It seems to me, the Dubai city planners may have watched the Kevin Costner movie, “Field of Dreams,” one too many times. But they weren’t far wrong. They did build it and they did come. In fact, they are still coming and the planned developments over the next few years should bring even more. I found some interesting photos of Dubai which show the development over the last few years. The first one is taken in 1989 and the second in 2005. Spot the difference? There has been quite a stunning amount of development in Dubai, and these two photograph, seen together, graphically demonstrate that fact. The next few are some projections of future developments. It’s hard to see an end in sight, with the ‘Palm Islands” and “World Archipelago” developments pushing the boundaries even further.

Dubai 1989:

Dubai 2005:

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Source: Evening Times

Also read: Australian firm Stockland makes first move into Europe

• London property prices coupled with excessive demand for accommodation in the capital is forcing high-earning property investors to look overseas to add to their real estate portfolio [Assetz News]
• Standard Life has launched the first Real Estate Investment Trust (REIT) type fund to be made available to the Irish investment market for investors with €10,000 or more to commit. [Irish Independent, free subscription required]
• US Finance company Wachovia Corp. has bought a stake in a low-density residential project in China’s Guangdong Province [Birmingham Business Journal]
• U.S. private equity firm Warburg Pincus has agreed to buy a 25% stake in Shanghai ZK Real Estate Development Co. Ltd. for an undisclosed amount [China Knowledge Online]
• Gdañsk based Multi Development Poland last week (date 22.01.2007) reached a milestone by obtaining building permission for Forum Koszalin, a shopping center located in the southern edge of the city of Koszalin, in the north of Poland [Europe Real Estate]
• Indian developers target wealthy nonresidents [IHT]
• Property developers in Hong Kong are expected to supply about 139,000 new apartments over the next five years [ForexTV]

IRISH investors spent a massive €11 billion buying up houses, office blocks, hotels, shopping centres and pubs in Ireland and abroad last year.

The figure, despite repeated warnings of a downturn in the property market, looks set to be beaten in 2007 as investors continue to believe that they can generate a profit.

In its review of 2006 CB Richard Ellis found that investors pumped an unprecedented €3bn into the commercial property market and that as much again will likely be spent this year.

However, estate agents CB Richard Ellis believes the days when investors could look forward to high- single, or even double-digit, returns may be over.

The estate agents are also predicting that Irish investors will have to look to overseas markets.

“As we gear up for the year ahead, the prospects for the commercial property market in 2007 look very promising indeed, although most people accept that the record levels of property returns achieved in recent years are unlikely to be replicated,” the firm’s director of research Marie Hunt said yesterday.

“This is true of the Irish market and many other European locations. In the absence of significant yield contraction, the primary driver of returns going forward will be rental growth. Investors who want to generate above-average returns from commercial property, either at home or overseas will have to adopt more pro-active strategies and focus on asset management and redevelopment opportunities.”

Across the board there was demand for all types of property. The strength of the economy is such that the demand for office space is coming from Irish firms looking for accommodation near key transport links.

It predicts that rents in excess of €700 per square metre will be charged for prime office land in Dublin and that with several major developments nearing completion, a total of 185,000 square metres of office space will be let in 2007.

The outlook for the retail market was also generally positive and CBRE does not expect rental yields to be under pressure as a number of retailers, such as Superquinn, Marks & Spencer, Superdrug and Penneys are expected to be looking for retail space.

It is also expecting a number of older shopping centres to come on the market, offering opportunities for redevelopment.

The hotel market should remain strong, CBRE says, with the phasing out of certain tax breaks reducing the potential for oversupply. The firm predicts that a number of landmark pubs will go on sale this year.

“We expect that pub prices will, for the most part, remain static this year, on the basis that trading conditions in the licensed trade are quite challenging at present and buyers are more selective.”

Those looking to invest in foreign property will face a more difficult year as they will have to compete with major international institutions to get their hands on choice locations. Irish investors spent 8bn acquiring overseas property in 2006.

CBRE said it expects Irish investors to be less active in the British market this year because rising rates there makes funding transactions through debt less favourable given the declining yields. It believes investors will concentrate on the office and retail market in Amsterdam, Brussels, Barcelona and Paris.

