USA: Pending US home sales hit highest levels in two years

Source: Ivan Radford

Pending sales of US homes hit the highest level in the past two years in May, according to the National Association of Realtors. Monthly and annual gains were seen in every region, the NAR revealed this week, with pending sales rising 5.9 percent in May from April, 13.3 per cent higher than May 2011.

Lawrence Yun, NAR chief economist, said longer term comparisons are more relevant.  "The housing market is clearly superior this year compared with the past four years.  The latest increase in home contract signings marks 13 consecutive months of year-over-year gains," he said.  "Actual closings for existing-home sales have been notably higher since the beginning of the year and we're on track to see a 9 to 10 percent improvement in total sales for 2012."

The national median existing-home price is expected to rise 3.0 percent this year and another 5.7 percent in 2013.

The PHSI in the Northeast increased 4.8 percent to 82.9 in May and is 19.8 percent above May 2011.  In the Midwest the index rose 6.3 percent to 98.9 in May and is 22.1 percent higher than a year ago.  Pending home sales in the South increased 1.1 percent to an index of 106.9 in May and are 11.9 percent above May 2011.  In the West the index jumped 14.5 percent in May to 108.7 and is 4.8 percent stronger than a year ago.

Low inventory could hold back some contract activity.  "If credit conditions returned to normal and if we had more inventory, especially in the lower price ranges, more people would become successful buyers.  In an environment of historically favorable housing affordability conditions, it's frustrating to see some consumers thwarted in the process," Yun said.

Low inventory results partly from underwater homeowners who are unwilling to list their homes, which would require a lengthy short sale process, or additional cash to complete the transaction.  NAR estimates 85 percent of homeowners have positive equity, with 15 percent in an underwater situation.

"Low inventory can be cured by increasing new home construction," Yun said.  He projects housing starts to rise by 26 percent this year and another 50 percent in 2013.

"If housing starts do not rise in a meaningful way over the next two years due to the difficulty in getting construction loans, and barring an unexpected shift in the economy, the steady shedding of inventory could lead to shortages where home prices could get bid up close to 10 percent in 2013," Yun said.

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Spain: Good opportunity for bargain hunters

Source: Ivan Radford

There's no denying that the Spanish economy has been suffering recently. Banking losses resulting in the Iberian nation asking for help to recapitalise its banks has caused concern and aided a decline in property prices but for bargain property hunters, it isn't all doom and gloom.

While investment house Variant Perception reports that parts of Spain have seen prices drop by as much as 50% from their peak, Marc Pritchard, Sales and Marketing Manager of leading Spanish house builder Taylor Wimpey España believes that there remains plenty of opportunities to capitalise off the back of low prices commenting:

"In spite of Spain's current situation there are some big opportunities for shrewd property hunters right now. Property investors will not only benefit from the fact that Spanish property is currently around 33% lower than it was during its peak in 2008 but from growing tourism, which saw a 2.6% increase in the first few months of this year. Indeed, cheaper prices along with a particularly favourable euro rate means that Spanish property is an extremely worthwhile consideration as long as potential buyers ensure that they do thorough research first to avoid getting burnt. "

Further boosting the case for buying a second property in Spain today, research conducted by Holiday Lettings has revealed that Spanish property continues to dominate the holiday rental market with strong demand for apartments and villas in Spain in the first three months of 2012.

Pritchard explains,

"Demand for second homes in Spain has not been broken. Properties in prime locations are now more readily available to potential buyers given low prices and, considering the unfaltering love for Spain as a holiday destination, Spanish property owners will still be able to obtain a solid return on a relatively low-cost investment.

"For anyone dubious about how the market is performing we at Taylor Wimpey de España, the only developer on the Costa del Sol actively building and selling and the only developer building and selling larger developments in Mallorca have been experiencing great success of late. Not only has traffic taken a positive turn with a 15% increase from May until now, reaching its highest level ever last week but both leads and sales are up. Just two weeks ago we made 4 sales - our strongest performance so far this year. Indeed, our biggest success story has to be our complete sell out recently in just 13 months of our off plan development at Cala Anguila, Mallorca. Our positive results highlight that in spite of what is going on in Spain right now, buyer interest still remains solid. 

