– UK regional cities to outperform London in 2015
– “Now is the time to look at Spain again”
– The Bahamas is “on the radar” for investors and lifestyle buyers
– Student property delivering higher yields than expecting
TheMoveChannel.com’s Property Inspector: Taking a closer look at global real estate each month
As Christmas gets closer, our thoughts turn to the past 12 months – and the future.
Student housing has proven one of the biggest drivers of activity on TheMoveChannel.com throughout the year, while buyers have returned to European lifestyle destinations, such as Spain and Portugal, as market conditions improves and low prices stabilise.
Many clients advertising on TheMoveChannel.com have enjoyed some of their highest numbers of leads to date this year, as sentiment becomes increasingly positive in the global property industry. ith the Caribbean repeatedly entering the property portal’s monthly top 10 destinations and the UK economy on the up, what can investors expect from 2015? Are agents feeling confident about the New Year?
We sit down with the agents behind the most popular products on TheMoveChannel.com in 2014 and get their predictions on everything from UK property to the Caribbean.
UK / Europe (Aspen Woolf)
“The main areas of growth still lie in the North of England…”
The UK property market has gone from strength to strength this year, as the country’s improving economy and rising confidence – as well as a housing shortage – have helped to drive up capital growth for investors. With London values now cooling, which cities are best to invest in?
Aspen Woolf, who received ____, give us the lowdown on Britain’s great property opportunities.
“2014 has been one of the busiest times on record for Aspen Woolf. As a group we couldn’t be more thrilled,” says Oliver Ramsden. “October saw property investment sales reach new company records and November is set to meet if not exceed October’s record. Our team has been busy researching new areas as well as travelling abroad to get as detailed information as we possibly can about new opportunities.”
“Demand from investors has far surpassed what we predicted in terms of property investment this year,” he continues, highlighting the strength of regional property investments.
“By far, our fastest selling products have all been outside of London and these are the same developments that continue to perform. Glasgow Parking is a relatively low entry product that we have that has just shot out the roof. All this said, our company has grown immensely this year and we already have plans in place to expand further in 2015, starting as early as January, to facilitate for the growing demand from investors.”
“2014 has been one of the busiest times on record…”
Will regional cities continue to be the best investment option in 2015?
“London has seen a 20% increase in property in the last year, but suffers from a relatively low yield. This said investors are now looking for other areas in the UK to take advantage of. After having done a great deal amount of research it’s become clear to us the main areas of growth still lie in the North of England. This is where the majority of investors are now looking to. At current the best places to look are in Manchester, Liverpool, and Sheffield. These areas not only give high yields, but also fantastic capital growth.”
Oliver highlights Liverpool in particular as an area with potential.
“One area of England Aspen Woolf will be focusing on as well is Liverpool. The council have a need for 23,000 homes over the next few years and currently have planning permission for 6000. Even after this is carried out there is still a huge deficit of 17,000. The demand is still going to be there for some time.”
“Now is a good time to start looking at Spain again…”
In terms of overseas, Aspen Woolf also highlight Spain as ripe for investment.
“In terms of overseas investments we believe now is a good time to start looking at Spain again,” says Oliver. “You can get incredible finance (up to 100%) on properties well below replacements costs. If you pick a good resort with good occupancy, you’ll never go wrong. Murcia is an interesting place, especially with the recent announcements of the Paramount Theme Park and the new Corvera Airport. “
What can buyers expect from Aspen Woolf in the New Year?
“For 2015 Aspen Woolf continue to offer clients high yielding investment opportunities within the student and residential sector, capitalising on what investors want and what investors are currently asking for. These demands all point to the North of the UK. We’ve had a terrific year and are excited to jump into 2015. We are constantly looking at areas that can produce the best investments. And as a little teaser we can say one of our most exciting areas we’ll be looking at for the coming year is Leeds for both residential and commercial.”
For further details, visit www.aspenwoolf.com
The Bahamas (Rufo Investments Ltd)
“We have experienced a remarkable level of interest in the Bahamas…”
One of the most sought-after areas in 2014 has been The Bahamas, with one building plot receiving the second highest number of enquiries on the site in Q3.
Richard Keyworth, Director of International Sales and Marketing at PSG Bahamas Limited, confirms that demand has been “remarkable” this year.
“Our focus is entirely centered on Stella Maris Village, Long Island, in The Bahamas,” he explains. “It is an existing freehold estate with an international port of entry airport and marina, along with a well-regarded boutique hotel and amenities.
