All the latest news from the international property markets

 

S.A. House Prices ‘Did Better Than Expected Last Year’
Tuesday 24 April 2007 - 10.30

There is a consensus of opinion that house price inflation in South Africa declined last year, but the newly-launched Lightstone Residential Property Price Indices indicates that, after recording 33% in both 2004 and 2005, average house price inflation declined to 24% in 2006. It goes on to claim that the cumulative house price inflation rate was 288% from 1999 to 2006.

The Lightstone Index differs from other property price indices because it uses repeat sales data from the company’s automated valuation model (AVM) to generate ‘statistically sound, fully segmentable price trends for the South African residential property market’. It also claims to be the first of its kind to differentiate between a number of key sub-segments in its coverage of the national market by geography, property value and property type. These include provinces, major municipalities (metros), coastal and non-coastal, sectional title and freehold and average property price areas.

“The Indices track the actual changes in individual house prices within each defined geographic area,” said Anthony Miller, managing director of the Lightstone Indices. “They are therefore not distorted by changes in the mix of properties transacting during the period (like an increase in affordable houses being sold versus luxury houses). Lightstone uses the globally accepted repeat sales methodology to derive its residential property price indices. This method aggregates the observed price changes in actual residential property units that have sold at least twice within a specified period.”

Further decline expected
Speaking at the launch of the Indices, senior FNB economist John Loos said high interest rates and rising household debt would slow the market down further. “The slowdown is broad-based in terms of average price categories, with all four categories – Affordable, Mid-value, High-value and Luxury areas - all showing declining price inflation,” said Loos. Commenting on the Indices, he added: “We now have data to support the conventional wisdom that the lower end of the market is providing better performance.”

The Index was launched in Johannesburg last week and Andrew Watt, Director of Business Development at Lightstone, confirmed that the Residential Property Price Indices will be published monthly on Lightstone’s website (at www.lightstone.co.za).

 

Number of Brits Buying Abroad 'Has Soared'

Monday 23 April 2007 - 14.30

Savills Research, in association with Holiday-Rentals.co.uk, carried out a survey at the end of 2006 of over 2,300 second homeowners on their database. Basing its findings on data from the Office of National Statistics (ONS) that 235,000 foreign homes were owned by 193,000 Brits in 2003, and an average increase in numbers of 9% per annum over the last decade, the report claims a current level of around 400,000.
 
“The overseas second home market has grown rapidly both in terms of numbers and value,” the report claims. “The ONS estimated that the total value of UK owned foreign property has increased more than threefold between 1994 and 2003, from £7bn in 1994 to £23bn in 2003.
 
We estimate that the total figure is now £52bn due to both increased ownership and house price inflation.”
 
Savills claims that growth in second home ownership has been driven by the relative attractiveness of overseas prices compared to those in the UK and the reduction in the cost of flying (it added that price premiums for properties in locations served by low cost airlines can be as high as 37%) . Other factors driving overseas purchases include the ability to finance purchases from individuals’ accumulated cash reserves, high levels of equity built up in purchasers’ main UK residence, and increased political and economic stability in other countries.
 
Savills claims that over half of second homes abroad (56%) are located in Spain and France although increasing overseas investment is now being directed at new and emerging areas including Croatia and Bulgaria.
 
The report also claims that investment returns are increasingly important to buyers, particularly in emerging markets where the prospects of future capital growth are a significant incentive. Rental potential is the most important financial consideration influencing the purchase of a second home, however. Typically, the highest rents are being achieved in the established holiday destinations such as Italy, France and Greece and gross income yields vary between 2.7% and 8.6% and average 4.6%.
 
With some in the industry observing that buyers are getting younger, Savills confirms that owners of second homes are typically aged between 45 and 75 with purchases often being funded out of personal capital or equity in their UK homes.

 

New finance law 'will open up Turkish market'

Friday 20 April 2007 - 10.10

Investing in Turkey is set to become more popular following changes in the country's laws, an online estate agent has said.

