News

Global Property Prices Rising Again?

On June 23, 2010, in News, by Fiona Bosticky
0

Global Property Prices Going Up in 2010Much discussion has been generated by the latest Knight Frank Global Housing report, which came out on the 17th of June.  Of course I was surprised not to see any statistics on Albania, Argentina, Brazil, Turkey or Egypt.

The report showed the Asia Pacific regions as the best performing property region for the first quarter of 2010.  And sadly the Baltic States are still suffering with Latvia, Lithuania and Estonia still dropping.

I’m not sure if Knight Frank was boycotting every country I offer, but here is what I believe is happening in Fresh Property Co’s key markets:

Albania: After huge growth in property prices from 2003 to 2008, most prices around the country have stalled.  Only brand new/ offplan projects near the centre of the capital city Tirana, have managed to increase by approx 20%.  In the rest of Tirana, and in other cities like Durres, Vlora and Saranda, most prices have not moved, or decreased by up to 15%.  As the local population increases, demand and price growth will return.  And still the cheapest city centre brand new apartment prices in all of Europe (approx EUR1,200/sqm).  Great time to invest.

Tirana View Albania
Argentina: After the huge crisis in Argentina in 2001, Argentina truly bounced back, and the growth that returned to the economy was phenomenal.  Of course, the strength in the economy couldnt prevent the fall-on effect from the global economic crash of 2008.  But in 2010, the resurgence of exports and pick up in tourism are expected to push the housing market back up into positive growth again.  Some offplan luxury projects prices have increased by 20% over the crisis period as they completed, and may increase again.  Normal Buenos Aires prices will probably rise around 8% this year.  Good time to get in.

Buenos Aires Argentina

Brazil: The global economic crisis did have some impact on Brazil, but it was minimal.  Brazil is one of the best performing property markets in the world.  And will continue to head this way for the foreseeable future.  In 3rd Quarter 2009, the average price of new launches surged by 25% to BRL3,465 (US$1946) per sqm from a year earlier.  Rising salaries, decreasing unemployment, continuing infrastructure improvements make Brazil’s future brighter and brighter.  AND prices are SO LOW.  My advice to any property investor – buy in Brazil now!

Fortaleza Brazil

Egypt: This country did not fair so well in the global crisis.  By the end of 2009, house prices in the secondary market had fallen by about 37% to EGP 1.5 million (US$274,725), according to local real estate analysts.  However, the lower-end market, including apartments, has a shortage of about 40,000 units per year.  With growing tourism, low apartment prices, and even some rental guarantees, Egypt is a good location to consider, especially if you are thinking of using the property yourself.  The coast has some great investment locations from Sharm El Sheik, Hurghada and the new hotspot Marsa Alam.

Marsa Alam Egypt

Turkey: Since the huge price increases in Turkey from 2005 to 2007, the property market, especially in the south, has experienced price falls.  However Istanbul property market is going from strength to strength, especially coming into 2010.  And with the huge increase in tourism, the prices in the south may be picking up again as well.  Also rental yields in some locations of Istanbul are fantastic – around double digits.  The economy is good, and with prices starting to rise, getting into Turkey now (in the right location), would be a great investment.

Istanbul TurkeySo, in Summary:

  • Albania – on average – down 10%
  • Argentina – on average – up 8%
  • Brazil – on average – up 15%
  • Egypt – on average – down 10%
  • Turkey – on average – up 8%
Tagged with: • • • • • • • • • • • • •
 

Fresh New Website and Countries – Turkey, Egypt

On June 18, 2010, in Egypt News, News, Turkey News, by Fiona Bosticky
0

We first launched in September 2007, with a simple, clean and effective website, free of clutter and only Fresh properties.  Well, it’s now June 2010, and we have a NEW simple, clean and effective website.  We hope you will enjoy the new design and layout.

We have also added some new countries – Turkey and Egypt.  Both of these markets are doing very well, and offer some amazing opportunities in 2010.  Originally I decided against Egypt, back in 2007, but things have been improving, and if you are after a holiday home, or a fairly priced apartment, Egypt is now looking like a good option.