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USA: Latest property news

GM Motors expand in Detroit

General Motors Co has shown their belief in the recovery in Detroit, by purchasing a mixed-use commercial property across the street from it's world headquarters.

Cleveland-based real estate company Forest City Enterprises Inc. announced Thursday that it sold the Millender Center's hotel, parking facility, retail and office space to GM subsidiary Riverfront Holdings Inc. for $37.8 million.

Forest City and associates retain ownership and management of Millender Center Apartments.

The sold assets had been leased to Riverfront Holdings with an option to buy since 1998.

GM spokesman Tom Wilkinson says the automaker has not occupied the center's commercial property but has used space in the parking deck.

GM bought its previously leased Renaissance Center headquarters in 2008 for $626 million. It moved into the riverfront complex in 1996.


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Improving Economy Helps Vacancies Rebound

The National Association of Realtors claims that U.S. commercial property vacancies may have peaked, caused by the improving economy.

"The basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out," Lawrence Yun, chief economist of the real estate group, said in a statement today. "Multifamily housing is the one commercial sector that has held on relatively well in the past year, and can expect the best performance in 2011."

U.S. gross domestic product grew by 2.5% in the third quarter, beating the 2% estimate, according to the Commerce Department. As the economy improves commercial real estate occupancies increase as businesses expand and employers add jobs.

"Property fundamentals are improving, investment capital is slowly flowing back into the sector, commercial mortgage originations are increasing, and demand for CMBS issuance is gaining traction," Standard & Poor's said in the report today.

As commercial property grows, investors are also looking to residential property to decide where the peak is, or whether it has already passed.

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Steady US Real Estate Recovery Predicted

A steady recovery is predicted for the US residential real estate market, despite some ongoing challenges, according to the National Association of Realtors.

NAR chief economist Lawrence Yun said to the 2010 Realtors Conference and Expo that he expects a continuing improvement of underlying fundamentals of the current market in the coming years.

'A slow recovery is taking place as we head toward our goal of a stable, solid housing market. However, the pace of job growth will determine the strength of the housing market recovery," he explained.

Overall real estate experts are cautious but optimistic about the current and future state of the industry. Panelist Margaret Kelly, chief executive officer of RE/MAX, said today"s market shouldn"t be called the new normal because the old market was abnormal. 'The spike up and down in the housing market wasn"t normal so we shouldn"t be measuring ourselves against it," she said.

Kelly added that despite some challenges there are plenty of opportunities in the housing market with low mortgage interest rates, abundant inventory and stable prices attracting buyers to the market.

'To be successful in the current housing market, real estate professionals need to educate themselves about buying and selling distressed properties and working with investor buyers, who are a significant part of the market. Real estate professionals should be learning how to handle short sales, how to market themselves and find buyers and to really understand market conditions," she explained.

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Commercial Property Boosts US Market

Commercial property is one sector which is currently booming in the US, providing stability to the property market as a whole, according to a recent report. In fact, almost one-third of global capital available for commercial real estate investment is expected to target the US market in 2011.

Both Europe and Asia are also expected to see double-digit increases in capital commercial real estate investment, and worldwide investment in commercial real estate is expected to rise substantially in 2011.

A new study by DTZ Research finds that global investors are prepared to plow some US$97 billion into the U.S. commercial real estate market in 2011. That represents a 54% increase over DTZ's previous estimate in December 2009.

On a global basis, DTZ estimates that $281 billion of capital will be available to invest in global real estate in 2011, a 22% increase over its previous estimate. The firm's latest The Great Wall of Money report analyzed the capital being raised by an extensive range of investor groups. The greatest increase in available capital is forecast to be focused on the U.S. ($97 billion), which is in line with the "DTZ Fair Value Index" score of 89. That score indicates that most markets in the U.S. now offer an attractive opportunity to investors.

"The current attractiveness of the US is in stark contrast to the situation a year ago," says Nigel Almond, Associate Director of Forecasting & Strategy at DTZ and author of the report. "Most U.S. markets were cold, offering expected returns below risk adjusted required returns. This opportunity remains largely unexploited to date, since transaction volumes in the U.S. have not yet seen the levels witnessed in Europe and Asia Pacific."

