Average global prices rose three percent in 2011, according to the latest Prime Global Cities Index by London-based real estate consultancy firm Knight Frank. The index ranked Dubai as the 15th most attractive investment location in the world, much higher than some of its regional Asian competitors and high profile European cities.

Industry experts are in wide agreement that the UAE will see an increase in property transactions over the next year, driven by private and wealthy buyers rather than institutions. “Lower prices, more choice of higher quality product and its role as a regional safe haven will increase the attractiveness of the UAE market to both occupiers and investors in 2012,” the report stated.

This confidence is mirrored in the Dubai Financial Market General Index 6.1 per cent up so far this year at 1,435.96. The Abu Dhabi Securities Exchange General Index closed up 0.43 per cent at 2,476.62 yesterday, helping to extend its gains for the year to date to 3.09 per cent.

There has been further confidence by the fact that the Abu Dhabi Commercial Bank’s board approved a Dh816.7 million (US$222.3m) cash dividend of 20 per cent after its fourth-quarter profits rose 39 per cent. It was the first payout by the bank since 2008.

Looking to 2012, Knight Frank was upbeat that investors would refocus their priorities into real estate. The desire amongst wealthy investors to target property and other real assets over financial products will reaffirm prime property’s safe-haven qualities in 2012.

Dubai Marina was the most searched area for buyers and renters at the end of 2011 with nearly 19% of all searches followed by Palm Jumeirah at 10% and Jumeirah Lakes Towers at 7.3%.

Dubai highlighted as top property investment city Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Despite the introduction of new top up fees, Liverpool has seen a boost in applications highlighting the city’s appeal with students. This reputation has been maintained by Liverpool’s universities work to have improve higher quality vocational courses, introduce a new range of bursaries and scholarships and also widen their access to more overseas students.

John McCarthy, Director of marketing at Liverpool Hope University, said: “All of the extra applications at Hope have come from outside Liverpool, and that’s partly to do with raising the profile of the university and the city.”
“The new courses we offer in social work and forensic science are very popular and while applications are up by more than 11%, the number of people picking it [Liverpool Hope University] as their first choice has risen by 14%.”

UCAS figures have also highlighted how universities in Liverpool have a growing proportion of international students studying there. For example, 8% of all students attending John Moores University, are international , 11% of students at the University of Liverpool are from overseas and 4% of those at Liverpool Hope University are international students; a figure which is increasing at all three universities each year.

The increase of overseas students drawn to Liverpool has been helped by the city hosting the first institution in the world dedicated to research and teaching in tropical medicine. As a teaching institution, Liverpool School of Tropical Medicine attracts more than 500 students from over 50 countries each year, from PhD research and Masters programmes, working in partnership with health ministries, Universities and research institutions worldwide.

The University of Liverpool are aiming to attract even more overseas students through its strong relationship with China. Liverpool has strong links with students in China because of its satellite university set up over there called Xi’an Jiaotong-Liverpool University (XJTLU), one of the top ten universities in China.

The numbers of XJTLU students going to Liverpool is expected to grow by over 2,000 by 2015 as the link between the two becomes more established and the University proactively aims to take advantage of there being no cap on overseas student numbers where as the number of domestic students is limited.

Liverpool’s student numbers increase by over 11% Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Istanbul was able to hold number one spot due to its high amount of youthful population and its booming economy according to the survey of over 600 real estate professionals.

Istanbul’s property market is thriving as they are getting demands of around 70,000 units each year.. Figures indicate that sales of investment property in Istanbul are actually outselling previous best-performing market places like Brazil and Florida.

Property prices in Turkey are steadily moving upwards with the latest Residential Properties Sales Price Trends Index from REIDIN showing constant monthly increases in values with Istanbul leading the growth.

Other cities indentified in the survey included Munich, which came second due to some of the lowest unemployment rates in Germany and high levels of stability. Warsaw which is rapidly becoming Eastern Europe’s financial hub followed.

Even though the London is being affected by the current economic climate, the UK still attracts a lot of attention from oversees. The Guardian’s report includes a study which found that more than half of the buildings in the city are foreign owned. Industry experts think the UK offers potential for high yielding properties where excellent income can be generated in areas such as student accommodation, care homes and hotel room investments and as always, the UK will remain a big player with overseas investors viewing it as a safe haven for their capital.

Source: The Guardian

Istanbul tops property investor list Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

James Pullan, the head of student property at Knight Frank stated “Student property has outperformed every other commercial property class” explaining “A key reason for this outperformance is that there is still a structural undersupply of purpose-built student accommodation in the UK.”

However, the main investment opportunity identified by Knight Frank for 2012 and beyond, was not with conventional student accommodation as most would imagine it. The rapid influx of overseas students studying in the UK has altered housing demand, shifting it away from basic, low standard housing towards extremely high quality, purpose built, private accommodation.

Knight Frank’s report sated, ‘Non-EU overseas students have always paid tuition fees in the UK, so the new tuition fee regime will have little impact on the number of these students coming to study here. In fact the weakness of the pound is cutting the cost of education for many of those from overseas. Chinese students are benefitting from a discount of around 20% compared to before the financial crisis in 2007, thanks to currency movements’

With the number of students studying out-side their home country set to more than double by 2025, UK university education is expected to become a considerable export. Estimates show annual fees revenue from non-UK domiciled students is around £2.4 billion a year, while the total value of UK education and training are worth up to £14 billion a year to the economy.

Knight Frank point out UK universities are held in extremely high esteem around the world for quality education and offer competitive tuition fees on a global scale. Their report stated, ‘The international fees charged at UK universities for overseas students are also competitive on a global scale. The US has the highest fees. Annual charges for undergraduates at New York University are nearly £25,000 a year while Harvard charges around £21,000 a year. Fees at Australian universities also outstrip those in the UK, even at institutions ranked lower than their UK counterparts. Overseas fees for an undergraduate history degree at the University of Sydney are around £16,500 a year, while a similar course at Oxford costs less than £13,000.’

As a result, the UK’s student population of the future will contain a much higher proportion of overseas students, demanding a higher standard of student accommodation. Student property is structurally unsupplied across the board, however within that supply is a very limited level of high quality student property, creating what will become, an increasingly noticeable gap in the market over the next few years.