According to RightmoveOverseas, the introduction of mortgages for non-residents will result in an influx of foreigners buying homes on the Turkish coast.

Until now, overseas property buyers have been unable to purchase a Turkish property unless they paid cash. However, with inflation pushing up house prices, the government changed the law to keep the housing market buoyant.

"Turkey is now set to become one of the next big things in overseas property thanks to a change in Turkish law," said Justin Figgins, head of RightmoveOverseas.

"This change means that foreigners can now obtain Turkish mortgages, which will inevitably lead to an influx of investors to the Turkish coastal resorts where the real bargains are."

However, he said that because the mortgage market in Turkey is very new, potential investors must do their homework before making a commitment.

There are around 63,500 properties in Turkey owned by foreign investors, mostly along the coast or in the big cities.

US Home Prices Will Fall In 2007

Thursday 19 April 2007 - 15.10

The National Association of Realtors (NAR) predicts a fall in US home prices this year, the first in at least 38 years. The real estate body believes that tighter lending standards will result in fewer home sales, with NAR chief economist David Lereah recently claiming that it would cost up to 250,000 sales in 2007. "Tighter lending standards will dampen home sales a bit, but by less than a couple of percentage points from initial projections," said Lereah. "We still forecast 2007 to be the fourth highest year on record for existing-home sales, and housing remains a great long-term investment."

Median sales prices of existing homes are now projected to fall 0.7% in 2007 before a 1.6% gain in 2008. In February, Fannie Mae economist Dave Berson predicted a fall of about 1%, based on data from the Office of Federal Housing Enterprise Oversight.

According to data from the NAR, existing home sales are down 2.2% to 6.338 million in 2007 from 6.478 million in 2006; new-home sales are down 14.1% to 904,000 in 2007 from 1.053 million in 2006; housing starts are down 18.4% to 1.47 million in 2007 from 1.80 million in 2006; and spending on residential construction is down 13.6% to $503 billion from $582 billion in 2006.

Good for investors

With Sterling reaching its highest level against the US Dollar since September 1992, FX brokers are urging UK investors and holiday home buyers to take advantage. “Speculation that the US will be forced to cut interest rates to stimulate the economy has weighed heavily on the Dollar," said Mark Bodega, Marketing Director of HiFX. “It’s worth remembering that the last time the pound traded consistently above $2 was in 1975!”

Justin Figgins, Head of Rightmove Overseas, adds: “The widely publicised drop in the value of the US dollar has been a huge boost to those looking to buy property in the States. The weakening of the US dollar to 14 year highs will hugely increase the number of people entering into forward contracts, when buying US properties.”  

NatWest joins AIPP (Association of International Property Proffesional)

Wednesday 18 April 2007 - 10.30

NatWest International has become the first bank to become a member of the Association of International Property Professionals (AIPP).

As part of the NatWest International Personal Banking product set, NatWest offers a ‘Spanish Mortgage’ product to its customers wanting to buy a home in Spain.

The AIPP, a non-profit organisation, was set up to give consumers confidence and information on buying property abroad. It will guide and regulate the international property industry helping consumers to get the best possible support to easily achieve their ambition of buying their dream home. The AIPP aims to provide accountability and transparency for consumers looking to buy a property abroad.

Darren Fretwell, head of UK sales and international mortgages at NatWest International said: “The AIPP’s sole aim is to improve professionalism in the international property market, helping the industry and the public. We want to give our customers confidence when they come to us and they will now have that safety net. We are there to support and guide them through the process of buying their dream property abroad.”

Brazilian beach-front land 'a hit with investors'

Tuesday 17 April 2007 - 11.00

There has been growing activity from foreign investors in the Brazilian property market in the last 12 months, Homesgofast.com has said.

According to Nicholas Marr, spokesperson for the online firm, investments in land, particularly beach-front land, is becoming increasingly popular, while off-plan investments are now less favoured.

He added that rather than multi-national companies buying up land, private investors "with a bit of money" are starting to take control of the market.

In particular, the fishing village of Cumbuco, which is famous for its beach, is proving to be an appealing prospect for land investors.

