Azure Investment Property, a property company based in England, has noted that the latest concentration of investors in Cyprus is the Iranian investors and property-owners.

Sale of properties in the real estate market of Cyprus has seen a huge dip in recent months. This is largely due to the fact that the number of UK property owners and individuals interested in Cyprus property has dropped, a key reason being the strength of the Euro against the British pound, and also the economic slowdown that has reduced the number of potential investors and buyers all over the world. According to Azure Investment Property, the limelight for the target investor group has shifted from European tycoons to investors from Iran.

This new-found band of investors is supposed to give a much needed boost to the current feeble status of the Cyprus investment property market and Cyprus looks to actively encourage further investment to the island. With the sales of newly built property and estates being bought by Iranian investors, it is just a matter of time before the complete Cyprus property market will open up to all newcomers. If this trend continues it would also spread to current property owners and those who wish to rent out or sell their properties. Many of which have been suffering due to the steady decline in British interest which investors had relied on and was the original reason for investing in the Cyprus property market in the first place. Azure Investment Property has been instrumental to both investors as well as property owners to search and locate properties in Cyprus and other neighboring countries.

Egypt property prices are not going to drop from their current level, according to overseas property portal Property Abroad.com. 

Prices are as low as they will be and growth is expected to restart in the next 4-6 months, according to Julie Liddle, emerging markets analyst with the portal.

“Egyptian property was one of the most recent to begin benefiting from the boom in overseas property buying. Prices in the country have always been far lower than its closest rivals, namely Turkey and Cyprus, for that reason they have not had to fall in order to keep attracting the overseas buyers,” she said.

Julie then went on to say something that could benefit the overseas property market in a big way, certainly clearing up something that some will have found puzzling.

“But it is not just the low prices, and it is not just Egypt. Off plan property in Egypt and most other countries, has always been aimed at international buyers, hence the marinas and celebrity golf courses et al. A house price correction happens when residents of an area cannot afford to buy their own homes, because off plan properties are not modelled on local buyers, there hasn’t been the measurable corrections like there has in the UK and US for example, ” she explained.

“So if you’re waiting for off plan property prices to see some measurable across-the-board drop, you will wait a long time. However, developers are offering discounts and incentives to try and kick-start sales so look around and you should get a good deal,” Julie concluded.

“Turkey has grown into one of the most popular destinations with British buyers of overseas property, both lifestyle buyers and investors in the last few years”, said Les Calvert, director of the portal.

“Though Sterling has recently been strengthening against the Euro, it has been weakening against the Turkish Lira, this is expected to turn around in the next few months, making Turkey property even less expensive to British buyers,” he explained, adding:  ”a rise of even 10 points can have a massive impact on the price of properties to British buyers.”

Property Abroad are currently advertising dozens of properties for sale in Turkey, including high luxury villas in Beycik near Antalya from £75,000.

The portal has a large selection of properties in Turkey, from 1 bed apartment in Akbuk for a little over £10,000 to 6 bed villas in Alanya for over a million Pounds. The portal is also currently advertising several commercial opportunities, including a large plot of land in Akbuk for £14,000 and a boutique hotel in Fethiye for £2million.

“Our star Turkey property is the Sun Gate Complex, 1 bedroom luxury apartments in Altinkum for under 20 grand,” Les said, finishing: “you don’t get value for money like that everywhere.”

Specialists in Turkey property (http://www.spotblue.co.uk/)

Turkey is gaining ground as a favorite holiday destination for Brits as the Euro is hitting the pound and British tourists spending power.

According to Co-op Travel, Turkey represents far greater value than Spain with superior value for money and a far higher standard of customer service. Turkey has attracted over a third more holiday makers this year compared to last year and has seen spectacular growth, according to ABTA. These figures echo tourism statistics from the Turkish Ministry of Culture and Tourism which reported a 15 percent increase in tourist arrivals.

Trevor Davis, The Cooperative Travel Group’s director of retail travel said packaged holiday sales for Turkey have increased by 30 percent. Mr. Davis also said sales to Majorca, Spain’s top-selling holiday destination, have dropped by 13 percent. Ian Hailes, head of product and development for Cosmos, said packaged summer holiday sales for destinations in Turkey were up by a quarter while Spanish destinations were decreased by 6%.

