Although London, Paris and Frankfurt remain the top three European cities to do business in, Moscow has been named the most favourable city in Europe for companies looking to expand according to a survey by Cushman & Wakefield. More companies (47) intend to next expand in the Russian capital than any other European city, a jump from 35 in 2009.
The findings reveal that Vienna, Austria, is the biggest riser this year - moving up six places to rank 22nd best European city for business. London is once again ranked the top business city overall, a position it has held every year since the survey started in 1990. Paris and Frankfurt are again ranked 2nd and 3rd. Brussels moves back into fourth place ahead of Barcelona with an improved score over the year.
In its 21st year, the European Cities Monitor is based on interviews with board directors and senior management in charge of location for the 500 largest companies in Europe. It includes an overall ranking of which European city is considered by the business community to be ‘best for business’ and the ‘best city in which to locate a business today’. In addition to this, 36 cities are ranked against criteria such as quality of life, access to markets, availability and quality of staff, cost of office space, telecommunications and transport links.
Monday, 13 December 2010
Saturday, 23 October 2010
London Building Plot With Planning Permission For Sale
West Hampstead Development Land for Sale
West Hampstead
Abbey Road
West Hampstead
London
NW6
£ 385,000 Freehold
The development is located on Abbotts Place a quiet residential street of Abbey Road and is close to the shops, bars and restaurants of West Hampstead, South Hampstead and St. John's Wood .
West Hampstead Station (Jubilee line and National Rail) is close by for links into the city.
Planning permission has been granted for the demolition of the existing garages and erection of a 2/3 bedroom house comprising lower-ground and ground floor level with front and rear lightwells.
London Building Plot With Planning Permission For Sale
Friday, 22 October 2010
West Hampstead Property Development Opportunity, London
Mill Lane
London
Greater London
NW6
£ 825,000 Freehold
Property located in a parade of shops between Ravenshaw Street and Broomsleigh Street, close to excellent local shopping and transport services.
It comprises 2 Intercommunicating Terrace Properties with D1 Use and an outbuilding to the rear.
The property is suitable for continued D1 use but also a planning application has been submitted to reconfigure the property into retail + 6 residential units. Inc;
- Ground floor retail unit (approx 320 sq.ft)
- Seperate front entrance to 4 residential units (2 x studio flats and 2 x 2-bedroom flats)
- Gated entrance leading to courtyard accessing a 1-bed LG floor flat and a self contained 2 storey 1-bedroom house with parking.
The existing accommodation comprises:
Second Floor Front Room 12' 10" x 15' 0" into Alcoves. Rear Room 9' 1" x 8' 11" into Alcoves. Through Room 26' 3" x 14' 11 narrowing to 11' 10".
First Floor - Front Room 12' 11" x 15' 0" into Alcoves. Rear Room 8' 9" x 12' 11". Through Room 26' 3" x 14' 11 narrowing to 11' 10".
Ground Floor Shop 10' 3" widening to 12' 5" x 26' 5" depth WC, wash hand basin.
Basement Front Room 12' 4" x 14' 2" Rear Room 11' 6" x 12' 9"
Two Storey Outbuilding at Rear comprising: Ground Floor 16' 2" x 11' 5" . Addition Room 6' 0" x 14' 5". First Floor 16' 2" x 11' 5". Ground Floor Office 12' 6" x 13' 0". Gas-fired central heating (not tested). Double gates with vehicular access under archway to Yard at rear.
West Hampstead property Development Opportunity
Sunday, 17 October 2010
German Real Estate Investment Tops International Destination
International property investors are providing a welcome boost to the German real-estate market, which they see as an attractive alternative to popular destinations like Paris and London, reported Bloomberg.
While Paris and London property markets recovered faster from the recession and saw the greatest increases in capital values, those rates of growth have slowed. Higher prices amid increased competition in those cities have sent investors to Germany's five main markets--Frankfurt, Munich, Berlin, Hamburg and Duesseldorf. Property consultancy Savills PLC (SVS.LN) anticipates that interest will continue into 2011.
"Investors have been cautious to date and in the main focused on London and Paris but as the economy recovers, the top five cities in Germany are becoming a prime target alongside these locations," said Giles Wilcox, head of European cross-border investment at Savills.
International investors accounted for 40% of total transactions in Germany in the first half of the year, compared with only 15% in the same period last year.
They have boosted property transactions in Germany by 148% in the first half, which should result in total commercial real-estate investment there for the year of EUR16 billion compared with EUR11.2 billion in 2009.
