International Housing / Property Market

International Real Estate MarketWisdom is a shelter as money is a shelter is as popular today as the phrase “safe as a house” because the real estate or property is a matter for security and certitude. Owning a home and also as an investment may be the wisest move any discerning investor might ever make.
Apart from Amsterdam, London is one of the most expensive cities in the world to construct a house, currency fluctuations, increasing demand for houses and commodity prices are the chief major causes of this condition.
In another development, house prices in London has however continued to fall according to our partners the Royal Institute of Chattered Surveyors, (RICS) the situation has persisted since late November, 2014 up to February, 2015. Based on reports on prices the nays seem to be having a field day than the ayes used to have it.
Moreover, this is not the same in places like Northern Ireland and Scotland where the direction has been upwards for investor’s, owners or the landed class and their employees.
This drop in prices cannot be too far from the shortage in the housing supply like in other places or cases in some European countries, with supply not enough being the scenario. Some say the coming election may delay sales for sellers who may wish to put their homes or property for sale. On the flip side international students, workers, small investors or star talents, London might be more affordable now, than four-to-five months ago. By and large speculations are rather more tended towards a 30% rise over the next 5 years in terms of capital value (CV) for the city of London.
In Germany prices of apartment buildings in Berlin are up by 11.7% in 2014 according to falkenberg sources.
After the recession of 2007/08/09 Spain which was one of the worst hit nations, Spain now is on a rise for the first time; property prices have moved 0.5% up in value.
The commercial property sector in Spain is gaining strength; this is as a result of the lack of top quality premises which has continued to push realizable yields down as prime yields last year moved 100 basis points. CBD office yields in Madrid are down from 5% to 4 – 4.5% for prime location properties.
Last year strong investment volumes were quite obvious in Spain’s office market with € 2.8bn transactions recorded representing 3 times as much as the €900m experienced in 2013. 60% of investment in this sector was made in Madrid, 30% in Barcelona and 10% in other locations.
Madrid ‘s mature market accounted for €1.65bn but the lack of good quality stock is putting pressure on yields, says Luis Espadas, Director of investment at Savills, Spain.
SOCIMI the Spanish equivalent to REITS have 27% of total capital in commercial property in 2014 and 76% of that investment was for offices. Predictions are that more Latin American investors will be capitalizing on this opportunity in the Spanish office market, rent per sqm  is €25.50 and could reach €28 per sqm during the year 2015.
Low mortgage rates are accelerating growth to contribute further to the factors that are making property investments favorable in Spain.
For international investors and enthusiast you can buy (a) land for as low as N 1m ($5023.86) in some place in Lekki for starters or business/investment interest and maybe less in the outskirts , also in Lekki in places like  Ajah , a plot of land is going for  9m.
A very neat 5 bedroom detached duplex in Opic area, Isheri North, Lagos is selling for N50m (asking)/ $251193.16. A newly built luxury 5 bedroom terraced duplex in Victoria Island, Oniru is going for N4,500,000 P.a. ($22,607.38). A service office space in Victoria Island and Ikoyi is going N80 per sqm.
In Port- Harcourt a newly furnished 3 bedroom flat at East-West road is up for grabs for N 500,000 only/ P.a. ($2,511.93). A 3 bedroom, 2 bedrooms flat with all rooms en suite plus guest convenience is for lease at let 1.5m/pa.($7,536.79)
A 3 bedroom bungalow in prince and princess estate Gaduwa is for sale at N30m and a 5 bedroom detached house at Lugbe, Airport road is on offer for €245,000.
In Kaduna a fenced plot of land (residential) at Barnawa GRA Extension, Kaduna south (with land size 800m2) is for sale for N 8m/$40190.91.
A plot of land at Goni-gora with size 100×30 is going for sale at N300-900, 000 (51507.16-4521.48) in the upcoming middle class new settlements.
A parcel of land (2000m2/ industrial) at Kachia road before command junction, Kaduna South, value is placed at N50m/$251193.16
Also a good investment property for investors is a typical residential premises comprising of 2No. 2 bedrooms flat, 3No. 1 bedroom flat in a fenced compound at Mountain road, Kudende Extension on 3 plots (100×50) of land going for N5.5m/$27631.25) yield for this investment command a net income of about N500,000/P.a. ($2913.84)  representing about 10-11% of the rate of return to  investment.
A 5 bedroom duplex with 2 bedroom guest chalet 4 rooms BQ/S.Contain, ample parking Space at Barnawa, Nyerere Street, Kaduna – South is on lease for N1.8m ($9042.95) suitable for residential or commercial corporate office purposes.
Source: Mr Oluwafemi Amujo – kyookumber@gmail.com

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