Source: Knight Frank

Student Property continues to outperform UK property market Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The Oxford Business Group is also confident of the UAE’s strong economic performance in 2012. Their report stated “Indeed, despite the concerns over the global economy, Dubai appears to be looking at the New Year with confidence, with the government set to step up investments aimed at bolstering growth,”

The report continues by predicting a considerable fall in the UAE’s deficit which is expected to shrink by 50% compared with 2011. “This strong turnaround from the higher deficits of the past few years since the 2008 global economic crisis should further restore investor sentiment and encourage growth,”

The improved sentiment has been clearly visible in Dubai’s property market where 2011 saw a 20% increase in transactions spurred by lower prices. But despite low prices unit prices, $38.9 billion was invested into Dubai property in 2011.

Director General of the Dubai Land Department, Sultan Butti bin Mejrin said “quantity, quality and procedures reflect the recovery and growth of the real estate market in Dubai”, adding he expects “strong recovery” in 2012.

Source: Emirates 24/7 and Arabian Business

UAE economy improves and ‘strong recovery’ forecast in 2012 Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

While returns generated by student accommodation are forecast to decrease this year due to the increase in tuition fees this autumn, experts still expect returns of at least 12%; still far ahead of the rest of the market. Industry analysts say this is because of the increasing number of foreign students entering coming to the UK for university education. The Sunday Times said this is because ‘overseas students have a different fees scale and are less effected by the changes’.

James Pullan, head of student housing at Knight Frank added, “International students prefer purpose-built blocks to the traditional housing available in the wider letting market because they can view and book them online, they are well maintained and services such as free wifi are included.”

Industry experts also commented on how the changing face of university education in the UK will affect the student accommodation market. Knight Frank’s student housing report 2011 highlighted the increasing proportion of mature students, overseas students and wealthy students that will be attending UK universities over the next few years. This will lead to a drop in demand for lower quality student accommodation and significantly push up the demand high quality accommodation which is currently in low supply in this sector.

Source: The Sunday Times

Student property the best performing asset class in UK property Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The gradual improvement of Dubai’s real estate market through-out 2011 was helped by several factors including the Arab Spring which saw capital flowing into the emirate as the safe haven of the Middle East.

Properties in prime locations saw the highest increase in values attracting high demand from local residents and investors alike due to better standard of living and higher than average rental returns.

Property in Dubai is expected to increase more sharply in 2012 as market confidence fully recovers.

Dubai property prices up 1.09% in December Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Hilton’s luxury resort will be one of the first hotels to open on the highly anticipated Al Marjan Island. Al Marjan, which is RAK’s first manmade island, is expected to become a popular tourism hub offering a tranquil paradise at the centre of the Middle East. As the most scenic and naturally beautiful of the UAE’s emirates, RAK has a unique advantage over the rest of the Middle East to offer more luxury resort style holidays.

Upon completion, the 309 room DoubleTree Resort by Hilton will feature 45 luxury chalets located on the development’s private beach, a health club and spa with five treatment rooms, restaurants, bars and water sports facilities.

The president of Hilton Worldwide’s Middle East and Africa division said, “Tourism is a vital sector of Ras Al Khaimah’s economy and with three Hilton Worldwide hotels already open and a further three in the pipeline, I’m pleased we are playing a major part in firmly putting the Emirate on the destination map.”

“Today’s announcement represents another important step in our ongoing commitment to the region and our continued expansion across the Middle East & Africa.”

Hilton Worldwide currently operates 53 properties in the Middle East and Africa region with an additional 39 properties in the pipeline due for completion over the next few years.

Source: Arabian Business

Hilton to open a luxury hotel on Ras Al Khaimah’s Al Marjan Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The solar energy project will be the largest of its kind in the region and will incorporate several forms of solar technology including Photovoltaics, which is the process of directly converting sunlight into electricity and also system of reflective panels that direct sunlight into one spot to heat water and create electricity.

Saeed Al Tayer, the vice chairman of the Supreme Council of Energy said “We have a plan to diversify the energy [sector] in Dubai and to increase solar power to 1 per cent by 2020 and 5 per cent by 2030,”

As part of this process, Dubai aims to increase its output from 4.5MW to 1,000MW. This will significantly reduce the cost of energy in the long term, not only due to the reduced dependency on non-renewables but also because the price of energy created by solar has fallen 41% since 2004 thanks to advances in technology.

Mr Al Tayer explained “We hope that in future we will witness more decreases in price,” adding, “It is fantastic. It is another market place for sustainable energy in the Middle East,”

Dubai invests to expand solar sector Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Tourism levels have been increasing month on month for a considerable amount of time. This can be measured by the increase in international air passenger traffic which has increased at an annual rate of 15.5% over the last few years.

Part of the recent surge in tourism has been attributed to the ‘Arab Spring’ which saw tourism leaving countries like Egypt and Tunisia and being re-directed towards Dubai. This has also affected domestic tourism within the Middle East, with a sharp increase in Saudi holiday makers who would have traditionally travelled to Bahrain, now visiting Dubai instead.

However, it isn’t just tourists that are boosting Dubai’s expanding retail sector. Domestic spending is also on the increase. A combination of better market conditions and a recovering economy have created a much better consumer sentiment. With confidence on the rise, Dubai is witnessing a significant improvement in retail revenue.

Industry forecasters expect Dubai’s retail sector to experience 8% growth annually through to 2014, in line with the general improvements also experienced within the aviation industry and hospitality sector.

Dubai’s retail sector shows strength Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

CBRE, a world leading real estate advisor recently released a report that stated £863 million was invested into student accommodation in 2011.This figure represents a significant increase compared with 2010 which saw £770 million invested into student accommodation and a staggering 120% increase on the amount invested in 2009.

The considerable demand for student accommodation amongst property investors has been driven primarily by a low supply and high rental returns relative to standard UK property.

The head of residential research at CBRE, Jennet Siebrits said “Student accommodation is more attractive than many other asset classes in the current climate and we have seen increasing interest from relatively new parties seeking to diversify their portfolios.”

New parties include a growing number of overseas investors who see the UK as a safe and stable market place where they can obtain student accommodation for as little as £50,000 and gain high NET rental yields of between 7 – 9 %.

The report also highlighted that student accommodation occupancy rates in the UK currently stand at 99%. This incredibly high demand for student housing amongst students has seen annual student rents increase by 4% across the country and 5% in London.

Knight Frank, a prominent industry expert also reported on the changing face of the student accommodation market. They identified that the growing number of overseas students, mature students and wealthy students would create further demand for the higher quality tier of the market over the next few years.

