News

Hungary Loses Whole Village to Red Sludge

Steph Engall — 08/10/2010 09:06:00

A village inundated with "red sludge" has been declared a write-off by Hungary's Prime Minister as fears grow about permanent ecological damage...

After visiting some of the villages hit by the "red sludge" in Hungary this week, Prime Minister Viktor Orban has declared that he sees "no sense" in attempting to renovate the many houses made uninhabitable by the poisonous chemicals.

The disaster happened on Monday when a reservoir burst at an alumina factory in Western Hungary, spilling thick red sludge in a poisonous torrent that has claimed several lives and injuring hundreds of people.

Local government officials said that 5% to 10% of the 800 or so houses in the village of Kolontar were so badly damaged that it would not be possible to refurbish them. Residents in the villages are demanding compensation, claiming that all real estate there is now effectively worthless.

Speaking to CBC News, one - clearly furious - resident said: "The whole settlement should be bulldozed into the ground! There's no point for anyone to go back home."

The damage caused by the chemicals is spreading and it seems inevitable that the sludge will hit the Danube some time late this weekend. Around 1 million cubic waste has been released, with up to 6 villages affected in the area, which is around 160km south west of Budapest.

Scott Cardiff of Earthworks said of the sludge: "It's incredibly corrosive. These red sludges are very dangerous for humans and for the ecosystems. We expect contamination through the sediment of the waterways, but also contamination with heavy metals such as lead and possibly cadmium."

It could take a year or more for the clean up operation to be complete, but a lot, lot longer for the damage to fully repair.

Europe facing commercial property timebomb

Catherine Deshayes — 19/03/2010 11:13:00

Europe faces a commercial property debt problem with almost €1 trillion (£896bn) outstanding from the sector and a quarter of that potentially distressed.

The UK accounts for 34pc of the €970bn total, with Germany second with 24pc, new research shows. The scale of commercial property debt in the UK, and the precarious nature of much of it, has been flagged by the Bank of England and the Financial Services Authority as a threat to the recovery of the economy and the banks, but the report by CBRE highlights that it is an issue for most of Europe.

According to the property agent, €207bn of the debt is secured at high loan-to-value ratios on poor quality real estate, and is therefore most at risk of not being repaid. Of this, €89bn, or 43pc, is from the UK, and €69bn from Germany.

Also, the debt is maturing at a rate of €155bn a year, meaning almost half will have matured by the end of 2012.

There are concerns about the repercussions of the outstanding debt following sharp falls in commercial property values since 2007, which has put pressure on loan-to-value covenants and eroded equity. Tenant failures and declining rents have also affected income for property owners.

Natale Giostra, head of UK debt advisory at CBRE Real Estate Finance, said: "Germany and the UK saw some of the highest levels of gearing at the top of the market in 2006-07 and so are likely to have a higher proportion of problem debt arising from highly geared loans."

What banks do with distressed property assets on their balance sheets is the key topic of discussion at the annual Mipim property conference in Cannes.

Dennis Watson, managing director of property and project finance at Barclays Corporate, has said the banks are likely to increasingly turn to joint venture and asset management agreements with property companies to nurse their assets back to health.

One leading agent in Cannes with knowledge of the loanbooks of Royal Bank of Scotland and Lloyds stressed they had major exposure to secondary offices and shopping centres outside London - an area where demand from buyers remains weak - meaning widespread asset sales would be difficult.

Robin Hubbard, executive director of CBRE Real Estate Finance, said banks could take 10 years to unwind their exposure to distressed commercial property.

www.telegraph.co.uk

Hungary: worth a gamble?

Catherine Deshayes — 06/07/2009 12:21:00

Hungary is set to be propelled onto the world stage with news that Hard Rock International has plans to build Europe's largest casino and hotel development there - signaling another positive step for the country, which is hopeful of joining the Eurozone within the next few years...

The American giant, Hard Rock International, owners of the famous Hard Rock Café chain, is serious about branching out into Hungary - they have already purchased the land, close to the Austrian and Slovakian border.

With a view to making Hungary the unlikely gambling capital of Europe, the company plans to inject a whopping £4.3 billion into the ‘Hard Rock Hotel and Casino Hungary' project and completion is scheduled for 2012.

The Las Vegas- style complex will be built in the town of Bezenye, 160 kilometers from Budapest, capital of Hungary, and 80 kilometers from Vienna, capital of Austria.

With millions of people expected to pour into London for the 2012 Olympics, Hungary is hoping to benefit from higher than ever tourist numbers entering Europe.

Hard Rock International has already obtained permission from the Hungarian Government to operate up to five casinos, with an unlimited number of gaming tables, for at least twenty years.

This injection of foreign money and glamour is expected to put Hungary firmly on the map, attracting visitors and helping to progress the country's Eurozone bid.

Interest from international property investors is also expected to pick up, as they see the potential of buy to lets, benefiting from a strong rental return from increased visitor numbers.

Hard Rock Chairman Jim Allen expected the gambling centre to yield revenues totalling £1.7 billion in 10 years.

Picture by kyz

And the world's best building is...

Catherine Deshayes — 27/10/2008 12:38:00

The first ever World Building of the Year Award winner has been announced, beating off more than 700 other entries from 63 countries...