“However, Irish investors will have to learn to manage their expectations on the basis that we are now entering a period of low, but more sustainable, property market returns over the next couple of years.”

Source: Irish Examiner

IRELAND has overtaken the United States as the single largest cross-border investor into UK commercial property - accounting for almost 22% of total overseas purchases in 2005.

According to a report from chartered surveyors DTZ, called Overseas Acquisitions into UK Commercial Property, £12.3bn was invested in UK commercial property from overseas investors in 2005 - representing a fall on 2004.

In real terms, however, 2005 saw an increase of 9% on 2004, if the large corporate transactions, including the £5.1bn Songbird purchase of Canary Wharf, are ignored.

The strong volumes of purchasing activity indicate that non-domestic investors remain a key participant in the UK real estate investment market, accounting for around a quarter of total purchases overall.

The lion’s share of overseas investment is dominated by five sources: Irish, US, Middle East, German and Dutch capital.Irish investors represented the largest single source of cross-border capital into the UK with more than £2.7bn of purchases in 2005 - this figure mirrors the levels achieved in 2004 which stood at £2.8bn.

In keeping with historic trends, around 75% of this activity was attributed to private investors.

US investors were the second largest with around £2.6bn of acquisitions with German third with £2.2bn.

The Dutch were ranked fourth and Middle Eastern fifth with total purchases of £1.4bn and £1.3bn respectively.

Dan Griffiths, head of investment at DTZ’s Cardiff office, said, “Whilst some Irish investors are looking elsewhere for commercial property investments due to the recent movement in yields, overall there appears to be little sign of a fall-off in demand from Irish investors who are looking to take advantage the growth prospects for the UK.

“The drivers for this demand continue to include the positive rental growth story.

“There is a lack of available product in the Irish market, there is available finance from Irish lending insti-tutions for UK property transactions and it is a familiar market.”

Source: ICWales.co.uk

IRISH overseas buyers were accused yesterday of putting little or no thought into purchasing property abroad.

The claim was made after it emerged that Irish buyers were increasingly signing foreign-language documents without knowing what they mean, and buying apartments without legal advice.

A legal adviser said Irish investors were playing ‘Russian roulette’ when it comes to overseas property.

Most people at home would not consider buying without seeking the advice of a solicitor but they are doing it abroad, according to Catherine O’Sullivan of Overseas Property Law (OPL) in Dublin.

Problems

“We have already seen a number of cases where investors have signed documentation without taking any legal advice, and have subsequently run into problems.

“While some buyers bring their contract to their own solicitor, Irish solicitors cannot be expected to carry the required overseas local legal knowledge to enable them to properly assist Irish clients,” Ms O’Sullivan said.

An Irish solicitor may be able to give a broad overview of the contract, but they will not be able to do the necessary searches to ensure that the seller owns the property and is entitled to sell it.

OPL warned all SSIA account holders who are considering investing their money in overseas property to seek independent advice before they leap into bricks and mortar in foreign lands.

As property prices in Ireland soar on a daily basis, many Irish people are choosing to invest in property abroad in a bid to get on the property ladder.

But OPL said it fears that many people will not investigate the legal and tax system accurately of the country they have chosen, and may experience major pitfalls along the way.

Ms O’Sullivan added: “It is imperative if you are considering buying property abroad that you thoroughly investigate both the tax and legal implications of your purchase.

“The best way to do this is to enlist the help of an independent adviser who has knowledge of the area you are buying in.

“We have already seen overseas investment horror stories that could have been easily avoided, if the investors had done their homework properly before they purchased.

OPL said some investors have even been forced to undervalue the property when the final transfer deed is signed, simply to reduce stamp duty.

However, this practice can actually lead to a higher tax liability further down the line.

Overseas Property Law offer legal and tax services to Irish investors considering buying in the Portugal, Spain, France, Germany, Hungary, Bulgaria, Slovakia, Romania, Italy, Turkey , USA, Dubai, UK and Poland.

Source: Unison.ie

The Irish have shaped the landscape of Dubai like few other nationalities.

Back in the 1980s, Dubai was a blank canvas, ready to be painted by the kingdom’s ruling family, the Maktoums. Since then, the city has become one of the most metropolitan places in the world, with Irish pockets dotted around every corner.

