The number of UK surveyors reporting house price falls has grown for the 6th month in a raw
The Royal Institution of Chartered Surveyors (Rics) says such a trend has not been seen since the housing recession of the early 1990s. Some 54.7% more surveyors reported a fall than a rise in house prices in January - up from 49.1% in December.
Rics spokesman Jeremy Leaf commented: "A lack of demand and confidence in the housing market is clearly behind the recent price slowdown. Tightening mortgage lending criteria is a block to many who are keen to take the housing market plunge. Agents are finding it difficult to market properties to an audience which has decided to watch the current economic theatre from the wings."
"If mortgage lenders filter the recent interest rate cuts into the market, demand should begin to increase. Strong employment conditions are shielding the housing market from significant price falls.
The stock of unsold property on surveyors' books increased by more than 10% in January and by in excess of 40% since September, the Rics figures showed. The average level of unsold property per surveyor was 85 - the highest figure since February 1999.
Slovakia Property - A safe haven for investors
With almost daily news about negative impacts of the credit crisis on world' s economies and the possibility of a US recession, what is the likely effect on property investment in the high growing emerging markets in the 'new' Europe?
For Central Eastern Europe (CEE) 2007 has been a good year. That is even more true about Slovakia. Following very fast growth over the last several years, Slovak economy again broke all records in 2007.
Unemployment has been constantly slashed since the beginning of the decade, annual GDP growth has been approaching 10%, the wealth of the population is increasing at fast pace and the country keeps attracting significant foreign investments.
All this coupled with the Slovaks' desire of home ownership and massive demand for better quality housing, plus a low supply of such homes, as well as more accessible finance. Here we have the explosive combination that has been fueling the local property boom in the last few years.
Yet Slovak property is still some of the cheapest in Europe, and conditions for further growth are very good indeed. Also, significantly for any investor, the Slovak property boom is based almost wholly on the local demand from keen home buyers (as compared to many other markets that have been inflated by foreign investors and became dependent on the continuity of such investment). With still affordable prices and growing incomes the Slovak housing market is unlikely to slow down any time soon.
Source: discovereasterneurope.com
Frank Knight put Bulgaria at the top of 2007 growth charts.
The Knight Frank global house price index 2007 shows considerable changes around the globe. However, the recent strong growth within the Baltic States continues with the Bulgarian property market experiencing the highest rate of growth of any market in the world last year. Bulgaria's entry into the European Union on the 1st of January 2007 added to the already favorable conditions within the country and saw the average price of property increase by 30.6% across the country. This easily outstripped the UK housing market, which recorded 9.7% growth for the year and Latvia, the leader of the index for the previous three years slipped well down the list into 12th place.
Much of this success can be attributed to the fact that Bulgaria contains three distinct property markets, broadly based around the coast, the mountains and the metropolitan areas. Initially the black sea coast saw the most development, however the ski areas have been quick to catch up, boosted by the countries Winter Olympics bid. Areas such as the Razlog valley now offer a long ski season with excellent winter sports facilities and increased summer attractions such as golf and spa resorts. Attention has also turned to the Bulgarian capital, Sofia. Property prices have increased by 20% per annum since 2002 and with some of the cheapest build costs of any EU capital city it offers investors some great opportunities. It is also benefiting from a Euros 14 billion EU grant to improve its infrastructure and the countries first international business park is being created on the capitals ring road, not far from the university quarter.
The Frank Knight report corroborates these developments and the increased attention that Bulgaria has been receiving from both investors and tourists. If the trend continues, property owners in the most sought after areas will benefit from exceptionally high rates of capital appreciation in the coming year.
Starbucks expansion in Poland
The number of Starbucks chain coffee bars in Poland is expected to increase to 300 from some 100 within five years. The market is estimated to be worth some PLN 1.5 billion and is said to be growing by some 40% a year. Global chain Starbucks, which is expected to debut in Poland in Q1 2008 is to open 100 coffee bars within several years, according to unofficial information.
source: Propertysecrets.net
Budget airline adds extra Sofia flights
The imminent launch of extra flights to Sofia is set to provide a boost to the Bulgarian property market. Low-cost airline easyJet said it would begin operating the flights from Gatwick Airport to the city every day of the week from January 2008.
The carrier currently flies between the two destinations three times a week, although strong demand from consumers has prompted this new announcement. This is likely to have a significant impact on the property market in Sofia, as the increased accessibility could make it more appealing to foreign buyers. According to property author Andrew Regan, the growth of cheap flights to the country is one of the reasons for its recent popularity with overseas investors.
Speaking to Huliq.com, he said: "The fact that Bulgaria is well-connected to the UK via low-cost airlines has aided its desirability as both a holiday destination and investment area."
Both U.K. Mortgage Approvals and House Prices Fall
U.K. banks approved fewer home loans in October according to the British Bankers' Association, as higher interest rates made debt more expensive. Banks granted 44,105 loans for house purchase, down from 53,997 in September, a total of 37 percent down from a year earlier. Net mortgage lending fell to 5 billion pounds ($10.3 billion) from 5.9 billion pounds the previous month, while consumer credit growth halved to 300 million pounds.
House prices are also in decline, according to Right Move Plc, which said that prices dropped in every part of the UK accept London. Marvin King, Governor of the Bank of England also commented that tighter credit conditions may well reduce residential property investment in the UK.
Russian gas deal puts Sofia at odds with EU.
The Russian and Bulgarian leaders have signed a gas deal that puts Sofia at odds with Brussels, which backs a rival project. President Vladimir Putin, making possibly his last foreign trip before standing down, finalised the agreement with President Georgei Parvanov in the Bulgarian capital earlier today.
The South Stream pipeline will carry Russian gas under the Black Sea to the Bulgarian coast and from there to southern Europe. It will bring Bulgaria much-needed revenue and a role as a regional energy hub.
The deal also boosts relations between the former Soviet-era allies. They have been undermined by Bulgaria's membership of the European Union and NATO.
source: Euronews.net
Eastern Europe to benefit from Palin effect.
Eastern Europe could soon benefit from increased tourism thanks to Palins successful BBC TV series. The former Monty Python member travelled across a wide number of Eastern European countries including Bosnia, Slovakia and Romania looking at their recent history and hopes for the future.
Palins previous travel series featuring the Himalayas prompted a big increase in travel and tourism to the area and both travel agents and property investors are hoping that Eastern Europe will see the same effect, especially as a number of the locations he visited are already becoming emerging hotspots.
New Bratislava Vienna Motorway Opens
Slovak Prime Minister Robert Fico and Austrian Federal Chancellor Alfred Gusenbauer opened the new Bratislava Vienna Motorway on November 19 at the Austrian border town of Kittsee. The A6 motorway now provides a continuous motorway connection between Europe's most closely located capitals Bratislava and Vienna.
Slovakia opened its part of the Bratislava-Vienna motorway connection, Bratislava-Jarovce, in July 1999 however Austria has only recently finished its leg. "This motorway is an unbelievable contribution towards connecting Slovakia to the international motorway network. This will also mean increased investor interest in Slovakia, as the motorway connection between these two countries has been made easier," Slovak PM Roberto Fico told reporters.