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Is now the time to buy property in recession-hit Europe?

admin — 18/10/2011 10:35:00

Image: Flickr
The economic catastrophe that Europe is facing hasn't put a damper on British buyer's enthusiasm to purchase property on the Continent.

According to World First, the expert on currency exchange, holiday home purchase sales in Spain have more than doubled over the summer.

Italy, Greece and Bulgaria are also places of interest to British buyers who are in search of a bargain. However, no matter the location, buyers should heed to the same advice and do your research to avoid any pitfalls.

Mortgage Funding

Due to the effects of the global banking crisis, banks are less apt to lending money, making mortgages more difficult to obtain. Home buyers who need to borrow money from the bank in turn have to place a larger deposit just to get a loan from overseas banks.

The growing debt crisis has intensified in recent months, especially in Greece and Italy and several Greek banks have stopped lending money. Overseas property experts have said that banks are still lending mortgage funds to borrowers even in Greece, however, a deposit of approximately 30 to 40 percent will be required.

Banks in Spain and France are more lenient at present lending borrower's money with only a 15 or 20 percent deposit. However, if the financial crisis takes a turn for the worse, these figures could be tightened.

In Britain, some lenders allow homeowners to refinance their mortgage to fund holiday home purchases abroad however it's based on the individual's criteria. Most borrowers still need to have substantial equity in their British home even after funds have been released in order to qualify. If you haven't got enough equity in your UK property and are not prepared to sell a house to raise the funds then an overseas mortgage may be the best option for most.

Watch Out for Currency Risks:
Buyers need to keep in mind that due to the turbulent economic climate, Euro loans will present a currency risk for many British buyers if they are paid income in sterling.

The majority of overseas mortgages are on variable rates, instead of fixed, so it's imperative buyers are aware that their monthly repayments could go up.

Mortgage rates in Spain and France are frequently between 3 and 4 percent variable, however the rate may fluctuate depending upon the borrower's circumstances.

Planning Problems, Overvaluations and Dodgy Developers:
Numerous British buyers have become unfastened over the years by falling prey to planning restrictions and other laws that were broken unbeknownst to them before the purchase of their dream home.

Getting an accurate property valuation is imperative and in most cases, it's best to get a second opinion. By taking the word of the developer, you leave yourself open to a world of problems that may arise.

If you are purchasing from a developer, do your research. Get them to include a work history of how long they have been in business and past customer reviews. Check out the work that they have performed and see how well it has stood the test of time.

Language Barriers

Language barriers could compromise British buyers, so beware to never sign any contract that may be written in a foreign langue without proper translation. Buyers should make sure there is an accurately translated original foreign contract into the English version.

The Legal Obligations

Research and comprehend what tax, if any will be applied to your purchase and what capital gains tax could be applied on the final price of the home. In most instances, you can figure adding 10 to 15 percent of the purchase price of the property which covers fees for the agents, legal fees and taxes.

Investigate rules and restrictions of letting property if you are planning to have your purchase be used as a holiday let. Certain areas have specific restrictions, so know which rules apply in the area of your newly purchased home.

Find out why an owner is selling and have your lawyer investigate to ensure that all planning, building and habitation licenses are in order. An example of this could be a newly built development may have been repossessed due to licensing not being granted, thus it could not be sold originally.

Finally

Never make a decision in haste. Many buyers have been burned because of their passion for the particular property, or have fallen in love with the neighbourhood and never did adequate research before placing an offer.

Another common mistake happens when buyers are under a specific time limit or are under pressure from an agent or developer and need to make a quick decision.

While there may be some fantastic bargains to be had when it comes to purchasing property, make sure to take your time, do your research and get a legal property expert to inspect all transactions.

If you are thinking of selling a home in the UK then why not try selling with My Online Estate Agent. My Online Estate Agent is a low cost internet based estate agent that charges a fixed upfront fee and no payment on completion.

Bargains in Greece lead to tourist boom

Sarah Kendell — 25/07/2011 13:42:00

Substantially cheaper holiday deals than previous years are leading large numbers of international tourists to Greece, particularly the Swiss, whose currency is looking overwhelmingly strong against the euro.

Swiss travel agency Kuoni reported an increase in travel bookings to Greece by over 20%, as holidaymakers flocked to cash in on the strength of the Swiss franc against the euro in popular sun-seeking destinations like Crete and Kos. Ongoing political unrest due to the government's planned austerity cuts has also seen tour operators cut the prices of their summer charter flights, says TUI Suisse spokesman Roland Schmid. "Depending on departure dates, flights are now up to 30 per cent cheaper than last year", he said.

Despite seeing revenues sink slightly last year, tourism still makes up 18% of Greece's GDP, and accounts for one in five jobs in the economy. It has already seen a big rebound this year, with foreign arrivals up by nearly 10 percent so far in 2011, according to the New York Times.

It seems cheaper prices due to the debt crisis and its associated unrest is also attracting property buyers looking for a bargain, if TheMoveChannel.com's latest property search stats are anything to go by. Searches for property in Greece climbed four positions in the portal's quarterly search report, allowing it to enter the top 10 most searched for countries for the first time.

Interested in property in Greece?
Browse our listings of apartments, houses and other properties for sale in Greece here: http://greece.themovechannel.com/property/all/

Tax increases create property bargains in Greece

Sarah Kendell — 09/06/2011 12:08:00

With the Greek government inputting a severe austerity package including large tax increases, many locals are putting their vacation homes on the market. The result? Property bargains for foreign investors in some of Europe's most popular holiday destinations, reports the New York Times.

The high incidence of property taxes included in the government's latest austerity package, which it must pass in order not to default on its loans and be handed another bailout by the EU, means that for many Greeks home ownership, particularly second home ownership, is no longer a practical option. As a result, many of the nation's traditionally high-demand markets are now in oversupply as locals rush to sell their places in the sun.

Local estate agency Demeures de Grece reported that since the peak of the country's property boom in 2008, prices have decreased significantly even in sought-after holiday islands like Mykonos and Corfu. Average homes on the east coast of famed party capital Mykonos now sell at around €3,000-€5,000 per square metre, meaning bargain-hunting vacation home buyers can pick up a generous sized 1 bed apartment for as little as €195,000. "It's a good time to get a bargain", agency partner Nicolas Mugni told the Times.

Over on the somewhat more sedate island of Corfu, a magnet for older sun-seekers and families, prices are slowly following suit, with average apartment values now at around €4,000-€6,000 per square metre, according to CB Richard Ellis Atria. Resale properties present a particularly inexpensive option compared to new-builds, says Mugni, as they are only subject to a 10% transfer tax on sale, as opposed to the 23% VAT imposed on a new home.

Interested in property in Greece?
Browse our listings of apartments, houses and other property for sale in Greece here: http://greece.themovechannel.com/property/all/

Warm weather, low prices lure buyers back to Europe

Sarah Kendell — 20/05/2011 12:16:00

Interest in the far-reaching property markets of Australia, New Zealand and Canada has waned and property searchers have flocked back to Europe as the mercury rises in the northern hemisphere, notes the latest data from real estate portal Rightmove.

According to the website's latest search data, searches for property in recession-hit European destinations rose significantly last month, a significant departure from February's figures which saw Antipodean destinations Australia and New Zealand dominate enquiries. Searches for property in Italy were up 7% in April, with Greek real estate searches up 5% and Spain 3%. All of the top 10 trending search regions were also in Europe, with Spain's Valencia province leading the pack.

"Buyers are still fascinated with the Spanish province of Valencia", said Rightmove's head of overseas search, Shameem Golamy. "Not only is the Spanish Grand Prix coming to the region in June, it's also been included in the Lonely Planet's top 10 beach cities once again. The allure of reduced price properties is also attracting extra interest in other regions in Spain, with Malaga, Minorca and Alicante all seeing increased user activity in April."

Whilst national debt crises in Spain and Greece particularly have led to properties being reduced by up to 50% of their original asking prices, the warmer weather could also be seen to be playing a key role in bringing buyers back to the European market, with the prospect of owning a home in time for summer holidays becoming increasingly alluring.

Meanwhile, the strength of the Australian dollar in particular may have led investors to shy away from buying real estate in the country, says Moneycorp dealing manager David Kerns. "The currency strength has resulted in the waning appeal of Australian property to Brits over the course of this year", he said. "On the other hand, falling property prices in Italy have contributed to an increasing number of Brits eyeing up opportunities there."

