Developers target wealthy nonresident Indians
Residential developments in Delhi are targeting investors among the more than 25 million people around the world who are nonresident Indians or who qualify as Persons of Indian Origin, an official government designation.
According to a recent study by India’s Associated Chambers of Commerce and Industry, residential property values have increased by 25 to 40 percent in the last five years. Analysts predict property values will continue to increase by 33 percent a year over the next five years.
Foreigners cannot buy land in India without permission from the Reserve Bank of India. But the government places no restrictions on purchases by individuals the government categorizes as Nonresident Indians or as Persons of Indian Origin, the International Herald Tribune reported.
Local developer Oxame is building several residential complexes including Forest, a complex with 105 units, and the Nonresident Indian City development.
London office market frenzy results in record tower sale
The recent sale of the London office tower known as the Gherkin set a record for the city’s main financial district.
The 41-story building was bought by IVG Immobilien AG and Evans Randall Investment Management Ltd. for $1.2 billion. The tower’s previous owner, Swiss Reinsurance Co., will be the primary tenant, Bloomberg reported. The Gherkin was designed by Sir Norman Foster and opened in 2004.
London’s office market is experiencing an influx of private and global investment, market analysts say. Evans Randall, an investment bank, bought more than 2 billion euros’ worth of property in the past 18 months, including Financial Services Authority’s headquarters in Canary Wharf and HBOS PLC’s headquarters on Old Broad Street. According to Investment Property Forum, office properties will generate annualized returns of at least 10 percent in the next three years.
Shortage of space is also pushing up office rents in London because of job growth. Analysts predict rents for prime office space in London are expected to rise to $169 a square foot by 2014. According to commercial brokerage Cushman & Wakefield, parts of London remain the world’s most expensive office market at $241 a square foot per year.
New EU member Bulgaria anticipates boom
Bulgaria recently joined the European Union, which analysts say is boosting confidence in the country’s real estate market.
Bulgaria has some of the lowest property prices in the EU. According to the National Statistical Institute, a 350-square-foot apartment in Bulgaria’s capital Sofia would sell for $62,608, or around $178 a square foot.
Brokers say demand for housing is picking up because residents are upgrading their homes and foreign investors are now confident in the financial status of the country. Foreign investment in the fourth quarter of 2006 rose 24 percent over the same period in the previous year, the International Herald Tribune reported.
Developers, investors set eyes on Mexican coasts
Spain is conquering the hotel and second-home market in Mexico. A number of Spanish developers are building large-scale residential and hotel developments in Mexico. According to a Mexican development agency, Spain is now its leading investor in tourist-related hotel and housing development.
Spanish developer Obrasc n Huarte Lain is building a mixed-use development on Cancun’s coast. The first phase opened last year and includes several luxury hotels and residential villas on 100 acres. Other Spanish developers including Fadesa, Grupo Mall and Grupo Lar are moving into the Mexican market, the International Herald Tribune reported.
According to Mexican government statistics, Americans are buying 10,000 homes a year in Mexico. That number is expected to double in the next five years.