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Brazil has long been synonymous with a relaxed lifestyle in idyllic surrounds, living up to the expectations of visitors and investors alike. The attraction of the Brazilian real estate market has developed over the years with incredible strength, proving to be an optimum emerging market option.

Brazil’s real estate market and economy continue to strive towards its full potential, offering various distinct advantages. These advantages are continuously proving their capability for assisting the country to reach an exceptional position in the world market. Many features and benefits of the Brazilian market generate interest from a variety of investors, with the strongest attractions being in the following areas:

Reformed Economy and Political Environment

Over recent years Brazil has started to emerge as a potential super power in the world’s economic market. Unlike many other developing nations, Brazil is not solely reliant upon growth in tourism to achieve economic growth. As a nation rich in oil reserves and bio fuels, maximising the full potential of the country’s economy can produce incredible financial wealth.

Reforms in the government over the past five years have assisted the expansion of the Brazilian economy, enabling the nation to experience a turn-around in several sectors. Wages have increased along with employment opportunities, assisting with the emergence of a middle class society. Increased disposable incomes and a reduction in interest rates have generated an internal demand for property.

Presently positioned as the largest economy in South America, the continued development and expansion could potentially enable Brazil with one of the largest economies in the world. The Brazilian government is also focussing on the growth of the tourist market and all areas of foreign investment, including within the real estate sector.

Strong Rental Yield and Capital Growth Potential

Over the past few years the Brazilian real estate market has been aimed at attracting foreign investors, excellent gains have been obtained. In key areas of interest such as Natal in the north-east, growth of around 20% per annum has not been unusual. The lack of restrictions to non-resident buyers and the growth of the tourist market have assisted with the expansion and demand of the sector.

Prices continue to rise as demand increases and development of infrastructure in the region expands to accommodate the influx of buyers. Resort style projects located in idyllic settings, convenient to reach and with a strong appeal towards holiday makers have attracted buy-to-let clients for the rental potential.

Initial development of the region has enabled land prices to be available at their lowest, allowing for the strongest possible growth potential. The convenience of improved flight connections from major cities around the world, connecting with Brazilian tourist hotspots, has helped with the growing interest in the destination for holiday makers. Demand for self catering accommodation is on the increase worldwide, improving the potential gains from short term rental properties.

Exceptional Emerging Market

The attraction of Brazil’s real estate market has developed over the relatively short amount of time the market has been open to foreign buyers. Continuous interest in the property market from North American and European investors has assisted in the steady growth of real estate and tourism in the north-east of the country.

High quality developments in a stunning location have been increasing in prices along with the growth of the market. Although property prices are growing as the market expands, Brazil continues to present exceptionally low priced real estate opportunities. Excellent capital returns and yield potential can be generated from Brazil’s emerging market as interest continues to expand.

Buyers have been entering the market for short, medium and long term opportunities, along with lifestyle purchases and retirement homes. The buy-to-let market has been one of the most sought after sectors of Brazil’s investment market, taking advantage of holiday maker’s strong demands for self catering property. Brazil’s emerging property market is also set to boom in line with the huge domestic demand, having developed from government reforms to enable continued future growth.

Government Encouragement towards Real Estate and Foreign Investment

For many years interest rates on mortgage in Brazil were at 25%, amongst the highest in the world. The government initiatives to reform the real estate market, creating accessibility to the domestic market and permitting foreign buyers to easily access the sector, has proven to be extremely successful. A dramatic drop in interest rates to around 11%, combined with an expectation for the rates to drop further, has enabled a new confidence in the government’s active interest in reforming the real estate market for both local and foreign buyers.

New infrastructure throughout the north-east of Brazil has enabled improved accessibility to the area. Expansions of airports, new bridges and highways are being carried out, benefitting all who live in or visit the areas. Considering the few years that Brazil has permitted foreign property investment without restrictions, the sector has developed at an incredible pace. The attraction of the Brazilian real estate market has proved its staying power for strong continuous demand and future growth.

