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Investment Property Watch - July 2008
Added: (Thu Aug 28 2008)
Real estate in far-flung destinations proved to be massively popular again in July on TheMoveChannel.com, with old favourites sharing the top 10 list of hot investment properties on the site with some sizzling emerging markets…
Despite numerous problems in the American property market, with the subprime crisis forcing house prices into a cul-de-sac, a property in Buffalo in New York State was the hottest property on the MoveChannel.com in July.
Following the trend found in recent months, TheMoveChannel’s visitors shunned Europe’s top investment property markets, preferring to take calculated risks on cheaper properties or those in uncertain markets.
The interest in the USA could be due to the fact that, in a slow housing market, one type of buyer is still flocking to America.
According to a new study by the American National Association of Realtors, a quarter of estate agents said their business with overseas buyers had increased over the past five years, with one in five selling a second home to a foreign buyer last year.
While international investors are aware of the current American market and tighter visa restrictions, many overseas buyers are after a holiday home rather than an investment, so are taking a long-term view of the market and are still snapping up property.
Second place went to the United Arab Emirates. More than 25,000 foreigners relocate to Dubai, one of the seven emirates making up the UAE, each year, and the population is expected to top four million people by 2020.
The property market is developing at a lightening pace, with cranes dotting the skyline, and the country’s fast growth, tax advantages, climate and quality of life continue to attract international investors.
Unlike recent months where the world’s most established property markets have been ignored by prospective investors, old favourite France made it into the top five in July, but got pipped to the bronze by emerging market Brazil.
Already one of the fastest growing economies in the world, Brazil is set for further growth over the next few years, as the host country of the 2014 FIFA World Cup.
This international event will place Brazil firmly onto the world stage, and the country has spent hundreds of billions of dollars on infrastructure improvements, making it a major attraction to foreign property investors. It also has its sights set on hosting the 2016 Olympic Games.
Dan Johnson, Director of Equity.com, which had two Brazilian properties in the top ten, explains why he thinks Brazil is the world’s top emerging market. “Brazil has a unique blend of attractions for property investors.
“Alongside its strong economy and solid regional and global trade links, Brazil has all sorts of natural resources that it can leverage.
“It also has the largest population in Latin America, which provide a huge pool of human capital to power the economy.
“The people of Brazil are aspirational, modern and increasingly forward thinking. The domestic economy is growing and the international profile is strengthening.
“With around 7,000 km of amazing coastline and a great climate, it has world class tourist potential, something which the major tour operators appear to have finally woken up to,” Mr Johnson added.
TheMoveChannel.com’s hottest properties for July are below:
Rank Property Country Company
1 New York State home
USA Colossal Property Investments
2 Dubai property fund
UAE The Armarium Group Ltd
3 1 bed apt Porto De Lingas
Brazil Dream Resorts Ltd
4 Lake Geneva Leaseback
France Zenith Overseas Investment Ltd
5 Western Bahia Brazil
Brazil Leaders in Land Ltd
6 Pathway Palace Gardens
India AJ Property Europe Ltd
7 Sonho Verde Residence Plots
Brazil E-Quity.com
8 Residence Assisi
Brazil E-Quity.com
9 Via Palermo 9
Italy Overseas Property Links
10 2 bed apt in Leipzig
Germany Nest Egg UK Ltd
*Results are based on number of sales enquiries generated per month.
Oliver Ramsden from Dream Resorts, which is offering the third most popular property, in Brazil, explained why the country is such a good investment.
"Brazil's economy is booming. They discovered one of the world's largest oil and gas reserves last year and in May they were made Investment Grade.
"The population is becoming wealthier, tourism is going through the roof and demand for property far outstrips supply. Welcome to Brazil's real estate goldmine!" added Mr Ramsden.
Italian property scraped into the top ten at number nine. Sarah Child of Each Property Med Ltd, which markets properties in Italy, said, “Italy is an intriguing country.
“Every visit seems to capture your heart anew and awaken taste buds you didn't even think you had!
“For exactly that reason, Italy is creeping up the list of places people would like to buy abroad. Add to this the plentiful flights, the high speed rail links via Paris to Rome and the wealth of places to explore and Italy is not just a top destination, but a great investment.
“For the canny investor, along with the fantastic lifestyle - there are many bargains to be had in Italy and contrary to popular belief, Italy can be very affordable...you just need to know where to look,” Ms Child added.
To keep track of TheMoveChannel.com’s hottest property investments throughout the month, please visit the Investment Property portal on our website.
Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information as well as images and interview possibilities, please contact:
Dan Johnson
Managing Director
www.TheMoveChannel.com
0207 952 7650