Tag Archives: Investment

India Property Opportunity
May 25 / Property

The India Real Estate Opportunity

Recent years in the Indian property market have been tough. Faced with slow demand, you would hardly say that the country is an ideal real estate investment opportunity.

However, things look to be on the up. A recent report has found that the struggle looks to be ending. The economy is recovering and the regulatory environment has become less murky. As we stand right now, India is the world’s fastest growing economy.

One unique element of developing in India is the weather and in particular, the monsoon period. If the monsoon is worse than expected, then it has a large impact on productivity. It is much harder to complete a big task, let’s say create a new retail investment when there are 500,000 lightning strikes. It can be extremely dangerous.

On the flip side, a recent lack of rain over the past two years has seen weak agriculture results, leading to a lack of property demand. In 2016, this is set to change. The more rain, the higher demand.

Further backing up the theory that India is the place to invest, more than 40% of expats living in the UAE are buying more property back in India, new research has found. “43% of the respondents opted to invest in Indian real estate so that they could build profit on it”. The southern Indian city of Mangalore fast emerging as a favoured destination. Meanwhile, over in the US, Fremont, Portland and Seattle will be holding their first ever Indian property shows.

Finally, to really hammer home our point, Bain & Company are predicting that demand in India for real estate will growth by 9% each year up until at least 2020. With existing property owners staying in a holding pattern, demand is starting to outstrip supply. The market is sat there, waiting to be taken advantage of. So, when it comes to your next move, don’t forget about India.

Brexit Property Fears
April 21 / Property

Brexit: What impact is the EU Referendum having on the Property Market?

There is an EU referendum on the way. Not breaking news in itself, we are all well aware of the vote. But, with the results very much an unknown, the uncertainty is affecting the property market.

It has been common knowledge that the current uncharted waters are causing recruiters to be nervous. The number of short-term contract team members has increased and at the same time, full-time employment growth is slowing. With so much to play for, companies are erring on the side of caution.

The same is true of the property market right now. Big decisions, whether or not to purchase land, to start work on plans, the next big marketing push etc. have been delayed until after June 23rd. Even after that date, if the vote swings for Britain to leave the EU, many more discussions will need to take place and investments could be pushed back even further.

The macroeconomic environment could be on the verge or a large change, so most property developers are sitting back and waiting for the date to pass to stay on the safe side.

David Sleath, CEO of Segro recently said:

There is a dramatic slowdown in the investment space because people who have got [property] to sell are sitting on their hands.” Source.

EU Referendum

Property is not only a place to live and work but a key investment asset too. On the run up to the referendum, shares in property investment businesses and commercial property companies have been falling. This is again, due in part to the uncertainty, especially where overseas funding is involved. These are nervous time for all investors.

However, Brexit is not the only reason. The UK residential property price boom looks to be over; there are changes to Stamp Duty and the whole global economy is slowing. These factors combined with the EU vote has created a perfect property storm consisting of risk gambles and the jitters.

Thankfully, with a bit of look, the fears could only be around for the short-term. From large property projects to first-time house buyers, there is an air of nervousness. But once the referendum has passed, things are expected to return to normal.

The imbalance between demand and supply shall continue, with house prices, for example, set to rise by 25% over the next 5 years and half of existing UK housebuilders “not worried” about the potential impact of an EU exit. So, roll on June 23rd!


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