From the CIA Website on Egypt:egypt map

  • Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place.
  • The global financial crisis has slowed, but not stopped, the reform efforts. The international economic downturn slowed Egypt’s GDP growth to 4.7% in 2009, predominately affecting export-oriented sectors, including manufacturing and tourism, and Suez Canal revenues.
  • Growth in domestic sectors, including energy, transportation, telecommunications, retail trade, and construction kept economic growth from falling further in 2009.
  • The government announced three separate stimulus packages between the end of 2008 and the end of 2009 totaling $6.3 billion, but it is not clear how much has been spent.
  • Despite high levels of economic growth over the past few years, living conditions for the average Egyptian remain poor.

Turkey is also another amazing market I have been watching for a while.  The economy is doing well, and also tourism is going forward in leaps and bounds.

From the CIA website on Turkey:Turkey Map

  • Turkey’s dynamic economy is a complex mix of modern industry and commerce, with a traditional agriculture sector that accounts for about 30% of employment.
  • Strong and rapidly growing private sector, and while the state remains a major participant in basic industry, banking, transport, and communication, this role has been diminishing as Turkey’s privatization program continues with sales  currently approaching $39 billion.
  • The largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment.
  • The automotive and electronics industries, are rising in importance and have surpassed textiles within Turkey’s export mix.
  • Real GDP growth has exceeded 6% in many years.  Due to global economic conditions, GDP fell to a 0.9% annual rate in 2008, and contracted by about 6% in 2009.
  • Inflation fell to 6.5% in 2009 – a 34-year low.
  • Further economic and judicial reforms and prospective EU membership are expected to continue boosting foreign direct investment.
  • The stock value of FDI stood at more than $180 billion at year-end 2009.
  • Turkey’s financial markets and banking system weathered the 2009 global financial crisis and did not suffer significant declines.
  • Economic fundamentals are sound, but the Turkish economy may be faced with more negative economic indicators in 2010 as the global economic slowdown continues to curb demand for Turkish exports.

Feel free to sign up to our RSS Feed to hear about the latest deals as they become available.

Tagged with: • • • • • • •
 

Argentina Property Market Update July 2009

On July 19, 2009, in News, by Fiona Bosticky
0

Argentina is feeling the global economic crisis, and like most countries everything has been affected. Retail sales are down and real estate has been hugely affected with sales falling 22% this year.

There has been little movement in property prices in Argentina though, as sellers and developers are almost refusing to lower their prices. And a lot of buyers are holding off, awaiting a decrease, which is creating a stalemate. It will be interesting to see by the end of the year if prices will come down, or if buyers will just start buying again.

Comparable to most capital cities around the world, Buenos Aires still has very low real estate prices. The best and most beautiful parts of city offer luxury studio or 1 bed apartments around US$70,000 – US$100,000 or from US$1,700/sqm.

With these apartments renting from US$800 per month, a gross rental yield from 10-13% is achievable.

Some economists say Argentina is currently in recession, and the economy could contract 3% in 2009, which is against the government opinion.

Either way, for the long term investor, despite the economic crisis, there is no denying Argentina holds amazing opportunities for city apartments or land plots close to the capital.

Tagged with: • • • •
 

Where to Invest in Property in 2009

On May 16, 2009, in News, by Fiona Bosticky
0

I wrote an article last year entitled, “Where to invest for 2008“, and I still have people contacting me about it. I guess the sentiments behind my recommendations are more true today than ever – buy where the locals are buying.

Buying property in a foreign country, where the only people you know are the estate agents, is a risky business. So determining where is really the best location for investment can be a little tricky.

I always say – research – and understand the fundamentals – of the country and economy, GDP predictions, exports, and property prices if possible. It helps to understand why that property or location or country would be good for property investment.

Firstly, and the biggest mistake investors make, is buying with their heart or ego, rather than their head. Some investors only look at what they would live in themselves, but you need to be looking at what you SHOULD buy, rather than what you would like.

So, looking into 2009, where are the best places to invest for 2009:

ALBANIA
Despite the global crisis, the fundamentals still look good. There is a lot of opportunity for the energy sector, telecoms sector, tourism and infrastructure.  Albania has had a very good 2008 and the economy has performed at around 6%. Many roads and sections of roads/ highway have been completed 2008/09.

