Global direct real estate investment volumes rise nearly 50 percent in Q2, 2011

Global direct real estate investment volumes in the second quarter of 2011 totaled more than US$101 billion, up seven percent from the previous three months and 47 percent from the second quarter 2010, according to preliminary research findings from Jones Lang LaSalle’s global capital markets experts. Read more

MENA Real Estate Sector missing out on global capital flows

International and regional investors discouraged by asset mispricing and lack of investment grade properties.

Jones Lang LaSalle, the world’s leading real estate investment and advisory firm, today published its 2011 Middle East and North Africa (MENA) Real Estate Investor Sentiment Survey. The report indicates that although investment appetite exists, the region is missing out on significant regional and global capital flows because of the shortage of investment grade product and the lingering price gap between buyers and sellers. Read more

Bulgaria reinforces its investor appeal

Throughout the last decade, Bulgaria created its real estate investment profile mainly through huge coastal developments and ski resorts. Property investors were attracted by low prices and the natural beauty of the country. However, the combination of over-development and the global financial downturn seriously undermined confidence in its property market. So, should investors consider Bulgaria now?

Many real estate professionals are convinced that Bulgaria remains a market where low prices can mean huge capital gains within five years. Currently, foreigners have to open a Limited Company in Bulgaria to own a freehold. Although this is fairly simple and not so expensive to comply with (fees in the range of 2,500 euro), it has deterred some investors. However, from 1st January 2014 onwards this requirement will be lifted, opening new horizons and sending property prices higher.

Right now, opportunities for investments are plenty as the country offers a large variety of beautiful leisure facilities: skiing in winter and in summer, golf courses, lakes and beach resorts.

Service charges remain high in Dubai

Service charges and fees charged by developers in Dubai continues to be unsustainable high. Maintenance fees at several locations, including Downtown Dubai is rather significant, adding to the woes of property owners and investors who have seen their property valuations plummet in recent years.

Service charges for the current year in Palm Jumeirah have been established at Dh18-25 per sq ft for residential units. The charge works out to more than Dh14-16 per sq ft in the Arabian Ranches. A property in Jumeirah Beach Residence comes with a service tag of Dh15 per sq ft, excluding chiller charges. Read more

Global commercial real estate investment volumes surge in Q1 2011

Global cross border investment volumes increase by 38% in Q1 2011, compared to Q1 2010 according to latest data from Jones Lang LaSalle

Preliminary figures released today by Jones Lang LaSalle’s Capital Markets Research reveals that global direct commercial real estate investment volumes totalled just under US$90 billion in the first quarter of 2011. This figure is down 20% from the previous quarter but up nearly 38% from Q1 2010, indicating the continued appeal of commercial property to a broad range of investors.

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle said: “We continue to see strong interest for core product in gateway cities from institutional and private investors. However, investors are only moving into riskier markets and products on a selective basis, with many waiting to see more bank-released product or stronger fundamentals first.” Read more

Gulf property markets to watch

Opportunities for expatriates and other non-GCC investors in the regional property market are limited to the special leasehold and or freehold zones and laws and regulations that are still being ironed out in many markets up and down the Gulf.

The most sophisticated market remains Dubai, but its issues (freehold title and strata law) have been well documented. Nevertheless, it remains a market to watch. With a number of other cities well on their way to offering attractive returns on investment, we take a look at a selection of markets to watch in the GCC. Read more

Systematic decline in marketing spending for real estate projects

The economic impact of the slump in real estate market on brokers is dramatic and results in systematic decline in marketing spending, not only for new projects, but also for already developed ones.

In general, property business depends on the income of real estate brokers. Brokers who are investing in high-visibility, high-impact marketing tools are among the high-earners. Over the past two years, the scale of real estate business has dropped dramatically and rapidly. Commission income decreased. High-earning agents are now examples from the past.

The trends in commission income are pretty clear, when we estimate the average  decreased property price and total number of transactions in 2009 and 2010. Commission income peaked during the years of property boom in Dubai, but dropped like a stone since the start of the recession. About 6 years of commission growth was lost in the 24-month period. Read more

Freelance Brokers and Agents are “illegal”

RERA, the Dubai’s Real Estate Regulatory Agency, once again is taking stern action to control the activities of freelance brokers and agents, as their activities are “illegal”.

“We do not recognise a separate category of freelance broker/agent. The activities of such freelance operators are strictly illegal. Rera has taken concerted steps with the Ministries of Labour and Immigration to seek to bring to a halt the activities of such freelance operatives,” Rera said in an email statement to emirates Business 24/7.

The activities of freelancers are subject to the sanctions provided by the regulations and through the courts, Rera said. Over the past three to four years the agency  introduced introduced and  implemented laws to  put a stop to freelance brokers that have been severely tarnishing the reputation of the real estate industry. The Dubai government makes it very clear that all people who choose to work in the real estate market must be registered and have government approval to conduct property transactions. Read more

Official figures confirm 117 billion of Dubai real estate transactions in the first five months of 2010

• Mortgages account for major share of transactions

A total of AED 117 billion in real estate transactions was registered at the Land Department for the first five months of 2010.

The highest number of transactions involved sales and mortgages raised against real estate, according to figures compiled by the Department’s Real Estate Data & Research section

The official records showed 3,462 sale transactions were registered in the period, with a total value of AED 25 billion and a combined area of 62,815 sq ft. During the five months 3,570 mortgages were registered with a combined value of AED 32 billion against a total area of 95,460 sq ft.

Buyers spent AED 29 billion on apartments and funded an additional AED 8 billion of spending on this type of housing through mortgages. An amount of AED 3 billion of villas sales was registered and an additional AED 2 billion on villas mortgages.

Dubai real estate investors angry

Ever since Dubai’s property bubble spectacularly burst in late 2008, the emirate has been struggling to revive its shattered image. But the one group of investors who bought at the peak of the real estate boom say they still have no idea where their hundreds of thousands of dollars have gone. And no-one seems willing to help .

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