Returns on investment have been exceptional from the varied ranges of opportunities available. Early entry to the market is providing the best returns with the steady growth and demand, expected to boom further with the opening of the mortgage market to foreign buyers. The government focus on the housing market, infrastructure reforms and tourism has been long overdue. The success of the reforms for economic growth has created immediate and long term benefits to the Brazilian community.

Strong Tourist Growth and Expansion of Infrastructure

It is easy to see the attraction of Brazil as a sought after holiday destination, especially with the continued easing of access to the newly developed holiday resort locations. Natal, located along the north-east Atlantic coast features a year round destination with a tropical climate. Around 8 hours flight from Europe and North America, visitors are likely to spend longer than a few days in the area, creating improved potential to the buy-to-let rental market.

Considered one of the safest areas of the country to visit, Natal and the surrounding areas feature some of the best beaches in South America, with a superb climate. Accessible by direct flights from several major cities such as London, Barcelona and Lisbon amongst others, the new international airport in Natal has been designed to cope with the predicted exceptional growth of the region’s tourist and foreign investment markets.

Price increases in property have been growing directly in line with the demands of the tourist market. This growth has been assisted through government reforms and initiative towards increasing awareness and expansion of the tourist sector. All of the incentives developed for the growth of the tourism sector and attracting foreign investment, have been very successful in creating an exciting and attractive new investment market.

Continued interest, growth and demand of Brazil’s real estate market have not slowed, leading development companies to maintain construction to meet the strong demands. The growing internal market provides additional incentives to buyers, allowing for further exit strategies and continued interest in the market. The stunning natural attractions of the vibrant location are expected to continue drawing visitors from around the world. Following the release of the Goldman Sachs BRIC report, a new fascination in Brazil began to emerge. As confidence in the market has not waned over time, ever increasing numbers of investors are keen to experience the market for themselves.

A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.
‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’
‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’
Typical property prices in Monaco at the moment include a second floor studio apartment at 1,100,000 Euros, a one bedroom apartment in Monte Carlo at 2,150,000 Euros, and a three bedroom two bathroom apartment at 5,500,000 Euros.
As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
One thing that could put the brake on the number of Brits looking to move to Monaco was announced after the magazine’s claims about Monaco real estate prices were published.
The amount of time British tax exiles can spend in their home country is being limited by the British government, and it could impact the British economy, claim a company who specialise in tax haven property and residency.
Up until now a British taxpayer could avoid paying income tax by taking residency in a tax haven such as Andorra or Monaco, and be allowed to spend 90 days a year in Britain before falling foul of the Iland Revenue. Importantly both the day of arrival and departure into the UK didn’t count as a day.
So technically, a tax exile living in Andorra could drive to Barcelona airport for a 7am flight to London, and given the hour’s time difference between Spain and the UK, be comfortably in an office working by lunchtime.
Equally, the same tax exile could leave the London office at 6pm Friday for Barcelona en route to Andorra – and importantly those five days in the UK would count only as three of their ninety day allowance as the day travelling to and from the UK aren’t counted. Which allowed business men and women to commute from the tax havens of Andorra and Monaco thirty weeks a year. Some would do Monday to Thursday and could do that virtually all year and still stay on the right side of the British tax man.