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New Research Shows Detroit as Investment Hotspot

Residential property prices in the US rose slightly last month, according to government figures, but foreclosures are still rising, increasing opportunity for overseas buyers looking for a bargain in the US.

A 0.4% increase in property prices in September almost reversed the 0.7% fall in August according to the latest report from the Federal Housing Finance Agency. However, its monthly House Price Index also shows that overall prices fell 2.4% in August from the year before and remain 13.6% below the peak of the market in April 2007. Reports also show that foreclosure filings, which include notices of default, pending cases, notices of foreclosure sale and repossessions, increased from last year in 65% of metropolitan statistical areas tracked in the third quarter of the year.

Figures from RealtyTrac shows that the Seattle area had the highest increase with filings rising 71% from the third quarter of 2009. Chicago was second with a 35% increase followed by Houston, Texas at 26%.

California, Florida, Nevada and Arizona accounted for 19 of the top 20 foreclosure rates in the country. The only exception was Boise City, Idaho, which was 14th.

Las Vegas saw the highest rate in the third quarter, where one in every 25 housing units received a filing, more than five times the national average. But the 32,288 filings is down 20% from last year.

Cape Coral-Fort Meyers, Florida, was second with a one in 35 foreclosure rate. Filings there reached 10,352, down 22%. While one in 36 houses in Modesto, California, received a filing in the third quarter for the third highest rate, but it was an 18% drop from a year ago.

Miami, Florida, experienced the highest total number of foreclosures in the third quarter, at more than 58,600 filings, an increase of 9% from last year and up 25% from the previous quarter.

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New Research Shows Detroit as Investment Hotspot

The Michigan city is fast becoming a top choice for foreign real estate buyers, as US president Barack Obama declares he loves the place and the US government pours millions into its car industry.

According to a market commentator, it is displaying classic signs of being ripe for investment for buy to let investors in particular.

'The US housing market, in general, remains ideal for investment opportunities. House prices are still low due to foreclosures and rental demand is high. Now, as Detroit enjoys an economic recovery, investors can benefit from Government subsidised rents, capital growth over time and re-selling back into the local market," it was explained.

Interest doesn"t just come from the more traditional investors in Canada and the UK, investors from Saudi Arabia and Singapore are also making enquiries and looking to buy.

Analysts believe there are two potential investment strategies for Detroit, the first involving robust cash flow for purchase at a low cost, refurbish and rent and then a strategy for capital growth over time.

'Detroit was in a terrible state when we first looked at investment opportunities there. However, this worked in our favour because we approached the City and offered to assist with the housing and economic regeneration by bringing in international investment. This led to the City endorsing our product and also offering a significant reduction in taxes for investors," said one commentator.

Analysis shows that employment and the local economy are picking up in Detroit. Auto companies such as Ford and General Motors (GM) are reporting second quarter profits in the $billions. GM"s electric car, the Chevy Volt, is about to go into production for worldwide sales. Chrysler"s Fiat 500 electric car is also planned for 2012.

Although approximately 230,000 workers were laid off when the motor industry crashed in Detroit a few years ago, the industry has already taken on around 15,000 new employees so far this year. Reports indicate 10,000 new auto workers will be required, per year, from 2011 to 2013. US Mortgage collective, Quicken Loans, is creating 4,000 new jobs in Detroit. Plus Marathon Oil Corporation is expanding its refinery and creating 2,000 new positions in the area.

Detroit is also becoming a major player in the film industry. Tax incentives mean that in 2009 parts of 470 movies were filmed in Detroit and a number of 2011 release films are being shot there this year including Scream 4, LOL: laughing Out Loud with Demi Moore, Real Steel with Hugh Jackman and The Mechanic with Donald Sutherland.

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Detroit Property Shows Signs of Recovery

Signs that the Detroit region is starting to recover have appeared in home foreclosure rates and jobless figures. August figures showed that the foreclosure rate slowed for the first time in the year, while the state jobless rate was steady for the second month at 13.1%.