However, he warned that for anyone considering buying property or land in Brazil, it is imperative to seek advice from a lawyer.

"You definitely, definitely need a lawyer, because title can sometimes be an issue. You need to get a CPF number [individual taxpayer identification number] and to get that you need your birth certificate," he stated.

"It's not that straight-forward, it's quite bureaucratic. You definitely need someone who knows what they're talking about."

Last month, property firm Escapes2 said that newly developing markets, such as Brazil, are a good place for investors to make a profit, especially where property demand outweighs supply.

Spanish investors 'could be due a refund'

Monday 16 April 2007 - 16.40

British investors who have paid money towards capital gains tax for a property that they sold in Spain could be in a position to receive a refund should the move collapse, one firm has said.

Property vendor Valuvillas has welcomed news that the Spanish government has significantly reduced the levels of capital gains on property sales conducted by foreign investors.

Until now, non-resident foreigners selling property have been subject to a 35 per cent capital gains tax on their gain when they sell property in Spain. At the same time, Spanish residents had to contend with a more lenient 15 per cent capital gains tax.

Since the start of 2007, the figure has been reduced to 18 per cent, while the rate for residents has moved up from 15 per cent to 18 per cent.

This has led to Valuvillas posing the question: "Are you due a refund?"

Under current conditions, the amount is refundable if the sale falls through, but sellers will still pay the full 18 per cent should the deal is sealed successfully.

Investors abroad look to boost retirement income

Friday 13 April 2007 - 17.40

For many people, investing in an overseas property is a method of boosting income, whether operating as a buy-to-let landlord or with a view to pocketing a lump sum once the property has appreciated in value. For those that are approaching retirement, a property investment can prove even more attractive as a means of generating income for retirement.

This is especially so in light of recent media reports of pension plan problems and a national debate on whether the social welfare system is going to be able to meet the needs of an increasingly ageing population.

According to one property market consultant, recent years have seen a "massive explosion" in the levels of both interest and activity of UK buyers in the foreign property market. A spokesman for Frank Knight claims that there are now up to a million Britons that are active in the market. And he opined that "the volume of properties that are advertised and marketed in the UK" are proof that the market is thriving.

One piece of recent good news for anyone that is thinking of buying a property abroad was a government announcement that company directors are no longer to be charged benefit-in-kind tax for owning a property abroad that they have purchased through their company.

Previously, UK directors could buy a foreign property – often through a shell company – and then issue shares in their firm. This would allow them to avoid any inheritance tax in both the foreign or domestic country. However, the British government charged directors who were taking advantage of this loophole a benefit-in-kind tax on those shares, in order to make for some of the income lost through not being able to charge inheritance tax.

That tax will no longer be charged from 2008, which may benefit investors in the overseas property market (provided they first set up a front company, a relatively easy undertaking) and may especially interest those that are retired or approaching retirement age. According to Frank Knight, recent years have seen a "big trend" towards retirees buying property abroad.

"There are normally two reasons why people do it," said a spokesman. "One is pure investment: they're looking to buy somewhere where you’ll outperform the UK investment market". Alternatively, he said, a significant proportion are simply "buying for lifestyle - either to use in the interim as a holiday home and then with an eye to retirement, or potential downsizing in the future."

Tax boost for overseas property investors

Wednesday 11 April 2007 - 16.40

Overseas property owners appear to be one of the few people in the UK to benefit from the Chancellor’s recent Budget.

The Government has confirmed that directors buying property through a company will not face a benefit-in-kind tax charge. The legislation, which will be brought in under the 2008 Finance Bill, has been welcomed by both accountants and property developers because the Treasury confirms that a substantial of UK property investors have become directors of a company to buy overseas.

"If the home is used for that company's affairs, it will fall within the scope of a living accommodation charge,” explained Ian Bingham, tax partner at Manchester-based PKF accountants and business advisers. “However, these new rules will ensure that the benefit-in-kind charge will not apply for private use of the property and it will have retrospective effect. Draft legislation will be published later this year for consultation but the Revenue won't tax anyone in the intervening period as long as certain conditions are met. It is important that people get professional advice to avoid paying too much tax on their overseas property."

