India property market set for massive change

The India property market is on the cusp of a massive change. Land prices in India have quadrupled over the past three years as developers paid major sums for land to build developments of luxury housing, with starting prices upwards of $250,000 per unit.

The number of people earning over $5000 per year is expected to double to more than 20million in the next two years, not least because of the 2.5 million students teaming out of Indian universities each year. And land prices are expected to fall again in the near future, as developers realise that the real demand in India is for affordable housing.

David Stanley Redfern Ltd got in on the new trend early with their Mountain View development in Rudrapur, in which 2 bedroom apartment were available for under £30k. Mountain View is almost completely sold out now but another development is being built just up the road, and it will also offer affordable housing, ready to capitalise on the massive demand there will be for such housing in the next two years.

Demand which there will certainly be in Rudrapur, which was designated a Special Economic Zone by the Indian government, offering tax incentives for companies to move into the area. And move into the area they did, with some 450 new factories being built, or already trading on what will become a massive industrial estate on the outskirts of Rudrapur.

These factories will employ 300,000 people when they are finished, at least 50,000 from outside the area and who will definitely be looking for affordable housing to rent, meaning owners of Rudrapur apartments will cash in on the residential lets. But it is also a fairly safe bet that even those employed in the new factories from within the area will be looking for affordable rented accommodation; people living with parents using their new wage to fly the nest, and staff members pairing off and seeking accommodation to move in together.

The latter will also probably mean people from the area looking for homes to buy in 2-5 years, people getting promoted will also bring home sales in the foreseeable future. All in all the future is bright for Rudrapur, and India property as a whole.

Montenegro property: Europe's next big thing?

According to many various reports, Montenegro is shaping up to be the next big thing in European tourism, and property investment. Last month direct flights began between London airports and Montenegro, which immediately made the country more popular with tourists and property investors, and Montenegrins are gearing up to fully capitalise in the increased popularity of the country.

Plans are being drawn up to turn Montenegro's coastal areas into massive tourism resorts, and the masses of money being poured into the infrastructure since last year, is beginning to take effect, and work is still ongoing across the country.

Tourism revenues for such a tiny country were over 1billion dollars last year, and visitor numbers were far higher than the small countries population.

Property prices have risen considerably since Montenegro became popular, but you can still get a real bargain if you know where to look. David Stanley Redfern Ltd are currently marketed two extremely good value Montenegro properties.

The Lakeside Park apartments are the second release on the Lakeside Park developments, following the incredibly popular Lakeside Park chalets, which sold out recently. The development is, as the name suggests, on the banks of Slano Lake, near Montenegro's second largest town, Niksic. But you would never know it, the location is like a snapshot advertisement for the beauty of Montenegro's countryside, rolling hills, sweeping valleys and an environment that you can really relax in.

Of course for those who want to be active, there is fishing and water-sports on the lake, bird-watching, walking, and Niksic has all amenities and facilities for a perfect family holiday. Prices start at just £25,000 for a 1 bedroom apartment.

David Stanley Redfern Ltd's other Montenegro property is in the beautiful coastal peninsular of Lustica, nr the small village of Zambellici. The development is a short-way from Montenegro's beautiful coastline and only 10mins from Tivat international airport. Again Lustica is as picturesque as anywhere else in Montenegro, but has added extra's like medieval towns and villages in near perfect condition, perfect for sightseeing and history buffs. Prices start at £50,000 for a 1 bedroom apartment in Lustica.

The Weis Group, a Wall Street Fund, and specialists in buying distressed real estate, raised further recently growing hopes that 2008 could be the year that American property prices bottom out and begin recovering. Last week The Weis Group told U.K. newspaper, The Times that it was in talks with some of America's big banks, about spending its 1billion dollar investment fund on purchasing hundreds of properties that had been reclaimed by the banks, with a view to selling in 3-5 years.

Many analysts have already put their money where their mouth is and stated that they believe 2008 will be the year of the U.S. recovery, a massive property investment specialist like Weis Group confirming their research will make their statements a virtual reality in the eyes of international property investors.

Liam Bailey, head of international research for David Stanley Redfern Ltd gave us his thoughts on American property.

"I have been saying for some time of the great irony: that the buying frenzy triggered by the U.S. subprime crash, as the combination weak dollar and falling property prices had people from the U.K. and around the world taking the opportunity to get their dream home/investment property in the states at a bargain price, might actually start a recovery in the American property market, and it seems I may not have been too far wrong."