Buyers from the U.K., the Netherlands and France, in particular, are targeting Germany alongside domestic investors, including open-ended funds, closed-ended funds, listed property companies and private-equity investors, which have re-entered the market.
While Paris and London property markets recovered faster from the recession and saw the greatest increases in capital values, those rates of growth have slowed. Higher prices amid increased competition in those cities have sent investors to Germany's five main markets--Frankfurt, Munich, Berlin, Hamburg and Duesseldorf. Property consultancy Savills PLC (SVS.LN) anticipates that interest will continue into 2011.
"Investors have been cautious to date and in the main focused on London and Paris but as the economy recovers, the top five cities in Germany are becoming a prime target alongside these locations," said Giles Wilcox, head of European cross-border investment at Savills.
International investors accounted for 40% of total transactions in Germany in the first half of the year, compared with only 15% in the same period last year.
They have boosted property transactions in Germany by 148% in the first half, which should result in total commercial real-estate investment there for the year of EUR16 billion compared with EUR11.2 billion in 2009.
Buyers from the U.K., the Netherlands and France, in particular, are targeting Germany alongside domestic investors, including open-ended funds, closed-ended funds, listed property companies and private-equity investors, which have re-entered the market.
Saturday, 16 October 2010
Braintree Building SIte with Planning for Residential New Builds
Essex Freehold Land for Sale
Braintree
South Street
Braintree
Essex
CM7
Net Saleable: 21715 sq/ft*
£ 1,000,000 Freehold
The site is located on the southwest corner of South Street and Station Approach. Braintree Town centre is approximately 50 metres to the west of South Street.
The site is currently used for commercial vehicles, car repairs and sales.
Planning permission has been granted for two new build schemes.
Scheme(1)
35 residential apartments(16 x 1 bed & 19 x 2 beds) 9 of which are shared ownership.
This scheme has an approx gross internal area of 21,715 sq ft over 6 floors.
Scheme(2)
47 retirement apartments (39 x 1 bed and 9 x 2 beds). This scheme has an approx gross internal area of 26,795sq.ft.
Braintree Investment Land for Sale
Friday, 15 October 2010
Rainham Freehold Land for Sale, Essex
Essex Development Land for Sale
Arnolds Field
Launders Lane
Rainham
Essex
RM13
£ 2,000,000 Freehold
Arnolds field is located on the New Road (A1306) with its junction at Launders Lane on the outskirts of Rainham..Rainham Station is close by as is the M25 (junction 30 & 31) & the A13.The site is on an old quarry which has now been filled. We have been led to believe that the local authority would be happy to see a leisure scheme on the plot.
Building Plot for Sale Rainham, Essex
Thursday, 14 October 2010
Basingstoke Town Centre Property For Sale With Planning Permission
Residential Redevelopment Property for Sale
Darwell House
Essex Road
Basingstoke
Hampshire
RG21
NIA: 7299 sq/ft*
£ 2,100,000 Freehold
This exclusive development is located close to the mailine railway station and Basingstoke Town centre.
Planning permission was granted for the erection of a side extension, construction of a second floor and minor alterations to existing building to form 14 no flats with associated parking and landscaping (7 x 1 beds & 7 x 2 beds)
All the flats benefit from large lounges, fully fitted luxury kitchens with dining area, good sized bedrooms, bathroom and storage cupboards.
All 14 flats are let on an AST basis @ £125,000 p.a.
Investment Property for Sale in the South East of England
New Foreign Buyers in New York City
South Americans are replacing Middle East investors and Russian oligarchs as key real estate buyers in New York City, agents say.
International buyers usually account for anywhere from 10 to 15 percent of property buyers in the city, which attracts a global array of investors and second-home buyers. Even through the economic struggles of the last 18 months, Realtors reported a steady stream of international clients looking for bargains.
But the buyers have changed in recent months, a New York Times article suggests.
“Foreigners are once again buying in Manhattan, energizing the still-fragile market. In recent months, according to brokers and developers, the money has been just as likely to come from South America or Mexico as Europe or the Middle East.”
International buyers usually account for anywhere from 10 to 15 percent of property buyers in the city, which attracts a global array of investors and second-home buyers. Even through the economic struggles of the last 18 months, Realtors reported a steady stream of international clients looking for bargains.
But the buyers have changed in recent months, a New York Times article suggests.
“Foreigners are once again buying in Manhattan, energizing the still-fragile market. In recent months, according to brokers and developers, the money has been just as likely to come from South America or Mexico as Europe or the Middle East.”