Dani Maxton, managing director of Cyprus property developer Morpheus Investments, added: "This is good news for the industry and for investors. It removes a problem which arose from the need to hold overseas property in a company as a result of likely tax and property ownership rules. This year looks like being the biggest yet in terms of UK residents investing in foreign properties.

Boom on the horizon for Malaysian property market?

Thursday 05 April 2007 - 12.30

Property in Malaysia could be given a major boost following the government’s decision to abolish real property gains tax.

 

The Real Estate and Housing Developers’ Association Malaysia claims the tax change will further improve the country’s property sector - which has been sluggish over the past few years.
 

“It is a positive step for the property market,” said Shahril Ridza Ridzuan, managing director of property developer MRCB. “It will encourage more secondary trading and liquidity into the secondary property market. It is something which will have a big boost in terms of people’s ability to reinvest to upgrade their properties and move up the property ladder.”

 

James Wong from the Association of Valuers & Property Consultants in Private

Practice Malaysia said: “Except for the mass housing development projects, there will be improvement across the board in the property market.
 

“Growth activities will initially be underpinned by transactions in high-end residential units. This will be followed by investments in other segments such as shop offices and industrial properties as well as properties in new growth areas in Johor, Penang and the Klang Valley.”

 

International Real Estate Federation president Datuk Fong expects stronger demand from foreign investors for properties in the above RM250,000 segment. This would help ‘mop up’ excessive supply of high-end residential units, he said.
 

Fong, also executive vice-chairman of Glomac Bhd, welcomed the move to enable foreigners to obtain local financing, saying this would encourage foreigners to purchase in bulk.

 

Commenting on the wider impact of this tax law change, Lars Evans, sales director at Claire Brown Realty said:   “It is going to help improve the market which is already very good in that region for off-plan property sales in the second residential market.

 

“Now this has happened there will be further moves in future to encourage foreign investment in the property sector which is not only good for Malaysia, but for the rest of Asia who’ll see this as an indictor and follow suit.”

 

Dont go it alone, Spanish buyers told

Tuesday 03 April 2007 - 16.40

Buyers of Spanish property are being urged to prepare their investment carefully and employ a good lawyer or use a member of Federation of Overseas Property Developers, Agents and Consultants (FOPDAC) a website has advised.

According to Homes Worldwide, a Spanish property investor should always use an independent lawyer to conduct the sale, especially as they will be able to check that planning permission and building licences have been obtained.

Another way of ensuring success is to buy property built by a developer that is a member of FOPDAC, a respected organisation that has a strict guidelines and rules.

Craig Stocks, from Eden Villas, which is a member of the federation, said that although no market is "100 per cent", the Spanish market is generally "healthy".

"Tens of thousands of UK residents move to Spain each year and a small minority incur problems," he added.

Investors have been advised by the European Estate Agents Union to make sure that their newly-acquired property has planning permission.

The warning follows concerns that a number of properties have been built on agricultural land in Spain without the necessary license required for first occupancy.

 

S.A Property Market is Booming

Saturday 31 March 2007 - 14.00

Buy-to-let investors considering extending their global portfolio may be interested to read that one expert has described South Africa's property market as "booming".

The country is set to hold the 2010 World Cup - a fact that has led one analyst to comment on how the property market will perform in the short and medium-term. Emma Cleghorn, a partner at SA Options, said today that the marketplace is currently experiencing rising levels of growth and expects this figure to hit 15 per cent between now and the end of 2008, which would be a near 100 per cent rise on current levels.

Although Ms Cleghorn did acknowledge that there has been some negative media coverage on how the tournament could affect the buoyancy of South African property, she also states that the market will remain stable, adding that despite the fact it has experienced some fluctuation, it "is definitely on the rise again".

For investors who are considering South Africa as a viable option, the partner has also provided information that could help those looking to build their portfolio get the most of a South African buy-to-let.