David Stanley Redfern Ltd took on American property just last year, on that very belief, that the American property market had fallen almost as far as it was likely to, and the beginnings of a recovery were just around the corner. DSR's client's who have invested in the American property, could in 3-5 years, it seems, be very glad they did.

Managing Director of the overseas property specialist, David Redfern had this to say: "It is always nice when you make a move that some people may quietly think is risky, and some of your competitors may even have a sly snigger, and it proves to be massively successful move for both you and your clients. As our research department said a few months back, and has maintained fervently ever since, 2008 looks like being the year the U.S. recovery will begin, but there still looks like being a little time for investors to get in on the low priced action."

Abu Dhabi Property Growth Stimulus RAKAA Sells 70% of Dynasty Tower

RAKAA Properties, one of the region’s preeminent real estate companies, has announced the selling of 70% of the Dynasty Tower and 55% of Falcon Crest Tower, two of the company’s signature projects situated in the prestigious Al Reem Island, Abu Dhabi.

Commenting on the occasion, Dr. Abdul-Rahman Al-Tasan, CEO of RAKAA Properties, said "the successful promotion of our projects through the gatherings we are participating in has helped draw in a huge interest in our properties and helped us sell around 70% of Dynasty Tower and 55% of Falcon Crest Tower in a record time ."

"The distinguished features of the two projects and the world-standards techniques used in their development, not to mention the convenient investment climate enjoyed by Abu Dhabi, now becoming the center of attention and admiration for businessmen and investors, are all factors that have helped secure considerable demand on our developments."

In the meantime, Dr Tasan has underscored the importance of the recent customs duty waiver on cement and steel, hailing it as a prudent decision from a man of vision.

"The decision is an expected move by a man with a unusually keen foresight. It is likely to further heat the already fierce competition in the property market and stimulate more growth. We still expect more such decisions that help check the burdening inflation."

The Marina Tulip Tower, the Dynasty Tower and the Falcon Crest Tower are all smart technology equipped and feature stunning views that overlook the sea and the island’s mangrove trees. The project also boasts swimming and gymnastics halls and gardens in each of its three towers.

The Dynasty Tower will be solely dedicated to residential purposes at a height of 29 storeys, where there will be 136 apartments ranging from one to four bedrooms and the Falcon Crest Tower boasts 24 floors allocated for residential purposes with limited retail spaces.

Abu Dhabi is witnessing a rapid economic growth that is encompassing all its economic sectors and urban developments, boasting a large share of the UAE construction and property market.

Whats next for international real estate?

Granted, mostly developers exhibit, but intermingled in the enormous space the exhibition centre occupies, are government representative offices, service suppliers, as well as some resale agents.

From what we have seen in the past, I can safely say what we see there usually hits the retail market about 1 to 2 years later. Last year, amongst other things, I found some fantastic off-plan products in Mexico from one developer, and whilst the European way of doing business is a little different, we have been able to promote their developments through our Mexico section to supply those that are looking for a property somewhere different from the masses. Whilst Mexico as a tourist and investment destination is still young at present, it will undoubtedly grow as people realize the high quality standards available there, as well as the rental returns that are possible.

In the trade newsletters that are sent in the run up to the show, we can get a good idea of what we can expect to see and from which countries, this year it would seem that over 40,000 units will be being promoted in total, with the Latin-America market accounting for more than half of that, an 8% increase on what was displayed last year.

After last year’s show I signed up a resale agent in Uruguay with a handful of listings to see what the interest level was like, and broaden what we can offer on Propertyshowrooms.com and, whilst a little slow initially, interest in Uruguay is growing at a phenomenal rate.

Eastern Europe was heavily featured last year, which I am sure will be repeated with many Spanish developers now setting up shop in the former Communist states. With the introduction of the Euro across the former Soviet states, businesses are making the transition very well and quality product is being produced.

It will be a very long 3 days of walking, talking and coffees, trying to communicate in a multitude of languages, whilst still dealing with things back at the office. But I expect to return with a number of promising new and exciting things to expand again what we can provide here at propertyshowrooms.com.

If there is anything specific or unusual you would like to see on our site, leave a comment on the blog or forum, and I will see if we can find it!

By Peter Mindenhall