Outlook Brightens for European Commercial Real Estate Market
May 20, 2010
Continuing demand in the European commercial property market in the first quarter of 2010, increased confidence and spread interest to new areas, according to PropertyWire.com a recent report by Cushman & Wakefield. Foreign buyers were particularly active.
Overall, analysts say the market experienced an all-around improvement in the early months of 2010. Even so, issues such as an increasingly polarized market bar a full recovery. For example, while the United Kingdom, Turkey and Sweden saw modest rental growth, Bulgaria, Ireland, Slovakia, Romania and Greece had a notable decline.
Retail accounted for 43% of all trading in the first quarter, up from 30% last year and at its highest in at least 10 years. Germany overtook the United Kingdom to become the largest retail market over the quarter. A factor behind the increased activity in the retail sector was the modest increase in availability of affordable debt. This has led to the increased trade of larger lots and shopping center portfolios.
Retail is likely to be strongly favored as a low risk, low volatility asset with good income growth through careful management. Many investors also expect a more rapid return of rental growth.
“We continue to expect a strong outturn for trading volumes this year, with activity increasing around 50% to €110 billion,” David Hutchings, Head of European Research at Cushman & Wakefield. “Europe’s three largest markets, the UK, Germany and France, will see the bulk of this but other larger western markets will be buoyant, such as Italy and the Netherlands.”
FIABCI World Congress 2010 in Bali, Indonesia
May 19, 2010
With great regret, I find myself longing to attend one of this years great upcoming events, the FIABCI 61 World Congress, held in Bali, Indonesia. The theme of the 2010 World Congress is “Save the World: Green Shoots for Sustainable Real Estate.”
This World Congress will feature keynote speakers from various countries from around the world. The presenters come from various professional and industrial backgrounds from government officials to company executives to business people from various economic, cultural and social sectors.
The conference will feature an exciting program filled with cutting edge and timely information with numerous opportunities for business development and networking focused on Green Technologies and Environmental Sustainability. Topics will include “The Eco-Property, Continuous Real Estate,” “Green Tourism, Nature’s Limits and Opportunities” and “Innovations in Real Estate.”
FIABCI (The International Real Estate Federation) is an apolitical entity represented by chapters in 48 countries. The entity serves as the umbrella of 120 professional real estate organizations representing more than 1.5 million professionals and 3,300 individual real estate practitioners worldwide. FIABCI’s strives to assist its members in acquire knowledge, develop networks and broaden business opportunities. For more information, visit the FIABCI website.
Don’t wait, like me, it’s never too early to begin planning for attending next years FIABCI World Conference.
Keller Williams CEO Anounces KW Worldwide
May 19, 2010
Mark Willis, CEO of Keller Williams International announced at the 2010 KW Family Reunion the company was laying the ground work to expand beyond North America.
On May 6th, 2010, it was announced that Chris Heller of The Heller Real Estate Group and Operating Principal of the Carmel / Del Mar, California Market Center would take the helm as President of KW Worldwide.
Through 2010 Mr. Heller and a team of researchers will determine exactly where the company will begin its worldwide expansion. The first destination will be announced at Family Reunion 2011.
International Living Reveals Top 10 Best Countries to Live
January 23, 2010
The 2010 Quality of Life Index, produced by International Living, ranks and rates 194 countries based on their quality of life. The index looks at nine categories: cost of living, culture and leisure, economy, environment, freedom, health, infrastructure, safety and risk, and climate. For the fifth consecutive year, France tops the list.
The top 10 countries in the 2010 Quality of Life Index and some of the characteristics that contribute to their high ranking are:
- France: An unsurpassable quality of life, including the world’s best health care.
- Australia: Countrywide access to an active and healthy lifestyle. Urban dwellers enjoy plenty of great culture, excellent food, and a favorable cost of living.
- Switzerland: A super-efficient, high-tech society and alpine tourism.
- Germany: Theater, art, and classical music concerts. Average employee earnings of €41,509 ($61,433).
- New Zealand: Pristine landscapes and absence of high crime rates, abject poverty, pollution, congestion, health issues and cramped city living.