Bank Holiday boom for Balearics

Sarah Kendell — 09/02/2011 10:06:00

The promise of an extra UK bank holiday this spring is bringing the European tourism industry back to life, travel agent Thomas Cook reports. The firm has already seen a 25 per cent increase in holiday bookings compared to the same period last year, with particular interest in Spain's Balearic Islands and Greece.

Despite taking a hit of up to £20 million from booking cancellations as a result of political unrest in Tunisia and Egypt, Thomas Cook reported that thanks to the royal wedding of Prince William and Kate Middleton, there would still be plenty of Britons holidaying abroad come April. The extra bank holiday, combined with the existing Easter and May Day breaks in the UK calendar, would mean a potential 11-day break for workers if they took only three days' annual leave of their own.

Thomas Cook has increased its capacity for the UK market from 200,000 to 300,000 in that month alone, and has seen a rise in predicted revenues of 7 percent for the first quarter of 2011 due to these strong spring bookings figures. Bargain airline Ryanair reported a massive 65 percent surge in bookings for the period so far. "People will still watch the wedding - but it will be on TV in a Spanish bar", said Thomas Cook CEO Manny Fontenla-Novoa.

The tourist boom is great news for Spain in particular, with a 30 per cent boost in enquiries for holidays to its Balearic Islands of Majorca, Menorca, Ibiza and Formentera. This should see rental demand increase and go some way towards kick-starting its ailing property industry. Greece also remained a popular destination for holidaymakers to seek out a post-recession bargain,with a 20 percent increase in sales, while Thomas Cook said it was confident its entire Egypt programme would also be back to normal by April.

Video: Global property outlook 2012

admin — 14/11/2011 06:52:00

Patrick Summer, Head of Property Equities, Henderson Global Investors shares his outlook for global property markets in 2012.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/11/ask-the-experts-global-property-outlook-2012/

Foreign Office reveals strangest requests

admin — 11/11/2011 09:58:00

What clothes to take on holiday and where to go for Christmas lunch are among the most bizarre queries asked of Foreign Office staff abroad, it has been revealed.

They are more used to dealing with lost passports and victims of crime, but British consular staff overseas are constantly plagued with strange requests from expats and holidaymakers.

Staff at an embassy in Spain have been recently been asked to find out the size of the Prince of Wales's feet so the caller could send him some shoes “as a present”, while in Sofia, a Briton asked if the consulate could sell His house.

Other requests have included asking for Phil Collins' phone number (Spain), wanting to know how to get rid of ants at a holiday villa (Florida), and how to build a chicken coop (Greece).

Source: The Telegraph

Tui prepares Greek hoteliers for possible euro exit

admin — 07/11/2011 09:10:00

German tour operator Tui has asked hotels in Greece to sign new contracts spelling out how the company will pay its bills if Greece leaves the eurozone and starts using a new currency.

A spokesman for the company confirmed it had written to hoteliers after the letter had been reported in German newspaper Bild.

In the letter, Tui said it was entitled to pay in whatever currency was in use.

But the Greek Tourist Board said that no hotelier would agree to that.

Source: BBC

Leaders agree eurozone debt deal after late-night talks

admin — 27/10/2011 06:15:00

European leaders have reached a "three-pronged" agreement described as vital to solve the region's huge debt crisis.

They said banks holding Greek debt accepted a 50% loss, the eurozone bailout fund will be boosted and banks will have to raise more capital. Shares on European markets rose sharply on news of the deal.

The agreement is aimed at preventing the crisis spreading to larger eurozone economies like Italy, but the leaders said work still needed to be done.

After marathon talks in Brussels, they agreed a mechanism to boost the eurozone's main bailout fund to about 1tn euros (£880bn; $1.4tn).

Source: BBC

Video: Finance ministers meet to discuss Euro bailout fund

admin — 25/10/2011 04:58:00

European finance ministers met last Friday, followed by a meeting of ministers from all 27 European Union countries on Saturday.

Euro-area and EU leaders meet today and another Euro summit is to be held on October 26th - the deadline to finalize a plan for the Euro bailout fund.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/ufxmarkets-euro-bailout-fund-currency-trading-news/

Greek unions extend general strike to 48 hours

admin — 14/10/2011 08:25:00

Greek unions said they would extend a planned general strike next week to 48 hours as protests against sweeping austerity measures continued on Thursday, shutting down public transport in Athens and barring tourists from the Acropolis.

With the beleaguered Socialist government of Prime Minister George Papandreou fighting to push new cuts through parliament, as demanded by international lenders, the unions said the Oct. 19 strike would be extended to the following day.

The strike, which will shut down much of the country, will coincide with a vote on the austerity package on Oct. 20, three days before a European Union summit which leaders are hoping will reach a comprehensive solution to the crisis.

"We want to overturn this bill which will destroy Greece and its people," said Ilias Iliopoulos, general-secretary of public sector union ADEDY, which is coordinating the strike with its private sector counterpart GSEE.

Source: Reuters.com

Video: “Greece is not the scapegoat of the eurozone”

admin — 05/10/2011 04:19:00

The Greek finance minister, Evangelos Venizelos, told journalists at his arrival in Luxembourg for the Euro group meeting that Greece shouldn’t be “the scapegoat” of the euro area or the international economy.

Watch the full video report at TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/greek-finance-minister-greece-is-not-the-scapegoat-of-the-eurozone/

Athens among leaders in Q2 decline of house prices

admin — 30/09/2011 06:14:00

Greek home prices recorded the third-steepest fall among 39 countries in the second quarter of the year, a study shows.

According to a report in the Global Property Guide -- which focused on the 39 countries which had released data for the period at the time -- average house prices in Athens were 9.9 percent lower in Q2 compared to a year earlier, behind those of Ireland (-14.84 percent) and Bulgaria (-10.65 percent).

The basic conclusion of the report is that global property prices came under increasing pressure in the second quarter of 2011, mainly in Europe and the US. Of the 39 countries, only in 13 did prices post a rise, while of the remaining 26, the pace of easing accelerated in 18. In Spain the decline was 8.43 percent and in Croatia 6.55 percent.

According to Bank of Greece data for the second quarter, apartment prices were on average 4.5 percent lower than a year earlier. This was on top of consecutive declines of 4.7 percent in 2010 and 3.7 percent in 2009.

Source: Ekathimerini.com

World shares rally as Greece approves property tax

admin — 29/09/2011 08:34:00

Equity markets rallied in Europe and the US, and commodity prices rose as the Greek parliament approved a new property tax, a key condition of gaining more financial aid for the debt-laden country.

The new tax passed 155 votes to 142 against in the 300-member parliament, paving the way for international inspectors to return to Athens to judge Greece's progress in austerity measures.

The nation needs to get an 8 billion euro instalment by mid-October to avoid default. Greeks will pay the tax via their electricity bills, seen as giving authorities greater leverage than through the conventional and loop-hole ridden tax system.

Source: NZHerald.co.nz

Stocks hit as Greece scrambles to convince

admin — 19/09/2011 07:51:00

Stocks have taken a hammering as Greece struggles to convince international creditors that it can meet its obligations in return for more bailout cash that it needs to avoid running out of cash as soon as next month.

With the Greek Prime Minister George Papandreou canceling a trip to the United States and the Greek cabinet meeting to come with fresh austerity measures, investors remain concerned that the country will not get its hands on the €8 billion due from last year's €110 billion bailout. Last Friday, eurozone finance ministers in Poland decided to delay authorizing the payout until early October. At risk are not only the installment from the 2010 rescue package but also a second bailout worth €109 billion.

"The news from the weekend meeting in Poland, with the attendance of U.S. Treasury Secretary Geithner, did not help market sentiment and only underscored the great divide amid the powers that be," said Sue Trinh, a senior analyst at RBC Capital Markets.

Greece's finance minister Evangelos Venizelos is due to host a teleconference later with representatives of the country's international creditors, the so-called troika — the European Commission, the European Central Bank and the International Monetary Fund. His task is to convince them that Greece is doing enough to warrant the release of the next batch of bailout cash.

Source: The Independent

Greek finance minister rejects debt report

admin — 02/09/2011 07:09:00

The Greek finance ministry backpedalled on Thursday after a new budget watchdog released an internal report warning that debt was "out of control" just as officials held critical talks with creditors.

Finance Minister Evangelos Venizelos, who had enough troubles this week explaining Greece's reform delays and target slippage to auditors from the EU, the IMF and the ECB, attributed the error to inexperience.