Tuesday, 28 September 2010
UK Letting and Estate Agents Data Protection Requirements
Some UK letting and estate agents are failing to notify the Information Commissioner's Office (ICO) that they are handling people's personal information, reports computer weekly.
But it is a legal requirement under the Data Protection Act for all organisations handling personal information to notify the ICO, the privacy watchdog said.
As property agents routinely process personal data, most would be subject to the Data Protection Act and would need to register as data controllers urgently, the ICO said.
Only 3,734 estate agents and 1,416 lettings agents appear on the public register, which represents a small proportion of the industry.
Mick Gorrill, head of enforcement at the ICO, said, "We want to work with the industry to ensure all property agents meet the legal requirement."
The ICO is to contact industry bodies to encourage members to register, but will take action against those who flout the law, he said.
"The message is very clear: notify with the ICO or face regulatory action," said Gorrill.
In the past year, the ICO has prosecuted seven organisations and individuals for failing to notify the privacy watchdog that they are processing personal information.
Those who invest in Britain’s residential property market will likely see returns that far surpass what their savings would make if invested on the stock market or by banks.
The Investment Property Database’s UK’s Residential Index found that landlords and other investors in residential real estate enjoyed returns amounting to 4.7 percent during the first six months of the year. As long as the market does not enter into another crisis, specialists predict returns of around 9.6 percent by the end of December.
This represents a major improvement compared to returns over the past two years, especially following the financial crisis, when they fell by 3.3 percent. Experts believe that while the residential property market tends to perform very robustly during times of economic recovery, even during more troubled periods, “insulated depreciation” characterizes the sector when there is overall instability in the economy.
One of the most attractive aspects of investing in residential properties—whether to sell, or to enter the buy-to-let sector—is that it is generally seen as a less volatile investment than relying on mutual funds and the stock markets. At the same time, returns are far less conservative than if one relied exclusively on guaranteed investment opportunities offered by most banks.
Capital growth in the residential property market reached 2.5 percent, with income return rising to 2.2 percent during the first six months of the year. While residential properties performed well, commercial real estate experienced even stronger growth, with capital increases of 6.2 percent.
But it is a legal requirement under the Data Protection Act for all organisations handling personal information to notify the ICO, the privacy watchdog said.
As property agents routinely process personal data, most would be subject to the Data Protection Act and would need to register as data controllers urgently, the ICO said.
Only 3,734 estate agents and 1,416 lettings agents appear on the public register, which represents a small proportion of the industry.
Mick Gorrill, head of enforcement at the ICO, said, "We want to work with the industry to ensure all property agents meet the legal requirement."
The ICO is to contact industry bodies to encourage members to register, but will take action against those who flout the law, he said.
"The message is very clear: notify with the ICO or face regulatory action," said Gorrill.
In the past year, the ICO has prosecuted seven organisations and individuals for failing to notify the privacy watchdog that they are processing personal information.
Those who invest in Britain’s residential property market will likely see returns that far surpass what their savings would make if invested on the stock market or by banks.
The Investment Property Database’s UK’s Residential Index found that landlords and other investors in residential real estate enjoyed returns amounting to 4.7 percent during the first six months of the year. As long as the market does not enter into another crisis, specialists predict returns of around 9.6 percent by the end of December.
This represents a major improvement compared to returns over the past two years, especially following the financial crisis, when they fell by 3.3 percent. Experts believe that while the residential property market tends to perform very robustly during times of economic recovery, even during more troubled periods, “insulated depreciation” characterizes the sector when there is overall instability in the economy.
One of the most attractive aspects of investing in residential properties—whether to sell, or to enter the buy-to-let sector—is that it is generally seen as a less volatile investment than relying on mutual funds and the stock markets. At the same time, returns are far less conservative than if one relied exclusively on guaranteed investment opportunities offered by most banks.
Capital growth in the residential property market reached 2.5 percent, with income return rising to 2.2 percent during the first six months of the year. While residential properties performed well, commercial real estate experienced even stronger growth, with capital increases of 6.2 percent.
Friday, 20 August 2010
Commercial Prope Freehold Commercial Property For Sale
Commercial Property: Freehold Pubs For Sale: Freehold Commercial Property For Sale: "Paramount Investments can advise on the purchase and sale of commercial property, commercial property lettings and commercial property inves..."
Freehold Pubs For Sale: Student Accommodation in University Towns
Commercial Property: Freehold Pubs For Sale: Student Accommodation in University Towns: "A Level results are out today, and all over the country 18 year olds are finding out whether they have made the grade for their chosen unive..."
