Property market in UK finds path to recovery
May 8, 2009
The property market all over the world experienced a set back due to the economic recession. Though property is still suffering worldwide, the UK property market has something to smile about as it begins it journey towards recovering slowly. According to recent British trends the recovering process of the property market in the UK has not only been small, but has also shown great amount of perseverance as stated by Graham Norwood, the property correspondent on Business 24-7.
Mortgage products have been made available to UK home buyers on a large scale. These products are a sign of the recovering process of the property market. Besides this, the property prices in UK have also seen a rise of almost 0.9 per cent, which is very good for the property market.
Home prices in different parts of the UK, though declining, have been declining at a very slow rate. North Ireland, one of the worst hit places during the property crisis has seen great amount of improvement as the home prices have now dropped by 4.1 per cent, compared to the 8 per cent fall that it had experienced in 2008.
Many other locations in UK have been experiencing similar improvements, which has given the property market hope to get back on its own feet.
Popularity: 43%
Property market will see a raise of 500 million Euros
May 6, 2009
Henderson Global Investors are trying to focus on developed markets. The minimum amount for the funds will at least be 500 million Euros.
With the recent fall down in property prices, investors are not ready to take any kind of risks. Henderson Global Investors are thinking to open two property funds. They are mostly targeting prime offices and malls in London and Paris.
According to Alice Breheny, head of property research at Henderson Global Investors said that they recommend buying offices in central London. The group is keen on the French retail sector. This is because the French retail sector has strong fundamentals in terms of demand and supply.
She expects that at the end of the year, the United Kingdom will see an improvement in the commercial property values. With the improvement in the United Kingdom, the other key property markets such as Germany and France in Europe will also improve.
With the fall down in the US home loan market, the whole world has witnessed economic crisis. Many property investors are avoiding the risk of investing in risky and unfamiliar property markets.
It has been a long time since the UK investment market has witnessed a fall. This is the sharpest of all. The market is expected to recover soon.
Popularity: 29%
UK investors hope recovery in property market
May 4, 2009
If recent reports are to be believed, then UK property investors are expecting an improvements in the property market. This will be done only when the market stabilises.
The overall economy and its impact on the British property investment have been studied by the consultants from the API.
Due to recession, this year’s rents will yield low income. Aberdeen Property Investors (API) has also claimed that any type of recovery, at any point of time will be a good sign not only for the property owners but also for the property market.
Many foreign investors are interested in the UK property market. This is because; the price of sterling has dropped down. The firm stated that such movements will prove to be a great help for the property market. The company further claimed that it is usual if there is a strong recovery of market correction.
The company said that due to global economic crisis, there has been a downfall in the property market. This one is the worst since 1980. In terms of financial crisis, the present year has seen a terrible fall.
Lombard Street has studied the market and has concluded that it will require at least a year for bottoming out.
Popularity: 22%
UK property re-welcomes foreign investment
May 3, 2009
House prices in the UK have risen by 0.9 per cent, paving way for the revival of the set back that the UK property market has experienced during the global economic slow down. According to The Daily Telegraph, this rise in prices has encouraged the founder of eastyJet, Stelios Haji-Ioannou to set up plans for real estate investment in London.
Stelios said that he was looking at the real estate market in London as he did not own property of any kind in UK currently. Plans for an investment fund is what Stelios has indulged in due to his interest in commercial London properties that he plans to purchase at a cheap rate.
There are many other investors in London that following Stelios’ example and investing in various property schemes available to them.
The value of the pound has weakened, standing out as a reason for the refreshing foreign interest in UK property. It is therefore hoped that this increasing interest will change the face of the UK property market, leading to the increase in property prices.
Presently the property in UK is a good choice for those people who own investment savings of 0.66 per cent on an average account and 3 per cent for accounts that are at a fixed rate for long term.
Popularity: 17%
Plans to raise property funds of 500 million Euros
April 9, 2009
In a move to focus more on developed markets, Henderson Global Investors is looking to raise funds of at least 500 million Euros ($643.5 million) this year.
Due to the recent crash in property prices all around the world, many investors are shying away from taking any unprecedented risks.
Henderson Global Investors plans to introduce at least two property funds, targeting mostly prime malls and offices in Paris and London. The group currently manages property assets worth around 10 billion Euros all around the world.
According to the head of property research at Henderson Global Investors, Alice Breheny, offices in central London are definitely a strong ‘buy’ recommendation. The company also likes the French retail sector because of the fundamentals of strong supply and demand.
She also expects the commercial property values in the United Kingdom to improve by the year end, followed by improvements in other key property markets like France and Germany in Europe.
The current global economic crisis, sparked by the collapse of the US home loan market, has forced property investors to avoid unfamiliar and risky property markets and invest in markets closer to home. The investment market in the UK has seen the sharpest falls in a long time but is expected to bounce back shortly.
Popularity: 11%
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