Source: The Telegraph

Student accommodation leads the UK property market Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

In terms of the breakdown of sales, 74.98% of all property deals were flats or apartments.

Director General of the Dubai Land Department, Sultan Butti bin Mejrin, explained, “The transactions’ quantity, quality and procedures reflect the recovery and growth of the real estate market in Dubai due to the direct support from the local government that spared no effort to achieve market’s stability and growth, enhance the attractiveness of real estate investment along with boosting the confidence of investors.”

A number of industry experts have come forward to explain the reasons behind the uplift. Vineet Kumar, Head of Business Development at Asteco, highlighted a number of factors that positively affected Dubai’s property market in 2011.

“Financing has remained tough since the property downtown began in the third quarter of 2008 but sentiment has improved as banks began to offer more attractive mortgage rates this year. The government’s declaration that property buyers in Dubai will be given a visa for three years instead of just six months will also help boost investor confidence. Transaction levels have also risen as job security and increased market confidence result in people seeking tenancy upgrades and home ownership,” he said.

The Chief Executive Officer of Landmark Properties shared this sentiment, explaining that positivity was created by “Changes in visa regulations allowing owners of properties of over Dh1 million to have a 3-year residency visa, mortgage rates continued to fall and banks were more liquid, oil prices remained buoyant which supported the local economy, announcements by Emirates Airlines and Dubai Civil Aviation expanding the aviation sector and supporting growth of tourism.”

Emaar, one of Dubai largest developers and the creators of the World’s tallest building predict that 2012 will see further positive growth throughout Dubai’s property market. In a statement to Zawya Dow Jones Emaar said,

“Dubai has effectively restructured its economy, following the challenges of the global financial crisis, and is now steadily consolidating its fundamentals. Following the socio-political changes emerging from the Arab Spring, elsewhere in the Middle East, more businesses are looking to establish their regional headquarters or expand their market presence to the UAE and Dubai. The property sector of the city is poised to benefit from this and record positive growth in 2012, across residential, commercial, retail and hospitality,”

Dubai property market improves in 2011 with positive outlook 2012 Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The strategic review of the emirate’s tourism attractions, facilities and accommodation found there was a shortage of rooms to accommodate the increased level of visitors over the next few years. As a result, the TIDA will allocate AED 600 million ($163.4 million) to a series of projects across Ras Al Khaimah to bolster the emirate’s tourism projects.

Some of the budget will be spent improving existing resorts, some on facilities in popular tourism areas like the Al Marjan Island and an allocation will go towards the development of the highly anticipated Waldorf Astoria Ras Al Khaimah.

The additional investment is needed to maintain RAK’s growing momentum as a popular holiday destination. The emirate already attracts many visitors from elsewhere in the UAE as the country’s favoured domestic tourism hot spot; however RAK is looking to extend its reach internationally.

AED 600 million to be invested in RAK Tourism Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Industry experts have been extremely positive about Dubai’s first ever bulk auction of foreclosed property which successfully highlighted the renewed confidence in this sector. There have been previous attempts by banks in conjunction with the Dubai Lands Department to sell off foreclosed properties on a much smaller scale with little success.

Richard Paul, head of valuations at Cluttons explained, “Initially reserve prices were just too high and now they are far more realistic and as a result they are attracting buyers,”

As well as previous unsuccessful attempts creating stumbling blocks for widespread sell offs, some officials were concerned over the process of auctioning off foreclosed properties through the fear of flooding the market with low-priced-homes, at a time when prices were already 50% lower than peak values in some places.

Yet the evidence from this auction has been the contrary, with all the properties sold achieving much higher than the reserve price in what was described as ‘brisk bidding’. The properties sold included villas in the Al Thnnyah and Al Safa districts as well as apartments in Dubai Marina.

Not only were a number of properties sold, but confidence has been boosted through-out the market, reflecting in today’s property stock prices. Despite the instant market reaction, the most influential restoration of confidence has been amongst the Banks who now know, if buyers default, they will be able to retrieve capital through this process.

“As the [foreclosure] system becomes more streamlined it will give lenders greater comfort to be more aggressive in lending,” said Jean-Luc Desbois, managing director of Home Matters Mortgage Consultants.

As a result experts widely expect higher levels of lending in 2012, prompting increased levels of property transactions and improving the market considerably.

Source: Emirates 24/7, The National

Dubai property auction improves market confidence Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The firm which specialises in providing detailed information to those planning to move abroad said that Spain is now the second most popular destination amongst their clients.

Client relationship manager Elaine Ferguson said “Spain has suddenly begun to take off again and is now commanding the second largest share out of thousands of enquiries coming from people interested in buying overseas.”

Turkey also recorded a marked increase in the number of people looking to buy property there over the past 2 months. This is no surprise considering the recent reports of considerable property price growth in Turkey. British buyers are now very prevalent in Turkey’s property market accounting for 1 in 6 of all foreign property buyers.

Popularity of property in Turkey and Spain rises Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

€250 million will be invested into the Costa Calida to create an oil lubrication plant as part of an agreement between South Korean firm SK, and Repsol. The plant which will be fully operational in 2014 will create 1000 jobs in Murcia and produce over 13,000 barrels a day establishing it’s self as the largest plant of its kind in Europe.

Murcia will soon also be home to the world’s first large-scale solar power plant creating electricity for more than 15,000 homes. The Murcia region possesses the perfect weather conditions for such a plant and the future possibilities for further solar R&D in Murcia are very likely.

With such high levels of investment consistently flowing into Murcia’s various industrial sectors, the numbers of jobs are rising sharply creating more demand for property in the area as a result. In addition to the highly anticipated Paramount Theme park expected to attract millions of tourists to Murcia every year increased levels of worked will inevitably push up average property prices and rental rates over the coming years.

Huge investment adds to property demand in Murcia Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Investors are highlighting that the UK’s biggest attractions are its security and stability, along with its liquidity and well-kept property registers. One international property broker stated that “The UK is a place to put cash outside of the euro zone; it’s fair to say that is a real and live trend.”

The debt crisis in the euro zone has been disastrous to markets across the globe and has led to an upheaval of the Greek, Italian and Spanish governments.

Indications that Greece might return to the days of the drachma, and the much smaller chance that Italy could also leave the Euro has been enough to increase interest in bricks and mortar outside of the euro zone completely.