A magazine column in the US has claimed Monaco has the most overpriced real estate in the world, backing up with evidence that typical rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response an on-line Monaco internet site says the American media is wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.
‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’
‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’
Typical property prices in Monaco at the moment include a second floor studio apartment at 1,100,000 Euros, a one bedroom apartment in Monte Carlo at 2,150,000 Euros, and a three bedroom two bathroom apartment at five million Euros.
As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
One thing that could put the brake on the number of Brits looking to move to Monaco was announced after the magazine’s claims about Monaco real estate prices were published.
The amount of time British tax exiles can spend in their home country is being limited by the British government, and it could impact the British economy, claim a company who specialise in tax haven property and residency.
Up until now a British taxpayer could avoid paying income tax by taking residency in a tax haven such as Andorra or Monaco, and be allowed to spend 90 days a year in Britain before falling foul of the UK’s Inland Revenue. Importantly both the day of arrival and departure into the UK didn’t count as a day.
So technically, a tax exile living in Andorra could drive to Barcelona airport for a 7am flight to London, and given the hour’s time difference between Spain and the UK, be comfortably in an office working by lunchtime.
Equally, the same tax exile could leave the London office at 6pm Friday for Barcelona en route to Andorra – and importantly those five days in the UK would count only as three of their ninety day allowance as the day travelling to and from the UK aren’t counted. Which allowed business men and women to commute from the tax havens of Andorra and Monaco thirty weeks a year. Some would do Monday to Thursday and could do that virtually all year and still stay on the right side of the British tax authorities.

The Monaco Grand Prix held at the end of the May shows Monaco in her full glory to the world for a Sunday afternoon, and this year was no exception as Lewis Hamilton won the race for the first time.
Monaco is known the world over not just for the best Grand Prix of the F1 season, but for million and billionaire residents, glamour…and some of the most expensive property in the world.
But with the world on on the brink of a possible recession and falling house prices both in the US and Europe, Monaco could buck the trend in the years ahead and see surprisingly big gains in prices while those around her go into freefall.
Part of Monaco’s price increases in recent years, and for the medium term future too, is that new housing being built is for locals, and a strong new supply of openly available apartments is unlikely to happen for ten years – and with strong demand and little supply it suggests further price rises are likely for this year and next.
British citizens have moved to Monaco in high numbers in recent years and as UK taxes show no sign of falling this large group is expected to swell further in 2008.
Previously a relatively small group of Monaco residents, the number of British people living in Monaco has doubled in the last three years since 2005, with some 3000 now claiming residency in Monaco.
Attaining residency in Monaco necessarily means renting or buying an apartment. The lowest priced property on the market at the moment is a 30m2 studio with a 7m2 balcony in the Fontvieille district at 720,000 Euros. With closing costs this rises to over 800,000 Euros. As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
Mid range is a 210m2 3 bedroom 2 bathroom apartment in Monte Carlo, close to Casino Square, at 4,200,000 Euros. And at the top end is a three floor penthouse apartment in the well known Eden Star development at 25,000,000 Euros, equivalent to around 16 million Sterling.
At the opening of Monaco’s new consulate in London recently, Prince Albert of Monaco acknowledged the important contribution British people are making to his country, and said he would like to see more in the Principality. Prince Albert is particularly keen to see British entrepreneurs move to Monaco, but one travel guide for the country doesn’t think Prince Albert has fully thought through his ideal scenario.
‘Prince Albert said recently that he welcomes British entrepreneurs moving to Monaco, but that he wouldn’t be distributing leaflets on London’s streets to get more to do so. But he is missing the point. The costs involved in moving to Monaco are prohibitively high, even compared to London standards, and if he is serious about British talent moving to Monaco while we don’t expect Monaco to remove the financial barriers he could move to lower the bar a bit at least.’
A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
Monaco property buyers would find it difficult to find anything at all for 700,000 Euros, even for the smallest studio apartment, and realistic starting prices are from a million Euros.
Prices last year rose dramatically, with the Casino Square area seeing price increases close to forty per cent, and in Fontvieille, close to the helicopter pad which connects Monaco with Nice Airport, prices nearly doubled.
Overall it is thought that demand has grown by around thirty five per cent over the last five years, with few new Monaco properties becoming available to meet the new buyers expectations and putting pressure on already high real estate prices.

Many Americans are looking to emigrate in Canada and Toronto for retirement. In recent years Americans moving abroad to Canada either for retirement or employment has grown significantly. Canada is convenient enough for most Americans to enjoy flying home to visit or planning travel destinations to and from Ontario apartments to family neighbourhoods back in the United States. Canada has resort value for many international buyers of second home and investment real estate.

