Real estate investment trusts, hampered by falling unit prices, have been squeezed out of the commercial property market over the last quarter by private investors, a new report shows.
CBRE Limited, which provided an advance copy of its latest data to the Financial Post, suggests things are not going to get much better for REITs in the coming year either.
“Transaction volume is expected to be sustained by pension fund/advisors and private Canadian investors as REITs and real estate operating companies take more of a back seat,” says the report.
Amancio Ortega Gaona, already the world’s fourth-richest person based on the success of his Zara fashion retail stores, has quietly amassed a real estate empire worth as much as US$10-billion and is emerging as a formidable competitor for prime properties from London to Beverly Hills.
Relying on all-cash offers, he has outbid the world’s biggest institutional funds and professional property investors, such as Tishman Speyer Properties LP.
In markets across the world, housing is back in a big way. But to the chagrin of those living in some of the globe's hottest cities, a booming housing market doesn't always mean that locals are the ones who can afford to buy. In many cities, foreign buyers — particularly Chinese and Russian investors — are buying up real estate like crazy and driving property prices to pre-financial crisis levels. Here are four markets being spurred by foreign investors.
Until recently, the most high-profile conflict in Rio de Janeiro's favelas has been between rival gangs fighting turf wars: now it is European investors tussling over a piece of prime real estate. High on the steep slopes of Vidigal, the panorama across Atlantic beaches and distant islands is among the most spectacular in Rio, but tourists are unlikely to find it listed in most guidebooks.
LONDON/LOS ANGELES (Reuters) - From China to Canada and London, fast-rising property markets are haunting the global economy again, five years after the U.S. subprime mortgage bubble burst and triggered the worst financial crisis since the 1930s.
Chris Blattman reports:Using a high-speed camera that photographed people flipping coins,
the three researchers determined that a coin is more likely to land
facing the same side on which it started. If tails is facing up when
the coin is perched on your thumb, it is more likely to land tails up.How much more likely? At least 51 percent of the time, the
researchers claim, and possibly as much as 55 percent to 60 percent —
depending on the flipping motion of the individual.
SHANGHAI — At Shanghai’s Zhabei District marriage registration centre, officials divorced a record 53 couples in a single day this week – that’s about one every five minutes – as couples rushed to untie the knot to avoid tougher tax laws on home sales.
There were similar scenes in Wuhan, Nanjing and Ningbo as married couples opted for ‘quickie’, uncontested divorces – costing just a few yuan – that would allow them to split ownership of their properties and sell without having to pay capital gains tax of as much as 20%.