You may well wonder what a Spanish rubbish dump, the Royal Danish Yacht Club and a Japanese Dental Clinic have in common.

I'll put you out of your misery- they were all shortlisted for the first ever World Building of the Year Award, which celebrates architectural prowess.

Entries consisted of buildings that were new, restored, rehabilitated or converted and completed between January 1st, 2007 and June 20th, 2008.

Paul Finch, Editor of The Architectural Review and Programme Director of the World Architecture Festival (WAF) Awards, said that the most significant building in the world in any given year was not necessarily one of the most high-profile.

"It could be that a primary school in Glasgow or a small church in Peru is actually the building doing most to alter the way we think about the building type," he said.

In the end, Dublin based Grafton Architects' new faculty building at Milan's Luigi Bocconi Free University grabbed gold at the awards in Barcelona.

The University dates back from 1902 and has grown in the past 100 years from a privately funded institution to an international university for business, economics and law.

The campus now comprises an entire neighbourhood within a residential and commercial district.

The winning faculty building contains new conference and lecture rooms, auditorium and research offices for 1000 professors and postgraduate students.

Pic: Bocconi Free University's new faculty building

The 722 entries were split into different categories according to the building's purpose, ranging from learning, civic, culture, shopping, sport and pleasure. The winning building fell into the ‘learning' category.

Each of the categories chose a winner, and then the overall winner was deemed the ‘World's Best Building for 2008.'

The aforementioned Spanish rubbish dump, (which had been transformed into a green terraced agricultural landscape) won the Energy, Waste and Recycling category.

The judging panel, which was headed up by Robert Stern, who replaced Sir Norman Foster at the last minute after one of his designs made it to the final, was looking for ‘architecture that thought about complex issues in an imaginative way.'

The ‘totally 3D' building was chosen as the overall winner as it ‘fitted within the urban landscape but still stood out.'

Mr Stern said, "The use of space, light and local materials captured the essence of the city and the desire of the university to be connected with its surroundings.

"We were impressed by the building's physical and conceptual density," he added.

The new faculty building will have its official opening later this week.

Picture by pontuse

Stop searching! New SEO service is here!

Catherine Deshayes — 27/10/2008 11:19:00

Now is the time to get your website ready for the New Year revival, with TheMoveChannel.com offering an SEO service designed to help you plan and implement the right strategy to attract more buyers when the market bounces...

We all know that things are quiet right now and it's tough to justify dipping into the pockets to spend money.

But once Christmas is out of the way, interest levels will surge - they always do.

The chart above shows search volume trends for property terms over the last three years.

It's clear that the overseas property market is highly seasonal and tails off during the final quarter, with activity jumping sharply as January gets out of the way.

Act Now or Miss Out

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For a fixed fee of £2950, we will conduct a 5-stage Review plan, which covers the following:

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This would lead to a series of recommendations and an SEO Implementation Plan, which covers:

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At this point, you can then either commission us to put the plan into action, or implement it internally.

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Hungarian govt submits new legislation to help loan debtors

admin — 15/06/2011 07:40:00

National Economy Minister György Matolcsy submitted to Parliament a raft of legislation that aims to help Hungarians with foreign currency-denominated mortgage loans.

The bill fixes the exchange rates on repayments for borrowers that avail of the program for a period of 36 months but no longer than the end of 2014.

The rate for Swiss franc-denominated loans ─ once the most popular retail lending product in Hungary ─ is set at HUF 180 to the franc. The rate for euro-denominated loans is set at HUF 250 to the euro, and the rate for yen-based loans is set at HUF 200 to 100 yen under the bill.

The balance resulting from the difference between the fixed rate and the market exchange rate will be put on a special forint account. The interest rate on the account is to be pegged to the three-month BUBOR.

Source: BBJ.hu

Hungary: Parliament votes for new constitution

admin — 20/04/2011 07:23:00

Two of the three opposition parties walked out of parliament before the vote.

They accuse the governing Fidesz party of imposing divisive right-wing ideology on the country.

The votes - 262 in favour to 44 against with one abstention - reflect the two-thirds majority enjoyed by Fidesz.

A storm of applause erupted from the benches of the governing party, followed by the Hungarian national anthem, once the result was declared.

Source: BBC News Europe

European distressed property to rise in 2011

admin — 14/03/2011 11:03:00

The expected supply of available distressed property is expected to rise more quickly in Europe than any other world region in the first quarter of 2011, and notably in Ireland, Hungary, Germany and the UK, finds the Q4 2010 RICS Global Distressed Property Monitor.

The survey for Q4 suggests a small fall in the level of specialist funds interest in distressed property, down from 21 countries in Q3 to 18 in Q4 2010, and a rise in distressed properties coming to market. This trend looks set to continue into Q1 2011, with property professionals in 64 percent of countries covered reporting an expected increase in distressed property coming to market in the coming 3 months.

In Q4 2010, agents in 15 countries reported a rise in levels of distressed property as compared to 13 in Q3; Australia and Germany saw the most notable up-ticks. Looking ahead to Q1 2011, distressed property listings are expected to rise at a faster pace in 40 percent of the countries covered. Agents in the Republic of Ireland, Hungary, the UK and Germany expect the biggest increases in distressed listings, while agents in Australia and Portugal are also expecting higher levels of activity. Agents in Russia and Brazil, however, expect to continue to see declines.