Data from leading UK estate agents Knight Frank shows that interest in the UK property market is reflecting the severity of the debt crisis in countries suffering the most. Property purchases in London saw increases in buyers from Greece (2.63% up from 1.7%), Italy (2.63% up from 1.9%) and Spain (0.7% up from 0.6%), with buyers from the Middle East and North Africa also becoming more active following the Arab Spring.

These trends look set to continue for as long as Europe remains immensely worried about the value of their assets. “If for whatever reason the drachma came into being, and Greece was thrown out of the euro zone, it would plunge against the euro and assets held in Greece, or any country that was thrown out of the euro, would plunge in value,” Knight Frank said.

Foreign investors have stated that they want to place their money in a safe haven, not in a bank or stocks and shares because they are just too volatile in the current climate.

It isn’t just the wealthy who are looking for a safe home for their hard-earned cash. Property prices in London have appeared on the market with price tags of £250,000, aimed at potential investors from abroad.

Source: Reuters, November 2011

The UK property safe haven Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Figures show that tenants across the UK have been snapping up properties within 12.7 days of them becoming available, down from 13.5 days in 2010. In some areas “homes are coming on the market and being let within hours”, a spokesperson for the lettings agency said.

The research shows that on average, five tenants were competing for each home with some parts of the country seeing this figure rise to 7.3. These findings provide further evidence that competition for rented properties is highest from those who are often frustrated first-time buyers. This competition has resulted in rental prices hitting record levels.

Despite an increase in the number of properties becoming available, there is still a scramble for quality rental properties. One leading property agent stated that “despite having over 1,300 lettings across the UK, instructions were up by 9.2% over the quarter”

The figures echo the Bank of England’s recent report, Trends in Lending, which showed a steep rise in buy-to-let mortgages as investors looked to benefit from record rental prices.

“It is becoming clear that tenants understand there is a race for rental properties, with many setting up email and SMS alerts with their local letting agent to know instantly when properties become available” a leading source stated.
Couples under 35 years-old remain the largest portion of tenants, highlighting that demand for one and two bedroom properties is at its highest, with the majority being snapped up extremely quickly.

Source: The Guardian, November 2011

UK rental market soars to all time high Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

On the surface this sounds crazy? Capital gains tax on investment property profits is rising, though more modestly than feared, and spending cuts may destabilise the broader economy over coming years. So why should landlords be looking to re-enter the rental market now?

Three key reasons. Firstly, property mortgage lenders are reintroducing more and cheaper buy-to-let mortgage products. Three years ago there were 3,650 mortgage products for landlords which fell to less than 180 by late 2010. Yet now there are over 300 and rising, some offering 80 per cent loan-to-value and thus easing cash deposits and cash flow for buy to let landlords.

“With property prices increasing, more lenders are likely to edge up their maximum loan-to-values. It’s only a question of when this will happen. While there is little choice of re-mortgage deals this isn’t an issue when interest rates are so low,” comments Melanie Bien, a director of specialist broker Private Finance.

Secondly. Rental yields are relatively high, typically averaging 4.54 per cent across the United Kingdom and averaging just over 7% per cent in certain parts of London. In 2008 they dipped to just 2% and less in many places. Rental returns in most London boroughs and UK cities have risen throughout 2011; London suburbs Havering and Haringey have risen to more than 10% while average returns in Greater Manchester is up 9%.

Thirdly, demand. Large city centres are well stocked with flats to let and some landlords still have periods when their properties are empty. However in many other locations, and the majority of cases, especially where house prices have risen, first-time buyers bolster rental market demand.

As a result of all three factors, many landlords are being drawn back to the property rental market, however buyers are cautious where they are buying and at what price point. Many are careful with city centres apartments favouring older properties unless they can achieve large price reductions, often with rental guarantees, with developers keen to shift their newbuild apartments.

The days of making a quick return on your money have been replaced by steady income investments with an upside of gentle long-term capital appreciation. Compared to the low returns of many alternatives, the core factors of UK buy-to-let seem to add up with landlords steadily retuning to capitalise on improved financing options and cash flow positive returns.

Source: The Telegraph

UK Buy-to-let edging back? Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

While the main contributors to Spain’ tourism industry consistently remain the United Kingdom, Germany and France, the demographic is beginning to change and diversify.

More tourists from a range of different European nations are now visiting Spain. One prime example is the marked increase in Scandinavian holiday makers this year. Visitors from Scandinavian nations are taking advantage of favourable exchange rates and relatively short flight times to enjoy cheap holidays in the Spanish sun. This has now transcended into a considerable increase in the number of holiday homes bought by investors originating from these countries as well.

This trend has also been evident amongst Russians who are also visiting and buying more property in Spain before. Recent reports from industry professional have noted a surge in interest from Russians looking to buy property in areas like Marbella.

One expert commented, “The number of Russians looking to buy homes in the area has doubled since last year. They are typically looking for high value properties on the coast and on exclusive estates”

It’s been suggested that this demographic change has been driven by the lowering of prices and the weakening of the Euro, combined with Spain’s well established tourist industry. Spain still boasts its popular appeals such as its outstanding climate, world class golf and quality infrastructure but a tipping point has been reached where low prices are now motivating buyers from across Europe to re-visit and buy holiday homes in the country.

Spain tourism rises by 8% and attracts more property buyers Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

There is further good news for those who have invested in Turkish property as average rental rates have also increased. Average rental values jumped by a staggering 1.07% in just one month according to REIDIN’s findings, which is all the more impressive given the time of year.

While average prices and rental rates have increased significantly across the board, some regions have excelled. Istanbul for instance boasts one of the fastest growing real-estate markets in the world. From September to October, Istanbul property prices increased by 0.88%, while rental rates increased 1.26%.

Turkish property prices continue to rise Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The founder of Campaya, Claus Pedersen explained why Dubai was so popular amongst Brits.

“Dubai is popular because of what it guarantees: sunshine, great beaches, excellent shopping and luxurious restaurants. For many the fact that the recent property crisis has resulted in some exceptionally luxurious properties being available as rental properties at great rates is making Dubai extremely popular this Christmas,”

The poll also found that the Caribbean and Egypt ranked highly amongst the most popular Christmas destinations, differing from the top summer locations which are Spain, France and the US

Source: The Telegraph

Dubai tops Christmas holiday destination list Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

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The Torch Penthouse Open Day – Thursday 17th November Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The results of the investor sentiment survey are a marked improvement on last year when the outlook for the Spanish property market was poor after sales had fallen. However this year has seen an increase in sales according to figures from the Spanish government which shows improvement not only compared with last year but also from Q1 to Q2 suggesting the recovery is ongoing.