Commercial Property: Freehold Pubs For Sale: Student Accommodation in University Towns
Commercial Property: Freehold Pubs For Sale: Student Accommodation in University Towns: "A Level results are out today, and all over the country 18 year olds are finding out whether they have made the grade for their chosen unive..."
Monday, 7 June 2010
New UK Pubs for Sale
24 new pubs have been put on the market, across the UK
Locations include: Greater Manchester, Midlands, Lancashire, Cheshire, Sheffield, Norfolk, London, Lincolnshire, South Yorkshire, Flintshire, Suffolk, Buckinghamshire, Kent, Suffolk,Oxfordshire,Shropshire,Essex,Rhondda and Durham
A number of the properties have exciting investment and development angles
and will be very sold quickly without prolonged marketing.
So no time to ponder, click on the pub name links below to be diverted to
our website for further information.
Locations include: Greater Manchester, Midlands, Lancashire, Cheshire, Sheffield, Norfolk, London, Lincolnshire, South Yorkshire, Flintshire, Suffolk, Buckinghamshire, Kent, Suffolk,Oxfordshire,Shropshire,Essex,Rhondda and Durham
A number of the properties have exciting investment and development angles
and will be very sold quickly without prolonged marketing.
So no time to ponder, click on the pub name links below to be diverted to
our website for further information.
Wednesday, 12 May 2010
The London Property Market Springs to Life!
LDG London West End Estate Agents have announced that they have smashed sales records for 2009 and the trend looks to continue into 2010, and 50% of purchasers are cash buyers!
We broke our all-time property sales record last year. This year has begun
vigorously with sales peaking in January 2010 to the highest level since
our humble beginnings back in 1987, and we continue to have a high number
of viewings. Purchasers are anxious to buy prime properties as soon as
they come onto the market. Even with the election sales are still being
agreed in significant numbers, many of which are going to sealed bids.
Last year 50 % of purchasers were cash buyers, 60% were UK/EU buyers and
40% international buyers. One third of buyers purchased as their main
home, another third acquired pied-à-terres and the final third were buying
as an investment.
Where will the market be in the next quarter?
If interest rates remain at current levels we don't believe the election will affect the West End market unduly. Now is still a good time to sell,so strike while the iron is hot.
LDG rentals have also had a record year, enjoying its highest record of rental renewals in 2009. Despite the market experiencing a slight downturn last year, LDG already had a number of measures in place toprotect its landlords. These included only using leading reference agencies and ARLA approved and regulated contracts, regularly upgrading management software and guiding on legal expenses and rent guarantees.West End properties are always in high demand and during the summer, from June onwards, we expect a high level of activity in the international student sector. LDG currently acts for substantial property developers and, on behalf of Derwent London, will be launching "Eight Rathbone" imminently
We broke our all-time property sales record last year. This year has begun
vigorously with sales peaking in January 2010 to the highest level since
our humble beginnings back in 1987, and we continue to have a high number
of viewings. Purchasers are anxious to buy prime properties as soon as
they come onto the market. Even with the election sales are still being
agreed in significant numbers, many of which are going to sealed bids.
Last year 50 % of purchasers were cash buyers, 60% were UK/EU buyers and
40% international buyers. One third of buyers purchased as their main
home, another third acquired pied-à-terres and the final third were buying
as an investment.
Where will the market be in the next quarter?
If interest rates remain at current levels we don't believe the election will affect the West End market unduly. Now is still a good time to sell,so strike while the iron is hot.
LDG rentals have also had a record year, enjoying its highest record of rental renewals in 2009. Despite the market experiencing a slight downturn last year, LDG already had a number of measures in place toprotect its landlords. These included only using leading reference agencies and ARLA approved and regulated contracts, regularly upgrading management software and guiding on legal expenses and rent guarantees.West End properties are always in high demand and during the summer, from June onwards, we expect a high level of activity in the international student sector. LDG currently acts for substantial property developers and, on behalf of Derwent London, will be launching "Eight Rathbone" imminently
Sunday, 9 May 2010
LDG London's West End Agents
LDG is proud to formally announce the launch of a new commercial division specialising solely in West End commercial property. Headed by Simon Taylor, the department will offer individual advice on unique commercial premises, small and large, and will look to build on LDG's successful record providing a personalised and professional approach. LDG is already well-connected with major clients in the West End, and its expansion into the development of shops and offices is a welcome natural progression.
Monday, 12 April 2010
Wednesday, 27 January 2010
Saturday, 23 January 2010
Property Investment for 2010
Property investment turnover in Central and Eastern Europe (CEE) surged more than 300 percent in the second half of 2009 from the first half, as pricing began to stabilise and confidence in local economies recovered, a report showed on Thursday.
