Property investment Europe

According to real estate consulting agency Colliers International, “this is the perfect time for investment in real estate” in Bulgaria.

The main factors defining the current business environment were the “affluent choice of supply” complete with “alluring price tags”; the “readiness of investors to offer flexible solutions” and the “suitable credit conditions”.

In the first quarter of 2010, the average prices of real estate in Sofa fell by three per cent, with certain variations applicable to different boroughs.

The elite Sofia boroughs Boyana and Dragalevtsi were on average seven per cent cheaper. Borovo, also in the south of Sofia, went down by six per cent.

However, commercial property in Europe had shown growth in demand in the first quarter, but that was mainly because of foreign players.

Prices in secondary markets, as is the one in Bulgaria, “will remain blighted by over-supply and pricing will fall further”.

In fact, different real estate agencies speculate that prices in Bulgaria are likely to drop by a further 15 per cent in 2010.

In the case of South Eastern Europe, investors remained on the market and were likely to continue to continue being selective and alert to macroeconomic and local factors despite the economic meltdown in Greece.

According to Industry Watch, real estate values are likely to drop by a further 10 per cent because of the weak influx of foreign capital and delayed bank credit in Bulgaria.

For the period 2006-2008, foreign investment in Bulgarian real estate accounted for more than two billion euro, while in the preceding three years it was about 300 million a year before the global economic downturn eventually constricted the flow of cash.

Real estate in Bulgaria’s largest cities and towns recorded an average devaluation of about 28 per cent in the third quarter of 2009, compared to last year.

Experts believe that the expected “flexibility” in the market, which will “save the sector”, resulting from the drop in prices, is unlikely to materialize.

They also deem unlikely a sudden rise in purchases because people with unstable or insufficient incomes will opt to rent rather than buy.

In light of the economic crisis in Bulgaria and rising unemployment, the number of such people in the country is only likely to increase throughout 2010.

Savvy property investors are putting their money into Turkey.

The projected growth and strong tourism market make it a first-rate choice for investment.

Turkey is currently at the start of the long road to possible EU inclusion.

There are many factors yet to be discussed and issues Turkey needs to correct before inclusion will be seriously considered.

When Turkey does get accepted into the EU, it can be expected property prices will increase substantially and the tourist infrastructure will improve even further.

Many investors are purchasing in Turkey with EU inclusion as a major driving force for this investment, while they look to take advantage of the current low property prices and a growing rental market.

A major indication of the current state of any property market is the tourist trade.

Turkey is attracting some 25 million tourists per annum, indicating an enormous tourist demand for the area.

This demand can then be converted into solid rental yields for buy-to-let investors who carefully purchase in the best locations.

Why Invest In Turkey Property?

Turkey has started the process of joining the EU, which traditionally makes a huge difference to any property market.

Turkey has a large and fast expanding tourist industry that looks set to continue to grow. creating even more demand for quality accommodation - ideal for off-plan property investors.

Turkey has stunning beaches and a climate that far surpasses many of Europe’s most popular holiday destinations.

Property prices in Turkey are very competitive and all indications show that Turkish property will appreciate rapidly with the introduction of more flights, mortgages as well as a more mature EU application.

Investment property in Cyprus offers outstanding potential for both buy to let investors with potential for investors looking to make capital.

A former British colony, Cyprus has long held attractions for British retirees and holiday makers alike.

The warm climate, beautiful beaches, countryside and sedate lifestyle, as well as great tax benefits for older folk, make it an ideal choice.
Cyprus as one of its chosen locations to offer solid investment opportunities to its members.

A number of economic and natural factors combine to make Cyprus the ideal property investment location it is today.

• Competitive prices and a low cost of living compared with other Mediterranean destinations make for an ideal investment climate.
• EU inclusion since May 2004 means EU financial assistance and several other economic benefits
• The Strategic Plan for Tourism 2010 is upgrading facilities and resorts in line with 21st century tourism trends. This is set to boost an already thriving tourism industry on the island
• A successful economy indicates strong potential for property investment growth in the future
• A low tax regime makes investors’ money go even further, while pension income is taxed at only 5%

However, today in some areas of Cyprus there is now an oversupply of property, making it all the more imperative to carefully select your investment location prior to purchase.

English is widely spoken on this former British colony.

For property investors, the land registry system is similar to back home.

Familiarities such as these, set in the context of over 300 days of sunshine a year and 648 km of coastline, are clear enticements for the British to continue to flock to the island for both business and pleasure.

Main property hotspots are in and around Paphos, Larnaca, Limassol and the ancient city of Nicosia.

The banking sector is the major financier for both investors and developers alike.
Cyprus has double taxation treaties with 26 countries, including the U.S.A, and there are no exchange restrictions on current international transactions.

Non-residents and foreign investors may freely repatriate proceeds from their investments in Cyprus.

Offshore status allows many foreign companies (located in Cyprus but conducting business abroad only) to benefit from many highly beneficial tax and duty-free concessions.

Commercial property investment in Europe turnover.

It reached €23.5 billion in the second quarter of 2010, a 15% increase.