  • Albania has applied to become a candidate member for joining the EU.
  • Tourists numbers were up 24% in 2008 and expected to increase in 2009.
  • Albania is forecast to have the highest growth in the Balkan region for 2009, and is not expected to fall into recession.
  • Property prices are STILL the lowest in the region, with brand new 1 beds in the capital Tirana from EUR25,000. And sea view 1 beds on the coast from EUR37,000.
  • Excellent rental yield projections from 7% – 10%
Tirana Apartments Albania

Tirana Apartments Albania

www.freshpropertyalbania.com

BRAZIL
No country is immune to the global crisis, but Brazil is pretty well placed to weather the storm better than most. Mostly a cash based economy, and highlighted by Goldman Sachs to be a world leading economy in the future, investors cannot miss the opportunities presented here, especially in property.
Brazil’s GDP for 2008 was around 5.6%. The banks in Brazil are in an excellent position at the moment, not chasing government funding. Interest rates are coming down (at last) and may soon be single digits.

  • GDP for Brazil in 2009 is forecast around 1.5% – 2.5%
  • China is now Brazil’s main export country
  • Brazil has international reserves standing at US$202 billion
  • In the past two years Brazil has discovered the largest oil deposits in the country’s history and the world’s most promising fields (The Economist)
Fortaleza Brazil

Fortaleza Brazil

ARGENTINA
Despite Argentina’s government, the country cannot help but grow. They have fantastic natural resources, literate population, and huge export potential. After the crisis in 2002, Argentina grew 9% annually, sustained for five consecutive years. Manufacturing in Argentina has recovered quickly from the crisis, but still despite growing 7% in 2008, the economy looks set to recess 1.5% – 3% in 2009, and stabilise in 2010. So why is Argentina still good for real estate?

  • The population is increasing (36mil in 2001 to 40mil in 2008 and growing)
  • The population is becoming wealthier (18% reduction in poverty from 2002-2008)
  • Real Estate prices are still very low, compared to world capitals. Luxury new 1 bed apartments can still be purchased in the best locations of the city for around US$100,000.
  • No capital gains tax and HUGE rental yields from 9% gross average (Global Property Guide)
Palermo Soho Buenos Aires

Palermo Soho Buenos Aires

MALAYSIA
The property market potential in Malaysia is still in early stages, compared with similar markets like Thailand, or Singapore. The economy grew 4.6% in 2008, and the country has very low unemployment at 3.7% Reduced exports to US have had some effect. According to World Bank, Malaysia ranks 24th in Ease of doing business. Malaysia’s strengths includes getting credit and protecting investors, and the government aims to be in the top 10 by 2010.

  • population is increasing (25mil 2000 to 28mil 2008)
  • attracted about 21 million tourists in 2008, and forecast to drop in 2009, but then continue growing at around 5% from 2010
  • Stable property and house price growth over the past 5 years and excellent rental yield prospects, in holiday hotspots and the capital Kuala Lumpur.
  • No capital gains tax and Malaysia has one of the lowest house-price-to-income ratios in Asia
Kuala Lumpur Property Malaysia

Kuala Lumpur Property Malaysia

TURKEY
Turkey is an excellent country for property investors, if you can avoid some over-priced coastal apartments for sale. The economy grew 4.8% in 2008, and have been forecast to literally “stand still” in 2009 at 0% growth. However there are a lot of factors positive which make Turkey a great potential market. The population is still growing, currently 71.5mil.

  • Turkey succeeded in attracting US$21.9 billion in FDI in 2007, and interest is still growing in banking, retail, and telecommunications,
  • Turkey is a EU Candidate Country
  • Tourism is one of the most dynamic and fastest developing sectors in Turkey (24mil in 2005 to 31mil in 2008)
  • Property prices are still low in comparison to countries with similar attractions and weather. Even though prices have come down in 2009 there is still great potential for appreciation and yields from 6%. 2 Bed new apartments are still around £45,000.
  • No capital gains tax.
Istanbul Turkey

Istanbul Turkey

AUSTRALIA
A lot of people love Australia, yet they all say the same thing “I would love to visit but it’s just so far away from everywhere”. True, to access Australia from most parts of the globe takes longer than normal, but is it a good spot for investors? Australia’s property market has boomed over the past 8 years. Property prices have tripled. So why will buying now be a good investment?

