Tag Archives: homes
Brexit unlikely to affect Dubai real estate markets
British investors are one of the largest group of investors in Dubai’s property markets but the decision by the UK to leave the European Union is unlikely to have much of an impact, according to experts. As the most open real estate market in the Middle East, Dubai has always found itself more susceptible to external factors. But, despite the interim uncertainty brought about as a result of Brexit the emirate unlikely to feel any long term effects, says a report from international real estate firm JLL. British citizens are the third largest investors into Dubai’s real estate market, potentially leaving them more susceptible to any negative impacts from Brexit, however, JLL’s Craig Plumb, head of research for The Middle East and North Africa, believes that any negative ramifications will only be temporary. ‘Even though it is too early to predict the long-term implications, overall there is a slight probability of British investors being negatively impacted by the devaluation of the British Pound following Britain’s decision to exit the European Union,’ he said. ‘However, we believe the effect of the decision will only have temporary repercussions as a substantial number of British investors who work and reside in the UAE avoid sourcing their income in sterling,’ he explained. ‘If we dissect the market further, particularly for residential, we notice that expatriates in Dubai are most likely to continue renting their homes instead of switching to ownership, resulting in sales being more negatively affected than the rental sector. If external factors stabilize over the rest of the year, we expect the Dubai residential market to easily recover in early 2017,’ he pointed out. During the second quarter of the year, office vacancy rates throughout Dubai showed a general downward trend. However, Plumb attributes this to a lack of supply, confirming that Dubai remains the largest and most active office market in MENA with many businesses still preferring to use the Emirate as their regional hub. Meanwhile, the retail and hotel sectors have fared less well in the immediate aftermath of the decision given the devaluation of the British pound. ‘Dubai and the MENA region as a whole has become an increasingly expensive destination for European visitors,’ Plumb added. Continue reading
Equity release value in Britain up, but in London hit by Brexit uncertainty
The potential wealth available to over 55s in England, Scotland and Wales through equity release increased to £381 billion in the second quarter of 2016, a 0.7% quarterly increase, the latest research shows. However, values failed to increase across Greater London for the first time in almost four years due to uncertainty surrounding the European Union referendum while equity release potential elsewhere in the country continues to grow apace, according to the Equity Release Property Value Tracker report from Retirement Advantage. The report says that house prices are rising fastest in regions outside of Greater London, with the capital suffering its first quarterly drop in property values since the fourth quarter of 2012. The North of England with growth of 7.2% saw the greatest quarterly increase in wealth available, followed by Yorkshire and the Humber up 6.6% and the West Midlands up 5.6%. Meanwhile in Greater London growth stagnated with a drop of 0.04% and was also comparatively slow across the South East, up 2.8%. The two regions top the table for annual growth, however, up 14.6% and 13.9% respectively, with East Anglia next with growth of 8.2%. According to Alice Watson, product and communications manager at Retirement Advantage Equity Release, it is too early to tell what impact the Brexit vote will have on housing wealth but she pointed out that if mortgage lending conditions tighten as the result of a post-referendum economic slowdown, it could enhance the appeal of equity release. ‘A substantial proportion of this demographic is now accessing the wealth stored in their homes to facilitate a more enjoyable and fulfilling retirement. They are increasingly using equity release for home improvements, gifting to family members and holidays,’ she said. ‘Over the past three months we’ve seen new entrants to the market, innovative partnerships and welcome changes to the Financial Conduct Authority’s affordability assessments. These developments are great news for the consumer and have no doubt helped to further boost equity release’s already surging popularity,’ she added. However, she pointed out that despite rapid growth in its popularity, less than 1% of equity release’s potential is being realised. ‘Over the coming years, this popularity will increase further as over 55s take an increasingly holistic approach to retirement finance which places equity release alongside pensions and investments,’ she concluded. Continue reading
Auckland residential rents up 5% year on year
Higher Auckland house prices are not flowing through directly into the rental market, with the city’s average weekly rents seeing year on year increases of around 5%. Rents continue to increase by approximately 5% year on year with the average weekly rent for a three bedroom Auckland home now $514, according to the latest report from Barfoot and Thompson. Suburb pricing trends continue but Mt Albert, Parnell and Sandringham break the mould with year on year increases of over 11, the data also shows. The average weekly rent for a three bedroom home in Auckland during the April to June quarter was $514, up less than 1% on last quarter and 4.8% on the same quarter in 2015. ‘Three bedroom rentals make up around 40% of our managed properties, making them a good measure of the market,’ said Barfoot and Thompson director Kiri Barfoot. ‘Other property categories generally follow the same trend, albeit at lower or higher price points depending on the number of bedrooms,’ she added. A breakdown of the figures show that one bedroom properties averaged $335 per week, up 5% from $319 in the April to June quarter 2015, and two bedrooms $428, up 6.2% from $403, while four bedroom homes were $648, up 4.2% from $622 and five plus bedroom homes averaged $801, up 4.8% from $764. Pricing trends continued across the suburbs as well, with the Central Auckland apartment market remaining the most expensive for smaller properties of one, two or three bedrooms, and the Eastern suburbs maintaining position as the most expensive for four or more bedrooms. ‘Outside the city apartment market, it continued to be a story of two halves for Auckland's North and South this quarter too,’ Barfoot pointed out. South Auckland rental properties saw the greatest percentage increase year on year for the quarter of 6.8%, while North Shore rental prices experienced the least percentage increase, not including Central Auckland, only rising 3.7 %. Looking more closely at rental data from the first two quarters of this year compared to the last two quarters of 2015 three suburbs broke the mould with three bedroom rental averages increasing 11% or more. These were Mt Albert up 14.7%, Parnell up 11.7% and Sandringham up 11.6%. ‘These areas are centrally located but still offer the benefits of suburban living, making them popular choices. These areas are fast becoming popular as the new central suburbs, the next Ponsonby and Grey Lynns if you will, and our data suggests continued future growth particularly for Mt Albert and Sandringham,’ Barfoot explained. The company anticipates a pre-spring upswing in rental activity during the coming quarter, when they typically see a slight increase in new letting. ‘While not as pronounced as summer spikes, we often find a number of tenants are eager to move on from properties during the cold winter months and as we head into spring,’ said Barfoot. ‘It's therefore a good time to remind landlords to keep on top of winter maintenance and look… Continue reading
