Issuing of title deeds in Turkey currently suspended
The issuing of title deeds to foreign buyers has been temporarily suspended in Turkey while two controversial clauses in the country’s property law, which relate to property sales to foreigners, are amended.
The Turkish Constitutional Court ordered the halt from 16th April to allow the re-drafting of legislation to address concerns that foreign-owned companies are buying up huge tracts of agricultural land, particularly in the east of the country. Foreign nationals are already restricted from buying land and property in rural areas, but under the proposed amendments, the same ban will apply to foreign-owned companies.
“This freeze is an inconvenience for anyone ready to complete on a property now, as they will have to wait until the new law is passed by 16 th July, but the changes in legislation will have no affect unless you were planning to buy rural land with a Turkish company”, said Dominic Whiting, editor of the Buying in Turkey guide, www.buyingin.co.uk.
“The amendments will have absolutely no impact on the vast majority of British buyers – who are purchasing property or land in officially zoned areas in and around Turkish cities, towns and resorts”, he added.
According to official figures there are over 73,000 foreign-owned properties in Turkey, mainly in Istanbul and the coastal resorts, with £1.5 billion invested in the country’s real estate market by foreigners since 2005 alone.
Romania best place to invest in Southeast Europe says Ernst & Young
According to the Ernst & Young Southeast Europe Attractiveness Survey 2008, Romania continues to be the most attractive destination for investment in Southeast Europe (SEE).
The second edition of the survey also reveals a strong improvement in investors’ perception over the last three years on the SEE region and a high level of confidence in the future driven by EU membership.
The company started the annual survey in 2007, looking at: Romania, Bulgaria, Greece, Serbia, Turkey, Cyprus and Moldova. This year’s survey also included Bosnia and Herzegovina. The survey tracks the actual investment project announcements in Europe, recorded in the Ernst & Young European Investment Monitor database.
Of the respondents to the survey, 52% consider Romania as an attractive country to do business in, compared with 50% for Turkey, 40% for Bulgaria, 31% for Greece, 28% for Croatia, 19% for Serbia, 10% for Bosnia & Herzegovina and 9% for Cyprus.
Almost two-thirds of the respondents (67%) said their perceptions of Southeast Europe investment environment has improved over the last three years, but there was a strong gap between perception and reality, with the resident (SEE) investors having a better perception than potential investors. Respondents indicated that Southeast Europe is a favoured destination for investment in manufacturing activities (38%), and services/head offices (25%).
Companies included in the survey come from different world regions: Western Europe (62%), North America (17%), Southeast Europe (9%), Asia (5%), Central and Eastern Europe (4%), and other (3%). Of the total 216 respondents, half are based in Southeast Europe and half outside of Southeast Europe.
High speed train linking Amsterdam with Antwerp being tested
A new ‘EMU V250’ fast train that will connect Amsterdam with Antwerp via Schiphol Airport, Rotterdam and Breda, is currently undergoing final tests in the Czech Republic.
Once approved, the train will be used on the 125km newly constructed high speed line, which will have a maximum speed of 300km/hour.
In total 10 V250 trains will be delivered for the above mentioned line, eight for Dutch railways NS and two for Belgian railways SNCB.
Google to open businesses in Krakow and Wroclaw
Google Poland is planning to open a Research & Development (R&D) centre in Krakow and an operations centre in Wroclaw. The investments will require estimated outlays of Zloty 14.5m (€4.2m).
The government recently issued a directive to attract FDI by setting up a programme that will aim to provide financial aid for Google’s investment. In 2008-2009 the company will receive PLN 3.2m (€0.93m) in cash from the state budget as compensation for the costs it has incurred in creating new jobs. The two centres will create around 270 jobs and the company has promised to keep the investment in operation for at least five years from the day construction work is completed
Worldwide News
Prices in Manhattan up 41% in past year despite US housing slump
Property prices in Manhattan have soared 41% since this time last year, defying the US economic slowdown. Despite belt-tightening and record losses at Wall Street banks, demand for luxury dwellings in Manhattan was strong, said the association of New York estate agents.