"In the Detroit area, the worst part of the recession is over," said Patrick Anderson, an economist and principal of Anderson Economic Group in East Lansing.

Anderson cited a two-percentage-point drop in the Metro Detroit area's jobless rate to 14.1 compared with a year ago, and improving median sales prices of homes and condominiums.

Comerica Inc. Chief Economist Dana Johnson said it "all adds up to fairly convincing evidence that a moderate recovery is under way." He contends the housing market may be poised for a healthy rebound next year.

"Once people in Michigan become more convinced that their jobs are secure and that house prices have stabilized, demand will begin to build and homebuilding will start contributing to a more broadly based recovery," Johnson said in a recent report.

The state's jobless rate remained unchanged in August at 13.1 percent compared with July and was down 1.2 percentage points compared with the August 2009 rate of 14.3 percent, the Michigan Department of Energy, Labor & Economic Growth reported Wednesday.

"Michigan job levels have stabilized somewhat since August 2009," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.

Another positive sign is that Metro Detroit foreclosure activity, while on a record pace for the year, fell 7.8 percent in August compared with a year ago, according to RealtyTrac, a California-based foreclosure tracking firm.

Foreclosure activity from initial notices of default to sheriff's auctions of seized properties fell to 9,849 from 10,683 a year ago in Macomb, Oakland and Wayne counties. For the six-county area -- which also includes Lapeer, Livingston and St. Clair counties -- foreclosures dropped 8.8 percent last month compared with the same period a year ago.

An increase in foreclosures usually leads to lower home sales prices, but prices have been recovering in Metro Detroit because of a drop-off in foreclosure sales.

One explanation is the slowing loss of jobs and growing confidence among homeowners, Johnson said. "Houses are worth whatever people are willing to pay for them," he said. "I think you are seeing more people feeling secure in their jobs and feeling (home) prices have fallen enough."

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Foreclosures reach record high

A record number of homes in September and the third quarter fell into foreclosure as lenders continue to work through the shadow inventory of distressed properties, according to RealtyTrac, which monitors the filings across the country.

For the month of September, foreclosures increased 3% from August to 347,420 properties. Banks repossessed 102,134 properties in September, the first time REO reached triple digits for a single month.

Foreclosures were filed on 930,437 properties in the third quarter, a 1% dip from last year but a 4% increase from the previous quarter. In the third quarter, one in 139 homes received a foreclosure filing, which includes default notices, scheduled auctions and bank repossessions (REO).

REO for the third quarter reached a new record as lenders took back 288,345 properties, a 7% increase from the previous quarter and up 22% from last year.

But as lenders work through the supply of serious delinquent loans, fewer are defaulting. RealtyTrac reported 269,647 default notices in the third quarter, down 22% from the peak in the third quarter of 2009.

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Freeze on Foreclosures Restricts Supply

The largest mortgage firms in the US have put a halt on home foreclosures, to attempt to process legal issues. This sudden tightening of supply, with distressed properties accounting for almost a quarter of transactions, is likely to lead to soaring prices on foreclosed property, and a rush by investors to purchase what is left over.

Bank of America Corp, the largest US lender, extended a freeze on foreclosures to all 50 states on October the 8th 2010. JPMorgan Chase & Co. and Ally Financial Inc"s GMAC Mortgage unit stopped repossession cases in 23 states where courts supervise home seizures.

According to one data company, foreclosure sales accounted for 24% of all home sales as of September 2010. They made up an even larger share in states which suffered strongly in the downturn. In Nevada it was 56%, in Arizona 47%, and 43% in California. Florida, Massachusetts, Michigan and Rhode Island the share of home sales was about a third.

Some indicators show the U.S. real estate market had turned a corner in August. The number of contracts to purchase previously owned homes increased 4.3 percent, the second monthly gain, according to an Oct. 4 report from the National Association of Realtors. Sales of previously owned homes rose to an annual pace 4.13 million, up 7.6 percent from July"s record low, the Chicago-based group said last month.

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One in Four US Home Sales Foreclosed Property

A massive 24% of homes sold in the United States in the second quarter of 2010 were foreclosure homes, according to new research, highlighting the amount of homes going into foreclosure as well as the demand for these homes due to their below market value cost.