Global Property Guide published a similar sentiment survey in September in which studies from Taylor Wimpey de Espana found that average asking prices on the Costa Calida especially around Alicante and Murcia were on the increase.

Mr. Ignacio Osle, Sales and Marketing Director of the company explained, “Alicante, for instance, has experienced improvements in its infrastructure, seeing a second airport terminal open, which is always good news when it comes to attracting more visitors,”

Source: Global Property Guide

Spanish real estate expected to bounce back next year Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

This has created a huge demand for rental properties in the UK, especially in city centres where properties can be let within hours of becoming available.

John Hards, co-managing director at Countrywide Residential Lettings, said: “Tenants now understand that properties aren’t staying on the market for long, and many are setting up email alerts and SMS alerts with our branches to know instantly when a suitable property becomes available so they can arrange viewings.

As a result rental rates are rapidly increasing therefore pushing up the overall yields a property in the UK can achieve. While this is bad news for much of the market who can’t afford their own home, those with enough capital to buy a second property or gain a mortgage are benefitting from some of the highest monthly returns on record.

The achievable rental returns from UK property have now attracted the attention of overseas investors who not only see the UK as a good market to make money, but also a safe and secure place to invest. For the first time a balance has been reached where investors from emerging markets are now wealthy enough, and equally, property in the UK is cheap enough for them to enter the market.

Director of Select Property Giles Beswick commented, “Historically, we specialised in selling overseas property to UK investors but now we are successfully selling a lot of UK property to our database of overseas investors. The most successful UK projects in recent months have been city centre apartments in Liverpool, fully managed schemes with rental guarantees and also student accommodation.”

Source: The Guardian

UK property becoming popular with overseas buyers Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Emirates 24 7 asked several leasing companies within to Dubai to find they all held Dubai Marina amongst their top three in terms of demand for rentals. There are numerous reasons for the Marina’s emergence as the neighbourhood of choice in Dubai, however it all seems to stem from the fundamental rule of location, location, location.

Positioned on the main arterial road through Dubai, just 5 minutes from the major business districts and running adjacent to the famous Jumeirah Beach, Dubai Marina really unites prime city centre living with a 5 star holiday destination.

It’s because of this ideal positioning that Dubai Marina is home to a district of ‘Manhattan style’ sky scrapers including the world’s tallest residential tower, The Torch as well as the Dubai Marina Walk, a famed social spot lined with shops and cafes.

As a result, property located within the Marina attracts a wide spectrum of buyers and tenants as no other area offers the complete work and lifestyle balance that can be found on Dubai Marina.

Emirates 24 7 went on to report that rent for a one-bedroom in Dubai Marina is between Dh55,000 to Dh75,000 and in some cases goes up to Dh85000 or even Dh90,000, whereas a two-bedroom can be leased for anything between Dh70,000 to Dh140,000.

Source: Emirates 24 7

Dubai Marina property the favourite amongst tenants Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The Index measures a wide range of factors such as NET income, VAT, the costs of essential goods such as fuel, food and energy bills and lifestyle elements like hours of sunshine, days holiday, work hours and life expectancy.

Spain scored extremely well in the Index coming second in Europe, at the top of the pile with the likes of France. The country scored highly in obvious areas such as hours of sunshine, however Spain also boasts the highest number of days holiday in Europe and a longer life expectancy than the UK. Interestingly, Spain also enjoys the lowest price for alcohol which is also a factor in the overall quality of life index.

Conversely, the UK came last in the Index, falling significantly shorter in many areas than the likes of Spain. Firmly holding a position as the worst place to live in Europe, it’s no surprise that in a poll, 46% Brits said they had considered emigrating.

It’s also no surprise that the destination most would consider moving to was one from the very top of the list, Spain. 13% of people from the poll said they would choose Spain if they were to emigrate.

Spain still remains the number one destination for Brits buying property abroad not only offering greater value for money on the housing market but an overall greater quality of life.

Spain – the 2nd best place to live in Europe Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

More impressively Spain recorded its third busiest summer since records began with 20.9 million arrivals through-out the months of June, July, August and September; 8.5% more than the same time last year. Spain’s Minister of industry, tourism and trade, Miguel Sebastian said “We are at historical growth”.

The survey also found that the average length of each visit had increased with overnight stays growing by 2% while average hotel prices increased by 1.2%. The findings also highlighted that Germany and United Kingdom remain the major sources of Spain’s visitors.

These findings are very positive for Spain which is not only gaining more visitors but tourists are staying for longer and spending more money.

Tourism to Spain increases by 8% Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The Bloomberg news network reported how the investment will be split between projects in Cairo and also coastal resorts on the Red Sea, eventually creating over 4000 jobs. This considerable investment is expected to significantly aid Egypt’s property market which currently struggles with a low supply of affordable housing.

Furthermore, Qatar’s state controlled news agencies have recently announced that the country may also invest $9 billion into the creation of a new port in the country.

This news comes after a series of reports indicating the worst is over for Egypt, a country that pre-revolution was one of the most highly anticipated real-estate markets in the world.

Now Egypt looks to re-build its tourism industry centred around many of the highly popular Red Sea resorts such as Hurghada where property investment has now become particularly popular.

Source: Bloomberg

Egypt re-builds with Qatari property investment Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Turkey’s economic growth of 11% in Q1 exceeded every other country in the world by over 2%, the only nation to achieve double digit growth and outpacing China, the second fastest growing economy. Q2 was equally impressive as Turkey developed faster than even India and bettered European growth by over 4 times!

The country’s tourism levels have witnessed similar leaps and bounds over the last few years and now Turkey is the seventh most visited country in the world according to the World Tourism Organisation. Since 2000, Turkey’s year on year tourism growth has been consistently rapid; however 2011 has been extremely impressive. Istanbul recorded a 30.1% increase in tourism revenues in Q1 alone making it the 34th richest city in the world measured by GDP.

Turkey’s dynamic expansion as created a severe shortage of real estate. Supply is not forecast to catch up until at least 2015, which in turn has placed increased upward pressure on prices and rental rates. Istanbul is particular stands out as one of the most in-demand property locations in the world.