For those tourists who have felt the pinch of a struggling economy, a Turkish vacation could prove to be more affordable for the 2009 vacation season. Turkey’s history is steeped in various cultures, its ancient ruins, mountainous regions and forested areas make Turkey a great vacation destination for anyone of any age. The wonderful mix of cultures, cuisine and night life make it a wonderful place for young people, while the excursions and packaged tours of ancient sites available also make it a great vacation spot for history buffs.

Turkey makes two appearances on the top 10 list for European tourists for 2009. Dalaman tops the list as the number one packaged vacation spot. Following closely behind is Majorca, one of Spain’s Balearic Islands. The third destination is the Greek island of Crete. Bodrum makes the list as the number four vacation destination for Europeans. The Turkish government has said it will get involved in an advertising campaign to boost tourism. There were 23 million visitors to Turkey in 2008 and authorities had predicted that would increase to 30 million in 2009.

This rise in tourist numbers also spells good news for the holiday home market. In western Turkey where a lot of towns rely on tourism for income, thousands of holiday homes are on the market. According to the Real Estate Counselors Federation, in Mugla’s Fethiye district around 6,500 are owned by British people alone. Holiday home sales have soared over the past 3 years and Holiday homes prices have risen by 50 % in 2 years, but there is an overload of properties on the market, there is still a bargain to be had in Turkey.

Dubai Real Estate Regulatory Authority (RERA) has frozen the accounts of several major property developers, until such time that they prove that construction is in progress, and that the land has been properly registered.

This move by RERA to freeze escrow accounts of developers is being done in the interest of property market, as it is grappling with fall in prices and shortage of lending.

All money made from the sale of off-plan properties must go into an escrow account, and be used solely for property construction.

The Chief Executive of RERA, Marwan bin Ghalita, said that the developers will have to provide technical reports detailing the progress of construction prior to withdrawing money from the accounts. Payments will be linked to progress made in construction.

The developers will also have to prove to RERA that they have registered investors’ rights with the Land Department.

RERA is yet to reveal the number of accounts frozen.

Dubai plans to establish a standard property contract, which would form the norm for all real estate transactions. This is being done with the sole aim of avoiding small print misleads.

A senior official at Dubai Land Department mentioned that having a basic contract would be the norm, and that it would be difficult for buyers and developers to wriggle out of contracts or add fine print to current contracts.

A senior legal advisor at Dubai Land Department, Emmad Eldin Farouq, said that it would provide a clear, transparent guide to the rights of both developer and buyer.

The contract is ready, and we are awaiting directions, Farouq revealed. These will be standard contracts, to be given for all properties.

The contracts will remain unaltered, whether completed or incomplete. Any contractual agreement will have to be simple, clear and transparent. There are too many small prints in contracts now, Farouq said.

There are chances that developer can make additions to any contract, as different developments have different regulations. But the basic contract will remain the same, said Assistant Director-General of Land Department, Mohammad Sultan Thani.
According to the Lawyers, the main points of contract will remain the same, but more clauses may be included. The Partner at Hadef and Partners, Michael Lunjevich, said the standard contract would be for completed properties, signed between the buyer and seller. But, an element of freedom is necessary in a contract. Therefore, it will have standard terms as per the market norms, and thereafter, any alterations will go to a separate section, to avoid any confusion.

A single basic contract will seem easier for buyers and developers, reducing the number of disputes.

Dubai’s RERA, together with the Land Department are trying hard to make the real estate sector more secure, but, are insisting that there ought to be a large onus on the buyer to read contracts in full.

During the peak times, several investors entered Dubai market with the sole intention of purchasing property and concentrated less on the contracts, than they would otherwise do so in more mature markets.

“The contract should be clear, and people should read them carefully,” Thani pointed out.

The Dubai International Finance Centre (DIFC) has seen 40 percent drop in commercial rents during the past six months, reports CB Richard Ellis (CBRE), a leading property consultancy.

The rents have dropped from Dh.750 per square foot to Dh.450 per square foot, and few private landlords are offering further deduction in rents, the report said.

