News and analytical reports of the week (28.06–04.07.2010)

Turkey was named the best European country for property investment in 2010. Latvia: new legislation, which allows foreigner buyers of Latvian property to obtain a residence permit in the country, comes into force. U.S.: for the first time in seven months housing prices have increased.

Turkey: Global Property Guide analysts have acknowledged Turkey as the best European country for residential property investment. These estimations are based on forecasts for appreciation of local housing, and possible yields from renting them out during the ongoing year. At the moment, total yields from residential property rentals averagely work out 5.48%.

Bulgaria: Colliers analysts have summarized the results of 2010’s first half on Sofia’s property market. Over the period from January to June, residential properties in prime-locations of Bulgarian capital have become cheaper by 3%. In comparison with the first half of 2009, housing in Sofia’s downtown has depreciated by 17%. Prices in less prestigious areas of the city have climbed down by 5-6% from January to June, while plunging by 19% in comparison to the same period last year.

Latvia: new amendment to the Law on Immigration will came into force in Latvia, effective July 1. Under new regulations, property buyers and investors in Latvian economy will receive a five-year residence permit.

Lithuania: national capital is the leader in terms of apartment prices among the rest of the Baltic States, analysts of the City24 portal claim. Average asking prices for residential property in Vilnius have amounted to €1.475 per a sq. m. In Riga, the figure works out €1.434, while totaling €1.231 per a sq. m. in Tallinn.

Croatia: analysts of the CentarNekretnina.net web-portal have summed the results of June on Croatian property market. Average residential property prices have climbed down by 0.6%, compared to May. In comparison to last June, the figure has declined by 4.6%.

USA: low mortgage interest rates, decreased property values, tax benefits and the traditional spring revival of buyers have resulted in Manhattan residential property sales reaching the pre-crisis levels. In Q2 2010, the number of property transactions on Manhattan reached 3,600 units, which exceeds the indicators of the corresponding period in 2009 by 47%, in quarterly terms the indicator has increased by 17%.

According to the Standard&Poor's/Case-Shiller’s April index of home prices in 20 U.S. cities, which was published last week, the figure has increased by 0.8%, compared to March. This has become the first increase in prices registered over the past seven months.

Singapore: Over Q2 2010, prices for private residential buildings in the city-state have climbed up by 5.2%, compared to the preceding quarter. In comparison to Q2 2009, prices soared by 35%, thus exceeding the record mark, set in Q2 1996.

UAE: Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD) have summed up the results of May on the local real estate market. In comparison to April, the index of home prices has declined by 1.2%. In relation to May 2009, Dubai housing prices have climbed up by 0.3%.

The most expensive cities: Mercer Research Company has compiled a list of cities with the highest living costs for foreigners. Capital of Angola, Luanda has occupied the first place. Tokyo is situated on the second line, third, fourth and fifth places are occupied by, respectively, the Chadian capital N'Djamena, Moscow and Geneva. The TOP-10 also includes: Japanese city of Osaka, the capital of Gabon, Libreville, Hong Kong, Zurich and Copenhagen. Rental prices were the key indicator which had largely effected the distribution of places in the ranking.

P.S.
According to a survey by ING Direct Mortgage Company, nearly a half of 1,000 Britons, who have recently purchased housing, had averagely spent 21 minutes to find suitable property. For comparison: an average Briton spends 217 minutes on choosing a satellite antenna and the program of broadcasted channels, 284 minutes on selecting a TV, and 164 minutes to pick a new coffee table. Experts call the dominance of demand over supply in the UK housing market to be the main reason behind such trend. Consumers try to become owners as soon as possible in order not to lose the selected property in favor of a more dexterous potential buyer.

Author: Alexey Lahov