She states that short-term investors are "making more money" on low cost housing - explaining that many people "are buying two bedroom duplexes or town houses and keeping them for two years and then selling them on".

For buy-to-let investors looking to take advantage of the holiday let market, South Africa's official tourism website highlights a range of areas that visitors could be keen to visit. These include provinces such as Western Cape - which is described as one of South Africa's "premier tourist attractions" and Mpumalanga in the north-east of the country which the tourist website claims is popular with both international and local tourists.

On a wider scale, it was announced at the World Economic Forum last year in Cape Town that over $100 million was to be pumped into the newly formed Investment Climate Facility (ICF) in order to make Africa more attractive option to potential investors.

Commenting on the continent as a possible opportunity, Omari Issa, the chief executive of the ICF, told Voice of America recently: "You look at Africa. It’s full of resources, full of potential. The issue really has to do with just releasing that potential, making sure that potential is appreciated and is channelled correctly."

However, Ms Cleghorn does warn those who are tempted by the South African market against using taking out a mortgage. Drawing attention the current interest rate of 12.5 per cent, the director argues that "if you are planning on paying cash for the property its not really that much of an issue but if you are planning on mortgaging the property and renting it out, our rental income you are looking at about 0.5 per cent of the value of the property so you would be lucky if you are covering half of what your mortgage repayments are".

The partner adds that buying off plan could be the best option.

 

Rogue Bulgarian estate agents

Bulgarian real estate has been the victim of some rogue estate agents preying on British Buyers according to Quest Magazine in Bulgaria. The practices of agents selling at three times the value of its market value has caught out unsuspecting overseas property buyers and left agents with huge profits.In a bid to help Britons buy homes in Bulgaria with more confidence, a new campaign to rid the country of rogue estate agents has been launched.
 
The move aims to end to the sale of unregulated land and the practice of false pricing on deeds. It also aims to halt dual pricing on Bulgarian versus UK internet property sites by establishing a code of conduct in line with European protocols.
 
Leading the campaign and inviting the public to join in, is the April issue of the specialist English language magazine Quest Bulgaria for people looking to buy property or living in Bulgaria.
 
Says Quest Bulgaria md Chris Goodall: “We receive hundreds of emails and letters from buyers, agents and lawyers regarding real estate transactions – the good, the bad and the ugly of what’s been happening. It is clear there is a desire for change.
 
“Whilst most agents are honest and provide a decent service, there are some who are being very greedy and spoiling it for all, especially for the buyers.”
 
The campaign is being run to generate support for a non-governmental organisation in the next six months to align the estate agency business.
 
“We want to put a stop to non-accountability and establish a system whereby both real estate professionals and consumers have recourse in the case of any dispute,” said Chris.
 
“A free-for-all attitude in the real estate market has been destroying buyers and investors confidence in Bulgaria. Through a code of practice will come more confidence and more sales while at the same time protecting the investment of those who have already bought into the country. It will enable Bulgaria to stand out over other Eastern European countries as the top investment and property choice.”
 
law firm GPNG, based in the capital Sofia, supports the campaign. Said Asja Mandjukova, a lawyer,who frequently deals with overseas buyers: “This campaign is long overdue in response to some of the vicious practices in the estate agency business.
 
“This has a resulted in a rash of incompetent, so called professionals who can make quick money with poor quality of service,” he said.
 
And Address Real Estate Executive director Katya Tsenova added her weight to the campaign. “While estate agencies in Bulgaria have improved significantly in the last few years they need to improve even more and the best practices in Europe and the rest of the world must continue.”
 
Supporting the call for a code is Chris Downham, managing director of Bulgarian Home Loans. He said: “There are definitely a few bad apples out there who can flourish while the market has so few rules. By developing a code of conduct to clamp down on these cowboys, we believe we will stamp this out.”
 

Another who is calling for the code is Stephan Dimitrov, chief executive officer of Allied Pickfords International. He said: “Quest Bulgaria has picked up the baton of EU entry and continued the momentum for aligning this country with other member states. The campaign is long overdue and we are fully behind it.”