In Q4 2010, the Ukraine experienced the most dramatic fall in the pace of investor interest, while interest rose in the Republic of Ireland, UAE and Spain. France saw the largest rise in investor interest overall, however, with net balance percents moving from 0 in Q3 2010, to +25 for this quarter.

Commenting on the survey, Simon Rubinsohn, RICS Chief Economist said: “The prospect of more distressed property in real estate markets that are still under severe pressure will inevitably compound the squeeze on pricing. However, in those parts of the world where commercial property is enjoying more of a recovery, the prospect of further distressed assets will have only a very limited impact.

"Significantly, according to our survey the level of distress expected to come to the market in Brazil, Russia and China is set to drop from what already were modest figures."

Source: Property Magazine

European property market picking up, says RICS report

admin — 02/03/2011 12:54:00

The majority of Europe’s residential property markets are undergoing recovery, though some are in dire straits still, while others are positively booming, according to a new report.

Hot north, cold south is the simple geographic description of Europe’s housing markets with the Nordic countries, Germany and its southern neighbours, France and Belgium all experiencing rises in real house prices in 2010, the new European Housing Review 2011 from the Royal Institution of Chartered Surveyors shows. Ireland, Hungary and Cyprus experienced falls while Spain, Greece and Portugal saw moderate falls despite their economic difficulties. Prices were slightly down in the UK, Netherlands, Poland and Italy and the Baltic States were recovering from their major crashes.

Unlike previous housing market upswings, prices increases are leading other market indicators, such as transactions and house building but mortgage constraints are affecting many markets. But interest rates are low and there is little evidence of substantial mortgage debt deleveraging by households in countries with high levels of mortgage debt.

The report also says that house building is down all across Europe and is severely lagging recovery in most places. According to the report’s author, Michael Ball, Professor of Urban and Property Economics in the School of Real Estate and Planning, University of Reading, it does not look as though Europe as a whole is following the USA into many years of housing market mire.

‘But, all the same, there are worrying aspects to the recovery. Perhaps that is unsurprising given the scale of the financial crisis and the more European specific sovereign wealth crisis that followed. Nevertheless, there are several distinctive issues over and above the normal uncertainties that surround the initial phase of an upturn,’ he said.

Source: Property Wire

Euro industrial property landlord posts healthy value gain

admin — 25/02/2011 11:36:00

European industrial landlord Segro posted a 2.5 percent rise in ful l-year net asset value, and said it would exit Spain and Hungary to focus on its stronger core markets including the UK, France and Germany.

The company posted EPRA NAV per share of 376 pence in the year to end-December 2010, up from 367 pence a year ago, while its net rental income increased 4.7 percent to 282.1 million pounds in the period, Segro said in a statement on Thursday.

'Spain and Hungary are relatively small investments for us, and the economics are not encouraging for us to put more into those markets,' said CEO Ian Coull, adding Segro's focus on the continent will be in Germany, France, Poland and Benelux.

At 0800 GMT, Segro's shares opened up 1.5 percent to 326.8 pence each, ahead of the 0.3 percent fall in the broader UK property stocks index. Segro, which has a portfolio worth 5.3 billion pounds, said it cut its group vacancy to 12 percent, from 13.5 percent a year ago, and proposed a final dividend of 9.6 pence per share for a total 2010 dividend of 14.3 pence, up 2.1 percent on 2009.

Source: London South East

1 in 6 European homes are overcrowded

admin — 24/02/2011 12:37:00

One in six Europeans is forced to live in an overcrowded home, ranging from one percent of the population in Cyprus to 58 percent in Latvia, according to the EU's statistics agency, Eurostat.

The report, published on Wednesday (23 February) and based on 2009 data, also shows a considerable variation between member states regarding problems of damp, darkness or the availability of sanitary equipment in European homes.

Many Europeans also said they suffered from a leaking roof (Photo: psyberartist) * Print * Comment article "Housing deprivation is one of the most extreme examples of poverty and social exclusion in society today," declares the document. "Although access to affordable accommodation is a fundamental need and right, guaranteeing this right still represents a significant challenge in several member states."

Eurostat defines a person as living in an overcrowded home if the building does not contain one room per individual. One room per couple or two same-sex children is also considered acceptable.

At the lower end of the scale in 2009 were Cyprus with one percent of the population living in overcrowded dwellings, two percent in the Netherlands, three percent in Spain and four percent in Ireland, Belgium and Malta. At the other end, 58 percent of Latvian citizens were estimated to suffer from overcrowded homes, 55 percent in Romania and Hungary, 49 percent in Poland and Lithuania and 47 percent in Bulgaria, all former Communist countries which joined the EU in 2004 or later.

Source: EU Observer

Hungary on ‘slow road to recovery'

Catherine Deshayes — 22/06/2010 15:42:00

The commercial real estate market in Hungary has reached the bottom of the cycle but recovery is expected to be long and slow, according to analysts...

Improvement can be expected in 2011 with the industrial sector leading the way followed by the office market and then the retail sector, a new report from consultants King Sturge International says.

