APRIL 2010 | www.opp.org.uk
FRANCE
France prepares for trust investment boom
Huge amounts of foreign investment are expected to flow into the French property market following the introduction of the country’s first trust law. The new legislation could allow
foreign pension trustees to invest in French leaseback property for the first time, as well as encouraging high net worth individuals to move offshore funds into the property market without major tax penalties. Before the law came into effect on
2 March, France did not recognise the concept of a trust or ‘fiducie’. Trusts are commonly used in other countries as a tax-efficient way of investing in property. “It could be one of the biggest
developments in overseas property for the next decade,” said chartered tax adviser David Anderson (pictured) of law and tax firm Sykes Anderson, which has already begun helping clients looking to take advantage of the new law. “We’re seeing quite a run of high net worth individuals with offshore funds
BRAZIL
Brazil’s 91 million opportunity
Agents selling Brazilian property are hoping to attract foreign investors with the news that the country’s middle class has grown to include 91 million people. Brazil’s middle class now represents
49% percent of the population and accounts for 46% of the national income, according to a report by the Getulio Vargas Foundation. The number of middle class people in the country has grown 64 million in 2003. The shortage of low-cost housing in the country is well publicised, but
the growth of the middle class is also creating a demand for higher quality property. “What was seen as up-market apartment ten to fifteen years ago, currently is the basic requirement of a middle-class apartments,” said Abner Brito, client manager at agent Kapital International Investment. Second homes are also becoming
increasingly popular among Brazilians, he said. “The Brazilian middle class are applying their savings to a second home in order to have a second income.”
High point | Around 49% of Brazil’s population is counted as middle class
Agents such as Spain-based UV10 are
hopeful that the growth of middle clas demand will provide foreign investors with an investment exit strategy.
stephen.h@opp.org.uk | 7
NEWS IN BRIEF
Second home high
Trophy assets | Offshore trusts are focusing on French properties such as ski lodges
focusing on trophy properties and asset classes that can’t be bought in the UK, such as vineyards and ski lodges, as well as prime agricultural land,” said Anderson. “There will also be interest in prime
residential areas such as Cap Ferrat in the South of France and central Paris. It will create an immediate benefit to the €10 million-plus property market.”
SIPP leasebacks
Developers of leaseback property are also excited by the news because of
the potential for Self-Invested Personal Pension (SIPP) investment from the UK. Pierre & Vacances (P&V) launched a leaseback investment for Irish pensions at the end of last year and now hopes to follow with similar UK product. “We have massive interest from
clients and introducers looking to invest in this way,” said Nick Leach, head of P&V’s UK and Ireland office. “We didn’t get to a point where our notary was happy with the product before and hopefully the change in the law will have some bearing on this.”
The number of second homes in England has reached a record level, according to new research. The report from Knight Frank suggests that buyers’ confidence in the property market has returned but that the weak pound and the growing trend for holidays in the UK had discouraged people from buying second homes abroad. The number of English second homes rose by 2.6% in 2009, reversing last year’s fall and taking the total to an all-time high of 245,384, according to the international agent’s data. Liam Bailey, Knight Frank’s head of research, said the combination of cheap finance, renewed economic confidence and the poor performance of other investments such as equities has driven buyers back to property.
Brazil’s tourism expansion
International holiday rental firm HomeAway has moved to cash in on Brazil’s growing popularity by purchasing one of the largest rental websites in South America. The acquisition of Qualimídia Veiculação e Divulgação Ltda, publisher of AlugueTemporada. com.br, under undisclosed terms, adds more than 12,000 thousand Brazilians properties to HomeAway’s online listings. “Brazil has become one of the world’s most exciting markets and an increasingly favorite destination among HomeAway’s European travellers,” said HomeAway CEO Brian Sharples. “We’re looking forward to making Brazil more accessible to them and introducing this market to our US customers.”
Patchy price recovery
House prices grew in most major markets during the last quarter of 2009, according to new research, suggesting a somewhat patchy recovery is underway. Global Property Guide’s latest house price index showed inflation-adjusted values rose in 22 of the 34 countries that produce quarterly data, and fell in 11 markets. However, year-on-year, prices only rose in 16 countries, compared to 18 markets where prices fell, suggesting that recovery has only been taking place over the last two quarters. Prices continued to fall over Q4 2009 in Spain, Portugal, the US and Bulgaria, among others.
MIAMI CONDO SPIKE
The number of condos sold in Miami in February
shot up by 35% compared to the same month in 2009, and by 130% compared to 2008, according to the Realtor Association of Greater Miami and the Beaches (RAMB). Sales of existing single-family homes also increased by 9% year-on-year and by 80% compared to 2008.
CHINESE BUBBLE GROWING
Two transactions in Beijing have broken the record
for China’s most expensive residential development land sale, adding to fears of a bubble in the country’s housing market. In response, the government has banned state-owned enterprises (SOEs) from investing in real estate development once they have finished current projects.
HOMES FOR $10
Homes in Detroit in the US are on the market for $100
and may sell for as little as $10, according to a new BBC documentary on the city. Real estate agent Tim Prophit told the programme that banks were listing foreclosed properties for around $35,000 although they knew that it was impossible to expect them to sell for this amount.
INDUSTRY
PEOPLE
DESTINATION
BUSINESS
DEVELOPER
MARKETING
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68