News and analytical reports of the week (24-30.05.2010)

Latvia: property in the Old City is mostly bought by Russians. US: rapid growth was registered on primary and secondary residential property markets of the country. Spain: local authorities have decreased the cost of property purchase procedure.

Residential property: yearly housing prices in the majority of countries have increased over Q1. The rate of growth was more rapid than during the preceding quarter. The sharpest price increases, in comparison with Q1 2009, were registered in Hong Kong (29.6%), Singapore (25.1%) and Taiwan (20.0%).

Latvia: According to the head of local Ober-Haus office, Alexander Sviridov, 70-80% of all apartments bought in Riga’s Old City area are purchased by Russians. In Q1 2010, the average cost per a sq. m. of housing in the Old City has declined to €1.917.

Finland: the number of permits for housing construction, issued in Q1 has soared by 105%, compared to the same period last year.

Netherlands: the “mortgage issue” may decide the fate of local parliamentary elections scheduled on June, 9th. 70% of voters claim that their preferences will depend on the position of competing parties on the matter of mortgage incentives.

Cyprus: local authorities are going to increase taxes for owners of properties worth more than €10 million. There are 1,800 such proprietors on the island.

Turkey: in Q1, the number of residential properties sold in the country has decreased by 26.1%, compared to the preceding quarter. The sharpest decline was registered in Eastern Anatolian region - 61%. In comparison to the same period of 2009, Turkish housing sales have plummeted by 21.1%.

Saudi Arabia: According to Sheikh Ghassan Al Nemer, the owner of Ghassan Holding Group company, investing in local property is as profitable as buying gold. The billionaire’s confidence in Saudi Arabia property market of is so great that he is ready to cover the expenses of any foreign investors whose investments would fail to bring double-digit revenues within two years.

USA: in April, new housing sales in the country have increased by 14.8%, compared to March, while soaring by 47.8% in annualized terms. Secondary housing sales, in monthly terms, have increased by 7.6%, while climbing up by 22.8% in yearly calculations. Experts attribute these trends to the cancellation of tax incentives for home buyers. The duration of the program expired on April 30, and many consumers hurried in order to acquire property prior to this date.

Retail property: according to the CB Richard Ellis company, in Q1, the most expensive commercial property rentals were observed in New York, Hong Kong, Sydney, London and Paris. Moscow has occupied the sixth position.

Spain: the country's authorities have decided to reduce the notary fees charged for drafting the deed by 5%. When buying a home or an apartment which costs €150.000, the buyer would now save €35. For properties worth €300.000, the discount would reach €45. Wow!

P.S.
The city of Marciana, located on the island of Elba, has become the first Italian settlement which would require contractors and architects to account the needs of swallows and swifts while performing all types of construction works. According to the decision of city authorities, any individual or legal entity carrying out repairs of roofs in existing buildings or building new ones, should ensure the availability of openings in the first row of shingles, for the birds to arrange their nests there. In addition, the authorities have banned local builders to patch existing bird holes.