The huge rise in commercial property sales volume brings total 2009 turnover in the region to 2.5 billion euros ($3.55 billion), broker CB Richard Ellis (CBRE) said, noting continued preference for "defensive properties in core locations".
Despite higher levels of activity in the second half of the year, CBRE described the 2009 market as "quiet" compared with recent years. Investment turnover in 2009 finished 75 percent lower than in 2008.
Central Europe accounted for 56 percent of CEE turnover in 2009, compared with 37 percent in 2008. Investors sought the relative security of assets in Central European capital city markets such as Prague, Warsaw and Budapest, which increased their share of total CEE turnover to 34 percent in 2009 from 21 percent in 2008.
Southeastern Europe's share of turnover fell more than half to 12 percent in 2009, while Eastern Europe's share dipped to 32 percent from 37 percent in 2009.Offices received the largest share of investor attention for most of 2009, grabbing 44 percent of the market versus 31 percent for retail and 12 percent for industrial property. Hotels accounted for 8 percent of transactions.
Both prime yields and prime capital values were relatively stable in CEE in the latter part of 2009, CBRE said, with more evidence of transactions closing at or near quoted prime yields in recent months.
"The fact that prime yields fell in certain Western European markets in H2 2009 has bolstered belief that prime yields have reached highs in most CEE markets," Pavel Schanka, Director of CEE Capital Markets said.
"Despite some promising signs at the prime end of the market, value declines are still a reality at this point in non-prime segments in most CEE property investment markets, and are likely to remain so in 2010."
London surged as the top destination for commercial real estate investment, beating out Washington D.C. and leaving New York in the dust, according to a recent survey by the Association of Foreign Investors in Real Estate (AFIRE).
London's score was 31 points higher than second-place Washington and 40 points ahead of third-place New York. Last year, London was in second place, four points behind Washington and only two ahead of New York.
Investors believe that commercial real estate prices in London already have bottomed out. However, prices in the U.S. have not because of differences in accounting practices.
"London currently offers investors the advantage of a "re-priced" market," James Fetgatter, AFIRE chief executive, said. "The re-pricing began sooner than it did in other cities."
The survey of the association's nearly 200 members was conducted in the fourth quarter 2009. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S.
The United States remained the country selected as the "most stable and secure real estate investment environment," although only 44 percent of the respondents said so. It was the first time the United State fell below 50 percent in the survey. That's down from 53 percent in 2008 and 57 percent in 2007.Germany was second with 21 percent.
"The financial crisis of the past year has obviously affected investors' perceptions of U.S. real estate as 'stable and secure,'" Fetgatter said. "However, it is also apparent that opportunity lies within this instability since the U.S., along with the UK, show substantially higher scoring for expected capital appreciation."
Fifty-one percent of respondents said the United States provided the best opportunity for price appreciation. According to various research firms, prices have fallen from their 2007 peaks by more than 40 percent.
Respondents saw the UK as the second-best country for capital appreciation, and China came in third.Two-third of the respondents said they planned to raise their U.S. investment in 2010, increasing equity investment by 62 percent and debt investment by 83 percent over 2009 levels.
Meanwhile, The Real Estate Round Table, which represents U.S. commercial real estate property owners, investors and professionals has been lobbying Congress to change the rules that subject some foreign owners to double taxation.
As for global investment, respondents said this year's equity investment would be 46 percent higher than in 2009 but 20 percent lower for debt investment.Among U.S. cities respondents chose Washington and New York, with San Francisco running a distant third. Boston made significant headway into fourth place, with Los Angeles falling one spot into fifth place.
Survey respondents said they favored investing in multifamily real estate as their preferred property type followed by office, industrial, retail and hotel properties trailing significantly.
"More notably, the gap between the top preference and the least-favored product, hotels, has not been this wide since 2000," Fetgatter said.
Half the survey respondents said they expect the U.S. commercial real estate market recovery by or before the fourth quarter, six months later than they projected in AFIRE's mid-year 2009 survey.
About a third of those surveyed said they were more optimistic about the U.S. real estate market than they were in June; 63 percent say their perspective has not changed and 6 percent say they are more pessimistic.
Respondents said their top favorite emerging markets are China, Brazil, India, Mexico, and Turkey. Brazil and India, which were the first- and second-ranked emerging markets in the 2009 survey, each receive half the votes of China.