The high vacancy rate in the office market, some 25% in speculative buildings, will decline in 2011 largely because of a drastic decline of new delivery, the report says. This will allow the market to slowly absorb the available space in the next two years, bringing vacancy rate down to 16% by the end of 2012.

A more optimistic scenario may see the vacancy drop to 10%, but that assumes a faultless economic reform and bumper global economic growth. Some sub-markets such as CBD and Váci út corridor, will recover faster, but the further away from the downtown, the longer it will take to see a significant reduction in vacancies.

The major change created by the 2008/2009 crisis is that new developments will have to be pre-leased from 30% to 50% before construction can start, which historically rarely happened in the Budapest office market, the report points out.

The industrial real estate market was faster to adjust to the new economic difficulties. Developers stopped all speculative developments and currently only one warehouse is under construction on a Built-to-Suit (BTS) basis. Vacancy is high at 19.4%. ‘The market is still suffering from the Rynart bankruptcy which saw vacancies jump from 9% to 17% in 2008,' the report says.

King Sturge believes that from an occupational perspective, the industrial sector will be the first to emerge from the crisis. ‘The Western Europe recovery will support Hungarian exports. In addition, the weak Forint and the excellent road network make Hungary an attractive logistics location. This will contribute to recovering demand for warehouse space,' the report says.

The retail sector entered the crisis on a more solid footing than the other real estate sectors. Shopping centres are practically never built on a speculative basis and vacancy was always low. However, retailers are suffering greatly from declining consumption and high unemployment. King Sturge does not see any immediate improvements in these two factors.

The report points out that the government reform package will take time to generate jobs and increase Hungarian purchasing power with sectors such as the civil service facing pay cuts of 15%.

‘We are at the bottom of a long cycle, one that since 1992 has seen the emergence of a modern real estate sector. Supply and demand were growing year on year and even if rents were declining, yields were compressing. The global recession ended this cycle,' the report explains.

‘Historically, all major European cities have experienced the same boom and bust and all have recovered. Budapest is facing its first serious crisis and it will recover, albeit slowly. But in every crisis there are opportunities. Tenants who are planning for growth can secure advantageous lease terms,' it says.

‘Developments will have to be considered more carefully, with a better understanding of real market demand and not simply the volume of activity,' it adds.

Source: http://www.propertywire.com/

Hungary for more

Catherine Deshayes — 28/10/2009 11:06:00

The worst of the Hungary property market downturn is now over, according to Ecostat's Real Estate Barometer - the gauge shows that the latest measure of sentiment on the Hungarian property market measured 35.4% in Q3 2009, up 1.54% quarter-on-quarter, the first quarterly rise recorded this year...

The Hungarian real estate sector has endured a torrid time over the past few years, with prices plummeting across the country, as the Hungarian economy struggled to cope with the global economic downturn.

However, the worst of the Hungarian property downturn is now over, according to Pal Belyo, head of Ecostat, who projects that Hungary's property market will stagnate over the next six months.

The Ecostat retail index increased by 6.35% to 41.4% in the third quarter, suggesting that the number of Hungarian homes sold will increase moderately over the coming months.

The research also shows that demand is currently greatest for homes measuring around 50sqm.

Although property values have fallen, Belyo says that average rental prices have increased 10% over the past three years, making Hungary a more attractive investment proposition for international buy to let property investors.

Source: www.homesoverseas.co.uk/news

Eastern Europe: A retail property Mecca?

Jaimie Kanwar — 27/02/2009 12:17:00

Current economic events provide both high risks and potentially high rewards for investors in the Central and Eastern European property market, claims one expert...

According to Patrick Young, Chairman of Projekt Vistula, the retail explosion in Eastern Europe during the past two decades has been considerable but there remain significant opportunities for judicious investment.

Judicious is of course the key factor. Simply piling into capitals whether it is Budapest, Moscow, Riga, Warsaw or any point thereabouts has proven an expensive option in recent years. Nevertheless, yields are rising as capital values have fallen, so opportunities will re-emerge.

Infrastructure improving

However, the biggest opportunities currently can be found in second and third tier cities. Road infrastructure is improving in many countries. For instance, the expansion of the Polish motorway system joining north and south and east and west by 2012/2013 will revolutionise traffic movement.

This will have a huge impact on logistics, permitting much cheaper and easier transportation across not merely Poland but in fact all the way through much of CEE and farther east from the EU (and vice versa). Moreover, the opportunity to drive intercity distances of 100-300 kms much more easily will be a huge fillip to the retail emporia themselves.

In that respect, investment in retail property in secondary or tertiary cities will be an interesting option - particularly if property prices continue to sag in much of eastern Europe.

Outside the EU, even in major cities, retail opportunities can be highly significant in coutnries such as Belarus or Serbia for instance.

Domino effect

However, often retailers are nervous about supply chains and existing product distribution arrangements which they feel may be anti-competitive to their expansion into these countries.

This may impact upon investment decisions although in many of these countries, property prices are relatively low and indeed existing retail operations make the market ripe for new entrants.

At yields around 15% developers/buyers are probably interested, presuming they can find the finance. Another difficulty right now is the instability in currency rates and the general panic in western markets about an eastern European domino effect.