As one of the fastest growing cities in the world Istanbul is currently out-pacing every other European metropolis with exponential growth of late. The annual supply of just 180,000 residential units in Istanbul is being completely out-stripped by the yearly demand for over 250,000 homes a year. As result owners are enjoying rental returns of anything between 7- 12% per annum with expected capital gains of over 30% over the next 3-4 years.

Turkey – the world’s leading property hot-spot 2011 Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Reports from industry experts of the ground have also identified the Algarve as the region best positioned for growth over the next few years. Statistics from the Instituto Nacional de Estatistica revealed that the Algarve is the best performing region of Portugal in terms of real estate with growth in prices from Q1 to Q2 of 2011.

It has been suggested that Portugal’s property price recovery which seems to be centred around the popular holiday spots is directly linked to Portugal’s very successful summer for tourism. Portuguese airports recorded their highest passenger numbers in over ten years this summer as tourism was significantly boosted.

The increased tourism levels have pushed up rental rates and therefore have aided overall property prices in places like the Algarve and Silver Coast which are both extremely popular with northern European’s especially.

Portugal property outlook positive Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Although the increase recorded between June and September is marginal, it dispels the common misconception that prices are still falling. The regions of Spain that have seen the most significant growth are the Costa Calida and Costa Blanca according to experts who said,

“The price rises in certain parts of Spain is an encouraging sign for investors with locations such as the Costa Blanca, Costa Calida, Alicante and Murcia experiencing marked price increases.

“Alicante, for instance, has experienced improvements in its infrastructure, seeing a second airport terminal open, which is always good news when it comes to attracting more visitors.”

This growth has been also helped by a much improved summer for tourism with Spain welcoming 7.64 million holiday makers in August alone – an increase of 9.4% compared with the same period last year.

The most recent boost to Spain’s property market is the recent lowering of the country’s property tax. IVA which is essentially the Spanish equivalent of VAT but is levied on property prices has halved for a limited time only from 8% to now just 4%. This would discount the average property in Spain by €10,640 prompting buyers to enter the market before the tax returns to normal at the end of the year.

Spanish property price growth caused by multiple factors Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

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Open Day in Botanica, Dubai Marina Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The purpose of the forum is to explore investment opportunities between Murcia and the Arab world, covering topics like tourism, real-estate, retail and industry. The current economic conditions in Spain have created numerous opportunities for the cash rich Arab nations; however none are as appealing as those on offer in the Murcia region in particular.

Amongst numerous major projects taking place in Murcia expected to accelerate the region’s status as a leading business and tourism hub is the Paramount Theme park due to open there in 2015. The Paramount Park will rival Disneyland Paris as Europe’s leading theme park attracting millions of visitors every year, creating thousands of jobs and causing real-estate prices to grow considerably.

However it’s not just Arab investors looking to profit from Murcia’s growing profile, Chinese entrepreneurs have recently announced plans for a €1 billion business park to be situated in Murcia. The ZEIC business park will be purpose built, designed to house Chinese companies, divided by Chinese styled lakes, fountains and gardens into 8 themed areas. The project has been described as “a bridge between China and Spain, a gateway”. Again, the business park is support of Murcia’s predicted growth on an international scale.

Similarly the Taiwanese government have expressed their interests in buying assets in Murcia. Taiwan’s Representation Office visited the region in September to discuss investment in tourist property, farming technology and alternative energies. The Taiwanese representatives said Murcia appealed to them because it offers “great weather and gastronomy, which will certainly seduce tourists from our country. The weather is also excellent for agriculture and a great asset for business people”.

In terms of real-estate, Murcia has experienced one of its best summers with significant investment from the Scandinavian nations in particular. There have been several reports from industry experts in the area saying buyers from Norway, Denmark and Sweden have descended on the area to take advantage of lower prices and gain a home in the sun.

Murcia – a hive of investment Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

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Penthouses in the World’s Tallest Residential Tower! Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Following the dramatic price correction caused by the global financial crisis, Dubai’s property market matured to become more segmented, comparable to established cities like New York, London or Paris. Fluctuations in Dubai’s real-estate values began to depend on ‘real demand’ dictated by the quality and desirability of certain properties within different districts.

As a result, Dubai’s property prices haven’t moved in a uniform direction for three years, with some hot spots like Dubai Marina and Downtown experiencing growth while less desirable areas have continued to witness price declines. The Gulf news recently reported on how Dubai Marina and Downtown Dubai were ‘bucking the trend’ by gaining high rental demand due to the two districts exclusivity which then pushed up prices.

However the latest data from REIDIN, a world leading real estate information company, has found that prices have now risen across the board. More importantly, this price increase has been recorded in Dubai’s quietest month, which usually sees price declines due to minimal levels of tourism and Ramadan which dominates the entire month.

This is a significant point in Dubai’s road to recovery. The Emirate’s economy is already expected to grow at a much faster rate than the major European nations or the USA this year according to the IMF, but with the added boost now predicted from a growing property market, Dubai is very well placed.

This news has caught the attention of property investors worldwide who now have the security of knowing prices have not only hit the bottom, but values are already on the increase.

Source: The International Business Times, Gulf News

Dubai property prices increase 0.5% from July to August Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

With the options for solving the Greek deficit dividing opinions along party lines just before France and Germany both enter election seasons, and Italy’s credit rating being downgraded again this week, there has certainly been more unwelcome pressure being put on the whole community. Added to that, the US economy seems to be suffering from its biggest crisis in confidence since 2008, and we all remember what happened then.

As I’ve said before in this blog, nobody really knows the twists and turns in the road ahead for the world’s major economies and markets over the next few months, let alone years. One thing I can reliably predict however is that many of you will be seeing what’s happening in the markets in London, Frankfurt and New York thinking that all this is only going to send values of property lower, right?
Will it though?

If you compare what’s happening now to any previous post-recession market at similar times of no or low growth, the likelihood is that most of what we are reading about in our newspapers today has already been priced in. By normal standards (if such a thing still exists), property prices in most of the territories we work in have been somewhere between low and ridiculously cheap for some time now. Whilst there is always an argument to say they can still go lower, that’s probably only going to happen in a doomsday scenario; say the catastrophic failure of a globally significant currency or major financial institution (and I don’t just mean a bank).

There are plenty of powerful international figureheads and more experienced and credible commentators than me who don’t think that’s likely to happen. Whilst we may stumble on through a drawn out period of ‘begrudging incrementalism’ as Norman Lamont called it this morning for a bit longer, fears that the world’s leaders won’t eventually get behind a solution are being exaggerated.