Investment turnover rose despite the stress factors emerging in the broader capital markets, such as the sovereign debt crisis and the introduction of austerity measures by many European governments.

In the second quarter investment activity remained concentrated in the UK, Germany and France, which together accounted for 62% of the European investment total.

Some of the smaller European countries, such as Austria, Ireland and the Czech Republic, reported the highest quarterly increases.

Poland and the Nordic region are starting to emerge as a focus of strong investor demand.

In some markets there has been a genuine increase in large deal liquidity.

With a growing number of larger transactions in Europe, we are also starting to see an increase in cross border activity.

With around 2.8 million legal foreign residents in Spain, not to speak of ever-increasing tourism figures, Spain has become a top destination for foreign property investment.

Spain is destination to around 50 million tourists.

Cheap and simple access from a massive range of locations via low cost airlines.

Simply property acquisition and legal procedures with no language skills required

Financing readily available with low interest rates.

Residential internet bookings are rising steeply benefiting the buy-to-let market.

Spain, particularly southern Spain, offers a fantastic, warm climate year round, allowing for an abundance of outdoor pursuits, such as over 26 golf courses, beaches and an attractive Spainsh culture.

Spain boasts some stunning beaches and breathtaking countryside which caters for all tastes. Rambling, golf, skiing, watersports and beach life are but a few of the ways in which residents and tourists enjoy the outdoors.

An excellent infrastructure is already established,including European standards in medical and social security services.

Spanish properties are becoming more popular as they provide an excellent investment as well as a holiday home.

Off-plan purchases are a popular investment option for those in the know. You can avoid the full cost of paying for the property by paying in installments and selling the property on for a much higher price prior to project completion.

A large flourishing rental market is offered in Spain and investment in a property with good rental potential can achieve excellent returns. Spain is a top choice for tourists who enjoy a variety of self-catering accommodation, apartments and private villas.

Buying in Spain is a well-trodden path. There is plenty of expert, readily available advice on the subject and provided you use a good, independent lawyer, your purchase should be trouble-free.

Now is the ideal time to make an intelligent investment in Spanish property.

Spanish property investment has been popular with investors for a long time and is still the favourite location due to all these factors.

Ranking amongst the likes of France and Spain as top second-home destinations Portugal is rightly labelled a prime overseas property location.

Boasting cloudless skies, fantastic golfing facilities, cheap flights and a low cost of living, Portugal has much to offer property purchasers seeking a strong real estate market with high rental potential.

Property purchasers seeking an alternative to France or Spain are finding Portugal property is lower in price.

From rugged hillsides, ravines and rivers to golden cliffs, pristine golf courses and long sandy beaches, Portugal satisfies all tastes, making it traditionally a top tourist and property location.

As a member of the European Union since 1986, Portugal is regarded as a safe bet amongst purchasers seeking a well established and stable economic climate in which to invest.

One of the beauties of Portuguese property lies in the diversity of opportunities available to suit all tastes and budgets:

Property located in the popular golf resorts of the Algarve is now priced high, some at multi-million levels.

 Lower prices can be found further north towards Lisbon and the Silver coast .

As a new trend emerges for well located rustic, rural properties, many of which are in need of some restoration, property further north along the Green Coast, beyond the beautiful city of Porto can be purchased for as little as around 30,000 GBP.

Growth rates in Portuguese property have slowed over recent years in the popular hotspot regions but investors still consider Portuguese real estate to be a stable investment certainly for the medium to long term.

Due to its popularity as a tourist and retirement destination, the Portuguese property market is historically buoyant and conducive to long term profits.

Portugal's overwhelming success as a golfing haven is a major factor in the country's continued capital growth figures as golf properties continue to be highly sought after due to the fact that they are also located in areas of low density and outstanding beauty.

 In some key areas of the Algarve rental yields are known to reach up to 10% per annum while this year predictions for at least 10% per annum capital appreciation are not uncommon, provided the property is situated in a high demand hotspot location.

The vast majority of homebuyers in Portugal seek golf properties - often off-plan options –

They can enjoy vast green spaces, excellent local amenities, as well as currently the highest capital appreciation figures and a good buy-to-let market.

Whether golfers or retirees, homebuyers are also attracted by the relaxing lifestyle, excellent climate, quality of life and relatively lower cost of living.

As a result of the global economic crisis a large number of property investors are expected to buy closer and French real estate sector looking to be an attractive proposition.

The property crash has meant that those who looked further for investment destinations are now looking to revisit the safe European markets and France has been left in a strong position.

Popular tourist destinations in the country could be a favorite among potential investors.

Individuals looking at French real estate may be interested that prices in Bordeaux climbed 2.5 per cent during the first quarter of 2010.

In addition, Lille, Lyon, Toulouse, Nice and Paris all experienced appreciation of property values during the period.

These strong increases could be an early sign that the French real estate market is about to experience further rises.

Currently, investors looking to buy real estate in the French market will be able to capitalize on the strength of sterling against the euro.

The current return on investment for many individuals buying property in the country was impressive.

Average real estate prices in Greece fell 7.7% in the first quarter of 2010 from a year earlier. 