Ultimately, the western media love the "wild east" tag but right now the opportunity to find great deals is coming closer in many parts of the CEE/SEE retail market.

Source: www.glgroup.com

International mortgage boost

Jaimie Kanwar — 11/02/2009 10:57:00

International mortgage lenders are set to increase their levels of mortgage lending during 2009...

According to The International Mortgage Outlook 2009, a survey involving 20 of Europe's most active mortgage companies, lenders expect to see a recovery in the sterling/euro exchange rate in the near future. This will reduce the sterling cost of overseas property at a time when interest rates are also predicted to hit historic lows.

The key findings of the International Mortgage Outlook 2009 include:

- 80% of lenders surveyed expect to maintain if not increase non-resident lending in 2009 90% of lenders expect to maintain if not increase the number of products available in 2009

-78% of lenders expect the £/€ exchange rate to be at 1.20 or above by the end of 2009

Fiona Watts, Managing Director of International Private Finance who carried out the research, says, "With interest rates falling, expectations that the sterling exchange rate with the euro will improve and a strong appetite for lending from the major overseas lenders, the outlook for 2009 is far more positive here in the UK."

Source: www.investmentinternational.com

Savills going Hungary

Catherine Deshayes — 19/12/2008 09:34:00

Savills has closed its office in Hungary in response to the deteriorating central and eastern European market...

The office in Budapest was opened in 2006 in response to demand from Savills's German and Irish clients but the firm decided to close the office in favour of servicing the needs of these clients from its other offices in Europe.

A Spokeswoman said, ‘The operation, which opened in 2006, was an investment led business and Savills has taken the decision to continue to service clients in this area through its central and eastern European offices, particularly Poland, as well as its London-based cross border investment team.'

It is also understood that Savills's Head of Hungary Peter Chatfield, who was in charge of a team of about five staff, has left the company.

Hungary's property market, like its neighbouring countries, has suffered as a result of the global economic downturn and tight availability of credit.

According to Cushman & Wakefield research, prime office investment yields, for example, moved out by 25 basis points to 6.25 per cent, at the end of the last quarter.

The firm predicted subdued occupier activity in 2009 coinciding with rising vacancy rates because of a glut of speculative development in the country.

Cushman & Wakefield also said investment volumes would remain low pushing yields further out.

Source: www.propertyweek.com

Budapest project on scrapheap?

Catherine Deshayes — 12/12/2008 09:28:00

A major residential and commercial project on Csepel Island in central Budapest could be scrapped, following the collapse of Spanish developer Martinsa Fadesa earlier this year, according to Interfax CE...

The firm purchased the 82-ha site three year ago, since when little building work has taken place. According to Budapest councillors, negotiations are currently taking place with the developer over the future of the project.

Various reports in Spain over the weekend have brought attention to accounting irregularities at Martinsa-Fadesa before it was forced to seek protection from its creditors back in July.

The administrators' report values Martinsa-Fadesa's assets at £6.4 billion, 32 per cent less than a previous valuation by CB Richard Ellis.

Source: www.homesoverseas.co.uk/news

Investors not hungry for Hungary

Catherine Deshayes — 08/12/2008 10:22:00

Only 500 homes in Hungary were sold to foreigners between January and November of this year, compared to around 5,000 residential units for the whole of last year, according to Hungary's National Statistics Office and property firm Forest Hill-Neo City...

Director of Forest Hill-Neo City, Balazs Szili, told news agency MTI, "The full-year figure for 2008 is unlikely to change much as few foreigners buy homes in December."

Hungary's residential market has prospered from the country's positive transformation. Average prices appreciated by around 50 per cent between 2003 and 2007, according to developer Otthon Centrum.

However, short-term prospects for further capital growth look rather sluggish at the moment, due to a number of socio-economic problems, connected to the dismantling of the communist system.

Hungary wants to give up its national currency and adopt the euro currency. However, the country's plans to join the eurozone may be postponed, due to ongoing economic concerns.

Hungary has named 2010 as a target date for taking on the euro, however, a glance at the Maastricht criterion on debt, would suggest that Hungary may not be able to adopt the euro in time. In fact, Hungary's economic growth is one of the lowest in Central Eastern Europe.

Source: www.homesoverseas.co.uk

Global phenomenon

Catherine Deshayes — 11/11/2008 10:45:00

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

New property sites launched

Catherine Deshayes — 10/10/2008 09:49:00

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Budapest - Live the Dream

Jude Buttle — 15/09/2008 12:06:00

Have you feared that your dream of living in or owning property in a fashionable European capital city would be too expensive? Well think again.

Saint Stephen's Basilica

A Tale of Two Cities

If you have ever dreamt of living the high life, owning property in a historic yet fashionable European capital city, then look no further than beautiful Budapest, a mesmerizing place, full of wonder and charm. But better still, surprisingly affordable.

Hungary's capital city is divided into two halves (Buda and Pest) straddling the River Danube. It became a single city with the amalgamation on 17 November 1873 of three towns, Buda, on the West bank of the Danube, Pest to the East, and Obuda (Old Buda) to the North West.

A Turkish Delight

Widely regarded as one of the most striking cities in the world, Budapest is considered an important Central European hub for business, culture and tourism and attracts over 20 million tourists a year, making it one of the more visited destinations in Europe.