 

And Living Bulgaria, an estate agency in Varna, is also backing the move. Director Martin Hunt said: “Such a code would leave the customer clearer as to what to expect. Quest Bulgaria has hit the nail on the head with the one word in their campaign – transparency.
 
“The need for this campaign is clear but only those who make an effort deserve to be part of this bright future.”
 
Mission statement for the campaign is “Quest for real estate ethics in Bulgaria; honesty, integrity and transparency”. Among the issues it focuses on are:
·         Older property sold at three times the price with the vendor getting one third while the agent takes the rest,
·         Land that is unregulated or has boundaries in dispute,
·         False pricing in the deeds,
·         Agents insisting you use their lawyer,
·         And dual pricing - Bulgarian internet sites with prices half or less.
 
It wants:
·         A mandate to sell - stop the rip off,
·         Real prices,
·         Tax estimation prices to be scrapped,
·         A stop to cash payments.
 
Quest Bulgaria has set up a web site for its campaign at www.campaign.questbg.com and hope people will visit it and vote in their opinion poll

AIPP Property Report 2006 (Association of International Property Professionals)

In its first year the AIPP (Association of International Property Professionals) has produced independent market statistics for the UK on the International Overseas Property Market purchasing trends. It makes for some interesting reading. Download your copy now from the link AIPP (UK) Overseas Property Report 2006

New opening of Pyramisa Resort, Salh Hasheesh, Egyptian Red Sea.

Friday 23rd March 2007 - 18.00

The Pyramisa Group are to open their stunning new resort at the acclaimed Egyptian Red Sea Resort of Salh Hasheesh. Pyramisa Beach Resort will open its doors on the 1/4/2007 for the 1st Phase of this stunning resort on the sandy shores of the Red Sea , Egypt.  The resort first phase which will have 400 sea view luxurious rooms & suites, heated outdoor swimming-pools, Asian , Italian , and seafood restaurants, a nightclub, bars , cafes and grill by the pool, children's pool and  playground and  multi lingual animation programs and

aqua sports centre all in the phase1 opening. In June 2007 the international diving (Scuba) centre will open, followed in July 2007 by the 1500 m2 conference facilities. This is a great opportunity for anybody looking to invest in Egyptian property or this resort in particular and A.G.S. Properties (UK) Ltd can provide you with full investment information should anybody wish to have a guaranteed return on their investment at this resort or other Egyptian resorts in our portfolio

 

Mortgages for Property in Turkey

Monday 19 March 2007 - 09.00

Approved late Wednesday night and due to come into effect on the 1st of January 2008, the new law relating to mortgages for property in Turkey should represent welcome long term support for the housing market and the Turkish real estate economy as a whole.

However the new Turkish mortgage law didn’t go as far as many had hoped, and following pressure from the International Monetary Fund and the Finance Ministry the law relating to interest payments being tax deductible was not ratified. So what will this law actually mean for those who need mortgages for property in Turkey? Let’s take a look…

There are those who are highly sceptical about the new mortgage law and who believe that although long term finance products will be available from January few local Turkish citizens will take up the offer because interest rates are too high currently, interest payments are not tax deductible and because of those who can afford finance, the majority don’t require it.

Others believe that the availability of finance will result in property prices in Turkey increasing because a lack of affordable finance artificially held back prices. On top of this fact they believe that the new law will force interest rates to fall and make the entire housing market far more flexible and liquid. It is hoped that the availability of mortgages for property in Turkey will kick start a resale market where buyers previously were reluctant to head because they couldn’t enter into payment plans with the vendor – and what’s more, the availability of long term loans could see more local involvement in the construction industry.

Previously only 3% of the entire construction industry was funded by long term finance arrangements which put exceptional pressure on both the constructor and his customers who are often used to finance a project. This has led to many problems in the past. If a constructor cannot manage his money or doesn’t get the sort of off plan sales required, the entire construction project could fail at any point. With a bank backing the project with a long term mortgage many more projects could be started and completed!