London’s West End regained its ranking as the world’s most expensive office market in dollar terms last year as rents stabilized in the district while falling elsewhere, according to DTZ Holdings Plc.
The West End overtook Tokyo, Paris, Dubai and Hong Kong to secure the top spot, which it will hold until at least 2013, the London-based property adviser said in a report published today. The West End had been the costliest business district since at least 2002 until 2008, when it was placed fifth. Last year it cost $21,420 in rent, charges and taxes to provide office space for one worker in the district.
The global financial crisis has cut office rents worldwide, with demand for space waning as companies fired workers to save cash. That has reduced total occupancy costs in cities such as Singapore, where the decline coincided with a surge of new office space.
“With falling rents and more supply to choose from, the office market will offer tenants real value for money in the current climate,” Karine Woodford, head of real estate strategy at DTZ, said in the report. “We may see multinational companies taking advantage of this shift and relocating their operations accordingly.”
The cost of renting office space in Tokyo fell 8 percent to $20,960 last year, while costs for Midtown New York, Paris, Dubai and Hong Kong all fell at least 20 percent in dollar terms, DTZ said.
Costs in the U.K. capital’s main financial district, known as the City of London, are expected to rise an annual 6.7 percent in the five years to 2013, second to Hong Kong, where spending will advance 8.8 percent a year.
The five most expensive office locations in the world last year were the West End, central Tokyo, Washington, Hong Kong and Geneva, according to the report. The pound’s strength against the dollar contributed to the West End’s return to the top of the ranking.
The huge rise in commercial property sales volume brings total 2009 turnover in the region to 2.5 billion euros ($3.55 billion), broker CB Richard Ellis (CBRE) said, noting continued preference for "defensive properties in core locations".
Despite higher levels of activity in the second half of the year, CBRE described the 2009 market as "quiet" compared with recent years. Investment turnover in 2009 finished 75 percent lower than in 2008.
Central Europe accounted for 56 percent of CEE turnover in 2009, compared with 37 percent in 2008. Investors sought the relative security of assets in Central European capital city markets such as Prague, Warsaw and Budapest, which increased their share of total CEE turnover to 34 percent in 2009 from 21 percent in 2008.
Southeastern Europe's share of turnover fell more than half to 12 percent in 2009, while Eastern Europe's share dipped to 32 percent from 37 percent in 2009.Offices received the largest share of investor attention for most of 2009, grabbing 44 percent of the market versus 31 percent for retail and 12 percent for industrial property. Hotels accounted for 8 percent of transactions.
Both prime yields and prime capital values were relatively stable in CEE in the latter part of 2009, CBRE said, with more evidence of transactions closing at or near quoted prime yields in recent months.
"The fact that prime yields fell in certain Western European markets in H2 2009 has bolstered belief that prime yields have reached highs in most CEE markets," Pavel Schanka, Director of CEE Capital Markets said.
"Despite some promising signs at the prime end of the market, value declines are still a reality at this point in non-prime segments in most CEE property investment markets, and are likely to remain so in 2010."
London surged as the top destination for commercial real estate investment, beating out Washington D.C. and leaving New York in the dust, according to a recent survey by the Association of Foreign Investors in Real Estate (AFIRE).
London's score was 31 points higher than second-place Washington and 40 points ahead of third-place New York. Last year, London was in second place, four points behind Washington and only two ahead of New York.
Investors believe that commercial real estate prices in London already have bottomed out. However, prices in the U.S. have not because of differences in accounting practices.
"London currently offers investors the advantage of a "re-priced" market," James Fetgatter, AFIRE chief executive, said. "The re-pricing began sooner than it did in other cities."
The survey of the association's nearly 200 members was conducted in the fourth quarter 2009. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S.
The United States remained the country selected as the "most stable and secure real estate investment environment," although only 44 percent of the respondents said so. It was the first time the United State fell below 50 percent in the survey. That's down from 53 percent in 2008 and 57 percent in 2007.Germany was second with 21 percent.
"The financial crisis of the past year has obviously affected investors' perceptions of U.S. real estate as 'stable and secure,'" Fetgatter said. "However, it is also apparent that opportunity lies within this instability since the U.S., along with the UK, show substantially higher scoring for expected capital appreciation."
Fifty-one percent of respondents said the United States provided the best opportunity for price appreciation. According to various research firms, prices have fallen from their 2007 peaks by more than 40 percent.
Respondents saw the UK as the second-best country for capital appreciation, and China came in third.Two-third of the respondents said they planned to raise their U.S. investment in 2010, increasing equity investment by 62 percent and debt investment by 83 percent over 2009 levels.