Climate and temperature for Canadian homes remain far South of American city temperature averages, which is one reason why most of the Canadian population seems grouped around Ontario homes approaching the United States’ northern borders. No longer is Canada merely an attractive option for draft-dodgers and eccentric seniors. Canada has evaded a large part of the Northern American recession and retains vital real estate value. Yet Canada does have its urban challenges in city planning and metropolitan renewal.

English is usually spoken everywhere in Canada and writing materials and legal documents remain thoroughly French and English wherever business is transacted. Canada has its own film industry, music industry, and lexicon of trade interests operating with European partners. International interest in Canada commodities and companies has fluctuated some metropolitan markets in Canada such as Saskatoon, Edmonton, Victoria and Regina.

Settled by national tribes of French, Indian, and British trappers and hunters, Canada has throughout its assorted tundra various provinces which have assumed their own character. Manitoba real estate is more rural, while Winnipeg is a self-contained professional hub which absorbs some metropolitan underclasses. Winnipeg is bear country, and the bears have ample room, since about half of all population of Manitoba lives inside Winnipeg or its environs. A Winnipeg WWI soldier brought a black bear to the London Zoo in 1914, furnishing A.A. Milne with a model for Pooh.

Manitoba depends on agricultural produce and resulting commercial trade to keep its economy vibrant. Unemployment in Canada is lower than the United States, allowing for a more lively resale market for real estate. Current real estate sellers in America are much more motivated to make sale concessions on a home sale to prevent prime borrower foreclosure or loan default. Canadian property owners are more likely to hold onto Canada property for the best sale price. But Canadian real estate investment continues to be a popular international option.

Property in Canada have been teased by American investors now and again, although investment in Canada ventures on the whole and Canadian companies is less strong. But pendulums in Canadian real estate, especially in Toronto homes market, have recently swung back toward the buyer. Expansion in Canada public services and public transit signal increased value in Canadian real estate. Toronto condos have suffered unseasonal drops in real estate unit sales and deal volume. Experts look at Canada trade levels, wage drops and observe that offshore buyers buying solidly have resulted in rendering the Canadian real estate market ripe for stagnation until adjustment takes place.

Realists in Canadian real estate for some time have watched offshore buyers drive the Canada real estate market in circles of rising value and descending unit volume. But areas like Vancouver have suffered double digit multiannual decreases in slowing down and sale prices sharply lower. Higher listings in strong real estate months have presaged a buyer’s market at the same time American home buyers may be looking abroad for affordable real estate. Year over year increases in sales that would drive prices up as in the United States has not happened to the same degree, so prices remain relative to value.

Experts advise in waiting to buy in for Canada until key transitions take place and then tapping into pride of ownership to buy or sell Canadian real estate for investment. In contrast to this strategy, few areas in the United States are overcoming recession and building job and consumer spending growth to a level that rivals Canada. A recent slowdown in Canadian real estate has prepared the market for a shifted perspective that welcomes international and American buyers. American and other international buyers may find surprising security and vacation and investment home values buying real estate in Canada.

For further assistance on Canadian Properties, Newfoundland real estate, Nova Scotia real estate, Prince Edward Island real estate, Quebec real estate and Saskatchewan real estate, Log on http://www.realestateproperty.ca

Monte Carlo attracted the new rich Russians a decade ago, but a decade later it’s the British – using conventional banking methods and with it a degree of respectability – who are investing in Europe’s top tax haven.

While the British have been players in the region for nearly two hundred years, with Nice just along the coast being a favourite resort of the genteel Victorian English – in recent years the British have held a presence in Monaco, but now they’re back in numbers not seen for over a century.

The new wave of British buyers is welcomed by Monaco real estate agents as their funds are more likely to be legitimately earned, while some of the 90’s Russian cash was often a little suspect.