  • Rental demand is huge, and there is enormous potential for high yields after only a few years
  • Australia looks to avoid recession, growing 1.9% in 2009
  • population is increasing (19.8mil in 2006 to 21.7 in 2009)
  • In Q3 2008, house prices continue to rise in Adelaide (9.7% y-o-y), Melbourne (8.1%), Darwin (6.4%), Brisbane (5.6%) and Hobart (2.4%), though at a much slower pace than previously.
  • Australia has grown at an average annual rate of 3.6% for over 15 years
Brisbane Australia

Brisbane Australia

PLEASE COMMENT

I welcome your feedback and other tips for countries great to buy in for 2009. But I don’t believe any hype or jargon – just the facts! ;)

Tagged with: • • • • • • • • • •
 

No more mortgages for foreigners buying property in Albania

On April 24, 2009, in News, by Fiona Bosticky
0

April 2009

This week, the last bank offering financing for foreigners to buy property in Albania – Raiffeisen Bank, have announced that their products are now officially on-hold.

This is a shame for investors looking to buy and obtain leveraging.

Previously First Investment Bank also offered mortgages, but due to the global credit crisis, they put their products on-hold in January 2009.

There are mixed opinions about the effect of the global credit crunch on Albania, but now the effects are truly being felt:

  • No mortgages for foreigners
  • Tightened criteria for Albanians borrowing
  • Real Estate sales have slowed dramatically
  • Small businesses are closing
  • Remittances from Albanians abroad have decreased
  • Construction has slowed as institutional investors re-check their funds

Albania was forecast to have growth of 4% for 2009, the highest in the Balkan region. And recent figures and announcements indicate Albania may not fall into recession. But there is no denying that the credit crunch HAS arrived.

The government still annouce that there is no effect on Albania, but this simply isnt true. The best thing the government can do now is ackowledge the crisis has arrived, and create and implement a plan for dealing with the current events. The crisis looks set to roll into 2010 and possibly 2011.

The best thing businesses can do, is work together, and help each other, to keep things going.

And the best thing investors can do is BUY NOW. Business or property in Albania still represents amazing value, potential and returns. The country is being regenerated through airport and port expansions and modernisations, road improvements, new hospitals and shopping centres.

Sellers and developers, with financial obligations to the banks, may be now willing to negotiate a little. Rents are still holding strong, and the tourism industry in Albania looks set to boom.

For more on Albania please visit:

  • http://fionasblog-freshpropertyco.blogspot.com/
  • http://albanianbusinessnetwork.blogspot.com/
  • http://twitter.com/propertyalbania
  • http://twitter.com/albaniabusiness
  • http://www.facebook.com/pages/Tirana-Albania/Fresh-Property-Albania/47989401628
  • http://www.facebook.com/pages/Tirana-Albania/Albanian-Business-Network/60521222846
  • http://www.linkedin.com/groups?gid=1779361

ADDITIONAL NOTE:

If anybody knows of any banks still willing to lend to foreigners buying property in Albania, please let me know.

Tagged with: • • •
 

Client viewing her Classic Kashar Tirana Apartment in Albania

On April 22, 2009, in News, by Fiona Bosticky
0

Recently, I was very happy to show one of our clients around the shell of her apartment.  Chrissy bought off Fresh in early 2008 in the “Classic Kashar” development, after she realised the enormous potential of owning a new apartment in Tirana.

Bought initially as an investment, Chrissy has decided just to keep the apartment (once finished in a couple of months) for her own personal use.  With the amazing views and walking distance to shops and transport, its easy to see why.

Also late last year the government opened to tender, a new project called “Tirana Festival City”, which will be an enormous regeneration of the Durres Road/ Kashar area:

This will create a new satelitte centre for Tirana.  For more information please visit my BLOG!