Meanwhile, The Real Estate Round Table, which represents U.S. commercial real estate property owners, investors and professionals has been lobbying Congress to change the rules that subject some foreign owners to double taxation.
As for global investment, respondents said this year's equity investment would be 46 percent higher than in 2009 but 20 percent lower for debt investment.Among U.S. cities respondents chose Washington and New York, with San Francisco running a distant third. Boston made significant headway into fourth place, with Los Angeles falling one spot into fifth place.
Survey respondents said they favored investing in multifamily real estate as their preferred property type followed by office, industrial, retail and hotel properties trailing significantly.
"More notably, the gap between the top preference and the least-favored product, hotels, has not been this wide since 2000," Fetgatter said.
Half the survey respondents said they expect the U.S. commercial real estate market recovery by or before the fourth quarter, six months later than they projected in AFIRE's mid-year 2009 survey.
About a third of those surveyed said they were more optimistic about the U.S. real estate market than they were in June; 63 percent say their perspective has not changed and 6 percent say they are more pessimistic.
Respondents said their top favorite emerging markets are China, Brazil, India, Mexico, and Turkey. Brazil and India, which were the first- and second-ranked emerging markets in the 2009 survey, each receive half the votes of China.
London’s West End regained its ranking as the world’s most expensive office market in dollar terms last year as rents stabilized in the district while falling elsewhere, according to DTZ Holdings Plc.
The West End overtook Tokyo, Paris, Dubai and Hong Kong to secure the top spot, which it will hold until at least 2013, the London-based property adviser said in a report published today. The West End had been the costliest business district since at least 2002 until 2008, when it was placed fifth. Last year it cost $21,420 in rent, charges and taxes to provide office space for one worker in the district.
The global financial crisis has cut office rents worldwide, with demand for space waning as companies fired workers to save cash. That has reduced total occupancy costs in cities such as Singapore, where the decline coincided with a surge of new office space.
“With falling rents and more supply to choose from, the office market will offer tenants real value for money in the current climate,” Karine Woodford, head of real estate strategy at DTZ, said in the report. “We may see multinational companies taking advantage of this shift and relocating their operations accordingly.”
The cost of renting office space in Tokyo fell 8 percent to $20,960 last year, while costs for Midtown New York, Paris, Dubai and Hong Kong all fell at least 20 percent in dollar terms, DTZ said.
Costs in the U.K. capital’s main financial district, known as the City of London, are expected to rise an annual 6.7 percent in the five years to 2013, second to Hong Kong, where spending will advance 8.8 percent a year.
The five most expensive office locations in the world last year were the West End, central Tokyo, Washington, Hong Kong and Geneva, according to the report. The pound’s strength against the dollar contributed to the West End’s return to the top of the ranking.
Friday, 22 January 2010
Demand for City Offices Rises
An increase in commercial letting activity at the end of last year led to a decline in empty London office space for the first time in two years. Rents in the region were boosted as a result and on Wednesday the Royal Institution of Chartered Surveyors reported that rents had stabilised. Additionally, the forecasts of a number of leading property consultancies support the view that the London market is at the forefront of the property recovery.
Sunday, 17 January 2010
UK Houses are Less Affordable Now than in 1950's
Houses are less affordable than 50 years ago although the quality of homes has improved, according to the Halifax.The lender, now owned by Lloyds Banking Group, said that over the last five decades UK house prices have risen by 2.7% a year, allowing for inflation.This was above the 2% annual increase in real earnings over the same period.
Prices increased the most in the last decade, and separately lenders warned that lending to first-time buyers would be constrained for "some time to come".
Own or rentThe Halifax study considered the state of the market in the half-century from 1959 to 2009."The last 50 years have witnessed some remarkable developments in the UK housing market," said Martin Ellis, chief economist at the Halifax.
Margaret Thatcher was voted in as MP for Finchley in 1959, and it was her government's Right to Buy policy when she was prime minister in the 1980s that brought about one of the most significant shifts in the market.
Owner-occupation in the UK accelerated the most in the 1980s. The Halifax figures show that 43% of homes were owned by their residents in 1961, compared with 68% in 2008.
Privately rented homes fell from 33% to 14% over the same period, although it has crept up in the last 20 years or so, probably owing to the increase in student numbers.
Boom time
Four big house price booms have occurred in the last 50 years, the research concluded. They were: 1971-73, 1977-80, 1985-89, and 1998-2007.Over the last 50 years, the biggest rise in prices was in greater London, whereas the smallest increase was in Scotland. This might have been mitigated, to a degree, by an increase in homes with two incomes rather than just one.