"All responsible international organisations know in which way macroeconomic and fiscal reports are compiled, checked and published," Venizelos said in a statement.

"It is clear that the budget office still lacks this knowledge, experience and responsibility," the minister said.

Source: France24.com

Greek bias against gays affects tourism

admin — 24/08/2011 07:27:00

Debt-ravaged Greece’s biggest industry is missing income from a group of visitors that spends more than $140 billion a year.

Gay and lesbian tourists, who for decades flocked to the islands of Mykonos and Lesbos, have removed Greece from their list of top destinations because of discrimination, according to surveys by Amsterdam-based OutNow Consulting. The government says it intends to boost tourism and will change the law so Greece follows France and the U.K. in recognizing same-sex partnerships.

“Rights do not cost much in terms of finances, but they do a lot to promote the countries that adopt them,” said Martin Christensen, co-chairman of ILGA-Europe, a Brussels-based rights group. “If Greece opens marriage to same-sex couples, the international media will for once give the country good press that would boost morale and can increase revenue.”

Tourism accounts for one in five jobs and about 16 percent of the Greek economy, which the European Commission forecasts will shrink 3.8 percent this year after a 4.4 percent contraction in 2010. Finance Minister Evangelos Venizelos said on Aug. 3 that spending by vacationers will be a main driver of Greece’s return to prosperity.

Source: BusinessWeek.com

Interest in Greek property soars

admin — 29/07/2011 11:17:00

According to Rightmove Overseas, the Dodecanese island group, which includes Rhodes and Samos, has attracted a 50% increase in searches month on month.

Head of Overseas at Rightmove, Shameem Golamy, said, "In June, we saw searches increase for idyllic island locations as people look to escape the traditional UK summer downpours. Greek islands, most notably the Dodecanese island group - which includes Rhodes and Samos - attracted over 50% more searches month on month."

Samos is the 7th largest island of the Greek archipelago and is widely known for being the most beautiful of the islands. Green verdant valleys, azure seas and quaint classical Greek villages cling to hillsides. Samos is the picture perfect postcard of the ideal holiday destination and highlights everything the British love about Greece.

David Kerns, Dealing Manager at foreign exchange specialist Moneycorp, commented, "Savvy Britons are seeing the debt crisis in Greece as an opportunity to take advantage of a fluctuating housing market, with the potential to yield significant returns down the line."

Industry experts Barrasford and Bird Worldwide are currently developing five star spa resort Halcyon Hills on the island of Samos. Encapsulating the romance of the Greek islands whilst providing the ultimate in terms of quality and facilities, Halcyon Hills has consistently remained popular with property investors.

Purchasers at Halcyon Hills Luxury Resort and Spa enjoy the winning combination of high annual returns, interest paid on deposit and the security of a 180% developer buy-back guarantee.

Source: Barrasford and Bird

Euro advances to two-week high as Greece’s bailout terms ease

admin — 22/07/2011 07:54:00

The euro advanced to the highest level in two weeks against the dollar as European officials eased the terms of loans for cash-strapped nations and expanded aid for Greece, reducing contagion concern.

The dollar dropped to its lowest level against the yen since March as White House spokesman Jay Carney and House Speaker John Boehner said there is no deal on raising the U.S. debt limit. The Swiss franc fell against most of its major counterparts on reduced safety demand as leaders agreed to guarantee Greek bonds in money market operations if a bailout agreement triggers a default.

“There’s enough good news in here to justify the rally that we’ve had today,” said David Mann, regional head of research for the Americas at Standard Chartered Plc in New York. “They’ve brought it back from going down one of the worst-case- scenario paths, but we’re not fully out of the woods yet.”

The euro gained 1.5 percent to $1.4425 at 5 p.m. in New York, from $1.4215 yesterday, after touching $1.4435, the highest level since July 6. The euro climbed 0.9 percent to 112.94 yen, from 111.99. The dollar dropped 0.6 percent to 78.30 yen and touched 78.29, the lowest level since the Group of Seven intervened to weaken the currency following the March 11 earthquake and tsunami.

Source: BusinessWeek.com

Europe's leaders back new Greece deal

admin — 22/07/2011 07:03:00

Eurozone leaders are supporting a new bail-out for debt-laden Greece with a lower interest rate and more time to pay it off.

The softer lending conditions will also be applied to the multi-billion rescue loans for Ireland and Portugal as heads of state battle to prevent debt contagion spreading deeper across Europe and possibly going global.

At an emergency summit in Brussels, the Euro leaders opted to double the maturity of the loans for the three bailed-out countries from seven and a half years to 15 years, and cut the interest rate in an attempt to finally ensure the stability of the single currency.

In a joint statement, the leaders said: "We agree to support a new programme for Greece and, together with the IMF and the voluntary contribution of the private sector, to fully cover the financing gap.

Source: Independent.co.uk

Euro tumbles to 7-week low on heightened European debt concern

admin — 12/07/2011 07:55:00

The euro tumbled to a seven-week low against the dollar and slid versus the yen as rising Italian bond yields stoked concern Europe’s sovereign-debt crisis in deepening.

The euro traded near a record low against the Swiss franc as euro-area finance ministers vowed fresh steps to ensure debt sustainability for Greece, including enhancements to the main bailout fund. The yen rose against most its major counterparts and jumped to an almost three-week high against the dollar. Norway’s krone and Canada’s currency declined as crude oil fell.

“The euro crisis had originally been a key reason why people were gunning for a weaker euro in the first half to begin with, but it has taken that much longer to play out,” said David Mann, regional head of research for the Americas at Standard Chartered Plc in New York. “It’s going to become something that will play an increasing role in the second half.”

The 17-nation euro depreciated 1.7 percent to $1.4032 at 5:01 p.m. in New York, touching the lowest level since May 23. It slid 2.1 percent against the yen, to 112.61, and touched 112.35 yen, the least since March 18. The dollar weakened as much as 0.5 percent to 80.26 yen, after touching the lowest since June 22.

Source: BusinessWeek.com

Holidays in the Eurozone demonstrating growth

admin — 11/07/2011 11:52:00

With less than two weeks before the start of the main summer school holidays, ABTA is encouraging UK holidaymakers not to leave it too late to book their summer break after trends show some encouraging areas of growth.

Despite the tough economy, the number of holidays booked for eurozone destinations such as Spain [+11%], Portugal [+8%] and Greece [+2%], have bounced back after two tough years with overall short haul bookings [Europe and North Africa] to date for Summer 2011 seeing an upturn of 9% according to latest figures from leading market research company GfK-Ascent MI. This growth has been fed by hoteliers keeping prices low, tour operators offering all inclusive options and prices in bars and restaurants coming down due to the tough economic situation on the continent. Short haul growth has also helped boost the short-break market from the UK to popular cities such as Paris, Madrid and Rome.

Great deals are to be found in Tunisia and Egypt which are very keen on welcoming UK tourists back after the political upheaval earlier this year. The travel trade is also finding that there are still bargains to be had in Turkey which has seen spectacular growth in recent years.

Cruises are continuing to be popular in 2011, with an expected 5 per cent increase in the number of passengers cruising from the UK this year. In the summer, the Mediterranean provides the most popular cruising itineraries, and while it is still possible to book some late deals for the school summer holidays, availability is limited.

Source: Travel Daily News

Euro rises to three-week high versus dollar on Greek debt, ECB

admin — 01/07/2011 03:39:00

The euro touched the highest in almost three weeks against the dollar on prospects the European Central Bank will increase interest rates next week to curb inflation and as European ministers are set to approve the next aid payment due to Greece.

Riskier assets advanced against the Swiss franc and the dollar after German financial firms agreed to roll over Greek debt holdings. Greek Prime Minister George Papandreou won approval of a second bill to authorize his 78 billion-euro ($113 billion) package of budget cuts and asset sales, a key to receiving further international financial aid. The Dollar Index fell even as the Federal Reserve ended its second round of quantitative easing.

“The euro is higher after Greece passed the implementation bill for austerity measures this morning, providing a bit more relief,” said Charles St-Arnaud, a foreign-exchange strategist at Nomura Holdings Inc. in New York. “Greece seems to have accepted it needs to tackle its problem and bank rollovers are leading to better sentiment.”

The euro rose 0.5 percent to $1.4502 at 5 p.m. in New York. It touched $1.4538, the highest level since June 10. The euro gained 0.2 percent versus the Japanese currency to 116.84 yen. The euro gained 0.7 percent against the dollar this month and is up 2.4 percent in the quarter that ends today.

