TSI
Property prices and rents holding steady in the Gulf region
Residential property prices in Dubai have increased 1.5% year on year, led by villas, with apartment seeing prices grow at a slower rate, according to the latest index. Apartment prices increased by just 0.8% compared with a year ago in March but increased 1.74% month on month, the data from ReidIn shows. Villa prices were up 4.5% year on year but month on month fell by 0.24%. The data also shows that rental prices fell by 0.29% but have increased 5.4% year on year. A breakdown of the figures shows that apartment rents decreased 0.2% on a monthly basis but are up 6.3% year on year. Villa rents have been much more stable in the last 12 months, up by 1% year on year and down by 0.25% month on month. Meanwhile, in neighbouring Abu Dhabi prices fell by of 0.48% in March 2015 but were up 0.4% compared to March 2014. Apartment prices were down 0.60% month on month and decreased 1.8% year on year while villa prices fell 0.4& compared to February but increased 0.9% year on year. In the rental market prices fell 0.75% in March but are still up 2% compared to March 2014. Apartment rents were down 0.45% month on month and down 2.6% year on year while villa rents fell 1.04% month on month but are up 4.7% year on year. Elsewhere in the Gulf region the Saudi Arabian market has seen variable real estate performance. Over the past year, residential prices in Riyadh have risen by 5% to 7% overall but there have been variable performances across the capital’s districts, according to the latest report from international real estate firm Knight Frank. It says that congestion issues in the south, for example, have resulted in prices stagnating while in the north, which has seen notable development activity, prices have increased by around 9%. ‘In the short to medium term, with new supply unlikely to be able to fully offset pent-up demand, we expect residential prices to continue to move in an upward direction,’ said Stefan Burch, Knight Frank partner for Saudi Arabia advisory services. The report points out that in recent year Saudi Arabia’s residential construction sector has been expanding rapidly. Indeed, the latest available data shows that the value of residential building construction across the kingdom rose for the ninth consecutive year in 2012, increasing by 11.4% year on year to SAR95.6 billion. ‘Not surprisingly, Riyadh is an important driver of construction activity in Saudi Arabia. The capital accounted for an average of 27% of all residential and commercial permits issued across the kingdom between 2003 and 2013. Moreover, the number of permits issued in the capital rose by 319% over the 10 year period, outperforming Saudi Arabia as a whole, which experienced a 215% increase,’ explained Burch. Despite rising development activity however, demand for residential units continues to outstrip supply in Riyadh. Indeed, the capital has a requirement for around 50,000 housing units per annum… Continue reading
Edinburgh property market sees strong start to the year
The Edinburgh property market has had a flying start to the year with encouraging levels of demand and high quality property coming to the market, it is claimed. There has also been an increase in property viewings, according to CKD Galbraith, following a year of steady growth for the Scottish property market. The firm’s statistics from the first quarter of 2015 suggest that this trend is set to continue with the firm’s overall sales up 24% compared to the same period last year. As the traditional spring selling season commences the firm’s offices across Scotland are generally reporting rising levels of buyer confidence and activity. CKD Galbraith research reported that the first quarter of 2015, from January to March, saw the number of properties on the Edinburgh market rise by 150% compared to the same quarter of 2014. Buyer interest was also significantly up with a 28% increase in property viewings and an 80% rise in potential buyers registering with the office in comparison to the previous quarter. ‘Edinburgh has experienced an increased demand for high quality city properties and I’m confident that our established team has an unrivalled advantage in the local market to be able to secure and sell such properties,’ said Jamie McNeill, from the Edinburgh office. ‘The statistics demonstrate a healthy market and we forecast this is likely to continue throughout the spring and summer months,’ he added. The data also shows that sales in Edinburgh increased by 50% compared to the last quarter, 62% of sales were completed by local buyers, 25% national and 13% international, and the average time taken by the Edinburgh office to sell property was seven weeks, with the quickest sale conducted in just one week. It found that 62% of purchases were made by cash buyers and there was an increase in the number of high end properties on the market at £400,000, probably due to the introduction of the new LBTT property tax in Scotland in April. The firm has asserted that the new tax system in Scotland, the Land and Buildings Transaction Tax (LBTT), should not put potential buyers from outside Scotland off, the local office’s sales teams are highly experienced in guiding buyers through the process. During the first quarter of the year nearly 10% of the firm’s sales were completed by international buyers. Continue reading
UK house hunters holding off until general election result, agents believe
House hunters in the UK seem to be holding off making a decision with the country’s general election just a week away, according to the latest monthly report from estate agents. Some 63% of members of the National Association of Estate Agents (NAEA) believe that demand for homes is at its lowest since last year with just 343 house hunters registered per branch compared with 406 last September when demand was at its highest. The report also shows that just 22% of total house sales in March were made to first time buyers, the lowest since July 2014 and down 30% from February. NAEA member agents are concerned about supply and demand for first time buyers as housing policy remains one of the big election issues. The report also shows that almost half, 48%, of agents favoured the Conservatives’ pledge to build 200,000 new starter homes, arguing that this initiative will be the most beneficial for the first time buyer housing market. However, only 6% back Labour’s promises to boost house building rates to 200,000 a year by 2020 and 31% do not believe that any of the proposed policies will be enough to straighten the market out. ‘We would always expect to see an event as monumental as a general election having an impact on the property market. But what makes this election so interesting is that no one knows what the result will be,’ said Mark Hayward, NAEA managing director. ‘And with housing featuring so prominently in all three main parties’ manifestos, buyers in particular are holding off to see what will happen. The outcome of the election will impact first, second, third and last time buyers,’ he added. The NAEA report also shows that while demand is down to 343 house hunters registered per branch in March, supply is up 12% from 43 to 48 houses available per NAEA member branch, as houses stay on the market for longer with nervous buyers. Demand still hugely outstrips supply, so a fall in demand does not affect the number of sales. March saw an increase in the amount of sales agreed per branch, with 10 sales going through, compared to eight in February. ‘We may have seen a slight increase in supply this month, but it is not an ongoing trend or a big enough jump to fill the gap for demand. It’s encouraging to see all parties actively proposing plans to regulate supply and demand,’ said Hayward. ‘However, the policies in place are unlikely to be enough to rectify the crippling situation we’re in. It’s all very well proposing to build 200,000 houses, but planning law, lack of infrastructure and available labour can make this process so lengthy that it may be ten or twenty years until we see this, by which time demand will be greater,’ he explained. ‘Although our agents have seen the market cooling off ahead of the General Election, it will inevitably bounce back again at a rapid… Continue reading