On average a Manhattan home now costs $1.6m (£800,000), up from $1.1m a year ago. Prices in Brooklyn rose by 3% during the same period, however, in other parts of New York City property prices are on the slide, with Queens and Staten Island down 5% and the Bronx slipping 1%. Across the city prices rose 28%, driven mainly by Manhattan’s gains, according to the Real Estate Board of New York, an association of estate agents, builders and financial service companies. The report tracks recorded real estate deals of all residential property in New York City.
“ Manhattan’s luxury market for high-end properties continues to remain untouched by the slowing economy”, said the Real Estate Board’s president Steven Spinola. New York had limited space, he said, and several luxury developments had just become available to meet the ‘pent-up demand’.
Meanwhile, property portal Properazzi.com has just launched a new property search facility in the US, giving European buyers new access to US properties. The company will be adding more than 250,000 USA properties for sale and rent to its existing coverage in more than 50 countries.
“Until now, it’s been all about Europe. Property in the States and further a field was hard to access and less attractive than other overseas destinations”, says Properazzi CEO, Yannick Laclau. He adds: “European buyers can now use Properazzi.com to easily compare what’s available across the Atlantic, and contact Realtors directly from our listings.”
London to Hong Kong budget airline goes bust
Oasis Hong Kong Airlines has gone into liquidation. The airline started offering cheap flights between London Gatwick and Hong Kong in October 2006 and was touted by some as the beginning of trend for long-haul budget flights.
The airline’s founders, husband and wife team Raymond and Priscilla Lee, have blamed rising fuel costs and the high price of buying aircraft for the airline’s collapse.
Mr and Mrs Lee reportedly said: “The hike of the oil prices has also affected us severely. As a newly started airline, we have found it next to impossible to obtain a credit facility from financial institutions to carry out fuel-hedging programmes.”
They added that during the airline’s licence application process, Oasis “faced opposition from our competitors for almost six months”, resulting in rental aircraft being “snatched away by other competition, and we have had to purchase aircraft instead of renting them.”
UAE to build new capital city
The UAE has announced plans to build a brand new capital city by 2028, according to Khaleej Times. The capital will be located in Khalifa City, near Abu Dhabi, and have an area of 4,900 hectares. It will house all government offices and ministries, and be able to accommodate around 3m people in the next 25 years.
US Government offers UK Investors cash-back deal in Katrina Zone
The US Government is promising to hand UK property investors a cheque for 20-30% of the value of homes bought in the Gulf Opportunity (GO) zone, according to Property Direct America.
Across the US, you can already find real estate at below market value that should rent well over the long-term and deliver solid returns in the majority of states. But in the GO Zone, which covers the Hurricane Katrina affected states such as Mississippi, Alabama and Louisiana there are now attractive government incentives for investors to purchase housing stock for rental to help the thousands of still displaced tenants.
“The US government passed legislation back in 2005 to make investing in the GO Zone as financially attractive as possible to rejuvenate affected communities, regenerate positive economic fundamentals and house those whose homes had been destroyed”, explains Danny Silver, MD of Property Direct America.
“Thanks to the overwhelming success of the legislation, jobs are being created, house prices are rising, demand for accommodation is increasing, affordability is improving and the economic conditions in the affected states are improving in spite of the state of the overall American economy.”
One investment marketing itself to UK investors is Bayside Park in Biloxi. Entry prices start from £68,000/$135,000 for a 3-bed house. There is a refundable $5,500 deposit - refundable if you change your mind, or can be used towards your closing costs – and any additional closing costs are guaranteed to be met by the constructor, saving buyers up to $6,750.
A 90% LTV mortgage is being offered by the developer’s private lender, but only for the first phase of sales, or you can obtain a 70% LTV mortgage offered by the Bank of America. Deposits are held in a trust by the developer’s lawyer until the signing of title deeds, therefore the investment is secured.
By purchasing a property at Bayside Park and renting it for at least five consecutive years, Property Direct America says the US government will give you a cheque for around 27% of the property’s purchase price within 30 days of the tenant moving into the property as a golden ‘thank you’ for helping in the GO Zone.