So we’re all willing this week’s continuing G20 summit in Washington to bring some unity and bold incisiveness, which would be more likely to cause markets in the US and EU to bounce back in the right direction than crash down further the wrong way.

It’s also important to remember that we’re close to the eye of the storm at the moment. The news story this week is all about about growth prospects (or lack of them) in the US and EU, whilst close to half the world’s countries are still growing steadily and some of them are flying. So from a global perspective, this is part of the continual cycle of shifting power and emphasis between countries and markets that started long before we became interested and will carry on long after it affects us as much as it feels at the moment.

All of which explains why, to some investors, the prevailing climate of uncertainty and nervousness actually present ideal conditions for making new investments, however paradoxical that may seem. The biggest gains are normally to be had when you act contrary to the rest of the market. Don’t get me wrong, you still need to do your homework and be selective, but there are plenty of property investment opportunities available out there right now that people should be feeling very confident about.

“I read the news today, oh boy!” Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Tourism is a key industry sector that Spain’s government hopes will help boost their struggling economy. Banco Sabadell analyst Juan Rodriguez Rey commented, “There’s no doubt that tourism will give a boost,”

Spain’s tourism currently accounts for 11% of the country’s GDP and the government expects gross domestic product to grow by 1.3% in 2011.

Interestingly, The Times reported this week that Spain, according to the IMF, is the only country of Germany, France, Italy and Greece that will experience higher levels of growth next year compared with this year suggesting their economy is moving in the right direction, while the rest of Europe looks gloomy.

As Spain’s tourism sector improves, there is expected to be direct benefits for the country’s housing market with increased demand for holiday homes and prices inflated by premium holiday rentals.

Source: Reuters, The Times

Spain’s tourism at highest levels since 2007 Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Conti’s Operations Director, Clare Nessling stated “Spain is definitely making a comeback, experiencing a particularly busy August.”

Spain accounts for 31% of all queries that Conti receives highlighting the appetite for Spanish property still amongst Brits. It has been suggested that the reason for such high interest in Spain at this time is because of returning holiday makers.

Spain had a good summer in terms of tourism and many believe that visitors to the country will have seen the excellent deals available first hand and upon their return, made enquiries into property purchase. Spain still remains the number one destination for Brits buying abroad and the 4th most visited country in the World.

Source: International Business Times

Spain mortgage enquiries increase by 7% Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Property in Turkey is incredibly popular at the moment due to the country’s thriving economy, flourishing tourism sector and comparatively low real-estate prices. British buyers are the most prominent of overseas property purchasers; however large amounts of property in Turkey are bought by mainland Europeans and Americans as well.

The new rules will open the Turkish property market to traditionally heavy hitting Russian and Arab investors who are expected to quickly take advantage of the law change. As a result, the already booming Turkish property market is expected to receive a considerable lift, directly effecting property prices.
Source: Today’s Zaman

Turkey considering unrestricted property sales Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

While prices recorded growth across the majority of Turkey, Istanbul property recorded the strongest year on year growth with values up by 7.42% compared with August of last year.

This impressive growth in real estate values has been driven by an extremely high demand coupled with a very limited supply. The yearly demand for residential real-estate in Istanbul is reportedly over 250,000 homes while the actual supply will do well to reach 180,000 units this year. This substantial gap between demand and supply is predicted to continue for a number of years, significantly increasing property prices.

Istanbul property prices increase by 7.42% Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The performance of the CIVETS is already exceeding the BRIC nations as represented on the stock market. Standard and Poor’s CIVETS 60 index established in 2007 is ahead of two other funds, the Standard and Poor’s BRIC 40 and the Standard and Poor’s Emerging BMI over one and three years.

Two major players in the CIVETS grouping are Egypt and Turkey, who have both received considerable attention this year.

Firstly there is Egypt. A country that recently underwent a popular revolution, Egypt’s initial growth prospects have slowed for obvious reasons. However the effects of the regime change have already put the nation in a stronger position than before. While growth has been revised down to just 1% analysts have highlighted Egypt’s now stronger economic footing and expect the country to continue with its previous growth trajectory as early as next year.

Egypt possesses a large, young population as do all the CIVETS, and therefore is expected to benefit from a quickly rising domestic consumption over the next few years. Uniquely, however, Egypt does also occupy key ports with access to the Suez Cannal and possesses a vast, untapped natural gas resource further boosting its credentials.

Turkey on the other hand exhibits more obvious growth indicators such as its geographically central location between Europe, the Middle East and Russia to the North. As a result, Turkey plays host to a major natural gas pipeline network that make it an important energy corridor between Europe and Asia.

That aside, Turkey’s thriving tourism industry is set to see it become one of the world’s most visited countries within the decade while its economy was the fastest growing in the world during the first part of the year; the only country in the world to gain double digit growth outpacing China by over 2%!

Phil Poole of HSBC Global Asset Management explained the growth is because “Turkey is a dynamic economy that has trading links with the European Union but without the constraints of the euro-zone or EU membership,”

Both Egypt and Turkey have experienced significant property investment this year and prices have increased as a result. Domestic demand has naturally pushed up prices as the populations of both countries have become more affluent, however international investors have been quick to indentify opportunity and both nations have also witnessed high levels of foreign investment.

Source: The Wall Street Journal

Turkey and Egypt lead the CIVETS pack Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The Move Channel Director, Dan Johnson explained, “Spain remains the number one country in terms of enquiry volume to the site (August 2011) but we have seen a rise in searches for property in Murcia province and the Costa Calida in particular. When compared to other well-known coastal destinations such as the Costa Blanca or Costa del Sol, the Costa Calida represents good value for money with ample distressed and bank repossessed stock available to purchase at heavily discounted rates.”

It has been suggested that the value for money is the main reason behind why Murcia is so popular amongst potential property buyers. Kyero’s latest Spanish House Price Index highlights that the average asking price for property in Murcia is 62% less than the national average.

As the market begins to pick up, it’s thought that Murcia is set to witness some of the country’s property price growth. Not only does it offer some of the lowest prices in Spain but the projected tourism growth will significantly affect property values over the next few years. This region is the chosen destination for Paramount’s planned Theme Park which will be Europe’s largest Theme Park upon its completion; rivalling Disney Land Paris and attracting millions of visitors every year.

