A Sporting Boost for Property Investment

International sporting events are widely recognised as a driving force behind all kinds of investment, particularly infrastructure and property. The Olympic Games are perhaps the biggest generator of investment, but even minority sporting events such as the America’s Cup are major engines behind regeneration and regrowth in an area. It is estimated that a typical sporting event raises £500,000 a day.

In spite of the initial outlay, hosting a major international event can reap huge benefits for the host nation. For example, the most recent Olympic Games in Beijing were an important factor behind the nearly 6% increase in revenue from tourism in China, which reached US$169.5 billion. In Singapore, sporting events such as the Formula 1 Grand Prix and the Singapore Air Show (both held for the first time in the country) meant 2008 was a record year for tourism spending. The Rugby World Cup in Paris was also a substantial contributor towards the city’s excellent tourism figures last year.

The next Olympic Games in London in 2012 are expected to draw major investment to the capital as well as bring London to the forefront of international attention. Many property analysts believe that the Games will bring the additional benefit of signalling the end of the property slowdown and help kickstart the capital’s housing market. Glasgow is expected to receive similar positive publicity and investment when it hosts the Commonwealth Games in 2014.

The king of sports, football, is also responsible for drawing investment when a major football championship is held. A football tournament requires massive investment and draws millions of spectators, and an event such as the World Cup or European Football Championship has the additional advantage of bringing visitors to different parts of the country, therefore spreading investment and tourism. Next year’s World Cup in South Africa will see matches in nine different cities including Cape Town, Durban and Pretoria.

Brazil organises the World Cup four years later when a total of 14 Brazilian cities will host matches. Natal in north east Brazil is widely expected to be one of them – Abreu & Barros Arquitetura, the architects behind Obelisk Investment Property’s Brazil projects including Laguna Beach, are designing the proposed stadium.

It is not only hotels that benefit hugely from sporting events, but also property – rental accommodation is popular among visitors to events, especially tourists wanting to combine spectating with a holiday. “The benefits of owning property near the location of a major sporting event are obvious,” says James Gonzalez, Market Analyst at Obelisk Investment Property, “and these benefits often outlive the duration of the event.” James points out that once the event is over, the destination often becomes the preferred holiday choice for many tourists with clear advantages for those who have invested in the area.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). From abroad: (+34) 952 820 319

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

Lithuania – A Capital Attraction for Investment

Whichever way you look at it, Lithuania is a success story. GDP growth between 2003 and 2007 averaged 8.4% a year and the 3.1% increase in 2008 was among the highest in the EU27. The housing market has also grown considerably and property investment in this Baltic State has provided promising returns. In addition, this year sees a first for a new EU member state – Lithuania’s capital, Vilnius, is this year’s European Capital of Culture.

Having emerged from Soviet occupation in 1990, Lithuania, the largest and most populated Baltic State, is now a fully-fledged member of NATO and the EU. Its status as an established member of Europe is confirmed by Vilnius as European Capital of Culture. The capital’s old quarter, a treasure trove of Baroque architecture, is widely acclaimed as the greenest and most elegant of the three Baltic capitals. Not for nothing is Vilnius a UNESCO World Heritage Site.

As European Capital of Culture, Vilnius offers an impressive calendar of events –experimental theatre, opera, multimedia events, classical music concerts, ballet and films – which promise to attract numerous tourists to this Baltic capital. Highlights in the year’s many events include the Opera Festival, ‘Let There be Night’ on Midsummer’s Eve and European Jazz.

In common with many other EU countries, Lithuania’s outlook for 2009 is not quite so bright. Eurostat forecasts 0% GDP growth for this year, although this is considerably better than many of the EU’s larger and more developed states, and only fractionally below the growth forecast for the EU27 as a whole (0.2%). The prediction keeps Lithuania in the enviable position of being outside the recession zone.

Property prices have also seen a dip – the Knight Frank Global House Price Index for Q4 2008 reported a year-on-year fall of 1% on the previous quarter (again, significantly below the drop seen in other countries). However, a downturn in the property market often signifies opportunities for investment. “The fact that Vilnius will constantly be in the cultural spotlight this year will undoubtedly boost tourism and enhance the capital’s status as a popular weekend-break destination,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “This year could well be the one when it’s worth looking into the Lithuanian market with opportunistic buying in mind.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). From abroad: (+34) 952 820 319

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

Good Potential for Property Investment in Hong Kong

A leader among the world’s financial capitals, Hong Kong is also one of the most densely populated countries in the world. With space at a premium on this small administrative territory part of mainland China, property is, not surprisingly, one of its most sought-after commodities.