Walking around the Irish village next to Dubai’s Aviation Club, you could be forgiven for thinking you were in Ireland, if it were not for the blazing sun.

The cobblestones in the area are every bit as Irish as those in Temple Bar, Dublin, having been specially imported. The shop fronts look as authentic as those in villages here, with the frontage of ‘‘Ballinasloe Post Office’’ being particularly impressive.

The Irish pub in Dubai Airport has an authentic feel, as do several other bars scattered around the region. But pubs are far from the only sign of Irish influence. The Irish Celts GAA club, formed in 1995, is another emblem of the vibrant Irish ex-pat community in Dubai.

As well as Gaelic games, each year, the club enters a Dubai Rose into the Rose of Tralee competition.

Among the most influential Irish figures in Dubai are the head of Dubai Duty Free, Colm McLoughlin, and the head of the Jumeirah Hotel Group, Gerald Lawless. Between them, McLoughlin and Lawless control two of Dubai’s most powerful companies. Dubai Duty Free owns a host of assets, ranging from pubs and restaurants to Dubai’s tennis tournament, while the Jumeirah Hotel Group employs 11,000 people, 10,000 of whom are based in Dubai, and has assets believed to be in excess of €1 billion. ‘‘When you think about it, as individuals they [McLoughlin and Lawless] really did contribute to the organisation of Dubai,” said Sheikh Ahmed al-Maktoum, the uncle of Dubai’s ruler and the head of the region’s Civil Aviation Authority, which controls Dubai Airport, Dubai Duty Free and Emirates Airlines.

‘‘I’m sure there are many others here doing lower-profile jobs who have contributed too.

“We hope that we will be able to attract more Irish people.”

Historically, Dubai has attracted highly-qualified Irish people in sectors such as engineering and technology. More recently, however, younger people have begun flocking to its sunny climes, working in Irish pubs and bars or teaching English. Dubai has also taken off as a destination for Irish tourists, particularly since Aer Lingus launched direct flights to the city on March 28.

‘‘Hopefully, the Aer Lingus flight to Dubai will bring more people from Dubai to Ireland, which is a beautiful place,’’ said al-Maktoum, who added that Emirates Airlines would soon launch flights to Ireland.

‘‘I’m sure Emirates will start flying to Ireland,” he said. ‘‘I think we have to give Aer Lingus more chance to build up the network and to have a good operation. I think we’ll see Emirates - I hope in the very near future - flying to Dublin.”

Dubai and Ireland are also linked by investment. The Maktoums keep racehorses worth millions of euro in Ireland.

Sheikh Ahmed said he expected Dubai investment in Ireland to grow.

‘‘The Dubai people will always look for opportunities, but we need to do more in Dubai to tell them what’s happening in Ireland,” he said. ‘‘I’m sure there will be some opportunities for somebody to invest in Ireland.”

Irish people have also been buying up property in the city, while trade between Ireland and Dubai has been increasing, with Irish exports to Dubai increasing from€155million in 1991, to over €600 million in 2004. A regional Enterprise Ireland office was set up in Dubai in 2002. Junior minister for Labour Affairs Tony Killeen led a delegation there last year, which was aimed at strengthening trade links.

Source: THE POST.IE - The Sunday Business Post

Bank of Ireland today announced details of a new venture with leading Spanish bank, “la Caixa” to provide additional mortgage options for Irish people buying property in Spain. “la Caixa” is the third largest bank in Spain with 4,800 branches and 6,800 ATMs.

The Bank’s venture with “la Caixa” offers three options to people seeking to finance a property purchase in Spain.

1. Equity Release from Bank of Ireland Mortgages
With the value of property in Ireland having increased by 80% over the past 5 years, most people have accumulated significant equity in their property. Customers with an existing mortgage with us may be in a position to release equity, which can then be used to buy their dream property in Spain

We will lend up to 90% of the equity built up in a home, subject to repayment capacity, at new business rates including tracker, fixed or variable. Mortgage terms available range from 5 to 30 years.

2. A Mortgage from “la Caixa”
Alternatively, customers can borrow directly from “la Caixa”, with the mortgage secured on a Spanish property. Customers can borrow up to 75% of the value of a property up to €500,000 and 60% of the value of a property above €500,000 at a competitive interest rate, 12-month EURIBOR + 1.20%. Customers can avail of mortgage terms of up to 30 years, with the option of interest only for the first two years.

