International property investment advice from our expert Alan Forsyth
Latest Property Investment Advice
Brought to you weekly by our international property expert, Alan Forsyth.
Posted on 11 November 2006
Let's Begin...
Ok, as stated last week I am delighted to have been asked to write a regular column on Eye on Worldwide – hopefully over time you will be too!
I have a keen interest in the UK market as well as emerging markets in Europe and further afield, and will try to keep you posted on latest news in property markets across the world.
Cyprus
First up, Cyprus has been something of a property success story among British buyers. The economy is growing quickly, interest rates are low and there are lots of new off-plan developments to buy into with favourable payment plans. (Retirees also enjoy special tax treatment). All this has been reflected in property prices on the island which have been rising steadily. But according to “BuySell Cyprus”, prices in Cyprus actually fell by 0.8% in September, following a six month rally that had increased prices by 8.9%. However prices are still up a very respectable 9.4% on the year and average prices are CYP 92,459 (£109,908). It is still a reminder that in Cyprus, as in other hotspots, prices do not simply go on increasing month in month out for ever, especially where there is a lot of new building going on.
An excellent website for anyone looking to buy in Cyprus is at http://www.cyprus-property-buyers.com/ - the guy who runs it Nigel Howarth seems switched on, and most importantly impartial. Worth checking out.
Knight Frank
Not sure if you all saw last week’s Knight Frank property analysis for 2007 on the top European hot spot – worth mentioning again.
“Estate agents Knight Frank have predicted that Lithuania will enjoy the highest capital growth in its residential property market in 2007.
This week leading estate agent Knight Frank has revealed its forecast for capital growth in residential property markets across Europe in 2007. With 20% growth in prices predicted next year, Lithuania tops the list of European countries. Fellow Baltic state Latvia shares second places with Slovenia which are both set for 17.5% property price inflation according to Knight Frank.
Although not technically part of Europe, Morocco was included in the survey, coming in fourth place with a 15% growth forecast. Indeed, this month Commissioner for External Relations, Benita Ferrero-Waldner confirmed that the EU is considering giving Morocco an even more privileged status than the special relationship it has enjoyed since signing the Euro-Med Partnership in 1995. Moroccan Prime Minister Driss Jettou has been quoted as predicting that his country will be a fully-fledged partner in the EU family in 10 years.
Eight European countries are set for 12.5% property price growth in 2007, according to Knight Frank - Croatia, Cyprus, Estonia, Malta, Poland, Romania, the Slovak Republic and Turkey.
Knight Frank believe the underlying demographic, economic and financial fundamentals remain healthy, suggesting a hard landing is unlikely. What's more, in some central and southern Europe markets, limited mortgage penetration and strong economic expansion suggest a potential for further boosts in demand, according to Knight Frank.
The estate agent warns that certain markets will require caution as localised areas which continue to see substantial new development could risk possible oversupply if recent levels of construction are sustained. But these cases will be the exceptions to the rule as most markets enjoy further capital growth, particularly marked in emerging markets where demand keeps pace or outstrips supply.
So overall encouraging news for investors in Europe, clearly every individual deal still needs looked at closely but I would agree broadly with the analysis about the leading countries when looking for investment opportunities in Europe.
Ryanair
Encouraging news from RYANAIR who have announced passenger growth of 23% for October 2006.
Passenger numbers rose from 3mil in Oct 2005 to 3.73mil in Oct 2006.
New routes are getting announced all the time, and I will keep you posted on them on a regular basis.
Fuerteventura
I was out in Fuerteventura recently checking out a deal, and was impressed with what you got for your money, the leverage and the accessibility.
Fuerteventura is tipped to become one of the top holiday and vacation destinations in the world, with superb beaches, hotels, private accommodation, a vibrant culture, excellent restaurants and nightlife and a great choice of tours and excursions.
In terms of development, Fuerteventura is around 10-15 years behind the neighboring Canaries of Tenerife, Lanzarote, and Gran Canaria. Property prices in Fuerteventura are no exception, with prices a snippet of those on the surrounding Canaries. Fuerteventura is the only island left in the Canaries where an apartment can be bought on or near a top holiday resort for less than £50,000.
When I was there, the 5 star Sheraton hotel was only 4 months old and very busy, and in fact colleagues of mine going out this week – in traditionally the quietest time of the year - could not manage to get in. With another 5 star hotel built here in the last 6 months, and more flights announced from Scotland and Ireland, this island is worth a look.
Ok folks that’s the first of my weekly updates – we will be covering other markets outside Europe in more detail over the weeks and months ahead as well.
If there is a particular market/country you would like me to discuss or highlight, just let me know.
I can be emailed at alan@property-investment-deals.com
All the best, and have a great week,
Regards
Alan
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About Alan:
Alan Forsyth is a full time property investor from the UK. He runs the website www.property-investment-tips.com
which gives free, independent investing tips to investors. This site, www.property-investment-deals.com is designed to run alongside
his original website, and will give in more detail his recommended property deals, and full details/pictures of any new deal on offer.