News and analytical reports of the week (15-21.02.2010)

Abkhazia: all restrictions on property purchase will be lifted for Russians. Estonia: the number of apartment transactions grows in the country. Czech Republic: a buyer's market in Prague is gradually becoming a seller’s market.

Abkhazia: Sergei Bagapsh, the president of the republic, claims to be drafting a new law which will allow Russians to buy property in Abkhazia. At present, foreigners cannot acquire Abkhazian properties in private ownership.

Estonia: in Q4 2009, the number of transactions with local property has soared by 30%, compared to the preceding quarter, while increasing by 13% in annualized terms. The experts attribute this trend to a significant decrease in Estonian housing prices.

Egypt: over the last year, the average cost of private homes on the secondary market has plummeted by 37%, compared to 2008. As a result, realtors have switched to selling less spacious properties with lower cost ($70-90 thousand).

Greece: in Q4 2009 average apartment prices have climbed down by 0.1%, compared to the preceding quarter. In the segment of new housing, the decrease has amounted to 0.6%. Over the same period, prices on secondary market have increased by 0.3%.

Czech Republic: according to local realtors, 70% of apartment transactions concluded in Prague over the past year, were closed at discounted prices. This is reasoned by a certain excess of supply on the market. However, the balance between supply and demand is gradually being settled, and the situation on Prague’s market might change “in favor” of sellers during the 2010.

UK: according to the Department of Communities and Local Government, the average value of British residential property has gained 2.9% throughout 2009. Over the year, housing prices have increased by 3% in England, climbing up by 3.8% in Scotland, and by 1% in Wales. A 6% decline has been registered in the Northern Ireland.

Specialists of the CB Richard Ellis consultancy claim that London’s commercial property market is recovering from the crisis at a rate much higher than the other financial centers - New York, Hong Kong and Tokyo. Rents for prime offices in the British capital increase against the background of supply shortage and lowered prices.

Canada: secondary housing sales have decreased by 2.8% in January. Specialists of the Canadian Real Estate Association claim that this may indicate a “cooling” of the local market, which, according to some analysts, was quite overheated due to record low interest rates and a certain shortage of supply.

Hong Kong: nearly 900 apartments worth 4.2 billion Hong Kong dollars ($540 million) were sold in this special administrative center of China over one weekend. According to the Knight Frank consultancy, over the past year, Hong Kong housing market has become the most rapidly growing, out of all major housing markets in the world. Over the year, average prices have soared by 29%, amid low interest rates and strong demand expressed by Chinese investors.

Finland: over 2009, 26.9 thousand permits have been issued for residential property construction in the country, this corresponds to the levels of the preceding year. The majority of granted permits were issued for the construction of apartment complexes. The number of private homes planned for construction in Finland declines.

P.S.
The Muslim holy city of Mecca plans to expand the Sacred Mosque (Al-Haram), yearly visited by millions of pilgrims from all over the world. As a result, the demand for land in the city has increased, and the cost per a square meter of land exceeded $130 thousand in some areas.

Author: Alexey Lahov