The report, which examined homes for sale in Q2 2010 that were in a stage of foreclosure—either default, scheduled for auction, or bank-owned (REO)—said that more than 150,000 properties sold in April, May, and June 2010 were distressed.

The number is a rise of 3% from Q1 2010, but a decrease of 28% from Q2 2009, when the housing market crisis was at its peak. This may mean tightening supply as the recovery continues.

Despite the rise in the number of foreclosed houses sold in Q2 2010, the percentage of properties sold that were distressed dropped, due to a surge of sales of homes that were not in foreclosure.

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Michigan Bank Boosts Home Borrowing

The bank JPMorgan Chase & Co. has released new plans to help unemployed home borrowers across Michigan, by participating in a state fund which aims to pay a portion of the resident"s mortgage payment for up to a year.

This will boost the property market across Michigan, especially cities whose property markets were hard hit during the downturn, such as Detroit.

Michigan's Hardest Hit fund helps qualified borrowers by paying up to half of their mortgage payments for up to 12 months, saving them thousands of dollars. The help will be available for Chase customers who are behind on their mortgage payments as well as those who are current. Chase said it will roll out the program once the Michigan State Housing Development Authority has all the logistics in place.

For example, a borrower who has been making a $1,400 monthly payment for principal, interest, property taxes and homeowners insurance may be eligible to pay only $700 per month, with the state paying the difference.

This is likely to provide support to the housing market in Detroit, and helping with the recovery.

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Investment Accounts for 21% of US Home Sales in August

Residential property sales in the US increased in August with investors accounting for 21% of sales, up from 19% in the previous month. August saw an increase in sales of 7.6% alongside the ending of the homebuyer tax credit scheme, according to the latest index from CoreLogic.

Paul Dales, an economist at Capital Economics, said, 'Looking ahead, as the distortion from the tax credit continues to fade, home sales will rise further. But when unemployment is so high demand for housing in certain areas may remain relatively weak," he warned.

'Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the homebuyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own," one analyst explained.


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Spain: Demand for Murcia increases 78%

Demand for property in Murcia has surged by 78 per cent this year, TheMoveChannel.com can reveal.

The region has long been mooted as the fastest recovering area in Spain, with the upcoming international airport and Paramount theme park boosting its potential for property investors. But interest in the region's real estate has already started to grow on the overseas portal, with enquiries between March and May this year 78 per cent higher than the three months from December to February.

The increase in interest follows official reports that property sales across Spain have risen too. Real estate transactions grew by 21.9 per cent in the first quarter of 2012 compared to the last quarter of 2011, the Spanish College of Property Registrars revealed this week. This boost in sales has been attributed to the country's "intense lowering" of house prices, as holiday homes become even more affordable for international buyers.

Spain's financial woes and historic bank bailout continue to dominate news headlines, but the country's unemployment has also driven rents up, with rates growing by 0.7 per cent in Aprilcompared to last year. Now, investors are looking to take advantage of the falling prices and higher rents, and Murcia is one their main targets. During May so far, the region's enquiries on TheMoveChannel.com are already 45.2 per cent above last month.

And a development launched this week in Murcia's most-visited golf resort is set to make them climb even higher.

Las Lomas Village, with prices below 50 per cent of the market's peak value, is a chance for investors to make the most of the high yields that come with having La Manga Club next door. Owners are guaranteed 35 per cent of the gross revenue for the village, explains the development's agent, UK Murcia Investment, while operating costs are covered by management. In addition, buyers get 30 days usage per year at no extra cost.

As well as La Manga Club's famous fairways, Las Lomas boasts its own golf facilities, plus 8 football pitches, 28 tennis courts, a hilltop spa, swimming pools and an on-site beach.

Released directly from the bank, the heavily discounted apartments (both studio and two-bedroom) are eligible for up to 100 per cent financing, meaning that a total capital outlay of only 12,000 to 15,000 euros is needed to invest.

Too good to be true? Not so, says UK Murcia Investment. Even TheMoveChannel.com's Managing Director Dan Johnson has decided to invest.