“Throughout 2014 we have experienced a remarkable level of interest in our freehold land investment, as your results indeed demonstrate. Additionally, in recent months, significant interest is being shown in the developer’s new “eco-friendly” homes on offer, since their build programme commenced earlier this year.”
“Interest in this product is coming largely from the Middle East…”
Will it be plain sailing for the Caribbean market in 2015?
Richard says that The Bahamas is now “on the radar” for both lifestyle buyers and investors, thanks to its proximity to th eUS and affordable pricing for residency.
“Our sales programme has really gained traction in recent months,” he explains. “There is clear evidence from a growing number of recognized sources that The Bahamas is now prominently on the radar as a viable and robust option in terms of residency and lifestyle. It is regularly being listed in the top 3 choices in the World; for example, quoted as the number 1 Tax Haven in the Daily Mail Newspaper in July 2014 and ranked number 2 in Savills report on the Top 20 “A List” Islands of the world.
“Our clients tell us this is due to its convenient location adjacent to the US, it being an economically sound and politically stable jurisdiction and the comparatively low financial entry level ($500,000) required to qualify for residency. This in combination with there being no taxes on personal income, capital gains or death has proven to be a heady mix.”
“The Bahamas is now on the radar as a viable and robust option in terms of residency and lifestyle…”
What do PSG Bahamas have lined up for the New Year?
“As a result of these cumulative factors there are a number of very high-end, new developments coming on stream in The Bahamas – but with high-end prices to match,” he adds. “Stella Maris Village is ideally positioned to attract clients at a more modest entry level.”
“On the strength of our successes in 2014 we have just listed our latest offering which poses the question – What is your “Plan B?”. Based on the principals explained above and on our new homes offerings, this will be fully released in the New Year. Current soft-launch interest is impressive – and all based on product starting from only $500,000. Importantly, this product will incorporate an option for a guaranteed two-year minimum return of 7.5% per year of the build cost of each home, along with assistance in establishing residency should clients wish to do so.”
Keyworth highlights Middle East investors as a growing force behind the market’s popularity.
“Interest in this product is coming largely from the Middle East and Europe, where clients are concerned for the maintenance of their wealth and/or security,” he says.
“Uniquely, the “Plan B” offer from Stella Maris Village can lead to the establishment of a home and permanent residency in The Bahamas for a client, thereby creating a valuable safety net for the individual.”
For further details, visit www.stellamarisvillage.com
Student Property (Emerging Property)
“We completed numerous developments, many with much higher rental returns than were expected!”
Magdalena Pecheanu, Marketing Manager at Emerging Property Ltd, says 2014 has been good year, thanks to the high yields available from student investment, which exceeded expectations.
“We completed numerous developments, many with much higher rental returns than were expected for investors. For example, we conservatively estimated our Aberdeen student property investment would rent for £130 per week, in fact on opening every unit was rented for at least £154 per week and some of the larger units at £200 per week!”
Demand for student accommodation also remains high, which is helping to fuel rising investor interest.
“Each of the properties that were due to be completed in 2014 were finished time and 100% occupied from day 1 of opening. Investors received their rental income on time and all those developments are set-up to operate long term with on-site management. Each property delivers 10% net income per year guaranteed for the next 10 years, with zero operational costs for each investor.
“As a result we have gained many more happy clients this year who, when the time is right for them, are able to resale their units at a profit (we resold a handful this year for investors) and many are reinvesting with us as we release new property investments.”
“We grew as a company and further strengthen our service levels in all areas,” adds Magdalena. “We also released our new website in November 2014.”
“We fully expect to see demand for accommodation continue to outstrip supply…”
Will student property investment get more top marks in 2015?
“With recent government legislation enabling universities to take in as many students as they want from next September (2015), we fully expect to see demand for accommodation continue to outstrip supply of purpose built student property. As a company, we will continue to follow the same development path that has proved so successful this year, while also continually assessing new opportunities in emerging sectors and locations.”
What projects have you got planned for the New Year?
“We have just released a luxury centrally located student property, and we have a pipeline of other fully-managed properties that are being prepared now to be released in January and subsequent months in 2015.
“We will continue to develop unique comprehensive sector analysis and digestible reports made available on our website. We are confident of continuing along a similar growth trajectory in the New Year and look forward to assisting many more investors in making informed investment decisions.”
For more information, visit www.emergingproperty.co.uk
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Source: The Movechannel