Swedish Market Stages Strong Recovery

All property total returns in Sweden rose to 12.7% in 2005, their highest level since 2000, marking a strong recovery in the performance of the Swedish property market, thanks in part to strong demand from overseas investors, which has triggered a significant fall in yields. Property valuation yield fell by 60 basis points, boosting capital values by 10.7%, while rental values stabilised on the back of strong economic growth.

Retail was the best performing sector in 2005 with total returns of 17.3%. Residential ranked second with total returns of 15.4%. The main difference between the two sectors was the lower income return on residential at 4.1%, reflecting the lower level of yields in the residential market.

Office returns rose from 4.2% in 2004, to 11.3% last year. The office sector accounts for 70% of the total capital value of property portfolios.

Tallinn leads the way in the Baltic States'.

The Estonian capital Tallinn, is considered to be the most highly developed and attractive property market in the Baltic States' according to a new survey.

The 'Baltic Property Market Report 2006', examined the Baltic property market in a number of segments such as commercial, office, industrial premises and property funds. The survey also contains an overview of the three countries' economy and social sphere, as well as analysing a variety of legal and taxation questions relating to the property market.

Raitis Nespors of Re&Solution ( Latvia ) commented: "Further development of the retail premises market will take place through expansion of existing spaces and diversification of the leasee structure."

Abu Dhabi to invest $270 billion

The emirate state of Abu Dhabi plans to invest Dhs1 trillion, or $270 billion, in new construction projects, according to Aldar Properties advisor Christopher Sims.

More information to become available soon.

Foreigners can now own property in Dubai outright

The State of Dubai has passed a new law which allows foreigners to become freehold property owners in designated areas.

The new law states: "Foreigners can become freehold property owners in areas designated by the ruler."

"They can also derive benefit from their property or rent it out for a period not exceeding 99 years."

Until now, property ownership was limited to residents of the United Arab Emirates (UAE) and other nationals of the Gulf Cooperation Council, which also includes Bahrain, Kuwait, Oman, Qatar and Saudi Arabia.

However, foreigners no longer need to receive a deed from major developing companies, which was effectively owned and controlled by Dubai's government and its ruler, Sheikh Mohammed bin Rashid al-Maktoum, and his family.

It is reported that foreigners make up more than 80 percent of Dubai's estimated 1.2m population.

Beijing's Housing Price up 19.2% in 2005

House prices in Beijing rose by 19.2% in 2005, according to the municipal bureau of statistics.

In 2005, the average advance sale price for Beijing's residential houses and apartments stood at 6,725 yuan (US$ 840 ) per square meter, a year-on-year rise of 1,083 yuan (US$ 135) or 19.2 percent.
 
A total investment of 152.5 billion yuan (US$19 billion) was ploughed into Beijing's property sector in 2005, up 3.5% year-on-year. However, the growth rate slowed down by 19% Compared with 2004.

A total of 37.7 million sq m of residential houses and apartments (up 23% year-on-year) was built in the city last year.

However, many potential buyers are reportedly holding back from purchasing a property and are instead waiting to see if the property market falls back somewhat.

As a result, Beijing's unsold houses and apartments totalled 13.74 million sq m in 2005, up 31.6% compared to 2004.

The municipal statistics bureau noted that Beijing sold 283,000 residential houses and apartments in 2005, which added up to about 33.67 million square meters, down 11 percent and 8 percent respectively compared with 2004.