Source: Businessweek.com

Bank of England has 'Greek default contingency plan'

admin — 30/06/2011 06:19:00

The Bank of England has a contingency plan in place in case Greece defaults on its debt payments, its governor Sir Mervyn King has said.

Speaking before the Treasury Committee, he would not say how likely he thought a default would be, but added that the markets put the risk at 80%.

Sir Mervyn said the concern was how UK banks could be affected by knock-on effects of any Greek default.

However, he did not reveal any details of the Bank's contingency plan.

Source: BBC.co.uk

Agreement on Greece important for the euro, says Merkel

admin — 29/06/2011 10:07:00

German Chancellor Angela Merkel praised the agreement reached by European leaders to release the new emergency aid for Greece, provided that the Greek parliament approves this week, the adjustment and privatization plan agreed with the EU and the International Monetary Fund (IMF), saying it is “important for the stabilisation of the euro.”

“We’re learning the right lessons from the crisis and the meeting was very pleasant and very good,” said the Chancellor to reporters on her arrival at the second day of meetings of the Heads of State and Government of the EU in Brussels.

Merkel has described as an “important political agreement for the stabilisation of the euro” that the euro zone undertook to pay emergency aid to Greece this summer of 12,000 million euros to avoid its bankruptcy, and to start work on a second rescue package of around 100,000 million euros, provided the Greek parliament approve the necessary reforms.

The Chancellor stressed that Thursday’s decision shows that the EU will do “everything necessary to preserve the stability of the euro as a whole” and it will encourage Ireland and Portugal “to implement their programs seriously.”

Source: Kyero

Euro recovers, sterling falls after renewed EU confidence

admin — 27/06/2011 11:29:00

Sterling range traded against the Dollar but fell versus the Euro ahead of the release of the Bank of England MPC minutes last week. The Bank of England minutes took on a distinctively dovish tone as the members voted 7-2 for no change to interest rates and 8-1 on keeping the value of the £200bln asset purchase scheme unchanged. The decisions were as markets had expected but what weighed heavily on the Pound was the fact that more of the MPC members seemed to suggest additional stimulus rather than monetary tightening may be required this year.

The Euro recovered some of its composure this week as risk aversion eased after the Greek government survived a ‘no confidence’ vote on Wednesday. An added support factor for the single currency was uncertainty and the expectations of a continue dovish stance on policy from the US Federal Reserve Bank. Greek debt concerns remained an underlying theme last week as confirmation of a bailout wasn’t forthcoming from European leaders and ultimately combined with slightly weaker German economic fundamentals to pull the Euro to its a weekly low versus the Dollar as the weak closed.

The Dollar struggled with profit-taking early last week after having pushed higher for some time due to sovereign debt concerns for Europe and analysts expected the Fed to strike a cautious note on the US recovery after its interest rate decision last Tuesday. The Federal Reserve Bank kept interest rates unchanged at 0-0.25% as expected but surprised markets by being more hawkish regarding stimulus as the support needed by the US economy. The Fed change in policy stance and stronger USD final Q1 GDP figures lifted the Dollar and despite some weakness prompted by a drop in oil prices late in the week the Dollar closed near its weekly highs.

This week

The Pound will have plenty of data to trade from this week as markets focus on the final release of UK Q1 GDP figures. The numbers are not expected to be revised from 0.5% and in the context of last week’s dovish Bank of England minutes this data is not likely to inspire investors to buy into the Pound, weak growth levels were highlighted as an underlying cause of the change in policy expectations and the consideration of further economic stimulus.

European Leaders have given the Greek government and opposition parties an ‘ultimatum’ to pass proposed austerity measures and move forward bailout negotiations but the longer the process goes on the greater the negative impact this will have to confidence in the Euro. German economic data will certainly be closely watch and with CPI inflation and retail sales data scheduled to be released this week there will be plenty to hold traders attention.

The Dollar has seen strong upward trends that are not expected to be reversed quickly as confidence in Europe remains uncertain and the Federal Reserve Bank has announced the end of its second round of quantitative easing. The impact of commodity process will likely be less of an issue as oil prices have stabilised following last week’s announcement of 60mil barrels being released from US oil reserves.

Source: Baydonhill FX

Euro gains on outlook for Greek confidence vote

admin — 22/06/2011 07:41:00

The euro gained against the dollar and yen as investors speculated Greek Prime Minister George Papandreou will win a confidence vote in parliament today, a key step toward getting more aid for the Mediterranean nation.

The greenback dropped against all of its 16 most-traded counterparts as stocks and commodities rose and the Federal Reserve began a two-day policy meeting.

“The government in Greece is going to give the go-ahead -- they recognize that the market needs to believe that Greece is going to get that $12 billion tranche,” said Jessica Hoversen, an analyst in New York at the futures broker MF Global Holdings Ltd.

The euro rose 0.7 percent to $1.4408 at 4:52 p.m. in New York, from $1.4304 yesterday. The euro gained 0.7 percent against the yen to 115.59, from 114.80, and was little changed at 1.2111 per franc after reaching a record low versus the Swiss currency at 1.1947 on June 16.

Source: BusinessWeek.com

New bailout may buy only months for Greece

admin — 21/06/2011 08:15:00

Europe’s plan for a new bailout of Greece may buy the country only several more months’ breathing space before it again has to confront the prospect of default or a radical restructuring of its debt.

A pledge by Eurozone finance ministers on Monday to pay a 12 billion euro (US$17.2 billion) tranche of emergency loans in July — provided the Greek parliament first passes new austerity steps — is expected to keep Greece afloat into September.

But the ministers’ plan for a second bailout takes the same approach as the first rescue, launched in May 2010: it does not include direct steps to cut Greece’s debt pile and merely tries to stave off default until Athens can reform its budget and the Greek economy starts growing its way out of trouble.

This approach began to fail within nine months of the launch of the first bailout, as Athens missed its debt and growth targets by big margins, and political support for austerity inside Greece has weakened since last year.

Source: FinancialPost.com

Euro-zone wage growth picks up

admin — 20/06/2011 12:04:00

The increase in wages and other labor costs accelerated in the euro zone during the first quarter of 2011, although wages continued to fall in Greece and Ireland—two members that are grappling with fiscal crises.

The European Union's Eurostat agency Monday said wages and salaries in the 17 nations that use the euro were up 2.3% from the first quarter of 2010, a pickup from the 1.4% annual increase recorded in the final three months of 2010.

Total labor costs, which include taxes paid by employers, were up 2.6% from the first quarter of 2010, compared with a rise of 1.5% in the final quarter of 2010.

The pickup in wage growth will concern the European Central Bank, which raised its key interest rate in March in order to prevent a second round of price increases in response to higher commodity prices.

Source: Wall Street Journal

Greece needs more aid, says Wolfgang Schaeuble

admin — 09/06/2011 07:45:00

German Finance Minister Wolfgang Schaeuble has said the current aid package for Greece is "insufficient", adding there is a "real risk" of default if funds are not released soon.

In a letter to European Central Bank and International Monetary Fund leaders dated 6 June, Mr Schaeuble said a new package was needed.

He suggested a bond swap to give Athens more time to repay its debts.

A 110bn euro (£161bn; £98bn) Greece bail-out package was agreed last year.

Source: BBC.co.uk

Euro slides to new low against the dollar

admin — 24/05/2011 04:49:00

The euro fell broadly on Monday, hitting a two-month low against the U.S. dollar and a record trough against the Swiss franc, with more losses expected on fears the euro zone sovereign debt crisis is spreading.

Speculation mounted over some sort of Greek debt restructuring, while doubts grew about Spanish austerity measures after Madrid's ruling Socialist party was defeated in regional elections and Italy suffered a credit outlook downgrade.

The euro fell beneath key support at $1.40, with weaker equity prices adding to pressure. Analysts expect the euro to remain under selling pressure this week, but added that its losses against the dollar could be limited should U.S. economic data disappoint investors.

"We have a confluence of negative events that have taken place over the weekend. All of that is compounding to create this toxic mix for the euro." said Mark McCormick, currency strategist at Brown Brothers Harriman in New York.

Source: Reuters.com

Greece running out of time, EU running out of patience

admin — 19/05/2011 07:28:00

The European Union is running out of patience with Greece, which is struggling with severe economic difficulties.