“la Caixa” will ensure that all dealings will be in English and that third parties, such as solicitors and valuers, will be recommended. An arrangement fee of 1% of the value of the mortgage is payable to “la Caixa”. Applications forms and details of a “la Caixa” mortgage are available from mortgage advisers in every Bank of Ireland branch countrywide.

3. “la Caixa” Mortgage and Equity Release With Bank of Ireland Mortgages

Customers can apply for a “la Caixa” mortgage to purchase the property (subject to maximum loan to value as outlined in no. 2 above). Customers can apply to fund the remainder of the purchase price and costs associated with buying a home in Spain (such as stamp duty, VAT, tax and arrangement fee etc) via an equity release mortgage with Bank of Ireland Mortgages.

Gabriel Bannigan, Head of Strategy & Marketing, Bank of Ireland Mortgages said: “This is a positive development in European banking and is a direct response to the growing trend of Irish people buying property abroad. Without knowledge of the local market, financing the purchase of properties abroad can be difficult. This can be further compounded by language difficulties. The venture between Bank of Ireland and “la Caixa” offers Irish people both practical support and the reassurance that they are dealing with reputable institutions”.

“la Caixa”, General Manager for Southern Spain, Mr. Manuel Romera, added: “We are delighted to offer customers of Bank of Ireland the additional option of a “la Caixa” mortgage to finance the purchase of a property in Spain. In addition, customers can also avail of the broad range of other financial services offered through our extensive branch network”. Bank of Ireland’s mortgage advisers are fully trained to advise people on the most appropriate option for their individual circumstances. People planning to buy a Spanish property can call into any Bank of Ireland branch to speak to a mortgage adviser and have the options explained.

Source: FineFacts

Irish investors have spent more than €12.5 billion buying commercial property in Europe since 1997, according to new figures from DTZ Research. Irish buyers accounted for about 6 per cent of the €210billion spent on cross-border purchases since 1997, making them the joint fourth biggest acquisitors with British investors. US, German and Dutch investors took the top three positions. Britain and France are the most popular locations for overseas property buyers. Irish investors were particularly attracted to Britain, spending €4 billion there alone last year. The figures exclude hotel purchases, such as the Irish acquisition of the Savoy Hotel for around €1.1 billion.

Irish spend over €12.5bn on European commercial property 26 June 2005 By Neil Callanan Irish investors have spent more than €12.5 billion buying commercial property in Europe since 1997, according to new figures from DTZ Research. Irish buyers accounted for about 6 per cent of the €210billion spent on cross-border purchases since 1997, making them the joint fourth biggest acquisitors with British investors. US, German and Dutch investors took the top three positions. Britain and France are the most popular locations for overseas property buyers. Irish investors were particularly attracted to Britain, spending €4 billion there alone last year.

The figures exclude hotel purchases, such as the Irish acquisition of the Savoy Hotel for around €1.1 billion. “The main drivers of cross border investment are the low real cost of money and the attraction of sol id income streams,” the DTZ Money into Property report states. “This weight of money is likely to remain strong as slow economic growth in the EU will keep interest rates low.” Michele Fallon, investment director at DTZ Sherry FitzGerald, said that there was increased interest in “newer markets such as the Scandinavian countries along with Greece and Turkey’‘.

Increasing numbers of British investors have been buying in Scandinavia and Irish investors are now beginning to follow suit. “There’s quite a few Irish people looking at the moment,” she said. “The Swedish economy in particular is regarded as a solid performer with a stable economy. Getting suitable properties in traditional markets is difficult at the moment and investors are now willing to look at places like Sweden if you can get a secure income and tenant.” The demand here reflects the general demand for property across Europe with DTZ Research reporting that “a huge wall of equity is waiting to be invested and additional sources of product are coming through from corporate balance sheets as well as local and central government.”

Source: Thepost.ie

Irish Outlook: Damien Kiberd: Come on in, the debt’s lovely The Sunday Times - UK … Irish people are obsessed with property to such an extent that they are now among the world’s biggest purchasers of overseas property, driving up property …