‘Things have changed since the 90’s when the Russian mafia were the big players in town’, explain a Monte Carlo property agency, ‘Then it was easy to put a few million cash down for a property and not have questions asked. In the last few years the banks have really tightened up due to government pressure because of the ‘war on terror’ and tracking money from illegitimate sources. Estate agents in Monaco know that the chances of a British buyer being able to show the source of their money as legitimate is very high’.

With quite ordinary one bedroom apartments at just under a million Euros, and a typical three bedroom apartment at over three million Euros, property prices have more than doubled in Monaco in the last ten years.

In the past Monaco property buyers have often been retired sixty-somethings, staying away from their home country to avoid the taxes that come with selling their business. But today’s Monaco buyer is just as likely to be in his mid thirties or forties as they are in their sixties, with the middle age British leading the way.

‘A few years ago around one in ten enquiries we were receiving were from the UK’, the agency continue, ‘but now it’s virtually four in ten – a significant shift in the nationality of Monte Carlo property buyers.

The buyers have often made their money from one of three sources. The traditional company owner with a bricks and mortar business who has sold up, but also younger entrepreneurs, some of whom have made money in e-commerce. A significant number of buyers from the UK have worked in the financial sector, invariably in the City of London. We see a lot of futures and commodity brokers who are on high million pound and more salaries with annual bonues to match.

Some British buyers continue to trade or run their businesses from Monaco. Nice Airport is a ten minute helicopter ride away, and the City of London can be just three hours away from their Monaco property with the right connections. With some clever accounting thrown in, today’s technology enables people to manage their UK business from Monaco in a tax free environment’.

A loca Monaco travel guide has also noticed more Brits on the streets of Monte Carlo.

‘The British have arrived in Monaco in numbers recently. The ones I have spoken to have recently sold their business or are on very high salaries with million pound and more annual bonuses. I would like to think they are coming here for the Monaco weather, but of course it is for the tax environment we offer -and of course the Monaco Grand Prix.’

In recent years the British economy has consistently been one of the strongest in Europe, and with a top rate of income tax cut a decade ago to forty per cent the wealthy have become wealthier – and want to stay that way.

‘Despite the top rate of tax coming down to forty per cent, by the time other direct taxes such as National Insurance are taken into account around half of top earners salaries are – as many of the Monaco property buyers from Britain see it – being lost to the Inland Revenue. By moving to Monaco they effectively double their disposable income.

When you go to hotels in Monaco and see a couple with estate agent details on the table and a map of Monte Carlo with various places highlighted, there’s an almost even chance that they will be British. A lot more than just a couple of years ago. They like Monaco, the security, the tax advantages and the closeness to London’.

While much of Europe could be on the edge of a property price recession, Monaco it seems knows no limits for her prices.
Prices have risen consistently in recent years, to the point where it overtook London early in 2007 to become the most expensive location in the world for real estate, with London overtaking Monaco again recently.
The studio is just 43m2 in size with a 15m2 terrace, and located in Jardin Exotique, an area of Monaco that becomes behind better known Monte Carlo and Fontvieille in popularity for potential Monaco property buyers.
Monte Carlo has traditionally been the first area most people ask for as it is so well known, while Fontvieille, which has its own harbour and hosts the annual Monaco Yacht Show is popular among business people as the heliport is based there.
Jardin Exotique is the highest area in Monaco, and most apartments enjoy good Mediterranean views.
Monaco is due to invest heavily in Jardin Exotique’s infrastructure in the near future, making property there attractive to investors looking for property appreciation. Overall, it is possible that Monaco property prices could overtake London again in the coming months.
Monaco property prices are almost certain to rise in the short and medium term according to a Monaco travel guide, and possibly to the level where the cost per square foot will exceed that of London.
‘Three years ago there were around six hundred properties to rent or buy in Monaco – that has declined since then to two hundred – but demand is as high as ever, pushing prices up more.’, explain the travel guide.
With property prices in Monaco the second highest in Europe and one bedroom apartments after closing costs starting at around a million Euros, longer term the shortage of property in Monaco will be helped a new island being built off Monte Carlo.
It’s thought unlikely that the new island will reduce prices much overall though, despite the increase in the number of property units available as Monaco property is always in demand.
Monaco property specialists believe that most new apartments will be sold to investors off plan well in advance of any building work starting.
‘The problem with property in Monaco is not the lack of buyers’, they say, ‘but more the lack of good properties for buyers to choose from. Hopefully the new island will address that. Everyone in Monaco is aware of how important the environment is thanks to Prince Albert’s initiatives in pushing it up the political agenda, and any new developments will be low rise. With the good weather in Monaco expect to see plenty of solar panels on the roofs to make the buildings energy efficient’.
It is possible that the new island will be incorporated into future Monaco Grand Prix, which could give more overtaking opportunities.
One Monaco property company reports that new enquiries are running at a high rate, with many buyers keen to buy now in case prices go up more, either for residency, or more commonly than before for investment.
In recent years the UK market has accounted for much of Monaco’s property price rises, as the number of buyers has increased to 40 per cent of the total market, but in recent months buyers from other European countries and from further afield, Australia and Canada in particular have been noticeable.