Johnson explains why the deal turned his head: "As a fan of sports, sunshine and the odd glass of sangria, these fantastic properties at La Manga tick all the important boxes for me. Dig into the deal and it just keeps getting better and better. A solid management package delivers good rental income from day one, while a really generous usage scheme lets you regularly enjoy the resort with family and friends."

"I have no hesitation in recommending this deal," Johnson adds. "I'm even buying a unit myself."

Source The Move channel

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Spain : 2 million homes on the market? The effect on property prices

I read a report on here on the possibility of 2 million homes being on the market in Spain and got to wondering the effect on already deeply reduced property prices in Spain. Two million homes sounds a lot but is it.? After a fruitless search I can not get a provable figure on what is normal in Spain.

Having lived in Spain for many years I know that the country was overdeveloped but it doesn't take a brain surgeon to know that. Having worked with all the major and some minor banks in Spain dealing with repossessions it is also very apparent that bank held property, with a "value" running into tens of billions of Euros, has a varied saleability. I would estimate 50-70% of all bank held property will never sell at a price anywhere near the book value, current value or even sell at all.

Potential buyers are now more savvy and look at value rather than price. Buyers that attained those rose tinted spectacles as soon as their plane left their country are now few and far between. So many properties were sold because they looked cheap, without the buyer having a yardstick for proper value aside from the tales told to them by their estate agent hungry to seal a deal.

There are now fears that as Bankia emerges as the next super bank in need of a bailout, following the resignation of its chief executive, that there may be a glut of property put onto the market as a result of government enforcement. Even if that does happen, do not despair. Prices will not crash further in Spain as so much of the property held by the bank is, for want of a better word, rubbish. When prices get compared there is not a decision on if to buy the bank repo that is cheap but offers no value, buyers now look for value rather than just price. Don't get me wrong, I am not saying all bank repossessions are bad, far from it. We currently are promoting a packaged deal from a bank in Hacienda Del Alamo that offers great value in the resilient market in Murcia on a golf course, near the new Paramount theme park and Corvera airport. Not a "cheap" price, just good value.

My other concern and a partial reason for the mess Spain is in, is the Euro. We can all speculate what will happen next, Greece may withdraw and go on its own which may be followed by other Southern Euro economies like Italy and Spain, but the overall answer is we do not know. Take a mortgage based in Euros for as much as you can and you can only benefit.

Over the last two years the euro has lost around 20% of its value against sterling, making property purchases 20% cheaper. Add that to declining values, low mortgage rates and good spectrum of properties to choose from, and it could be sensibly argued that the time is right now to buy in Spain. Is it the bottom of the market, no one knows. As one client once said to me, markets do not ring a bell when they hit the bottom.

Steve, MD Lydnem Property

Contact us at info@lydnemproperty.co.uk if you are looking for a good deal in Spain or its islands and we will see what we can find for you. Click on the link HERE for details on hacienda Del Alamo. For offers on property all over the world CLICK HERE

Cyprus: Limassol marina site visit.

Last Thursday, March 8 2012, we visited the site for the new marina in Limassol. Having had the brochures, we were a little sceptical given the heady prices northward of one million euros for a two bed apartment and between two and sixteen million for a villa.

Within an hour our view had radically changed. The construction of the first apartments is well under way and a show apartment has been constructed and the shell of the main building is now complete.

Spread out across 120 square metres the show apartment is on the ground floor. Elegant and contemporary, the open plan lounge leads to an American style kitchen. Buyers now get the option to change the internal layout if this does not suit. Off the living area are three good sized bedrooms complimented by an en-suite on the master and a family bathroom. The property has all the latest mod cons one would expect from high quality developments.

At €1.4 million, the price is not cheap but this apartment benefits from two garden areas (total 240sqm) and views across the marina toward the sea, the grassed area unique to only a handful of apartments. The underground garage also has a further storage area. As a security controlled area, access to the Marina is controlled and limited to pass holders only.

Having looked at many developments over the years, you find yourself comparing against other countries and developments. My immediate comparison is Puerto Banus, not so much in its looks but from an investment perspective. When comparing on this basis, prices are in line and have room to appreciate significantly, hence our change of view on the the Limassol Marina development.