Its World Heritage Sites include the banks of the Danube, the Buda Castle Quarter, Andrássy Avenue and the Millennium Underground railway, the first of its kind in mainland Europe.

The Ottoman Empire brought bathhouses and mosques to the city in the 16^th century, although little of the original Turkish architecture remains today, but as wellness and spa healing became more popular, Budapest built a reputation as the City of Spas with its thermal baths a unique feature.

A Roman influence is visible in Obuda, where the ruins of an amphitheatre still stand and most recently the affect of the Austro-Hungarian Empire has contributed in giving Budapest a distinct and opulent, east meets west style.

Where the Price is Right

Like many countries, the first big boom in property prices has passed, but Hungarian properties are still undervalued compared to other European countries.

Average prices in Budapest are a fifth of those in London, a quarter of Paris, a third of neighbouring Vienna (which is less than 3 hours away by train) and about half that of Madrid and Barcelona.

This makes Budapest truly amazing as a city that quite rightly stands direct comparison with Paris and Vienna, but is also an affordable place to purchase property.

Many first time visitors to the city are surprised by the sheer splendour of Budapest and instantly fall in love with the place, which soon turns into long term respect and admiration when they discover that the spacious inner city apartments they could only dream of affording in other European capitals are in fact well within their budget.

Full of Eastern Promise

With numerous investors currently enamoured with Sofia and Bucharest, many who have seen and bought into the splendours of Budapest are surprised that the city is being largely overlooked.

The Romanian economy is still coming to grips with the challenges of an open market, while parts of Bulgaria are on the verge of property oversupply.

Compare this to Hungary: a stable economy, low unemployment, a highly educated workforce, the imminent arrival of the Euro in around 2011 and the government attracting more foreign direct investment (FDI) per capita than any other Central and East European country. Surely there's only one winner.

Conclusion

So, this seductive city, known fondly as the ‘Paris of the East,' with its warm spas, wonderful vistas and affordable apartments; can truly claim to be... an undervalued gem.

Search for property in Hungary

If you are looking for Property for sale in Budapest, such as villas, apartments or other types of real estate, why not check out TheMoveChannel.com Hungary, which has a large number of listings from Hungarian estate agents and developers selling properties in the area: http://hungary.themovechannel.com/

Photo by mdid

So what’s hot in Hungary these days?

Jaimie Kanwar — 22/07/2008 09:05:00

CE Invest has revealed the best places to buy property in Hungary.

Andras Patkai of CE Invest, explained: “The most popular areas of Hungary to buy in at the moment are districts 3 and 11 along the Danube in Buda, as well as District 21 on Csepel Island, where there are 2-bed, 3-bed apartments available in new-built projects close to well-kept public parks, and the Danube.

"Key attractions are the planned conversion of Lajos utca into a pedestrian street in District 3, as well as the major park rehabilitation at Lagymanyosi Bridge (Kopaszi gat) in District 11.

"Those who cannot afford such a high price tag, but prefer to stay within reach of the inner city, can choose from the new developments in the southern urban regeneration districts of inner Pest, namely districts 8 and 9. The greener environment and excellent transport access make the new housing developments around Nepliget Park in the eastern District 10 especially popular among young couples and students.

Ongoing infrastructure developments

Mr Patkai added: “Those who buy apartments in this part of the capital city are making a good investment because of the ongoing major infrastructural developments which enhance the importance of the newly formed office corridor along the main roads.

“Another area set to achieve significant price increases is Northern Buda, where the new bridge over the Danube of the M0 motorway ring is scheduled to be completed in August 2008.

This bridge and new motorway will significantly modify the transit traffic in and around the capital, resulting in new commercial opportunities in the immediate area, as well as better accessibility on both sides of the river, a great relief for commuters and higher real estate prices in the green belts”

Budapest braced for big changes?

Jaimie Kanwar — 19/06/2008 00:00:00

Hungary’s Capital is in the throes of Europe’s biggest makeover, providing unique opportunities for overseas investors, in particular District VIII also known as Józsefváros (Joseph’s Town)….

Józsefváros, a centrally located district known for being culturally diverse with high Jewish and Roma (gypsy) populations, has pockets which have remained untouched since they were built in the early 1900s. The District has side streets where 60% of the apartments are smaller than 17m², where 80% have neither an indoor bathroom nor indoor toilet and where high unemployment exacerbated by the fall Communism has led to decline and disrepair.

As early as the 1960s the need for regeneration was recognized, but it wasn’t until 1997 that the city government and local authorities joined together to coordinate the regeneration with the then-called ‘Corvin-Szigony’ project as the centrepiece.

Fresh and unpolluted

Adam Godwin, Marketing Director of Dream Homes WorldWide comments: “The focal point of Corvin-Sétány is a pedestrian Promenade which will be the widest in Budapest and connect the popular Corvin cinema with Orczy Park, one of the largest gardens in Budapest with over 100 species of trees.

“This Promenade is set to have a Parisian vibe with salubrious bars, shops, offices, hotels, entertainment, restaurants and a 1,500m² Wellness Centre with gymnasium, swimming pool and beauty salon. Traffic will be redirected underground into 5,000 new parking spaces leaving the air fresh and unpolluted.