Monte Carlo has appealed to Europe’s wealthy – and since the advent of jet travel from further afield since the 1880’s, but recently British money in particular has been finding its way to Monte Carlo at record levels.
Signs of the British in Monte Carlo are everywhere to be seen. Each apartment building has a good number of British owners, and the harbour is full of yachts flying the English ensign – some estimates put the figure as high as fifty per cent.
Previously a relatively small group of Monaco residents, the number of British people living in Monte Carlo has doubled in the last two years since 2005, with some 3000 now claiming residency.
Attaining residency in Monte Carlo, the most popular part of Monaco,necessarily means renting or buying an apartment. The lowest priced property on the market at the moment is a 30m2 studio with a 7m2 balcony in the Fontvieille district at 720,000 Euros. With closing costs this rises to over 800,000 Euros. As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
Mid range is a 210m2 3 bedroom 2 bathroom apartment in Monte Carlo, close to Casino Square, at 4,200,000 Euros. And at the top end is a three floor penthouse apartment in the well known Eden Star development at 25,000,000 Euros, equivalent to around 16 million Sterling.
At the opening of Monaco’s new consulate in London recently, Prince Albert of Monaco acknowledged the important contribution British people are making to his country, and said he would like to see more in the Principality. Prince Albert is particularly keen to see British entrepreneurs move to Monaco, but one travel guide for the country doesn’t think Prince Albert has fully thought through his ideal scenario.
‘Prince Albert said recently that he welcomes British entrepreneurs moving to Monaco, but that he wouldn’t be distributing leaflets on London’s streets to get more to do so. But he is missing the point. The costs involved in moving to Monaco are prohibitively high, even compared to London standards, and if he is serious about British talent moving to Monaco while we don’t expect Monaco to remove the financial barriers he could move to lower the bar a bit at least.’
A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.
‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’
‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’
Given the love affair Britain’s elite seems to have with Monte Carlo, the real estate and finance sectors are probably in for a reasonable time in the years to come, with or without a world recession.

Godrej Properties, the real estate arm of the Rs. 7,500-crore Godrej group, is reliably learnt to be in talks with private equity investors, hoping to raise Rs. 200-crore for its Hyderabad and Kolkata realty projects, as it seeks to dilute 49% of its stake in both projects to Private Equity investors. “Talks are on with several investors for diluting 49% stake in two of our projects in Hyderabad and Kolkata. The final decision is yet to be taken.” confirms Adi Godrej, Chairman – Godrej Properties, even as he declined to comment on the valuation of the two projects. With the combined deal size for both projects in the range of Rs. 180 – 200 crore, they may be set up as a special purpose vehicle, with the majority of the stake being retained by Godrej Properties.