- Luxembourg: A financial center and tax haven, and a per capita GDP of $88,000.
- United States: Convenience of getting what you want, when you want it.
- Belgium: Expat friendly with everything from English-language cinema to international schools.
- Canada: High living and health care standards. Vast natural resources, robust financial industry, and innovative manufacturing.
- Italy: Grand historic cities, 60 percent of the world’s art treasures, and a WHO-acclaimed national health care system.
Promising Outlook for Commercial Real Estate Worldwide in 2010
January 17, 2010
Worldwide, 2010 looks promising for commercial real estate investment across most markets, and Asia offers the best opportunities, according to the 16th edition of the LaSalle’s Investment Strategy Annual.
The report says that the free fall in values has stopped in nearly all the major markets it follows and the early stages of restored investor confidence have begun.
Markets across the globe are recovering in very different and surprising ways. LaSalle offered the following information about specific markets:
United Kingdom: While capital values will still increase, a sharp rebound in prices means that the best opportunities have passed, the report says.
Continental Europe: France and Germany are set to see most of the investment activity in 2010. Re-pricing in other countries continues at varying speeds and Central Eastern Europe continues to be paralyzed.
United States: Its recovery is slower because the market has yet to reach bottom. Weak economic fundamentals are expected to push vacancies up and prices down until the second half of 2010.
Asia: The area is expected to offer investors the greatest range of opportunities in 2010 as China and India growing rapidly, and economies that have experienced a contraction in economic output reclaim lost ground by 2010.
LaSalle summarizes that investors in commercial real estate should be cautiously optimistic about the outlook in 2010. However, as a late cycle participant in the general economic recovery, real estate will behave differently from other asset classes.
Boost Your Business with Foreign Buyers
December 12, 2009
This is a good time for real estate professionals to expand their clientele with international buyers. Among the factors favorable for marketing to foreign buyers are:
- International buyers bought 154,000 homes and condos during the 12-month period ending in May, and they continue to be attracted to the weak dollar.
- The U.S. dollar has weakened significantly since June, dropping 9 to 11 percent against such foreign currencies as the Japanese yen, European euro and Canadian dollar.
- Both the U.S. economy and the U.S. housing market are showing signs of stabilizing.
- Nearly 46 percent of international home buyers paid cash for homes purchased.
- The median price that foreign home buyers paid for a home was nearly $80,000 more than the U.S. national median price.
Among International buyers, those from Brazil, Canada, France and the Netherlands have paid mostly cash for second homes. Those purchases, MSNBC.com reported, ranged from $6 million to $15 million in condo buildings.
Turkish Real Estate To Recover Quickly
October 28, 2009
The Turkish real estate market is poised to recover more quickly than others because it is among the least leveraged and least negatively affected property market, reports Sunday’s Zaman, the highest circulation English-language newspaper in Turkey. Prices in Istanbul, and Turkey as a whole, did not drop as much as elsewhere due to the lack of a developed mortgage financing system. Most property owners own their property free and clear, so as prices dropped and bargain hunters came looking, Turkish owners could afford to wait for prices to recover. For these reasons, the majority of investors queried by Jones Lang LaSalle (JLL) international investors ranked Turkey as #1 or #2 compared to Greece, Romania, Ukraine, Russia and Azerbaijan.
The downside of Turkey’s real estate is a stagnated market where values are hard to gauge, which deters some investors. The trend seems temporary, says JLL, which projects that when the bargains are gone in hard hit places like Russia, investors will return. Prices will rise with full recovery possible as early as second half of 2010. Others are less optimistic, citing the absence of financing as preventing swift recovery, much as it prevented a dramatic crash.
Abu Dhabi Tops MENA Real Estate Markets
October 28, 2009
Abu Dhabi is projected to be the strongest performing market in the MENA region (Middle East/North Africa) real estate market over the next two years, according to a survey of 200 investors for Jones Lang LaSalle’s Second Investor Sentiment Survey. MENA property investors are much more confident overall than they were six months ago. This has resulted in more buyers than sellers.
