A recent report suggested that prices for property in Bulgaria had now dropped to the same level as it was back in 2007. There are no official statistics for this and the noticeable drop is simply based on listed selling prices between 2006 and 2007 and the fact that sale transactions have fallen drastically towards the end of 2008 and in the first few months of 2009.
Many are seeing this as a sign that the Bulgarian real estate market has completely collapsed and there is little hope of recovery any time soon. However, is this really the case?
Once again, more downs than ups in the property investing markets.
- Emaar properties, Dubai-based owner of John Laing Homes have filed for bankruptcy protection for the American firm. John Laing Homes is one of the largest home builders in the United States and the 31st biggest in the world. Or at least – they were. Luxury property blog.
PKF Accountants have ussued a warning to British overseas property investors regarding the current capital gains tax rules in the UK. Falling property prices in the eurozone plus a worsening UK economy and a substantial fall in the value of the pound is prompting many ex-pats to sell up and move home, but UK tax laws stipulate that any gains on overseas assets are calculated using the spot exchange rates on the given day assets are bought and sold.
More on Capital Gains Tax and Exchange Rate Double Whammy for British Overseas Investors
Discussion forums can be an excellent way of determining the true state of a market. Unfortunately, many so-called “discussion forums,” are populated almost entirely by real estate agents – and do not give a true picture. One of the research tools we use to sift through the sales pitches when discussing prices are forums. This is a brief list of forums that are populated by genuine people talking about the “for real,” situations they find themselves in. If there is a market I have missed that You are interested in, please drop me a line and I will see if I have one on my collection – Contact IPI.
News from around the world regarding property values and markets. No one could possibly disagree that a major correction is going on across the world. With property prices falling almost as fast as they rose over the last few years, the real question is – when is the time to get back in? Our own feeling is that the government bailouts are going to fail to revitalize the world’s economies and devalue currency already in circulation. We expect real values to continue to decline for the foreseeable future.
It is easy to see why people are drawn to look for Cyprus property for sale in Paphos. Paphos offers some of the most beautiful coastline scenery in the world. Many people come to Paphos simply to relax and experience the Mediterranean lifestyle. History buffs come to Paphos for the ancient Roman and Biblical ruins.
More on Cyprus – Property For Sale In Paphos – Buy A Piece Of History
British tourism up 16.7% during January/February 2008
Any island based estate agent will tell you that there’s “too much product out there at the moment”. An over supply of property for sale in Lanzarote which has been created by the growing credit crisis, falling pound and weakening consumer confidence in key overseas investment markets such as the UK. But over supply and declining demand is not the whole story. As certain types of property are still generating interest, enquiries and sales.
Spain and Ireland are set for a prolonged slowdown in economic growth, according to Standard & Poor’s, as a drop in construction activity and consumer sentiment hits labour markets and weakens public finances.In a report published on Monday, the credit rating agency says house prices in the two countries – and the UK – are about 20 per cent overvalued and on the verge of a “protracted correction”.The impact of this on the broader economy would be more pronounced in Ireland and Spain, whose “economies are heavily exposed to the direct effects of the housing market slowdown on the construction sector”, says Standard & Poor’s. Construction accounted for 12.6 per cent of the total employment in Spain in 2006, compared with a European Union average of 8.2 per cent, it says.In Spain, unemployment in the construction sector has surged 53 per cent in the past 12 months, helping to fuel a 22 per cent increase in the number of immigrants out of work. Scores of small builders and property agents in coastal areas have gone out of business, and there are concerns about rising bad loan rates at some regional savings banks. House sales in the second quarter this year were 11 per cent lower than in the first three months, according to government figures.While acknowledging the downturn, the Spanish government has consistently played down its implications for the wider economy. Officials say their main worry at the moment is the impact of a broad slowdown in Europe on the country’s export and tourism sectors.More on Warning on building slowdown
An unexpectedly sharp correction in house prices resulting from the global credit squeeze poses a significant risk to growth in Europe, according to the European Commission.The European Union’s executive arm forecast a gradual slowdown in growth from 2007 to 2008 but said continuing financial market turmoil meant the risks were “clearly tilted to the downside”.Among the threats it identifies is a worsening of the financial turmoil that could hit housing markets in Europe as well as the US “thereby deepening and prolonging the ongoing corrections”.So far, those European countries that saw the fastest growth in house prices, such as the UK, Spain, Ireland and France, have generally seen an orderly slowdown this year. But the Commission’s latest EU economic forecast hinted at policymakers’ fears of a sharper adjustment. A special section on past house price cycles warned that while other regions were sometimes more volatile, “the historical experience suggests that major housing downturns have also had a substantial macroeconomic impact”.More on House price correction threatens EU growth