With Godrej Properties in discussion with 7 – 8 investors, discussions are in an advanced stage with two of them including Trikona Capital, a London-based real estate fund. Mr. Godrej, however, declined to name any of the investors participating in the discussion.

Last year, Trikona successfully raised nearly $500-million at the London Stock Exchange’s AIM market for investing in the real estate market in India. Focusing heavily on its real estate business, the Godrej group expects it to be a major revenue generator. With 8 – 10% of the group’s total revenues, currently accounted for from real estate, it expects this could go up to 20 – 25% over the next five years. With so much confidence reposing in Indian real estate, an IPO is also on the cards for Godrej Properties to fund its expansion.

Off-loading around 10% of its equity during the IPO, the parent firm of Godrej Properties i.e. Godrej Industries, owns 83% of its equity and 17% is with the Godrej family that also owns 86% of Godrej Industries.

In operation for the past 17-years, Godrej Properties is active in Kolkata, having tied up with two IT parks and one retail mall, while it is setting up an IT Park in Hyderabad. Godrej Properties with commercial, retail and residential projects is present in five cities across the country, including Mumbai, Pune, Hyderabad, Bangalore and Kolkata.

For more information on Real Estate Agents, MLS visit Propertiesmls.com

Source: IndiaRealEstateblog

Real estate investors have done well in Malta in recent years, with good annual increases in prices over the last ten years.
But with EU membership now two years old, and questions last year about Malta staying as a mainstream holiday destination, future potential became questionable.
Estate agents on the island though seem fairly confident that the rises will continue for a while yet. At the beginning of the year two leading international estate agents predicted ten per cent inflation for 2007.
One factor that investors could be taking into account when looking at the possibility of buying a property in Malta is that Malta is joining the Euro at the end of the year – something that has caused other countries real estate market to gather pace in the past.
Malta’s low taxes are also inceasingly attracting new residents this year. With tax at less than half of many other EU countries, buying real estate in Malta often makes economic sense, as well as being a home in the Mediterranean for many.
Buyers from the UK in particular often cite Malta’s low tax regime as one of their primary motives for moving to the island.
Visitor numbers for Malta have been encouraging for 2007, with rises on 2006 for each of the first three months of the year. March showed a ten per cent increase. An increased pool of visitors will almost certainly translate into more sales from overseas, with a knock on effect on housing prices.
British Investors
Ryanair’s new routes from London and Dublin to Malta have proved a success both for the airline and for the island since the launch in November of their Luton flights. Initial estimates of an extra 80,000 tourists due to Ryanair might be much lower than the true figure when results are published. Reports suggest that Ryanair might be considering further flights to Malta from different destinations. Whether this will be from the UK or elsewhere isn’t clear yet.
But hopes that popular low cost airline easyJet would provide further impetus for the Malta holiday trade seems to have been dashed with reports in the island’s press that talks have stalled, and a proposed London Gatwick route has been shelved.
A new low cost London Gatwick route would have provided competition for the island’s national airline, Air Malta, and possibly have reduced the cost of flying to Malta further.
Air Malta, the island’s national airline, has run a successful campaign to sell seats, and has opened up a new route from the North-West of England, flying from Liverpool’s John Lennon Airport.
The advantage Malta has for UK and Irish visitors is that they drive on the same side of the road and English is spoken, and for non British Isles visitors Malta has well known language schools where they can learn English.
A 2 bedroom apartment in the popular Malta holiday resort of Qawra is currently on the market for LM 72,000, and a three bedroom two bathroom apartment in equally popular Mellieha for LM 138,000 negotiable.
‘With lower fares, Malta becomes a destination viable for 3 and 4 days trips a few times a year from the UK, and that will attract buyers to look at Malta in the same way they do France and Spain when considering where to buy a holiday home abroad. The weather in Malta and low fares could be a magnet for buyers’, commented one local travel guide recently,
There is a warning however from some that property prices on the island might not necessarily escalate in the same way that regions of France have seen when low cost airlines have started flying to their region.