Saudi Arabia and Qatar are also expected to be among the first to recover from the downturn. Abu Dhabi , however, is the stand out market for investors because of its leadership, planning, superior planned infrastructure, and its general regard as the regional leader of the MENA real estate market.
Other key findings included:
- The Middle East was the last region to experience the global downturn
- Middle Eastern real estate markets continue to outperform globally
- The downturn is likely to continue in 2009, setting the stage for recovery in 2010
- Falling prices create greatest opportunity
FDI Declines In 2009 With Slow Recovery In 2010
October 28, 2009
Global foreign direct investment (FDI) flows have been severely affected by the economic and financial crisis. According to a new report from the United Nations Conference on Trade and Development (UNCTAD)
, inflows are expected to fall from $1.7 trillion in 2008 to below $1.2 trillion in 2009, with a slow recovery in 2010 (up to $1.4 trillion) and gaining momentum in 2011 (approaching $1.8 trillion).
The U.S., along with China, India, Brazil and Russia (the BRIC countries), will likely lead FDI recovery. FDI to the U.S. actually increased in 2008 to $316 billion, up from $271 billion in 2007, due to an increase in loans from parent companies to their U.S. subsidiaries. UNCTAD does not expect a similar surge in intracompany loans in 2009, resulting in a projected decline in FDI into the U.S.
The report noted that the global FDI landscape has changed with a surge of investments to developing and transition economies.Their share in global FDI flows grew to 43 percent in 2008. Specifically, FDI inflows to Africa and to South, East and South-East Asia rose to record levels. Inflows to the Caribbean, Latin America and South-East Europe also increased. However, UNCTAD reports that in 2009, FDI flows to all regions will suffer from a decline.
FIABCI-USA ~ 2009 Fall Business Conference
September 21, 2009
September 11-13, 2009 marked the FIABCI-USA Fall Business Conference which was held here in Denver, Colorado. While I’ve communicated with FIABCI(pronounced FIAPSI) members in the past year or so, this also was my inaugural personal meeting with FIABCI-USA. I must say found myself more than welcome and I was more than stunningly pleased with my experience.
The conference started with a series of committee meetings some of which I was unable to attend. I jumped full force into the Membership Committee meeting and found myself instantly welcome and quite comfortable with my fellow members.
After this meeting we took a property tour and enjoyed a reception at the Spire in Downtown Denver. The Spire is a luxury high-rise during the course of completion and is nearly 25% sold with only a few months away from completion. This gorgeous property is an incredible eco-friendly development.
The following day we started bright and early with a New Member orientation breakfast where I met with some other new members some of which I new from my Certified International Property Specialist classes earlier this year.
Opening of the business day was the Welcome Session and General Membership Meeting. This too was a very warm yet exciting introduction to the day. Our FIABCI World President, Lisa Kurrass, welcomed us to the session followed by brief introductions by two candidates for next years World President position, one colleague from Italy, Enrico Campagnoli, and one from Norway, Tore Petter Braate. Mr. Dean Lapointe, Director and President Americas Committee spoke of the status of the residential investment market in the Americans.
Following this session was our Networking Lunch and Marketing Session. After an tasty lunch my colleague and I introduced one of our office’s luxury home listings located in Littleton, Colorado.
Thereafter, we were advised the benefits of EB-5 and E2 Visa programs and how we can put them to work for our foreign investors. I’ll be introducing a summary of this session at a later date.
We started our Expert Roundtables and then were interrupted by a brief fire drill. Topics included Luxury Property Forum, Marketing Show and Tell, Blogging as a Lead Generation Machine, Putting Together a Limited Partnership, How to use Proxio for Your Business, and becoming an Owner Instead of a Broker.
While there was a Board of Directors Meeting on Sunday, my day and participation in this event, concluded with the FIABCI Scholarship Foundation Dinner and Auction. This was lots of fun and funds were raised for students planning to participate with FIABCI in the future.
All in all, this was an incredible event and great way to begin my venture and career enhancing participation with FIABCI-USA. As with any organization the more you put into it the more one gets out. I will summarize future participation and travels there to as the opportunity presents itself. FIABCI is open to affiliated businesses as well so if you are interested at all I invite you to contact me for more information.