The apartments, called Nereids, are set for completion later in the year and hand over of keys in November. Mortgages are upto 70% of the cost and do not attract VAT. The whole development is built on land owned by the government and so all the properties are leasehold, on a 125 year lease, with the Cypriot government benefiting from the sale of each property.

We were then taken on a bus tour of the villa's. Construction of the villas has not started yet as the infrastructure is still being tested. Completion will be in early 2014. With prices starting at €1.8m and as high as €16m (this one has just been sold) this is the playground of the rich and famous. For this price it has to be special, and it does not let us down. We pass dozens of seventy tonne blocks that are testing the strength of the reclaimed land as these properties will be built in the sea, on land that has been built to accommodate them. The views that will afford these villas are second to none, the ultimate sea view with no chance of anyone building in front and not having to build high on a mountain side. Special. There is nothing else like this in Cyprus and it is hard to compare to anywhere else in the world aside from the palms in Dubai. Again, when compared to Dubai, the prices do not look expensive. The villas have a choice of a private sandy beach or with atleast one berth for boats and yachts upto 60m. There are e-brochures and plans and CGI videos to get a better idea of the Limassol marina development but you really have to visit to get a feel for its  beauty, uniqueness and potential.

So, from an investment perspective the numbers do really add up. With the middle East high net worth market right on its doorstep, the strong demand from the wealthy Russian market there will be no difficulty is selling the development and a strong after market is predicted. Footballers, with their wealth and a need for investment is another key area that we see investing. it is not cheap, but it never will be, properties like these are rare and will always demand a premium.

Guide prices 1 bed room apartment from €428,000
                    2 bed room apartment from €809,000
                    3 bed room apartment from €930,000

                    2 bed room villas Peninsula from €1,700,000
                    3 bed room villas Peninsula from €2,812,000
                    4 bed room villas Peninsula from €2,472,000 (without berth)

                     2 bed room villas Island from €1,782,000
                     3 bed room villas Island from €2,884,000
                     4 bed room villas Island from €4,017,000

For a picture gallery on some of the construction and computer generated images of the finished development please click below
For more information including E-brochure, CGI video, plans, availibilty and price list, Please CLICK HERE to receive more information.

Spain: Opportunity not demolition job

Immediately, after the Second World War in 1945, the general consensus of opinion was that there was a huge glut of ships.

You couldn’t give them away.  Ships cost too much to maintain and there was no use for them after the conflict.

The consensus was wrong.  The war had increased the desire for international goods (like Pizza from Italy) to such an extent that international trade doubled from pre-war levels by the end of the 1950’s.  

With hindsight, there was in fact a latent shortage of ships but the market didn’t recognise it.

It sounds like a crazy question but could there be a parallel with Spanish housing market today?

There are between 800,000 and 1 million empty properties in Spain today depending on which figures you believe. Roughly 65% of them are in coastal areas.

The consensus is that most of them are badly built and in sub prime locations.

However the truth is that most of the time, these two things are not built into the price.  Developers and banks are still trying to sell at prices that do not reflect what the market is now willing to pay.

The overseas property market is driven by convenience and price. If you could buy a completed (non-fractional) apartment for £10k, would you be willing to travel an hour and half from the nearest international airport to get there?  I might, provided I could visit it first to check the quality.

Spanish tourism numbers are the one bright spot on a dark horizon.  The crisis has if anything increased the desire of tourists to visit as they expect to get a good deal.  There will always be a market for cheap holidays and holiday homes in the sun.  

Many people tell me the overseas property market will never be the same again.  Over the long term, I’m not so sure.

It’s the entrepreneurs with the vision to buy in bulk now at rock bottom prices who will be the players in tomorrow’s market.

Some of the developments may have to be bulldozed but my guess is that these will be the minority.

Everything has its price even if that price is negative and you have pay people to take developments off your hands.

Source global edge

For spanish bank repossessions in Marbella CLICK HERE

For spanish repossessions across the country CLICK HERE

For repossessed plots CLICK HERE