Tag Archives: preferred
Investor Demand Driving Farmland Prices, says Knight Frank
By +Peter Mindenhall Friday 19 April 2013 Farmland continues to be seen as a preferred property investment option for many buyers, according to a new report. Research conducted by Knight Frank indicates that average farmland values in England rose by 1.5 per cent in the first quarter of 2013 to GBP 6,307 per acre. Increased demand for land has seen prices increase by four per cent in the last 12 months and 207 per cent over the last ten years. Knight Frank noted that farmland continues to outperform many other asset classes over the mid to long-term, predicting a further increase of between four and five per cent in the next 12 months. The firm said that although investors – fed up of poor returns – seem to be moving away from low-yielding ‘safe-haven’ investments, such as AAA-rated government bonds, there continues to be strong interest in farmland. Some of this demand can be attributed to famers paying a premium to secure land adjoining, or close to, their existing units. Tom Raynham, from Knight Frank’s Farms & Estates team, claimed that farmland still has “a valuable role” to play in investment portfolios. “Even though stocks and shares are back in favour, the markets remain volatile,” he stated. “Land offers something more tangible, yet still has the potential to provide good capital appreciation.” Mr Raynham said that for private investors, it also offers significant tax and amenity advantages. “This combination of benefits has seen increased activity in Lincolnshire, the UK’s arable heartland, with some large blocks of good arable land recently making over GBP 10,000 per acre,” he noted. James Prewett, head of regional farm sales at Knight Frank, claimed there is still a shortage of supply and, while more marginal land may have a lost a little of its value, demand remains strong for commercial units. Continue reading
UAE Investors Prefer Property Over Gold
Real estate is currently the preferred asset class for investors in the UAE, finds new survey. By Aarti Nagraj Property is now the preferred asset class for investors in the UAE, even more so than gold, according to the latest Friends Provident International (FPI) Investor Attitudes report. However, investors in the country also showed improved sentiment for gold, equities and bonds, cash and money and currency markets, found the survey. Only collectibles fell in popularity since the last edition of the report, released in Q4 2012, said FPI. Matthew Waterfield, FPI’s general manager, Middle East and Africa said: “It is interesting – although not entirely surprising – to see the much improved preference for investing in property, which has been building over the last few editions of the report. Sentiment towards property investment is a fairly reliable barometer of the level of confidence in the local investment market.” Overall, the report found that UAE investors are now more confident in their local investment market than their counterparts in Hong Kong and Singapore. The Friends Investor Attitudes index for the UAE rose 11 points and now stands at 28, up from 17 points in the last edition, while the indices for Hong Kong and Singapore stand at 27 and 25 respectively. While 76 per cent of the UAE respondents believe the investment market has improved over the last six months, the same number believe that markets will continue to improve over the next six months. Property markets in the UAE, specifically in Dubai, have been dramatically recovering over the last few months. A recent study by consultancy Jones Lang LaSalle stated that residential sales prices in the city rose 18 per cent year-on-year in the first quarter of 2013. New real estate projects launched in the city are completely sold-out, with several local and international investors snapping up units, say developers. Continue reading
