Investment in Commercial Property across Europe Indicate 42% Rise
Commercial real estate investment has risen 42% in Europe in the past quarter, compared with the previous quarter to the highest level ever since the collapse of Lehman Brothers in 2008. According to the property consultancy, more than €25.7bn of property deals were done in the fourth quarter of 2009, which doubled the levels being traded in the first two quarters of the year, according to CB Richard Ellis. This is the highest quarterly trade ever since the collapse of Lehman Brothers and the beginning of the sharpest point of the property slump. The data support anecdotal evidence of a rush back to property investment by a range of institutions after a bounce in values in markets such as the UK ever since the summer. The rise in fourth quarter activity brought total 2009 turnover to €70bn, still lower than the €121bn recorded in 2008. Almost every European market saw an increase in investment activity in the fourth quarter. The UK took by far the largest share of the new investment, with more than a third spent on British property. Investment in the UK rose 64% in the second half compared with the first six months of the year. The next largest market was Germany, which accounted for about 15% of investment activity. The fourth quarter is generally one of the busiest periods owing to the rush of deals being completed towards the end of the year, although CBRE said the turn round was expected to be sustained into 2010. The upturn in investor interest began in the most important European markets but was spreading further in the region. The strongest growth occurred in central and eastern Europe, an area traditionally seen as higher risk than more established markets in western Europe, though the pick-up came from a lower base. There was also significant increase in cross-border investment in the second half of the year. German open-ended funds alone spent more than €1bn in December, with at least 13 acquisitions across seven markets. Sovereign wealth fund from outside Europe also contributed to the rise in activity.
Bargains on Property Earlier This Year
The darkest and coldest days of the year often offer the best home-purchase opportunities, especially for first-time buyers. Whatever house-value experts say, whether the long-term graph is rising, falling or standing still, home prices nearly always rise around Easter, so there are bargains early on in the year. Few people want to move in winter, so those who put their homes on the market at this time are generally keen to sell.
Hopes Rise for Houses
People bullish about UK house prices outnumber the bears five to one, according to a survey of consumer confidence by Rightmove. 56% of respondents expect house prices to rise in the next year, against 11% predicting falls. The bottleneck in supply could continue, with only 5% saying now is a good time to sell.
The findings show a dramatic turnaround from the first quarter of 2009, when 69% of respondents foresaw price falls.
Have an Impressive Design at Bargain Price
During the recession, the furniture business has experience a tough time due to the down turn in property market. These days, there are changes in market condition.
A lot of online furniture stores are now offering great discount on a whole range of home furniture and office furniture, such as tailored chairs, customized bed, Dining Tables and different office desks.
Browse online today. Many directories are focusing on furniture and furnishings for the residential, commercial or industrial space. You could find various kinds of design furniture including hand-carved wood and intricate carpets. Have an impressive design back home or at office at bargain prices.
What To Do in Face of Tumbling Property Prices
The commercial property gave investors a taste of boom-bust as values soared then slumped, wiping thousands of pounds off portfolios. These days, a large number of properties sit vacant, earning no rental income, and more are expected to follow as businesses go bust or downsize.
Check how much commercial property you hold. If it is more than 15% of your investment portfolio, a lot of financial advisers suggest you should sell some and invest elsewhere. Even if it is less than 15% and you want to remain in commercial property, make sure you are in the right funds.
Lending for Mortgages Falls 2%
The Council of Mortgage Lenders just revealed that, in spite of the greater numbers of house hunters and property sales in the market place last month, mortgage leding fell by 2%. A total of £10.3 billion was advanced during May, down from £10.5 billion in April. It was 58% lower than May 2008.
Negative Equity
One homeowner in ten fell into negative equity during the first three months of the year, the highest proportion for 15 years, the Bank estimated that between 7 and 11 per cent of homeowners with a motgage owned more to their lender than their property was worth, the equivalent of 700000 to 1.1 million householders.
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