The rest of the EU is accusing Greece of dragging its feet in implementing economic reforms. There were sharper tones than before on Tuesday at the meeting of EU misters of finance in Brussels.

Commissioner of Economic and Monetary Affairs Olli Rehn called on Greece to announce new efforts to balance its economy in the coming days - mainly balancing its finances and selling off its property. “If Portugal and Ireland were able to do this, why can’t Greece? This is not a question of a political game – it is the fate of a nation”, Rehn said in Brussels.

Also urging Greece to do more was Germany’s Deputy Finance Minister Jörg Asmussen.

Source: Helsingin Sanomat

Greece budget deficit worse than thought

admin — 27/04/2011 11:15:00

Greece's budget deficit for 2010 has been revised up to 10.5% of its annual economic output.

The figure is even worse than a previous estimate of 9.6%, and far above the 8% target agreed by Athens as part of the country's financial rescue.

The data comes as Eurostat unveils official debt statistics for the EU.

The European statistical agency also raised the UK's deficits for the past four years and questioned how military spending had been accounted for.

Source: BBC News

EU safety net comes just in time for Lisbon

admin — 28/03/2011 11:49:00

The EU's latest agreement on safety net measures to avoid a collapse of the currency bloc was overshadowed this weekend by the continuing economic woes of latest debt crisis victim Portugal.

The country, whose prime minister resigned last week after the failure of his budget to pass parliament, appears to be almost guaranteed to ask the EU for a multi billion euro bailout package similar to those of Ireland and Greece. This should occur within weeks, as it can no longer afford to pay the huge yield rates on its bonds.

After ratings agencies Fitch and Standard & Poor's cut Portugal's debt ratings last week, bond markets pushed up Lisbon's rate of repayment to over eight percent, which was a similar level at which Ireland relented and asked for a bailout.

Even so, German Chancellor Angela Merkel was optimistic that the new measures agreed at the weekend's Brussels summit should be enough to support any further ailing nations. "Very far-reaching and ground breaking decisions were made at this summit", she said. "We have ensured there will be durable support for the euro."

Air China launches Beijing-Athens service

admin — 25/03/2011 12:51:00

Air China will in May begin flights from Beijing to Athens, Greek officials said Thursday, with the debt-hit eurozone country eager to tap tourism income from the vast Chinese market.

"In early May, Air China will begin flights from Beijing to Athens via Munich," Deputy Foreign Minister Spyros Kouvelis said after a meeting with his Chinese counterpart Fu Ying.

Greece, grappling with massive debt of over 300 billion euros ($425 billion), is trying to shore up its finances by boosting a tourism industry which accounts for nearly a fifth of its economy. Fu noted that out of 60 million Chinese who travelled abroad in 2010, only 10,000 came to Greece. "Our two countries are working to simplify tourist visas to Greece," Kouvelis said.

Fu was in Athens to deliver a letter of thanks from Chinese Prime Minister Wen Jiabao to his counterpart George Papandreou for Greek assistance in evacuating over 13,000 Chinese workers from conflict-torn Libya via Crete.

Source: AFP

Greek government plans mass sale of state property

admin — 24/03/2011 12:08:00

The Greek government’s sale of state assets and real estate represents a long-term opportunity for international investors partly because of the country’s attraction as a tourist resort, said Constantinos Michalos, President of the Athens Chamber of Commerce & Industry.

The government will outline a plan to raise 50 billion euros ($70 billion) in state asset sales and real estate ventures by the end of the month, the Greek Finance Ministry announced on March 13.

"Greece continues to have geostrategic advantages as well as offering investment opportunities,” Michalos said at a conference in Athens today organized by the Greek-Russian Chamber of Commerce. Russian investors may be especially attracted by the sale of real estate that will enable hotel complexes and theme parks to be expanded, he said.

Source: Bloomberg

Natasha Kaplinsky's Corfu 'monstrosity' incites neighbours' rage

admin — 22/03/2011 11:52:00

Natasha Kaplinsky, the television presenter, has angered her new neighbours by buying a new £1.5 million villa in Corfu which almost entirely blocks their sea view. David Baker, 76, and his wife Moira retired to the island in 1989 and he said the construction of the “monstrosity” had driven him to thoughts of suicide.

The couple wrote to Miss Kaplinsky’s agent to complain that the villa had “stolen” the view “which we used to cherish”. In the letter, Mr Baker, who is fighting leukaemia, said: “All we ask is that the offending section be demolished so that our view may be restored.

“We have no wish to offend you. We would love to have you as neighbours."

Miss Kaplinsky and her husband, Justin Bower, an investment banker, bought the five-bedroom property off-plan in 2008 after falling for the views of the Straits of Corfu, which separate the island from the Albanian coast. It is understood to be registered under the names of Mr and Mrs Bower.

Mr Baker, a retired businessman, complained to the local council and Greek ombudsman, demanding the demolition of one storey of the section which blocks their view. They have also complained to the developer, Dominic Skinner, saying builders are working at anti-social hours.

Source: Telegraph Online

Moody's cuts Greek debt rating by 3 points

admin — 07/03/2011 12:59:00

Greece’s credit rating was cut three steps by Moody’s Investors Service, which said the risk of default is rising. Greek bonds and the euro weakened after the announcement.

The rating was lowered to B1, the same as Belarus and Bolivia, from Ba1 as Moody’s cited concerns over tax collection and “implementation risks” in the budget cuts demanded as a condition for a 110 billion-euro ($154 billion) international bailout last year. “The rating agency believes that the likelihood of a default or distressed exchange has risen since its last downgrade of the Greek government debt rating in June 2010,” a Moody’s statement said today.

EU leaders will meet in Brussels on March 24 and March 25 to try to agree on a comprehensive package of measures for containing a regional debt crisis that led to bailouts last year of Greek and Irish debt. Optimism that the measures would include using the 440 billion-euro European Financial Stability Facility to allow Greece to buy back some of its debt and pay lower interest rates on aid has receded with growing German resistance to the proposals.

Greek 10-year government bonds fell, sending their yield to 12.3 percent, more than anywhere else in the euro region. The premium that investors demand to hold the bonds instead of benchmark German bunds rose 4 basis points to 901 basis points today. The spread reached a euro-era record of 974 basis points on Jan. 7.

Source: Bloomberg

Portugal, Greece debt ratings could worsen

admin — 03/03/2011 13:16:00

Both Portugal and Greece could see their debts further downgraded in the next two months, ratings agency Standard & Poor's warned on Wednesday, depending on what happens at a crucial European leaders' summit later this month.

The agency said in a report it is maintaining its A- rating on Portugal and its BB+ rating on Greece but has kept both countries on so-called "CreditWatch with negative implications."

Heavily indebted Greece accepted an EU-IMF bailout last year, as did Ireland, and ailing Portugal is widely expected to follow suit even though it managed to raise another 1 billion ($1.38 billion) at a bond sale Wednesday. S&P said it could lower the ratings on both Portugal and Greece within the next two months after analysing an expected new European bailout mechanism.

Source: Ninemsn

Greek apartment values still plummeting

admin — 25/02/2011 12:12:00

There was a 5.7% fall in prices of residential apartments in Greece in the final three months of 2010 compared with the same period in the previous year as the economic slump deepened, the country's central bank has said.

The fall in the value of flats in the third quarter of last year has been revised to 4.1%, according to the real estate price index. Apartment prices fell 4% for the whole of 2010, compared with a decline of 3.7% throughout 2009.

The Bank of Greece (BOGr.AT) launched its index in 2009 to monitor real estate prices, in a country where property accounts for a quarter of total investment and 82% of household wealth.

The central bank said there were steeper price falls for flats which were less than five years old, where the decline reached 8.1% in the last quarter and the fall was an average of 4.4% for the year compared with a decline of 3.8% for older flats. In the second-largest city in Greece, Thessaloniki, price falls were at 9%, compared with falls of 5.1% in Athens in the fourth quarter.

Source: Press Association

German election spells further insecurity for EU

admin — 23/02/2011 12:52:00

With the world’s attention understandably elsewhere, the Eurozone spent the last week maintaining the status quo. North Africa’s chaos rattled European stock markets, and the ongoing economic recovery lead to threats of looming inflation, but the calm before the upcoming March summits held.

Portugal scraped by, avoiding bail-out for another week, while prime minister Jose Socrates announced a 58.6% reduction in the state deficit from last year -- proof, he claimed, that his government’s austerity measures were working. Not enough proof, said most observers, who think that EU intervention is the only thing that will restore market confidence in the country, which has been fighting off stratospheric, unsustainable borrowing costs in the last few weeks.