In a sign that buyers might be getting more for their money now, the proportion of households without an inside toilet fell from 14% in 1960 to 0.2% in 1996.A basic hot water supply features in all homes, unlike 22% of them in 1967, and central heating has also become the norm.
Although getting on the property ladder might have become more difficult, the rise in prices would prove that homes have been a good long-term investment for some people.
The average home has almost quadrupled in value, having risen by 273% since 1959 in real terms, the Halifax found. In today's money, a typical home would have cost about £43,000 in 1959.
Bill McClintock, chairman of the Property Ombudsman, has been in the housing business for 50 years and said he bought his first home - a four-bedroom house in Winchester - for £3,400 in 1965."Even back in the 60s people aspired to own their own home," he said.
First-time buyers
House building levels have fallen, but the proportion of households that were occupied by just one person rose from 19% in 1971 to 33% in 2009, the Halifax said.
Modern houses are different to styles 50 years ago.This is likely to have added to pressure on affordability of smaller homes for first-time buyers.
The Council of Mortgage Lenders (CML) has said that the proportion of the average first-time borrower's income spent on mortgage interest payments dropped in November 2009 to its lowest level for six years, at 14.4%.However, the deposit demanded by lenders remained high - typically at 25%."The requirement for large deposits is likely to continue to constrain the market - particularly first-time buyers - for some time to come," the CML said.
Meanwhile, the National Association of Estate Agents said that there had been a seasonal slowdown in sales in December but a recovery over the last 12 months. However, it still wanted more assistance from the government to help prop up the housing market."Thousands of potential buyers are still in need of help and further, more robust, action is needed to make mortgages more available," said NAEA president Gary Smith.
Prices increased the most in the last decade, and separately lenders warned that lending to first-time buyers would be constrained for "some time to come".
Own or rentThe Halifax study considered the state of the market in the half-century from 1959 to 2009."The last 50 years have witnessed some remarkable developments in the UK housing market," said Martin Ellis, chief economist at the Halifax.
Margaret Thatcher was voted in as MP for Finchley in 1959, and it was her government's Right to Buy policy when she was prime minister in the 1980s that brought about one of the most significant shifts in the market.
Owner-occupation in the UK accelerated the most in the 1980s. The Halifax figures show that 43% of homes were owned by their residents in 1961, compared with 68% in 2008.
Privately rented homes fell from 33% to 14% over the same period, although it has crept up in the last 20 years or so, probably owing to the increase in student numbers.
Boom time
Four big house price booms have occurred in the last 50 years, the research concluded. They were: 1971-73, 1977-80, 1985-89, and 1998-2007.Over the last 50 years, the biggest rise in prices was in greater London, whereas the smallest increase was in Scotland. This might have been mitigated, to a degree, by an increase in homes with two incomes rather than just one.
In a sign that buyers might be getting more for their money now, the proportion of households without an inside toilet fell from 14% in 1960 to 0.2% in 1996.A basic hot water supply features in all homes, unlike 22% of them in 1967, and central heating has also become the norm.
Although getting on the property ladder might have become more difficult, the rise in prices would prove that homes have been a good long-term investment for some people.
The average home has almost quadrupled in value, having risen by 273% since 1959 in real terms, the Halifax found. In today's money, a typical home would have cost about £43,000 in 1959.
Bill McClintock, chairman of the Property Ombudsman, has been in the housing business for 50 years and said he bought his first home - a four-bedroom house in Winchester - for £3,400 in 1965."Even back in the 60s people aspired to own their own home," he said.
First-time buyers
House building levels have fallen, but the proportion of households that were occupied by just one person rose from 19% in 1971 to 33% in 2009, the Halifax said.
Modern houses are different to styles 50 years ago.This is likely to have added to pressure on affordability of smaller homes for first-time buyers.
The Council of Mortgage Lenders (CML) has said that the proportion of the average first-time borrower's income spent on mortgage interest payments dropped in November 2009 to its lowest level for six years, at 14.4%.However, the deposit demanded by lenders remained high - typically at 25%."The requirement for large deposits is likely to continue to constrain the market - particularly first-time buyers - for some time to come," the CML said.
Meanwhile, the National Association of Estate Agents said that there had been a seasonal slowdown in sales in December but a recovery over the last 12 months. However, it still wanted more assistance from the government to help prop up the housing market."Thousands of potential buyers are still in need of help and further, more robust, action is needed to make mortgages more available," said NAEA president Gary Smith.
Subscribe to:
Posts (Atom)
Posts