“Investors who participate early in this ground-breaking urban rehabilitation will be rewarded in years to come as District VIII is put back on the map, but this time for the right reasons.”

Europe’s biggest project

100 billion forints (405 million euros) have been set aside to breathe new life into this 4million m² area making it Budapest’s, and indeed Central Europe’s, biggest regeneration project.

Of the 2,500 apartments within the project zone, 1,100 may have miraculously survived two wars but are beyond repair and have or will be bulldozed whilst the remaining 1,400 are to be renovated – all of this by 2010.

Budapest’s new Metro 4 underground route began construction in 2006 and the first section is expected to be ready in 2009.

ECB slams ‘oil shock’ mistakes

Jaimie Kanwar — 20/05/2008 00:00:00

The head of ECB has warned that the global financial crisis is far from over…

ECB President Jean-Claude Trichet compared the current problems with the oil crisis of the mid-1970s and suggested that if central banks allow inflation to run out of control it could lead to mass unemployment.

He said: "These are demanding times, challenging times. We have this accumulation of the oil shock and the food and agro-products shock. Banks must take care not to trigger the second-round effects of spiralling inflation and unemployment.

"In the first oil shock, we took the wrong decisions and embarked on second-round effects and tried a high level of inflation for a long period of time. We created by our own absence of lucidity mass unemployment in Europe, when before 1974 we had no mass unemployment.

"Price stability, and credibility in price stability, in the medium term, is the best way to have a high level of sustainable growth and sustainable job creation."

Top of the Props – April 2008

Jaimie Kanwar — 09/05/2008 00:00:00

Interest in the United Arab Emirates from visitors to TheMoveChannel.com has soared over the last month, with the progressive Federation breaking into the top ten of our ‘Top of the Props’ chart for the first time…

Never content to rest on its laurels, the UAE’s defining characteristic seems to be its unshakeable quest for continuous improvement – something that has underpinned the success of States like Dubai and Abu Dhabi. And with major infrastructure investment occurring across the Emirates, it’s an exciting time for prospective investors.

Elsewhere, the titanic struggle at the top of chart between Europe’s heavyweights continued, with Italy, France and Spain shuffling places once again, and a new number 1 taking over. Far flung destinations continued their march up the chart, with two exciting emerging markets consolidating their positions in the top 10.

To view the complete chart, along with analysis and expert comment, please visit: http://www.themovechannel.com/articles/viewpoints/108-5-1.asp

You can also view the very latest global investment opportunities on our Property Investment Portal

Investors still hungry for Hungary

Jaimie Kanwar — 17/04/2008 00:00:00

Investors show no signs of tiring of the Hungary real estate market...

According Rhiannon Williamson, Director of Amberland, property investors who targeted Hungary’s capital city of Budapest last year enjoyed up to 15% growth on underlying property prices and these growth rates ‘show no sign of slowing down currently’.

She added: “There is local and expatriate demand for property to buy and let in Budapest and the local economy is benefiting from foreign direct investment and strengthening. This means that there are long term prospect for growth in Hungary.

“Furthermore there’s an emerging market within Hungary’s property sector and that is the tourism market which offers an investor a chance to get in on both residential and commercial property ventures targeting this growing market segment”.

Rip-off London or bargain Budapest?

Jaimie Kanwar — 07/03/2008 00:00:00

Budapest is an excellent investment choice for cheap city living, according to one expert…

Property in the Hungarian city of Budapest could be a cheaper option than some western European countries for investors looking for city living, according to property consultant Dave Goedhals.

Mr Goedhals recently commented: Property in the Hungarian capital is a good option for a number of reasons, none more so than the fact that it is cheaper than other capitals such as Paris and London.

'It is a fantastically beautiful city, as you probably will have heard. You get property prices here which are one third of the price of properties in London and Paris, so that is one reason as the price is cheaper and you get to have a property in a fantastic city.'

Mr Goedhals added: “The city is a 'business hub' as well as the gateway to Eastern Europe, making an overseas property investment for Brits in Hungary a good choice.

“On top of that, the arrival of the euro in about 2011 or 2012 will make property prices in Budapest rise again”

Euro property markets ‘under threat’?

Jaimie Kanwar — 04/03/2008 00:00:00

The European property market is facing increased competition from some emerging property hotspots in other parts of the world...

The International Herald Tribune recently reported that countries in Africa and South America are attracting higher levels of interest from foreign property investors.

It says their ability to offer the sought after combination of sun, sea and sand as well as easy access to major cities is helping them to rival their European counterparts.

Morocco in particular is proving a popular destination and is fast catching up to the likes of Spain and Portugal as a top choice for foreign property investment.

Comparatively low prices are a big attraction to buyers and an increase in the number of tourists visiting the country is fuelling demand for rented accommodation, which means opportunities for buy to let investors are plentiful.

Tourism is the country is expected to be given a further boost thanks to the Moroccan government's Vision 2010 tourism strategy which aims to increase visitor levels five fold compared with 2002 levels.

Budapest ‘still best’ for investors

Jaimie Kanwar — 03/03/2008 00:00:00

Budapest is still Hungary’s top location for property investment, according to Property Secrets…

Noreen Lucy, Investment analyst with the firm, believes the is ‘no comparable city in the country that is offering an alternative’ since Budapest's population of two million was a quarter of that of the whole country.