Greek Prime Minister George Papandreou, visiting Angela Merkel in Berlin this week as part of a pre-summit tour of EU leaders, urged Merkel to consider more flexibility in dealing with the Eurozone’s ongoing debt crisis. Flexibility meaning, in this case, lowering the 5% interest rate on Greece’s bail-out funds, allowing debt buybacks on the table during the March summits and regulatory freedom for the EU’s rescue fund agency, the European Financial Stability Facility.

But Papandreou’s timing was poor. He arrived in Berlin the day after Merkel, driven by domestic politics in much of her actions over the last year, saw her party decimated in local elections on Sunday. Her Christian Democrats received a mere 21% of the vote in Hamburg, down from 42% in 2008.

Source: Minyanville

European commercial property set to grow

admin — 18/02/2011 13:19:00

As occupier demand for commercial property gained momentum across most European markets during the last quarter of 2010, rents are expected to improve in the coming months, says the latest RICS Global Commercial Property Survey, published today 17 February, 2011. Comments from respondents indicate that the recovery of the occupier market is broadening in the region, with a positive effect on rental expectations and progressively reducing the problem of property oversupply in most markets.

Russia and Ukraine experienced the strongest occupier market growth, followed closely by Germany, influenced by a strong economic climate, falling unemployment and rising consumer confidence. The situation is also improving in Central & Eastern European markets such as Czech Republic and Poland.

However, market conditions appear worse in European “peripheral economies” such as Greece, Spain, Ireland and Portugal, with tenant demand and rental expectations falling sharply in Q4 2010, as fiscal austerity stifles growth, sovereign debt concerns and high unemployment continue to plague these countries. On the other hand, only 13 countries, out of 24 covered by the survey, recorded a rise in investment activity compared to 17 in Q3, having inevitably impacted capital value expectations.

Investment markets in Poland and Turkey recorded the best results in the region. Across Europe the retail and office sectors improved the most. In the other world regions rental expectations for Q1 2011 are most positive in Latin (as well as Central) America and Asia.

Source: Property Magazine International

EU examines new Greek debt strategy

Sarah Kendell — 31/01/2011 10:06:00

The European Union is engaged in frantic behind the scenes talks to reduce Greece's debt as international monitors fly into Athens this week.

There is growing concern that the eurozone's weakest state will be unable to end its worst crisis in decades, without a sovereign default. Plans to buy back Greek debt at a discount – a scenario that economists call restructuring by stealth – are being given "urgent consideration," bankers and EU officials say.

The three-stage scheme, which has dominated fringe debate at Davos, would allow the near-insolvent country to purchase Greek bonds owned by the European Central Bank at 75% of their nominal value by borrowing from the European Financial Stability Facility, the bloc's rescue fund, at depressed market rates.

"There is a strong will to think about how the EFSF can be more robust," Greece's prime minister, George Papandreou, said at the World Economic Forum. The arrangement, despite months of denials of a Greek write-off, was likened by the authoritative Sunday Vima newspaper to the Brady plan which rescued Latin America from bankruptcy in the 1980s.

Increasing division could collapse Euro, Soros warns

Sarah Kendell — 28/01/2011 11:33:00

Billionaire financier George Soros warned on Wednesday that Europe could potentially fall apart because of the “two-speed Europe” of haves and have-nots that is being perpetuated by the reform of the embattled euro.

He told a news briefing at the World Economic Forum that the currency used by 17 EU nations is in the process of reform following concerns over the debt crisis that enveloped Greece and Ireland and is threatening others. Its flaw, he said, of having a common central bank but no common treasury was being addressed with the creation of a permanent European Financial Stability Facility, which was created to bail out debt-ridden countries.

But Soros said the reforms are not addressing the euro's real problem — that the currency has divided the richer EU countries from the poorer ones. “The euro was supposed to bring about convergence, and effectively it created divergence and that is now being perpetuated,” he said. “So you are going forward with this new structure. You're going to have a two-speed Europe, and that is going to be politically very disruptive.”

PIGS versus BRICs - which property hotspots are best?

Sarah Kendell — 28/01/2011 10:50:00

Individual European property markets vary dramatically, with country annual growth ranging from minus 14.8% in Ireland and minus 3.7% in Spain, to stronger European countries like Poland at 8.1% growth and Turkey at 2%.

Emerging markets might be considered higher reward than European markets. However it is important to note that they can overheat and also be higher risk, Dubai is a classic example of this.

Europe, the PIGS and BRICs

The troubles encountered in the Eurozone, including financial bail outs, the banking review, the establishment of a permanent, Eurozone financial rescue mechanism, all played a role in shaping the developed nations' property market in 2010.

Add to the mix, property buyers wanting to raise finance, as well as watching exchange rates. For example, European banks' exposure to the debt of Spain is €257bn, (according to FT/CEBS analysis) that is a sizeable sum. This will influence access to funding for overseas property purchases.

The Euro area is forecast to grow at 1.3% 2011, vs 6.8% and 6.4% for emerging economies. Economic growth bodes well for property markets, since the wealth generated creates property demand and acts as a driver of the property market.

On the face of it, the emerging economies look a better bet, however they will need resources to grow, both money and raw materials (witness the spate of lead thefts to supply china with base metal requirements). Some emerging markets have not yet got a proven, "foreign property buyer" track record.

Sustainability of the domestic, property markets will also be a key question to bear in mind, as well as how foreign property buyers are treated by regulation.

What does this mean for Overseas property buyers in 2011/12?

A country need not be showing booming property growth right now, for it to be a good future, investment opportunity, but it must have the potential to recover in the medium term. This way property can be bought at keen prices and has the scope to grow as an investment.

Choosing the bank a buyer deals with, could be as important as the country chosen to buy in, for 2011 and beyond. Banks with low exposure to weaker economies and bad debt may be worth seeking out.

Greece to sell off commercial property for debt relief

Sarah Kendell — 25/01/2011 11:33:00

When the Greek government swapped land with a Byzantine monastery on a mountainous northern peninsula, the furor in 2008 over the price contributed to the defeat of Prime Minister Kostas Karamanlis a year later.

Finance Minister George Papaconstantinou aims to do a better job raising funds from state-owned properties with an estimated value of as much as 300 billion euros ($408 billion), equivalent to the national debt. First, he'll need to figure out what assets are in government hands, before competing with other debt-laden European countries for investors.

"The supply and demand dynamic for Greece isn't good right now," said Frances Hudson, who helps oversee about $242 billion as an equity strategist at Standard Life Investments in Edinburgh. Hudson would rather buy commercial real estate in Paris or Stockholm that would offer more predictable returns.

The European Union and International Monetary Fund, as well as German politicians who oppose bailing out Greece and local lawmakers, have urged the country to sell or lease casinos, golf courses, airports and even islands to pay down debt and avoid a default. The EU, which led a 110 billion-euro rescue of the country in May, said in a December report that "sizable" proceeds could be generated this way.

Greek government gets tough on budget

Steph Engall — 05/10/2010 12:44:00

Greece reassures investors with new, tougher, austerity measures on its 2011 draft budget...

The government said it would reduce the budget deficit below the target set by the International Monetary Fund (IMF) and eurozone countries earlier this year when they bailed Greece out.

The new target will require new taxes and a higher rate of VAT, going beyond the cuts already announced this year. The aim is to convince investors that Greece's finances are under control.

New austerity measures will affect profitable businesses as well as consumers through new property and gambling taxes. The budget also plans to raise 1bn euros of additional revenue in VAT, but it does not specify which products or services will be taxed at higher rates.

Greece is trying to reduce its heavy debt burden, expected to be the highest in the eurozone this year at 133% of gross domestic product, in order to convince investors that its debt crisis is over. The government plans to reduce its budget deficit to 7% of GDP by the end of 2011, below the 7.6% target set by eurozone countries and the IMF in their bail-out package of the country in May this year.

Since investors lost confidence in the country, prohibitive borrowing costs have kept Greece away from issuing bonds but the country aims to return to the capital markets for funding sometime next year.

So far there are signs that investor confidence has started to return, with Greek borrowing costs down by over 10% in the last month.

Source: BBC

China to continue supporting euro and euro bonds

Steph Engall — 04/10/2010 12:15:00

Despite the weakened value of many bonds, Chinese Premier Wen Jiabao promises a continued investment in European bonds and a continued support of the euro...