For foreign buyers of property in Turkey the new law doesn’t actually mean much at the moment. Few international lenders are expected to enter the marketplace initially and the local lenders will only be looking to the local consumer to lend to. What’s more, loans will not be available to finance off plan property purchases which is what the majority of overseas buyers are currently purchasing. Over time the greater use and wider understanding of mortgages in Turkey could mean that a broader range of products become available which could be accessible to overseas buyers…watch this space!

BRAZIL ENTERS TOP TEN OF EMERGING OVERSEAS DESTINATIONS

Friday 16 March 2007 - 11.00

Based on the number of enquiries from its customers, the latest monthly Global Emerging Markets Index from Currencies Direct shows Brazil in the top ten for the first time.

Brazil was the ninth most popular investment location for Brits buying homes abroad, according to the FX specialist, with Turkey taking the top-spot, followed by Bulgaria and Dubai. Thailand was in fourth place, followed by the Czech Republic, India, the UAE and Poland. Cape Verde, which is still enjoying a high profile, came tenth.

Mark O’Sullivan, head of trading at Currencies Direct, warned that Brazil should still be considered a developing nation which created some positives and negatives. "Social problems such as poverty, human trafficking and governmental corruption, might put buyers off,” he said. “However, its tropical climate, dramatic scenery, upbeat culture and potential annual occupancy rates of about 30 weeks present plenty of reasons to buy property in Brazil."

South America’s biggest country also has large and well-developed agricultural, mining, manufacturing and service industries, a large labour pool, and is the richest Latin American country. According to the 2006 Cap Gemini/Merrill Lynch World Wealth Report, which found that 8.7 million people globally each held at least US$1million in financial assets in 2005 and their combined wealth totalled US$33.3 trillion (of which 16% was held in real estate), Brazil has 109,000 High Net Worth Individuals.

It has had steady growth in recent years, and an affordable cost of living make it an attractive investment opportunity for British buyers. Sol Med Properties, which exhibited at OPPLive 06 to find IFAs and estate agents to help market a luxury development in Brazil, has seen enormous interest from foreign buyers. Promoting Lagoa do Coehlo Resort in the north east of Brazil, which is due to be key ready in June 2008, Sol Med’s Carmen Cruz said: “It represents enormous investment potential (last year property values in this area of Brazil increased by 20%) and at just 9 hours flight time away it is also a perfect holiday home.”

EGYPTIAN TOURISM IS DRIVING UP PROPERTY PRICES

Thursday 15 March 2007 - 10.00

Property purchases in Egypt are expected to double in 2007 pushing up prices by as much as 20% per annum for the next three years, according to a report from Egypt’s Tourism Authority.

The report says over one million UK holidaymakers visited Egypt in 2006, representing a 25% increase on the previous year. Property price rises are already outstripping most emerging markets and average prices in Egypt are expected to rise by 20% in 2007.

Jennette Bradbury, managing director of Egyptian Experience, said: “We expect the property market in Egypt to grow substantially in the next few years. After many years of economic reform the area is ripe for investment.”

Bradbury, who will be exhibiting at the Homebuyer Show from 2-4 March, added: “With record levels of tourism, the property market in Egypt offers excellent investment returns, from both rental yields and property price rises. The area is particularly popular with cash-rich young investors, where the diving experience has caught their imagination.”

Since Egypt’s Economic Reform Program in the early 1990s, which focused on stabilising the economy, improving public finance and exchange rate policies, the economy grew by 6% in 2006 and the anticipated growth this year is 7%. Egypt has low stamp duty, death succession duty of 7% and no capital gains tax – which makes it attractive to ‘tax tourist’ investors.

The country, which is on course to welcome 16 million visitors from around the world by 2014, is seeing some of the fastest property price growth in the world, with average values rising by 50% in the last two years. It also offers one of the highest returns on investment worldwide, with rental yields in key tourist resorts reaching 11% compared to 4-6% in the UK.

Approximately 2,000 properties were purchased by overseas buyers in 2006, according to the Tourism Authority report, and this figure is expected to double in 2007 and reach 10,000 by 2010.