A strong economy and interest from foreign investors seen fueling demand in Phnom Penh’s property investment market
With foreign investors eyeing a piece of Phnom Penh’s property pie, the Cambodian capital’s real-estate market has potential for growth this year, a survey by Agency for Real Estate Affairs (AREA) shows.
AREA president Sopon Pornchokchai said land prices in Phnom Penh range between Bt200,000 and Bt300,000 per square metre.
Mumbai has been a hot property destination for real estate, and continues to be so, attracting big builders and developers not just from India but also from international locations. Mumbai’s real estate has redeveloped many parts of the city, by demolishing old buildings and replacing them with mixed developments of business, shopping and living space.
The city’s real estate prices have out weighed that of Manhattan making it one of the major real estate market of the world. The real estate market of Mumbai has boomed over a few years due to the interest of large Corporate Houses and investors especially from abroad. But the growing number of M.N.Cs along with other industrial sectors and their huge expansion plans has pushed up the demand for office spaces and commercial units. This has also sky rocketed the real estate prices and rents across the city. The office rents of Mumbai are the second highest in the world. By the end of this decade, the requirement of the office units is estimated to increase immensely. The base will continue to shift from south Mumbai to the western and central suburb. The reason being easy accessibility of the land, better infrastructure, proximity to the Airport and major highways as well as affordable prices.
In the residential segment, the increase in per capita income of an average Mumbaikar has motivated him to opt for a better lifestyle . In recent years, there has been a significant boost in the number of the residential projects offering lucrative packages. However, they have not achieved much success in attracting buyers due to the non- affordable prices. This has led to a discord between the buyer and the seller which needs immediate attention.
When a 28,000 sq ft property was sold at the staggering rate of Rs 14,830 per sq ft at the posh Boat Club Road in Chennai in December 2005, little did the investors know that this property deal would send property rates soaring in the city. While most real estate developers would like to think that the realty boom, and huge investment in the real estate sector has seen world class infrastructure spring up in cosmopolitan cities like Mumbai, the financial capital of the country, Delhi- the political capital of the country and Bangalore, the IT hub of India, this is not strictly true. Experts opine that Chennai is not left behind in the race. The real estate boom has caught up not only with the major cities in the country, but relatively small towns like Chandigarh, Hyderabad, and Pune are also tracing sky scrapers. In January 2008, Chennai-based Sabari Foundations declared that they are to develop 308 apartments on a 10-acre site near the Sipcot Industrial complex at Siruseri. The estimated project cost is to the tune of Rs 180 crore.
Property experts expect Saudi Arabia’s real estate sector to hit new highs over the next three years. Several economic, legislative and financial factors will contribute to the continuing boom. The estimated growth rate of fixed capital stock is 45-55% from 2005 – 2007, following the sharp increase in the Saudi Arabia’s GDP from £5.5 billion in the year 2000 – up to almost £8 billion currently. Annual property transactions are worth £26.5 billion and investments of more than more than £159 million.
The primary cause is rising oil prices, reaching an all-time-high of $102 per barrel, generating strong liquidity and fueling the real estate market.
The Saudi government’s is spending large amounts on basic infrastructure and residential projects for low-income segments in order to meet the rising growth in population in major cities, put at 4% per annum. The Saudi government has seen the needs of a growing, young, urban population and is no longer focusing soleley on luxury villas and palaces. Statistics show that up to 60 percent of the total population is in need of around 1.2 million residential units over the coming period, with this number likely to increase to around 2.9 million over the next twenty years.
Saudi Arabia’s population is the largest in the Gulf and current demand for housing is far outstripping supply. The capital Riyadh contains the largest population Kingdom-wide, estimated at 23 % of the total population, followed by Makkah at 24% then the Eastern Zone at 14%.
A fluctuating stock market combined with an inability to reap enough profits are forcing investors to shift their businesses to alternative markets – primarily the mid-level income housing market. Official figures released confirm a large upswing in the total liquidity available on the local market for investment, plus a considerable increase in foreign investments – particularly from neighboring Gulf states.
Kuwaitis rank first in Saudi real estate investments, then the Bahrainis followed by Qataris, while UAE investments come last. Omanis have been remarkably absent from the Saudi market over the past period. The Saudi property boom also owes a great deal to relatively lower risk levels and more realistic growth levels compared to the UAE. Demand is expected to increase on the housing market over the coming period with the approaching implementation of the Common Gulf Market, declared in Doha.
The report also underscores a remarkable development in Saudi legislative system; a fact which the report says is verified by the establishment of economic zones and cities that have drawn in large investments into the market, with businessmen being encouraged by additional incentives and exceptional privileges in terms of the entry and exit of laborers, businessmen and investors. Saudi is still in the process of improving its property legislation to further attract more foreign investment.
A recent project, the King Abdullah Economic City will be a multi-stage development with construction having started in 2005. This mega project will closely integrate itself into the Kingdom’s ongoing drive to expand the economy, create employment opportunities for its young population and function as a catalyst to attract foreign investment, global trade, commerce and industry. Based on initial forecasts, the project and its several components will create up to one 1,000,000 job opportunities in the various industries and service-based companies that will open in the City.