Popular with relocators, the Hong Kong property market is also a favourite with investors, particularly the luxury residential sector in the territory’s many high-end districts such as The Peak and Island South. However, Hong Kong’s economy and by extension, its property market, have been very affected by the global economic recession. House prices generally have fallen around 25% since spring 2008 when they peaked and many property analysts expect a similar decrease this year.

According to CB Richard Ellis Hong Kong, prices for luxury properties on Hong Kong Island experienced a year-on-year decrease of 19.2% in Q4 2008 and the average unit rate is now around HK$36 per square foot. In the face of falling prices, many vendors have decided to let their homes rather than sell, although the rental market currently mirrors the property market with rental rates falling 20% since December.

However, as is the case in many countries at the moment, falling house prices mean there is potential for opportunistic property investment in Hong Kong. In response to the slowdown in the property market, many developers are choosing to postpone the completion of new complexes, which further limits the supply of available housing in the territory.

Reflecting the potential for bargains, Q4 saw increased buyer interest and according to CBRE Hong Kong, some developers reported a good response from buyers to the launch of new projects. However, the main sentiment dominating the overall Hong Kong market is currently one of expectation as potential investors wait for prices to fall further before they commit to a purchase.

“The current Hong Kong property market very much resembles the situation at the moment in the UK, Spain and parts of the US,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “Falling prices and low interest rates makes it a very attractive market for the investor, particularly those with ready funds. And the limited supply of property in Hong Kong also means there will always be demand, an essential consideration for property investment.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Obelisk’s Latest Guide to Overseas Property Investment

How property markets will perform in 2009 is difficult to predict but help is at hand in the form of the latest addition to Obelisk’s Absolute Guide Series. The new Guide to Overseas Property Investment gives the investor a realistic overview of global property markets and highlights the most attractive investment destinations which are defying the global economic downturn. Available for download at http://www.absoluteguideseries.com/landing/overseas.php

The Guide to Overseas Property Investment has been meticulously researched to give both new and seasoned investors a comprehensive insight into the most important factors which may affect investment decisions. This particular guide looks at why facts such as economic growth, infrastructure, foreign direct investment and tourism are important for both primary and secondary property markets as well as pinpointing those areas which have the most promising growth.

Among the most exciting destinations which are highlighted in the guide are those which continue to offer excellent investment potential, despite global economic problems. These are the emerging markets with strong economies and thriving property markets, such as Brazil, Romania, Slovakia and Uruguay. Each of these countries has their own separate guide which gives the investor detailed information, but their inclusion in the Guide to Overseas Property Investment also means they are showing particular potential.

Brazil is a highlighted in the guide because it is also one of the four countries known as the BRIC nations, predicted by the Financial Times to be the only source of domestic demand growth in the world in 2009. Brazil offers the additional advantage of recent currency falls, making property cheaper for the foreign buyer. Newer emerging markets with investment appeal include Albania with its low property prices, steady economy and rising tourism.

The Guide to Overseas Property Investment is part of the Obelisk Absolute Guide Series which covers more than 30 investment destinations, all of which can be downloaded absolutely free in PDF format from www.absoluteguideseries.com. Each guide offers clear and detailed advice about each country and is the ultimate investment tool for the savvy investor. James Gonzalez, Market Analyst at Obelisk Investment Property, says, “Property markets in many regions are currently experiencing a slowdown but Obelisk’s research shows that there are still some countries which represent excellent investment possibilities because of their economic strength and potential for growth or because a slowdown in the property market has led to a supply of low-priced properties. The light at the end of the tunnel has certainly not been switched off.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Boost for Property Investment in Portugal

Portugal has long been renowned for its year-round warm climate including over 300 days of sunshine and its endless Atlantic coastline, two elements that have made it a firm favourite for overseas property investment. However, these elements are now being harnessed in a major drive to boost Portugal’s economy.

Areas such as the Algarve and Silver Coast (running from Lisbon to the city of Aveiro) are well-established on the Portugal property investment map and development and associated tourism in these regions has done much to drive the local economies forward. Portugal remains one of western Europe’s poorest countries and with no primary resources of its own and highly reliant on external energy sources, Portugal’s economy has failed to take off. Conscious of the country’s poverty, the Socialist government has decided to harness Portugal’s natural energy sources to bring much needed wealth to the economy.

The national New Energy Policy was approved in 2005 and the Minister of Economy and main instigator of the policy, Manuel Pinho, believes it will provide Portugal with the opportunity to prove that it is good at something. “Not using Portugal’s vast natural resources for energy would be like Venezuela not using its oil,” he claims.