"I have made clear that China supports a stable euro," he said.

Mr Wen is visiting Greece, the worst-hit of the 27-nation European Union. He has promised to buy Greek government bonds the next time they go on sale.

China has said it needs to diversify its foreign currency holdings and has bought Spanish government bonds.

China is accused of keeping its currency artificially low against other world currencies, particularly the dollar- which makes Chinese goods cheaper on world markets, and non-Chinese goods more expensive within the country.

That argument is hottest in the US, where the House of Representatives has backed legislation that in theory paves the way for trade sanctions on China.

Mr Wen urged the EU to recognise China as a market economy, something that would make it less vulnerable to anti-dumping charges under World Trade Organization rules.

He added that despite its growth China remained an emerging economy: "Per capita GDP is just one eighth of Greece's and the percentage of population below the poverty line is three times that of Greece. China continues to be an emerging country."

China's economic growth slowed to an annual rate of 10.3% in the second quarter of the year, from 11.9% in the first quarter.

The government is targeting growth of 8% for the year as a whole.

Source: BBC

Property scam ties Cyprus with Greek criminal ring

Steph Engall — 30/09/2010 12:27:00

Evidence linking Cyprus to an allegedly active criminal ring in Greece has come to light...

According to reports from Greece, the ring includes judges, civil engineers and land registry employees who allegedly engaged in activities that cost the Greek state millions in lost earnings from lost tax.

The group is suspected of claiming properties that were due to be auctioned off by banks to recover debts. They succeeded in doing so by presenting forged papers showing they had legal rights on the property or claimed that they were also owed money and had first rights on the properties.

Suspicious court rulings have led the Greek authorities to believe there are judges involved as well, although it was not clear if the judges had been coerced or were in on the scam. The ring is thought to have created almost 200 companies that served as fronts, with two of those believed to have been registered in Cyprus.

Greek authorities have been working on the case for the past year, police spokesman Michalis Katsounotos commented: " I was informed that for a year now, the Greek police have been investigating information that a ring has been operating, involved in illegal property transactions, secret auctions and even suspicious court rulings," said Katsounotos.

What can be said is that this ring, in the frame of its illegal activities, seems to have created a number of offshore companies abroad and it has been mentioned that two such companies have been operating in Cyprus."

Source: Cyprus Mail

Fines to lessen Euro economic imbalances

Steph Engall — 29/09/2010 14:44:00

Under European Commission proposals to lessen the economic imbalances, countries in Europe could face fines for uncompetitive wages or house prices...

Countries that ignore recommendations to strengthen their competitiveness could be fined as much as 0.1 percent of gross domestic product, a senior commission official told reporters in Brussels today.

The penalties, which Ireland or Spain might have faced on the eve of the financial crisis, will be part of a "credible sanctions regime" to be proposed tomorrow, the official said on condition of anonymity.

With Ireland's deteriorating public finances looming as the euro's next test, the proposals are designed to plug holes in an economic management system that in May forced European governments to offer 860 billion euros ($1.2 trillion) in loans and pledges to blunt speculation that the currency union might break up.

Penalties for imbalances such as outsized current-account deficits would be imposed "asymmetrically" on weaker economies, such as Portugal or Greece, the official said. Germany, with its trade surpluses, wouldn't be penalized for being too competitive.

The official didn't spell out how imbalances would be judged. While house prices will be one component of a planned competitiveness scoreboard, Europe-wide property-price statistics are not yet reliable enough to be used for "legally binding purposes," the official said.

The proposal will require approval by European governments and the European Parliament. The commission hopes it will take effect by mid-2011, the official said.

Source: Bloomberg

Qatar looks to invest US$5 billion in Greek economy

Steph Engall — 28/09/2010 15:24:00

Greek real estate and tourism are two of the areas Qatar are looking to invest in, according to a signed memorandum...

Greece and Qatar will look at cooperating on promoting investment projects and opportunities between the Qatar Investment Authority and its affiliates and the Hellenic Republic, according to a copy of the memorandum e-mailed today by Greek Prime Minister George Papandreou's office.

The countries will focus on investments in real estate, tourism, transport, port or airport facilities, banking and finance, joint ventures, energy and other industries, when and as agreed by the two states, according to the memorandum.

The Qatar Investment Authority intends to invest with an aggregate target budget of as much as US$5 billion, according to the memorandum.

Papandreou is seeking foreign investment to help Greece return to growth. The economy is expected to contract 4% this year and 2.6% in 2011, before resuming growth in 2012.

The non-binding memorandum was signed in New York yesterday in the presence of Papandreou and Pamboukis, who has responsibility for investment.

Source: BI-ME with Bloomberg

Terror threats in Greece to affect tourism

Catherine Deshayes — 09/08/2010 07:28:00

The head of one of the UK's leading holiday operators to Greece has said tourists shouldn't be dissuaded from visiting the country in spite of recent threats from a terror organisation...

A declaration sent out by urban guerrilla group Sect of Revolutionaries last week warned: 'Tourists should learn that Greece is no longer a safe haven of capitalism'.

The group, which has already claimed the life of journalist Sokratis Giolias, went on to say that they 'intend to turn [Greece] into a war zone of revolutionary activity with arson, sabotage, violent demonstrations, bombings and assassinations, and not a country that is a destination for holidays and pleasure'.

Managing director of Sunvil Holidays, Noel Josephides, said the company has been discounting Greek holidays in a bid to sell more late deals and that many of the major operators have been 'switching a lot of capacity from Greece to Egypt and Turkey which are a lot more fashionable this year'.

While 'people who know and love Greece are still going to go this year', Mr Josephides conceded the country's unsettled political situation may make those who have yet to decide where to spend their summer holidays think twice before travelling to the popular Greek islands.

Mr Josephides is also quick to add that there are some upsides to the situation for tourists. 'There will be fewer people going to Greece over the summer, that means the beaches and resorts will be quieter, (and) prices about 10 per cent lower.'

The Greek government is adamant that tourists will be safe, saying in a public statement: 'In relation to the recent events linked to the terrorist group Sect of Revolutionaries, there is absolutely no danger to tourists or the Greek public'.

Source: www.dailymail.co.uk

Falling Greek prices entice investors

Catherine Deshayes — 21/07/2010 07:28:00

Average real estate prices in Greece fell 7.7% in the first quarter of 2010 from a year earlier as the country steers through its first recession in over a decade...

As the country struggles to overcome its debt problems it is perhaps no surprise that property is not immune to the financial woes and it does provide opportunities for real estate investors to buy at a low price.

The picture is mixed as some parts of the country have seen prices fall more than others, according to figures from Propindex and the Foundation for Economic and Industrial Research.

Prices fell 5.4% in the Attica region, which includes the capital Athens and 9.8% in Thessaloniki, Greece's second biggest city. Prices dropped 12.6% in the rest of Greece in the first quarter.

Apartment prices fell last year to 2006 levels following a two year rise, according to the report which uses bank figures, including those of Greece's three biggest lenders.

Commercial property vacancies in Athens increased 1% from the first quarter of 2009 to 17.7%, a rising trend since 2007, the report also shows.

The Greek economy is in recession and Prime Minister George Papandreou has raised taxes, cut wages and reduced spending in a bid to tame a deficit that reached 13.6% of gross domestic product last year, more than four times the European Union limit.

Changes to the real estate tax system are currently being examined by government officials. Taxes on real estate transactions in Greece are currently based on the government's assessment of the property's value, which considers the area and the amenities, rather than the actual market value, which is generally higher. Finance Minister George Papaconstantinou proposes to change this next year to bring in more revenue and mean higher costs for buyers and sellers.

The low prices offer bargains for buy to rent property investors who aim to let out their properties during the busy summer holiday season. Top of the range luxury villas in parts of Greece can fetch €5,000 a week in rent.

It has also been reported that the Greek government is proposing to sell or offer long term leases on property it owns on the country's 6,000 islands to bring in much needed cash. Mykonos, which is one third owned by the government, is expected to be one of the first to be offered. It is likely to go to a real estate investor who can not only afford the price of the sale itself but who is also willing and able to invest cash into developing a new luxury tourist complex on the island

Source: www.propertywire.com

Greece: covering costs of travel delays

Catherine Deshayes — 23/06/2010 12:48:00

Greece is promising to cover the extra costs of visitors stranded in the debt-ridden country, in a bid to boost the vital tourism industry...

