Real Estate Information

Where is the Sophisticated Property Investor Putting his Money?


The Traditional Favourites

Over the last five to ten years, UK investors buying property abroad have generally stuck to the traditional favourites Spain, France and Italy. With prices a fraction of those in the UK and a guarantee of more sunshine, these markets offered plenty of scope for capital appreciation, rental return and holiday home use. However as prices have steadily risen in these countries, yields have hardened in response and an eventual over-supply particularly in parts of Spain has occurred. In today's environment property investors are looking further East for yield and capital appreciation opportunities.

Emerging Markets

A year ago ten more countries joined the EU, expanding not only the Union, but the hunting ground of the international property investor. Most investors have come to the conclusion that the market cycle here in the UK is at it's peak, and the more sophisticated investor has already started moving his money into the new EU countries. Many astute investors started buying there a year or two before EU accession, particularly in more developed cities like Prague and Budapest where the real estate markets were relatively more mature. So prices in these cities had already increased by up to 25% in the year up to May 2004, however there is still a long way to go especially in the other capitals of this region.

It's Just Economics!

Putting your money into an emerging market surely has to be profitable because by the very definition of 'emerging', you should assume growth, and therefore return. EU accession is a massive catalyst to the growth of an economy as the EU is committed to backing these countries in a bid to creating comparable economies to those of it's current members. Government incentives, new political regimes and tax reforms are creating an ideal climate for foreign direct investment, higher employment and GDP growth, which all directly affect the property market.

The relative attractiveness of the older EU capitals from a corporate location point of view is changing according to a DTZ report on the Emerging EU economies. The report concludes that Bratislava, Berlin, Prague and Budapest will be the main beneficiaries in this new economic geography mainly due to their location and catchment areas, the associated low costs especially labour, skills base and the economic growth prospects of these four cities. In less than a year since the 10 countries joined the union this is already evident, particularly in Bratislava as Slovakia wins some of the biggest foreign investment contracts in the region.

Going Forward in 2005

I think most would agree that for long term steady growth complemented by relatively few risks investing in bricks and mortar at home in the UK cannot be beaten for a good solid pension plan. Over the last 10 years the more adventurous have strayed off the beaten path to Spain, Italy and France in search of holiday homes and to diversify their portfolio. There is now however a new and far more exciting playground for us property investors which is sponsored by the European Union, has the most diverse culture in the world, it's experiencing unrivalled GDP growth and it's property market is currently way undervalued.

Not only has the UK property market levelled out, it looks to stay that way for the next couple of years and the traditional overseas investment spots seem to have lost momentum and have been overshadowed by something bigger. The pioneers have cleared the stones from the road to Eastern Europe and 2005 is a great time to arrive at the party!

Bruce Stronge is one of the founding partners of Slovak Investments, a company offering the complete Slovakian property investment solution for foreigners. Newsletters, European property market news and new deal alerts are available at the company website http://www.slovakinvestments.com


MORE RESOURCES:

CNBC

Real estate investment trust sees business booming post-Hurricane Harvey
CNBC
Camden Property Trust has seen a "total transformation" of its business since Hurricane Harvey slammed into Texas, its CEO told CNBC on Tuesday. The Houston-based company, which develops and manages multifamily apartment communities, has seen ...

and more »


CNBC

Trump lawyer: Moscow Trump Tower 'solely a real estate deal'
CNBC
The proposal to build a Trump Tower in Moscow during his presidential election was "solely a real estate deal and nothing more," says Pres. Trump's lawyer.

and more »


Forbes

Unusually Large Loans Mask Decline In NYC Commercial Real Estate Lending
Forbes
Take a look at loan originations for commercial real estate properties in New York City in the second quarter and you'll find something unusual: The quarter's biggest loans aren't just big, they're really, really big. And the size of those loans ...

and more »


Forbes

Two Smart Long-Term Real Estate Options
Forbes
But if you think you're going to make it, now might be a good time to take a serious look at where you want to establish your business. Long-term business real estate planning means either direct ownership or long-term lease. I've covered the direct ...



Trumbull real estate up 3% after two periods of falling values
Youngstown Vindicator
The first data coming out of the most recent three-year Trumbull County real-estate reappraisal show an average increase of 3 percent, county Auditor Adrian Biviano says. That may seem like a modest increase, but compared to the 5 percent drop during ...

and more »


CoinTelegraph

First Bitcoin-Only Real Estate Transaction Completed in Texas
CoinTelegraph
In Texas, buyer and seller come to terms for a home sale in Bitcoin.

and more »


Business Insider

Russian real estate heir marries social media star: PHOTOS ...
Business Insider
This past weekend, Karen Karapetyan — son of Russian real estate mogul and billionaire Samvel Karapetyan — married social media star Lilit in a glamorous ...

and more »


Mashable

Women in STEM get prime real estate on Grand Central's ceiling for an inspiring reason
Mashable
There are plenty of ways to recognize the pioneering women who've made unique contributions to science, technology, engineering, and math. But GE chose an unorthodox strategy by creating custom-designed animations of 12 influential women in STEM ...

and more »


New Data Shows Strong Sustainability Improvement in the North American Real Estate Sector
Markets Insider
AMSTERDAM, Sept. 19, 2017 /PRNewswire-USNewswire/ -- GRESB, the Global ESG Benchmark for real assets, today released the results of its annual 2017 GRESB Real Estate Assessment for the North American real estate sector. Globally, a record 850 ...

and more »


Newser

Welcome to the Depressing New Real-Estate Game
Newser
(Newser) – A story in the New Republic pronounces "a new era of real estate speculation" in the US, one that's taking a depressing toll on poor neighborhoods across the country. Two factors are at play: the housing bust of 2008, which left a glut of ...


Google News

home | site map | Blog |
Portland Oregon Real Estate Listings | real estate investing | real estate in greece | for sale by owner in atlanta | House for sale: Louisville KY
Exchange Links Here | Links page |
© 2006