The policy has the ambitious objective to make Portugal a world leader in renewable energy. To achieve this, its main aims are for 60% of Portugal’s electricity and 31% of its energy needs to be supplied by renewable energy sources by 2020. There are also advanced plans for a national network for electric cars. Four years after the policy’s implementation, Portugal is already proving it means business – by 2010, the country will have the lowest CO2 emissions per capita in the EU and several renewable energy installations are record breakers. For example, the 120 wind turbines turning in the Alto Minho region in the north form the largest onshore windfarm in Europe, Amaraleja in the south is home to the world’s largest photovoltaic solar energy plant and innovative wave farms are already installed off the Porto coast.

The push for renewable energy has brought triple benefits to Portugal – not only is the country contributing significantly to the fight against global warming, Portugal is gradually reducing its expensive dependence on external energy and the country’s economy has received an uplift. Employment figures have been boosted by 10,000 new jobs created since 2005 and a further 22,000 more are expected to be generated by 2020.

James Gonzalez, Market Analyst at Obelisk Investment Property, believes the renewable energy policy will bring Portugal to the forefront of Europe. “This is perhaps the break Portugal has been waiting for,” he says, “and if the objectives are met, renewable energy and related R&D should make a substantial contribution to the economy. I think we can expect to see a major change in Portugal’s investment profile over the next few years.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Property Investment Opportunities in Sweden

Often considered too remote or perceived as too expensive, Sweden rarely features in a property investment portfolio. However, with an average property price of €155,000 in Q4 2008, Europe’s 4th largest country may be worth considering.

Those in search of a lifestyle investment may want to take a look at Sweden’s ski resorts. While perhaps not the first on many people’s list of Europe’s top ski destinations, Sweden has over 25 ski resorts. These include Åre, currently hosting the FIS Ski World Cup finals, Storlien on the Norwegian border and Vemdalen, home to Klovsjo, voted Sweden’s prettiest village by travel writers.

Perennially popular with Swedish skiers, the country’s ski resorts are now being discovered by foreigners, particularly Norwegians who are attracted to the considerably cheaper prices in the neighbouring country. With a long and guaranteed ski season (November to April), many resorts are currently under expansion. For example, Storlien plans to extend its facilities and development at Klovsjo means the resort’s accommodation will cater for 2,000 visitors on completion.

In common with many developed countries, Sweden’s property market has not been immune to the economic slowdown and according to official statistics, house prices experienced a year-on-year drop of 2% in Q4 2008, the first annual decrease since 1996. Falls were higher in Greater Stockholm and Gothenburg where property prices went down by 5%. However, monthly statistics released for December show a turnaround – prices increased by 3% in Gothenburg, 2% in Malmö and 1% in central Stockholm.

As the Swedes prefer renting to buying, property investment in Sweden provides plenty of opportunities for buy-to-let, particularly in the cities. For instance, Malmo, situated a bridge journey away from Copenhagen, is popular with commuters to Denmark who prefer to live in Sweden where the property is cheaper. Properties in many ski resorts also have good letting potential since most resorts are popular with holidaymakers year round.

“Sweden is definitely an unusual addition to a property portfolio,” says James Gonzalez, Market Analyst at Obelisk Investment Property, “and not one most people would think of. However, its surprisingly low property prices and a reasonably healthy property market make it one to explore.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Investment in the Hotel Industry Remains Profitable

In the midst of the global economic crisis, the latest news from the hotel industry is refreshingly positive. Property investors in the hotel sector will be heartened to hear that Ernst & Young LLP - the US arm of Ernst & Young Global - recently released a report about trends in the global hotel industry which found the industry is remaining profitable in the face of recession.

The US 2009 Lodging Report contains an overview of the global hotel sector (including the US) as well as in-depth analysis of the main segments and market reports for 17 major US cities The report notes that despite economic decline across most major regions of the world in 2008, operating performance in the global hotel industry remained profitable as hoteliers focused on controlling costs.

The report also features trends to watch in the hotel sector in 2009 and several of them are important for property investment in the hotel industry. One important change they expect is that hotels will become part of mixed-use developments, alongside office and residential properties, and more and more hotels will be environmentally friendly. Green hotels are gaining momentum worldwide, particularly in the US and governments are promoting green hotels and renovations and will penalise those with large carbon footprints.

In the US in particular, it’s thought that government stimulus programmes which mean investment in infrastructure, will have a positive effect on the hospitality sector because of improved access to major tourist destinations. In addition, the timeshare and cruise sectors of the hospitality industry - traditionally competitors for business - have been hard hit by the economic downturn.

One notable point for investors is that because hotel values dropped in 2008 and will continue to do so in 2009, cash-rich buyers are waiting in the wings to invest once prices become even more attractive. This was also clear from another recent Ernst & Young LLP survey of US real estate investors, which revealed that 60% intended to take advantage of distressed sale prices and buy commercial real estate.

