideal investment. London has now overtaken New York as the world’s undisputed finance capital, fuelling a jobs boom and a vigorous corporate rental market,’ said Cory Askew, area Director for Chestertons in North and East London. ‘Developers are piling in and the banks continue to provide favourable buy to let finance. With all of these components are in perfect harmony, the residential market here is thriving. We have seen a marked increase in buy to let investor registrations this year. It’s not hard to see why, as surely no other asset class can offer anywhere near these returns,’ added Skew. According to Bradley Bartlett, head of corporate and relocation services at Chestertons, the rising demand for residential property in these areas is being powered by London’s reinvigorated financial sector. ‘Areas such as Greenwich and Blackheath, with plenty of outdoor space and good transport links, are becoming hotspots for workers looking for a comfortable commute to the City or Canary Wharf. And with the current jobs boom, demand for corporate-standard property has never been higher. Our department has seen demand rise by almost a quarter year-on-year, and there’s no sign of the frenzy abating,’ he explained. ‘With a significant number of development sites between Greenwich and Canary Wharf currently under construction, we wait to see what the longer term effects are on the rental sector. There’s no supply crunch at present, but if this surge in demand continues in the coming parts of London’s east end will be set to rival Silicon Valley. In the mid to long term this will surely push rents upwards,’ he added. Continue reading
Fewer UK landlords putting up rents, latest monthly data shows
The number of letting agents in the UK reporting rent increases for tenants has fallen, with only 33% putting up rents, the lowest amount since April. For the first time this year, the number of lettings agents seeing rent hikes for tenants has decreased from the previous month, with just 33% of landlords putting up rents in August, according to the latest survey. Data from the monthly Private Rental Sector report from the Association of Residential Letting Agents (ARLA) shows that it has dropped from 37% in the previous month and is the lowest since April this year. But it is not a universal trend. Tenants in the South West are not benefiting with 42% of agents in the region continuing to see rent prices hiked, up 4% from the previous month. This is compared to only 12% of agents in the North West who have witnessed a rent increase. In Wales, tenants are worse off too. The number of landlords putting rents up for their tenants has increased threefold from July. This month 36% of letting agents in Wales saw increases, up 25% from July when just 11% agents reported rent hikes. The report also shows that after a spike in the number of houses available to rent last month, supply has fallen back down to levels seen in June 2015. ARLA letting agents managed an average 178 properties per branch in August, compared to 189 in July. The report found the number of house hunters in the rental sector increased marginally in August. Letting agents reported an average 36 prospective tenants registered per branch, compared to 35 in July. The number of properties available to rent in London continued to fall in August, pushing demand for housing even harder in the capital and putting further pressure on house hunters. With 110 properties registered per branch, compared to 117 in July, the task of finding a property in the capital’s rental sector is becoming increasingly difficult. ‘Our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market,’ said David Cox, ARLA managing director. ‘With increasing pressure on the dwindling supply of housing, and the number of house hunters growing, rent increases are unfortunately very common as one in three tenants are experiencing. Despite the fact they have fallen this month, it’s likely they will go back up again over the next few months,’ he added. Continue reading
