FEBRUARY 2012 |
www.opp.org.uk
REPORT
Club in Kuala Lumpur from the 22nd to the 25th of April 2012. For more information visit
www.iagto.com/agtc. Overall, for Taylor, keeping golf at the heart of the offering is key to future success and, as long as people with money are continuing to search for the best course, the future will be bright. “We should [be positive] because the new emerging golf destinations are offering a fantastic golf product which means the mature golf regions now need to counter by offering a higher quality experience at a more competitive price,” he says. “70% of golf travellers are looking for a new golf destinations and this should assist in the growth of the golf tour operator business. The quality of new golf courses is much better with more signature courses being built worldwide by the likes of Nicklaus design. And developers are also investing in the resort-style experience with superb golf and non- golf amenities.”
“Golf participation is also increasing since golf has become quite a fashionable sport and therefore outbound golf markets are growing, hence increasing the volume of travelling golfers.”
But what do the people who are building these properties think? Over at Cyprus’ Aphrodite Hills development, real estate manager Loucas Kitrou believes that the lack of supply in his area will serve him well. “It has been proven in Cyprus that
golf properties have held their prices much better than other properties,” Kitrou told OPP. “This is due to the unique characteristics of golf properties and the fact that the supply of such properties is limited as far as Cyprus is concerned.”
For Kitrou, limited supply coupled with increased interest from wealthy north European countries like the UK, means Cyprus will do well as a golf real estate area. “The market has shown some signs of improvement since December 2011 and into January 2012 but it will be unrealistic to expect dramatic positive changes. However, it is expected that the market for golf properties in Cyprus will be better in 2012 based on the increased viewings of the last couple of months and the increased interest form various sources.” Real estate policies in Cyprus
will also help to boost sales, he says. “Another reason that 2012 will fare better is the fact that the market place has absorbed the current prices coupled with the incentives that the Cyprus government has introduced for the fi rst half of the year to boost sales. The most important incentive is the abolition of transfer fees on new properties to be sold in this period. This constitutes up to an 8% saving on new properties.” Ultimately, says Kitrou, the
facilities on offer at golf properties elevate them above normal overseas
“The supply is smaller and the quality associated with golf properties is expected”
ventures. “Golf properties have certain characteristics that set them apart from other properties,” he says. “First of all, the supply of golf properties is smaller, secondly the quality associated with golf properties is expected and generally is better than other properties.”
“Golf properties are found in set, predetermined landscaped environments that set them apart and give them an edge over other properties ... and they are usually coupled with facilities such as restaurants, tennis courts and services like property management, security and so on. These things may not be available in other properties.” At the very high end of the golfi ng real estate market, things seems to be carrying on as usual. The Royal Westmoreland Golf & Country Club in Barbados, for instance, is a 750-acre resort on the west coast of the island comprising 200 vacation homes. It boasts clientele who are captains of industry and well-known celebrities. Earlier this year it won ‘Best International Golf Development’ at the International Residential Property Awards. It is, according to developer John Morphet, “bombproof”, and he says is currently seeing a 15% year-on- year rise in rental yields. What is making it such a safe
haven, protected from the market’s troubles? “Barbados is a place where people aspire to go to,” Morphet says. “It isn’t Europe, it isn’t
Malaga...it is an exotic place.”
The majority of Royal Special | The unique characteristics of golf properties add to their attraction
Westmoreland’s real estate buyers are British - 80% come from the UK. “We always get a large British pull because of the island’s colonial history,” he says.
But what of the world market?
What determines whether now is a good or bad time to develop golf real estate? Ultimately, location is everything he argues.
“It entirely depends on where you are,” says Morphet. “British courses are having a rough time - we know, we have two ourselves - but you need to put a spin on them, because you can’t just have a course on its own.” The feeling is similar at the PGA Catalunya development in Spain, where architects Lagula put together one of the project’s show villas. “With the economy the way it is now, people don’t want to spend on generic things,” the developer told OPP. “People want to buy something special.” David Plana, chief fi nance offi cer
at PGA Catalunya, agrees that the exclusiveness, quality and special nature of the resort is paramount to its success. “PGA Catalunya is a year-round destination that appeals to all buyers, offering a variety of real estate in one of Spain’s most desirable and best performing regions. With Barcelona, the Costa Brava and the Pyrenees on its doorstep, and a site that offers a host
GOLF REAL ESTATE | 45
of activities, from world-class golf to consummate gourmet experiences, a home at PGA Catalunya, whether it be an apartment, town home or villa, is the perfect investment.” Real estate market specialist Lucas Fox International endorses this view in their latest market report. The agency explains that properties “near golf courses have been more likely to maintain their value in recent years... refl ecting the changing buying motives of investors towards seeking properties that meet modern lifestyle demands and requirements.” “Drivers of investment property
(show) increased focus on lifestyle factors to ensure long term value is maintained,” it adds, predicting “strong interest in these specialty properties... (throughout) 2012 (offering)...long term potential.” Yet away from high-end golfi ng establishments and real estate parks, some areas are struggling badly. “The U.S. golf course real estate development business is in the emergency room and hoping that the current crisis in the golf industry is just a severe case of economic indigestion instead of painful contractions that are symptomatic of a painful paradigm shift in the supply of golf courses and demand for the game,” says David Hueber, an American golfi ng guru with over 25 years’ of experience
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