James Gonzalez, Market Analyst at Obelisk Investment Property says that the Ernst & Young report is positive for investors in the hotel sector. “It’s interesting that they are also flagging up regions outside the traditional markets of western Europe and the US. Those regions with healthy and growing economies, big populations and a relative scarcity of hotels are the ones to watch. This supports Obelisk’s own research which highlights eastern Europe and Brazil.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

Hungarian Government’s Rescue Package

While governments around the world have been swift to announce measures to keep the economic crisis at bay, the Hungarian government has been rather slow to respond. Criticised by the opposition, Prime Minister Ferenc Gyurcsány recently defended his minority Socialist government when he said that the country’s economy had more problems than most because of its lack of budget reserves. Other European countries have been propping up their economies at the expense of their budget deficit, but that is not an option for Hungary.

Among the country’s economic problems is a dramatic drop in industrial production – it fell by a massive 23.3% year-on-year in December 2008 – while foreign and domestic consumption have also seen a significant reduction. Economic experts are predicting that the Hungarian economy could see a decline of 5% in GDP growth. The government has decided that drastic measures are called for and have come up with a plan which is both an immediate response to the crisis and the first stage of some long-term reforms.

Tens of thousands of Hungarians have lost their jobs in recent months and one of the government’s main aims is to protect current jobs and create new ones. It plans to reduce the tax burden on both employers and employees and restructure the tax, welfare and pension systems. However, to compensate for this, the VAT rate will be raised from 20% to a massive 23% and the business tax from 16% to 19%.

The measures received a mixed reaction from the business community and workers. Industrialists demanded even more comprehensive measures and government was criticized by the opposition for not doing enough and said that the measures were ‘too little, too late’. The prime minister has warned the Hungarian people that there is a difficult road ahead and that they may not see the benefits of current measures for several years. This was confirmed by The Economist’s predictions that Hungary’s economic growth will not begin to recover until 2010 although annual inflation will decline gradually, and it is expected that the country will adopt the euro in 2013.

Hungarians have responded to the economic situation by choosing to rent more property – there has been a considerable jump in city rental markets. Instead they are saving their money - a good option as banks are offering 12% to 13% yields for fixed-term deposits. James Gonzalez, Market Analyst at Obelisk Investment Property, says that the Hungarian market is currently a good buy-to-let investment. “Recent research from GKI Economic Research in Budapest shows that although the market is temporarily frozen, there has not been a drop in house prices. Traditionally Hungarians prefer to be homeowners and so experts believe that they will continue to invest in the housing market once the financial crisis passes.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com

Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com

The Hills are Alive – with Austrian Property Investment

Landlocked Austria rarely features on a property investor’s portfolio even though the country is Europe’s second most popular destination for skiing. One of the reasons for Austria’s low profile for property investment are the restrictions it places on the ownership of holiday homes, which in some regions has, up until now, been prohibitive. However, the recent relaxation on restrictions for EU nationals, the stunning countryside and the increase in low-cost flights means that Austria now has plenty to offer the investor.

Some regions have long been popular with the Germans and Swiss, particularly the Tyrol, just over the border from Bavaria. For the British, however, Austria was previously little more than the location of the cult film ‘The Sound of Music’. But the introduction of frequent low-cost flights from the UK to Innsbruck, Salzburg and Vienna has sparked British interest, which is now fuelled by the discovery that Austrian ski resort property costs considerably less than similar property in France or Switzerland.

Resort properties cost around €2,000 to €3,000 per square metre – you would expect to pay at least €4,000 in the French Alps. The recent lack of interest in Austria means property prices have escaped the huge hikes seen in other countries, although there have been steady annual rises. According to the Salzburg Economics Chamber, property in resorts rose by 4.5% to 5% during 2008 and prices are forecast to go up by 3% in 2009. These slow but steady increases make for good returns on a medium to long-term investment. In any case, investors in Austria need to look at a minimum of ten years ownership – capital gains tax on the sale of a second home is a huge 34% unless the property has been held for at least ten years when it becomes exempt from the tax.

Austria offers plenty to choose from when searching for an investment. While Salzburg and the Tyrol are always popular, the state of Styria in the south-east tempts the skier with 865km of slopes and Carinthia in the south has around 20 excellent ski resorts. Outside the snow season, Austria’s mountains become outdoor playgrounds and are popular with hikers and walkers, meaning there is year-round rental potential for buy-to-let investments. Bear in mind that Austrian property regulations mean that all second homes must be available for let during part of the year – usually between 130 and 150 days a year depending on the region where the property is located.

“The letting requirements on second homes and high capital gains tax mean that Austria should only be considered for a minimum 10-year investment,” advises James Gonzalez, Market Analyst at Obelisk Investment Property. “However, its excellent ski resorts mean that buy-to-let potential is high and the consistent annual price rises make Austria certainly one to consider in a long-term portfolio.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com