As the country has its debt problems it is no surprise that property fall in prize and it does provide opportunities for real estate investors to buy at a low price.

Prices fell 5.4% in  Athens and 9.8% in Thessaloniki, Greece’s second biggest city.

Prices dropped 12.6% in the rest of Greece in the first quarter.

Apartment prices fell last year to 2006 levels.

Commercial property vacancies in Athens increased 1% from the first quarter of 2009 to 17.7%, a rising trend since 2007, the report also shows.

Changes to the real estate tax system are currently being examined by government officials. Taxes on real estate transactions in Greece are currently based on the government’s assessment of the property’s value, which considers the area and the amenities, rather than the actual market value, which is generally higher.

The low prices offer bargains for buy to rent property investors who aim to let out their properties during the busy summer holiday season.

It has also been reported that the Greek government is proposing to sell or offer long term leases on property it owns on the country’s 6,000 islands.

Mykonos is expected to be one of the first to be offered.

It will go to a real estate investor who can  afford the price of the sale and also to invest cash into developing a new luxury tourist complex on the island.

Italy is fast becoming an alternative to Spain, France or Portugal and as a result, the Italian property market is entering a growth period.

Sandy beaches, Alpine landscapes, lakes, lush vegetation and a generally Mediterranean climate are added attractions, maintaining Italy’s firm position on the discerning tourist’s map.

Many budget airlines connect to Italy’s fifteen airports, opening up new property markets to investors and maximising buy-to-let options in key locations.

As an EU member, Italian property is an easy investment option for fellow EU members, who are reassured by the stability of their property purchase.

Holiday homes and buy-to-let investments remain hot property options in Italy, while the demand for property in the major resorts of Italy has sent property prices through the roof in some areas.

Meanwhile, many property purchasers today seek more rural, scenic and better priced properties.

Chosen in suitable locations with easy access and amenities, these properties are gaining increasing popularity and are set to achieve equally high returns on investment in the very near future.

Reasons for a good investment

• No capital gains tax on profits from Italian property, creating maximum returns on investment.
• Possibility to cut purchase costs in half by becoming a resident.
• Prices remain relatively low, compared to many EU destinations.
• Possibility to renovate beautiful old Italian houses into fabulous residences that earn high rent in peak season.
• Italy is at the hub of the low cost flights revolution, forever enhancing its strong tourist industry.
• The Italian government offers investors grants to reform rural.
• Italy has pioneered property tax reforms, offering great opportunities for the rural renovator, including substantial VAT discounts.
• EU member country.
• Economic and political security.
• Abundance of culture, history and magnificent architecture.
• Stunning variation in natural beauty, from lakes, mountains and lush vegetation to rugged or sandy beaches.
• Warm Mediterranean climate.
• Recreational activities to cater for all needs, from skiing, hiking or beach holidays to sightseeing and cultural activities.
• Dream lifestyle, modern systems and friendly people make Italy an easy relocation destination

Cleves already has a Sofia portfolio of 42 apartments for rent at projects in the quarters of Boyana, Izgrev and Manastirski Livadi.

Cleves Cherkovna has a range of luxury 1- and 2-bedroom apartments, and two penthouses.

Each Cherkovna apartment is different, with its own design philosophy.

The apartments are light and airy, with big windows, each apartment has a balcony, with the upper floors offering wonderful views.

Cleves has made it clear that it owns and operates the entire building – which means that everything is maintained in tip-top condition.

Cleves has installed modern fitted kitchens, and every apartment has central heating and its own air-conditioning.

Each apartment has Wi-fi pre-installed, plus flat-screen TV with satellite and cable access.

Every apartment has a full security system, with burglar alarm motion detection, and access alarms.

Cleves Ltd.  is in the process of acquiring a EUR 40 M portfolio of up-market, new-built residential property in Sofia.

The company focuses on the top-end of the rentals market.

Its clients are senior international business people and diplomats.

The company points out that owns and operates all the apartments in its portfolio in order to be able to offer the highest quality of service.

http://www.isleofgold.net

Bulgarian Black Sea beaches are the best in the World, according to the French tourists.

This is shown from the index “Kelkoo”, which monitors the best beaches in the world.

The chart is created for the French tourists and it’s based on 10 criteria.

The leading criteria by which the French made their choice are:

The price of airline tickets (95% preference), low priced accommodation (94%), security in the region (89 percent) and the climate (86%).

Thanks to the optimum value between the prizes and the quality and more pleasant climate, Bulgaria’s Black Sea coast is the best beach for holidays for the French tourists this summer.

Hawaii, Rio de Janeiro and Sydney were ranked at the last three positions of 20 beaches.

In 2010 the cost of traveling for the French will reach approximately 88.31 billion euros, 1364 euros per person, which will increase by 1.2 percent or 1.05 billion compared with 2009.

After the Bulgarian Black Sea coast in the preferences of the French tourists are:

The north coast of Tunisia, Antalya Turkey, Cyprus, Algarve in Portugal, Crete, Greek, Egyptian resort of Sharm el-Sheikh, the Canary Islands, Balearic Islands, Dubrovnik and others.

http://www.isleofgold.net