News and analytical reports of the week (21-27.06.2010)

June 29, 2010

Bulgaria: the Association of Russian-speaking property owners was established in the country. Germany: investment in apartment buildings is on the rise. Greece: local authorities are planning to sell islands. Singapore: a $5.5 billion hotel-casino was opened in the city-state.

Bulgaria: the Association of Russian-speaking property owners called “Alyosha” started operating in the cities of Varna and Burgas. According to the consul of Russia in Varna Yuri Solovyov, the estimated number of Russian property owners in Bulgaria works out 300 thousand people. Russian ambassador in Bulgaria, Yuri Isakov, claims that total volume of Russian investment in Bulgarian property exceeds €1 billion.

Germany: €1.58 billion were invested in German apartment buildings over the first half of 2010, which exceeds the last year’s indicators by 17.9%, in annual terms. The number of residential properties purchased by investors soared by 20% - up to 30,000 units.

Greece: in order to seek additional funds to pay off its impressive national debt, Greece has decided to sell or lease out state-owned islands. The government considers selling a land plot on the island of Mykonos (a tourist complex can be built there), as well as several plots on the island of Rhodes.

Netherlands: in May, the average value of local residential property decreased by 0.7%, compared to the preceding month. In yearly terms, the indicator has climbed down by 2.2%.

Ukraine: in May, median prices for detached private houses in Kiev and the surrounding area have declined by 6.3% and 4.3%, respectively, compared to April. Average prices for Kiev homes varied between $1.9-2.6 thousand per a sq. m. As of May, the cost of a square meter in such type of property located in suburbs has amounted to $1.2-1.5 thousand.

Singapore: a 55-story hotel-casino called Marina Bay Sands was opened in the city-state. An infinity-edge pool on the hotel’s roof has become its main decoration. Marina Bay Sands houses 2.560 rooms, restaurants, shopping area, cinemas, museum, casino and other entertainment facilities. The project’s cost works out $5.5 billion.

Brazil: Foreigners will be banned from owning agricultural land in the country. Local authorities do not want foreign nationals to use local land for production of their own agricultural products. At the moment, foreigners can acquire agricultural land in Brazil through opening a legal entity in the country, or registering their purchase on Brazilian citizens.

USA: in May, detached housing sales have plummeted by 32.7%, compared to the preceding month, down to an annual average of 300.000 properties. The figure has been consistently rising over the two preceding months, against the background of a state-program of tax incentives provided to residential property buyers. Its term has expired on April 30, which, according to the analysts, resulted in such a sharp drop in sales.

Elite property: International realtor agency Savills has published its ranking of cities based to the average cost of premium-class apartments. The most affordable elite housing is located in the city of Marrakech (Morocco) - €1,425 per a sq. m., Cairo (Egypt) - €1,460 per a sq. m, and Muscat (Oman) - €1,881 per a sq. m.

P.S.

A new social class is forming in China. These people are neither middle- nor low-class, not even the bourgeoisie. These are “angry bachelors”. Unlike United States (and Russia too), where housing purchase is often performed after marriage, homeownership is gradually becoming a prerequisite for marriage in China. Experts claim that if a man has an apartment, it speaks of his success, ability to cope with changeable financial circumstances and focus on family life. Chinese dating sites are full of ads which read: “I’m 25 years old; I'm looking for a young man with an apartment and a car... The apartment should be constructed not later than 2000, and the car should not be a minivan.” According to a study conducted by Sohu.com, a topical Chinese web-portal, 73% of respondents said that home ownership is a prerequisite for marriage. Almost the same percentage of respondents have encountered difficulties while buying an apartment.

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