DIFC, being the prime business centre located in the heart of Dubai, commercial rents are far better here, compared to several other areas in the emirate, says Matthew Green, Associate Director-Research, CBRE.

DIFC offers excellent business amenities with high quality office space, generating considerable demand. There was a lengthy wait-list for space in 2008 and the consistency in demand has been continuing since 2004. This is because the firms are seeking quality offices, located in proximity to Sheikh Zayed Road.

The Managing Director of CBRE, Nicholas Maclean, says that the drive in the market is mainly from the financial sector during the past one yea, as the firms want to be located close to DIFC.

Apart from DIFC, the Emaar Square, a business district at Downtown Burj Dubai has also been generating considerable demand, although the Business Bay is the most popular, when it comes to office buildings. Both these projects are on the Sheikh Zayed Road. These properties will soon face stiff competition from the new World Trade Center, he said.

The CBRE report this month said that the prime office rents in Dubai dropped by 18 percent during the first quarter this year, in comparison to the final quarter of last year, dropping from Dh.550 per square foot to Dh.450 per square foot.

The areas most affected by the decline in occupancy and lease rates are Jumeirah Lake Towers and Site C, the areas developed by TECOM, located close to The Greens.

The report states that landlords with properties in localities away from business districts are offering incentives such as relaxed payment terms, to attract tenants.

According to legal experts, the Law No.9 of 2009 does not permit buyers to terminate contracts. The only way an investor can terminate a contract is to go via the court and present a strong termination case, or go directly to Dubai’s RERA (Real Estate Regulatory Authority) and seek for project cancellation.

The Partner at Hadef and Partners, Michael Lunjevich, said preventing buyers from cancelling their contracts will help in ensuring that people do not take advantage of a down market. If the law permits the investors to cancel, there will be a huge influx of people intending to cancel projects.

With the developers being permitted to cancel contracts under the Law No.9 of 2009, the law indicates sympathy towards developers, the legal experts say.

The Law No.9 was implemented only recently, and relates to cancellations of all off-plan sale contracts, irrespective of when the contract was signed, which makes the amendment more retroactive.

When the law was first read, it seemed very developer-friendly, but in reality it also favours the buyer a lot, Lunjevich pointed out.

Currently, three new regulations for Law No.9 are awaiting approval, including one which the developer says will not be able to cancel contract without a letter from Land Department, else, the cancelled contract will not have any value in court.

Secondly, the Land Department should attach a letter supporting technical aspects from the site.
Finally, although the investors seeking cancellation of projects must do so only in court, the Investors Group have desired to be able to cancel in the Land Department.

If an investor seeks cancellation at the last minute, and if the developer has already completed 80 percent of a project, it can keep the full amount paid, and ask the purchaser to settle the remaining amount of the contract price. If this is not possible, the developer can request the property be sold at auction.

If the project is atleast 60 percent complete, the developer can revoke contract and deduct upto 40 percent of the purchase price of the unit, as stipulated in the contract. If the developer has completed less than 60 percent of the project, it can revoke contract and deduct 25 percent of purchase price as stipulated in contract.

If the construction is yet to commence, the developer can revoke contract and deduct up to 30 percent of the amount paid by developer.

Four multi-million dirham properties in Dubai, which were recently completed, failed to sell, which further indicates that UAE’s appetite for new homes is still struggling.

The auction on Tuesday night saw only nine people come forward for registration of three villas in Arabian Ranches, a penthouse in Jumeirah Beach Residence. Of these, only three actually entered bids, and these failed to meet the reserve prices of properties.

The first public auction at the Al Murooj Rotana Hotel for Madania Real Estate attracted a crowd of more than 100. However, most of the crowd gathered mainly to gauge the market condition, rather than to invest.

The Chief Executive of Madania, Raymond Kuceli, said the gap between the expectations of buyers and sellers was huge, but the future looks positive.

The investors are of the opinion that the property being sold at an auction is a distress sale, but the actual reason for such an auction is that they require a price that is more in line with their needs.

Developers are trying to gather information about people who registered for auction, but, it will now be used to try and generate sale privately. Although, Dubai market has seen property auctions even before, they have never been the market trend.