The best apartments in this project are now gone, but there are still other opportunities in Kashar, Tirana from EUR24,000.  Feel free to ask….

  1. *
  2. *
  3. *
  4. *
  7. We will not provide information about you to other organisations, agencies or groups for marketing purposes. We disclose information about you only with your consent.
 

cforms contact form by delicious:days

 

Argentina Construction Update: Soler Residences

On March 27, 2009, in News, by Fiona Bosticky
0

March 2009

A few clients bought these luxury apartments in the heart of Palermo Soho in Buenos Aires.  The construction is moving along very well:

If you are impressed and would like an apartment in their next luxury project please visit – Soho Deluxe Residences.

 

Where are the best places to invest in property in 2009

On March 9, 2009, in News, by Fiona Bosticky
0

Question just received from client:

im interested in investing a small amount of money over the next year or two. i dont have much saved so was looking only at small investments and was thinking of property abroad. Im only young so dont mind waiting a while for profit. ideally a place i could rent while hopefully the propertys price increases would be ideal, any ideas ?

Answer:

We currently off 3 excellent country locations, Argentina, Brazil and Albania.

Since you don’t mention how much you would like to invest, I will give you an idea of where and what you can invest in:

1. Argentina

In Argentina, it is a cash market, which means no financing for foreign property purchasers.  You can buy an offplan luxury city pad in Buenos Aires from around EUR50,000 – EUR60,000 with furniture.  This amount can be paid over 2 years.

After completion you will be able to rent it for US$250 – $300 per week to holiday makers, which would generate a double digit rental yield.  The capital appreciation will be pretty good as well, as these properties are in the best locations.  Also the global crisis is stopping developers launching new projects which will create more demand for the ones they are currently constructing.

2. Brazil

In Brazil, it is also a cash market.  Banks may be about to offer financing, but with interest rates around 12% – 13%, it may not be so good to initially take financing.  We currently have off plan luxury apartments near Rio de Janeiro from EUR80,000 – EUR90,000.  This would be payable over the next 12 months.  The yields would also be double digits.

3. Albania

Albania, is a possibility because foreigners can still get mortgages at the moment (only citizens from US/ Canada/ UK/ Ireland/ Germany/ Italy/ Greece), up to 70% LTV, rates around 6%-7%.

You can buy an offplan city apartment, on the outskirts of Tirana from approx EUR25,000, which will be a good long term investment, which you can rent for around EUR150/month.

You could also get a new apartment with full sea view in Vlora from EUR65,250, which would have an outstanding rental return, as it could be rented to holiday makers in the summer from EUR25/night, and to students at the nearby university in the offseason.

Or an offplan apartment in beautiful Saranda with sea view from EUR37,200, which could also be rented in the summer, or long term from EUR150/month.

These 3 options would certainly meet your criteria – depending on budget of course.

For more information, please contact us.

 

Brand New 2 Bed Apartment to Rent in Vlora- 100m from beach

On March 5, 2009, in News, by Fiona Bosticky
0

Fresh Property Albania is happy to offer our first apartment for rent in Vlora: Huge 2+1 (2 bed, 2 bath) apartment only EUR300/month.

  • 5 minutes drive to the centre/ port
  • 5 minutes drive to the University
  • 100m to the beach
  • 100m to the bus stop (bus to centre)
  • Air Con
  • Full kitchen with fridge
  • Unfurnished
  • Washing Machine
  • 2 Balconies

To rent this apartment for 6 or 12 months, please contact us:

  1. *
  2. *
  3. *
  4. *
  7. We will not provide information about you to other organisations, agencies or groups for marketing purposes. We disclose information about you only with your consent.
 

cforms contact form by delicious:days

 

Argentina Construction Update: Diaz Residences Recoleta Apartment

On March 3, 2009, in News, by Fiona Bosticky
0

March 2009

One of our clients bought an amazing off plan penthouse apartment in our Diaz Residences Recoleta, and I thought I should share the latest construction photos as the apartment is nearing completion:

If you are interested in luxury off plan apartments in Buenos Aires – Recoleta or Palermo Soho, please click here.

 
« Previous Entries