“There are superb opportunities for investors to purchase repossessed property and distressed developments direct from the bank at bargain prices. This coupled with future growth in tourism to the region and the 50 per cent reduction in IVA (equivalent of VAT) until the end of the year makes this the ideal time to buy in Murcia.” Mr Johnson concluded.

Source: The International Business Times

Murcia – the best place to invest in Spain Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

From September next year, new students will be asked to pay approximately 2.5 – 3 times more in tuition fees. This has put pressure on Universities in terms of housing their students for a number of reasons.

According to the DTZ property consultancy, there will be need to ‘diversify’ accommodation offered to students. Currently the market caters primarily for higher quality accommodation leaving a shortfall in the supply of mid-priced options.

DTZ said, “a focus on delivering en-suite accommodation priced within the mid-range of rental levels would be the most sustainable option against an unpredictable economic backdrop”

While developers will look to offer more affordable options, a recent survey of current and prospective students found that the majority expect Universities to create better value for money in terms of accommodation in the face of such inflated fees.

With Universities actively encouraging the creation of more student accommodation as they struggle to keep up with demand there is expected to be a strong market for new mid-level housing units that charge average rental rates of approximately £119 a week.

Source: OPP

Strong demand for ‘mid-range’ student accommodation expected Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The report stated “non-oil economic indicators in Dubai look positive, in line with our positive view on the emirate this year.”

In terms of trade, exports and re-exports increased by 16.5% in the first half of 2011 highlighting the Emirate’s central location linking Africa, Asia and Europe. In addition, tourism climbed this summer with passenger numbers in Dubai International Airport growing by 8.9% in the first 6 months of the year and occupancy rates up across the board.

“These figures suggest that this year, Dubai’s core strengths of trade and tourism will continue to benefit from the emirate’s excellent infrastructure,” the report explained.

Despite difficult economic conditions, Dubai continued to invest heavily in its infrastructure and over the last few years. It is now ranked amongst the world’s leading international cities like New York, Paris and London and the favored location for much of the region’s business.

The report also looked at the position of Dubai’s property market.

“Dubai’s property market is also likely to receive a boost from the UAE’s decision in June to offer extended visas of three years to buyers of properties worth more than $272,000 [Dh1 million].”

“The decision will be positive for the Dubai property market in the medium to long term; many expats already live or base their families in the emirate while working in other parts of the region. The decision is likely to be a key factor in attracting expats in the region to buy first or second homes in Dubai, particularly as recent regional instability has reinforced the emirate’s safe-haven status within the region,” the report said.

Source: Emirates 24/7

Dubai’s trade and tourism ‘back in business’ Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

The main bulk of licences were for manufacturing, however there has reportedly been a marked shift towards trading licences as well. The main driver for businesses to move to RAK appears to be price. RAK is approximately 15 to 20% cheaper to do business than anywhere else in the UAE.

RAKIA, the investment authority responsible for attracting businesses to RAK’s industrial zones reported that 29% of inward investment came from India, 19% from Europe, 19% from the Middle East, 15% from elsewhere in the UAE, 3% from the USA and the rest from Africa.

Alex Thomas, general manager of marketing at Rakia explained how recent turmoil in North Africa has aided investment.
“Companies going to Egypt or Syria would definitely come here to cater to the GCC and Mena region and set up a manufacturing base. The cost of the workforce is cheaper, there is no labour union and companies can get workers from anywhere,” he noted.

The growth of the industrial zones in RAK is expected to positively affect the emirates property market as a whole. With more business and workers setting operations there will be higher demand for property pushing up both the sales prices and rental values in the medium to long term.

Source: Gulf News

RAK continues to attract significant business investment Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Golf developments have thrived attracting a lot of investor attention while providing Spain with exceptional golfing facilities. There are a number of reasons why Golf properties have succeeded as investments where ‘stand alone’ properties have fallen short.

Firstly there is a higher demand for Golf property simply because of what it offers. Property near Golf courses appeals to Golfers for obvious reasons but it also attracts a lot of demand from expats and retirees as these properties are often easy to maintain and offer a higher level of security and community living. A gated Golf development acts as a source of constant entertainment, provides great views for all its properties and offers demand for your property when you’re not there as a holiday let; which brings us to the second reason – rental income.

The holiday-let aspect to this kind of property makes it a great investment. Golf properties are a great source of regular income with the Golf season lasting the majority of the year unlike other properties that rely on the prime holiday months for occupancy. May – August are simply bumper months for Golf property owners who can further capitalise on their investment. The strong rental incomes associated with these properties means they are always more likely to retain their value.

The combination of high rental yields and high demand meaning there are more exit options art re-sale have continued to attract investors to Spain’s Golf properties ultimately helping them hold their value.

Spanish Golf property values remain strong Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

However the most recent development in this process is that people now seem more focussed on quality as opposed to price. Low rental values are allowing tenants to upgrade however they are choosing to spend even more to live in their chosen apartment.

Over the past couple of years the major factor influencing tenants was affordability and people looked to save themselves as much as possible. Now the true extent of the gap between price and quality has been realised meaning that just 10,000 AED a year more can actually buy tenants so much more.

The Gulf News interviewed several people living in Dubai who have all upgraded. The most important things they all looked for were quality of property, size and location in relation to local amenities like schools, transport links and social hot-spots.

This on-going trend is predicted to directly affect the more desirable neighbourhoods in Dubai like Dubai Marina which have already seen strong rentals recently.

Source: Gulf News

Dubai’s ‘flight to quality’ improves rental rates Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555

Dubai’s Chamber of Commerce based their forecast on the rapidly expanding trade, tourism and logistics sectors which have all witnessed strong growth so far this year.

The heavily publicised Dubai real-estate sector has also been also showing signs of improvement with rents and prices stabilising across the emirate as a whole while some individual localities like Dubai Marina have already recorded growth.
Mr Ghurair stressed that the real-estate sector was secondary to Dubai’s major industries and will follow suit as a result of their growth.

“In Dubai, these were always support sectors, even during the height, to main sectors like trade and tourism,”

The Chamber also released data that highlighted exports and re-exports have increased 17.1% compared with the same period last year, which puts emphasis on Dubai’s position as an international hub linking east and west.

Source: The National

Dubai economy to grow by over 5% in 2011 Selectproperty.com Office 803 - Concord Tower, Tecom, Dubai Media City United Arab Emirates Dubai Office: +971 4 446 2756 UAE fax: 971 4 440 4849 UK Office: +44(0) 161 488 3555