Ms Lucy advised: ‘People should look at long-term investment in emerging areas instead of investing in the city centre, which has been highly developed. There are up-and-coming areas in the city - district eight along the river in Budapest has seen a lot of regeneration."

She added: “Holding on to property until there is an increase in growth is the best investment strategy, rather than the buy-to-flip approach which would bring fairly low returns of 16 to 20 per cent.

The historic city of Budapest is famous for being situated on the Danube, which divides the historic cities of Buda and Pest. It is also home to the second oldest underground railway in the world after London, dating from 1896.

Cash boost for Hungary tourism market

Jaimie Kanwar — 08/02/2008 00:00:00

Hungary is planning to make a substantial investment in its tourism market, with a boost in exposure for the Hungarian property market along the way...

₤545 million has been earmarked for hotel development projects in Budapest and other locations, Hungarian business daily Vilaggazdasag reports. The inflow of finance is expected to lead to the creation of 100 new hotels.

Among the projects set to be completed in 2008 is the Klotild Palace, in the centre of Budapest, as well as the luxury Racz Baglioni hotel and spa. These new developments will be the next chapter in a positive period for the Hungarian property and travel markets, following the rebirth that they experienced in 2004, after the post-9/11 downturn.

The construction of the Gresham Hotel, belonging to the Four Seasons chain and the Boscolo-New York Palace have been among the highlights of this productive period. Outside of the capital, regions expected to benefit include the Danube Bend to the north and Lake Balaton to the west.

IMF: World economy in 'turmoil'

Jaimie Kanwar — 04/02/2008 00:00:00

The International Monetary Fund (IMF) has warned of impending ‘global economic slowdown’…

But the revised predictions are still well short of being a global recession. The IMF's chief economist calls it a significant global slowdown. For the major developed economies, the IMF predicts continued, but much weaker, growth this year.

The new forecast for global economic growth this year is 4.1%, after nearly 5% last year. There is a very sluggish period ahead for the main rich countries. By the final quarter of this year, annual growth in the US will be below 1%, according to the IMF.

Developing economies are predicted to grow more slowly than last year, though still quite robustly in many cases. The report also warns of risks from financial market turmoil, which could mean 2008 turns out worse than its main forecast.

Those problems could affect spending in the rich countries and make for more significant spillovers to developing countries. In any event, the IMF's economists said that talk of de-coupling - the idea that the world is independent of what happens in the US - was "greatly exaggerated".

One exception to the pattern of slowing growth in the forecast is Africa. IMF economists say that reflects high prices for many of the commodities exported by African countries, improved economic polices and the fact that the continent is less exposed than Asia, for example, to problems in international financial markets.

Cash-crazy Brits 'blazing a trail'

Jaimie Kanwar — 18/01/2008 00:00:00

British holidaymakers spend £34.4 billion on annual trips abroad*, with £23.3 billion spent while overseas, according to findings by Alliance & Leicester Personal Loans....

Visiting distant destinations like Australia costs a family of four an average of £8,120, for a six-week holiday of a lifetime. But although long-haul holidays may be where we spend the most per visit, trips closer to home may make less economic sense for some savvy-travellers, with Iceland topping the poll of countries where we spend the most per day.

Out of the 10 destinations where we spend the most per day, six are in Europe, suggesting that taking short Continental breaks may actually be more costly than they appear.

Countries where we spend the most per visit:

Country	Spend per person	Spend per family of 4	Average length of stay
Australia	£2,030	£8,120	45 days
New Zealand	£2,004	£8,016	41 days
Central & South America	£1,193	£4,772	28 days
Thailand	£1,177	£4,708	22 days
Asia	£1,167	£4,667	20 days
South Africa	£1,107	£4,428	21 days
China	£1,105	£4,420	20 days
Canada	£1,046	£4,184	15 days
Pakistan	£948	£3,792	32 days
USA	£945	£3,780	14 days

Countries where we spend the most per person per day:

Country	Spend per day	Average length of stay
Iceland	£118	6 days
Estonia	£102	5 days
United Arab Emirates	£95	9 days
Latvia	£92	3 days
Finland	£91	5 days
Hungary	£76	6 days
Belgium	£74	3 days
Barbados	£71	13 days
USA	£70	14 days
Canada	£69	15 days

The findings also reveal the average cost of a holiday abroad was £514 per person – or £2,056 for a family of four. Over a lifetime** this amounts to a whopping £41,634 for an individual. Clearly the cost of funding a dream holiday abroad could be daunting, but a low-rate loan gives cash-savvy travellers cost-effective options of paying for it in manageable monthly sums – without piling on high levels of interest.

Richard Al-Dabbagh, Alliance & Leicester Personal Loans Manager, said: “Holidays are meant to be a time of enjoyment but often the cost of going abroad, especially for a family, can be quite substantial. Rather than worry about how to finance a holiday or shelving plans for a well earned break, British holidaymakers can opt for a personal loan that allows them the convenience of paying in manageable monthly repayments. This can easily be budgeted for over a time period to suit and there’s the comfort of knowing that whatever happens to interest rates, the payments won’t change.”