Culture and Tourism Minister Pavlos Geroulanos says the pledge will apply to tourists whose visits are prolonged due to strikes or even natural disasters.

Geroulanos said on Monday that "we are guaranteeing to pay any extra room and board any visitor in Greece pays even if stuck here because of a volcano in Iceland".

He spoke at a press conference on a new internet drive to advertise Greece as a tourist destination.

Tourism accounts for more than 15 per cent of Greek gross domestic product. Industry experts say they are seeing a drop of about 10-12 per cent in bookings this year as the country faces a budget crisis.

Source: AP

Euro concerns hit property market

Catherine Deshayes — 21/05/2010 10:05:00

The Greek debt crisis and concerns about the Euro could hit European property yields and threaten the recovery in the real estate market, it is claimed...

The spread between European property yields and the risk-free rate, or the yield on government bonds, is well above its long-term average, which historically has been a strong signal for investors to move into bricks and mortar, says the latest European report from Investment Management Europe.

But it warns that storm clouds in the form of a possible failure of the Euro zone's recent €750 billion safety net to secure the fiscal positions of countries on its southern and western peripheries, along with currency market threats to the euro, could undermine Europe's fragile economy recovery.

And the prospect of a large volume of maturing debt in the next three years triggering distressed sales of properties by banks will mainly be a challenge for secondary markets.

‘The coming quarters will show whether the rescue package is sufficient to have a lasting effect on confidence and if the countries under scrutiny will initiate the required fiscal discipline and reforms. If not, real estate markets in Europe might face renewed headwinds,' said Eugene Philips, Managing Director Research & Investment Strategies at ING REIM Europe.

But he added that the picture for major European real estate investment markets continues to look attractive, as alongside the positive yield spread of property over government bonds, ING economists are forecasting positive growth in most European countries again.

‘Modest economic recovery will support property occupier demand from 2011 onwards, which should underpin the momentum of the upturn that has been led, so far, by the real estate investment markets,' he added.

The report indicates that the European retail and logistics property sectors look more appealing than most office markets over the 2010 to 2011 timeframe due to their proven defensive qualities, notably the high and stable income component in investment returns, during the economic crisis.

After a synchronized downturn European office markets have entered a phase of increasing disparities, which offers opportunities in selected parts of the market, the report says. Despite early signs of rent recovery in London and Paris, further rent declines are expected for most other major markets during 2010. Recovery will become more widespread in 2011.

After a relatively strong rebound in 2010, yield compression in Western Europe is expected to slow down in 2011 and to remain limited in 2012. Central and Eastern European office markets are forecast to benefit from an inflow of foreign capital in search of attractive yields, when Western European yield declines slow.

The report lists Prague, Paris La Defence and Brussels at the top three prime European office markets. Sweden, France and Finland head the list of prime shopping centre markets and Paris, Hamburg and Rotterdam are the top three prime logistics markets

Source: www.propertywire.com

Tourism disaster in Greece

Catherine Deshayes — 07/05/2010 11:34:00

With televisions beaming images worldwide of riots in Greece and newspapers speculating on financial meltdown, Greeks are worried about one of their most precious assets: tourism...

"I'm not even looking at booking figures at the moment," said George Drakopoulos, general manager of the association of Greek tourist enterprises (SETE).

"I'm too busy trying to prevent the name of the country being dragged through the mud."

The high season for tourism is only just beginning, but the prospects are already looking shaky.

For veteran tour operator Yiannis Evangelou it was "truly worrying" that bookings through the peak summer season were already down four to eight percent -- depending on the country of origin -- from last year.

Greece has been caught in the global media spotlight for weeks, but so far as the tourist industry is concerned, for all the wrong reasons. Hardly a day has gone by without reports of financial distress and protests.

"We're practically gouging out our own eyes," said Drakopoulos, evoking more than one Greek myth in his description of the media media coverage.

Televisions broadcast images around the world on Wednesday of violent scenes in Athens in which three people died in a fire-bombed bank on the margins of giant protests against an austerity drive the government says is needed to avoid financial collapse.

"Certainly these events, particularly in the capital, create concern, so does the prospect of seeing the country go bankrupt," said Evangelou.

"This is quite demeaning. Just as we were beginning to attract visitors who would appreciate our services instead of just low prices, we're at the point of trying to fill beds again," he lamented.

He noted that bookings from Germany, Europe's biggest tourism market, were up 12 percent for Greece's traditional rival.

Prior to Greece's latest woes, the tourism industry was looking forward for a better year in 2010 than in 2009 on the back of an improving international economic outlook, said economist Nikos Paratsiogas with the Foundation for Economic and Industrial Research.

A weak year would be all the more painful because tourism is one of the economy's main engines, generating 17 percent of gross domestic product.

"Tourism is crucial for the Greek economy and the tourism sector is one of the main employers in the country," Paratsiogas said.

"If we consider all the people related more or less with tourism, around 25 percent of Greek workers are concerned," he added.

"It is one of the two most competitive sectors of the Greek economy, along with shipping. Those two sectors represent the main source of revenue income from abroad."

However, he was hopeful that many foreign tourists had booked their Greek holidays before the worst of Greece's financial and social woes.

"The Greek crisis and the demonstrations could affect mainly those who book last minute trips, because the bookings for this season have mostly been made in January," he said.

With the outlook for international visitors uncertain at best, domestic tourists are unlikely to offer much relief as cuts in government spending and tax hikes hit Greeks' spare cash.

Source: AFP

Greek ruins: bonds at junk status

Catherine Deshayes — 29/04/2010 11:13:00

In a move that came as no surprise to the markets, Standard & Poor's have cut the credit rating of both Greece and Portugal yesterday...

With the yield charged by investors to hold Greek bonds still rising and default fears failing to ebb, S&P reduced Greek debt to "junk" status. Portugal also suffered a downgrade, with S&P maintaining a negative outlook, as the troubles in Greece show signs of spreading.

Investors are fearful that the problems in Greece are spreading to other peripheral nations; Portugal is looking set as the next target. Bond yields swiftly rose following the country's credit downgrade and are continuing to do so.

Duncan Higgins, senior analyst at Caxton FX comments, "Clearly the danger for European officials is that the fiscal turmoil in the eurozone will spin out of their control. It now appears that Portugal is treading a precariously similar line to Greece."

A report today suggests that the IMF may increase its share of financial aid to Greece by €10 billion euros from the current €15 billion euros already agreed. This does seem to have helped calm the markets momentarily and stemmed the euros losses. Focus heavily remains on the sustainability of the bailout programme. After two months of negotiations, investors want clarification that the conditions agreed will be sufficient to cover Greece's debt obligations.

Greece has immediate debt obligations of €8.5 billion due May 19^th, and the market is extremely wary that it may not meet these in time. Conditions of the bailout are still to be finalised and Germany, the main EU contributor, is acutely aware of the growing opposition to putting taxpayer's money on the line in Greece.

"There is a risk that the market may start to bet against all heavily indebted eurozone nations, which could lead to a real crisis for the single currency. There is a lot resistance supporting the euro from sliding further against the dollar, with the price already at a one-year low. With EU talks as yet failing to show any positive results and fears quickly spreading, we anticipate a move to $1.25 in the next month," continues Higgins.

The weakness in the euro is also spilling over to the sterling / US dollar rate. With investors buying back the safer currency, the greenback is gaining across the board. The pound is currently trading at a three-week low against the greenback. With a positive statement expected from the Fed this evening, we now expect to see sterling below $1.51 in the near term.

Greece rescue plan launched

Catherine Deshayes — 16/03/2010 09:10:00

Europe's finance ministers have agreed how to help Greece in its battle to control its finances.

After a meeting in Brussels, they revealed few details, except that they had ruled out any loan guarantees. For weeks, the financial markets had wondered if the EU's promised support for Greece would ever be forthcoming.

After four hours of talks, the finance ministers of the 16 euro-zone countries said they had agreed how they would help Greece should it prove necessary. Their leader, Luxembourg's Prime Minister Jean-Claude Juncker, said the plan was to plug gaps that might emerge in Greece's battle to control its finances.

EU leaders will decide on the detail of the mooted financial lifeline during a meeting on the 25 and 26 March. But it is all far from cut and dried. The announcement, on the eve of the full financial ministers meeting in Brussels, was distinctly short on detail.

Asked if the help would take the form of loan guarantees, Mr Juncker said it would not. He repeated that he believed Greece would not now need a bailout. The financial markets might beg to disagree on this point, having raised the country's borrowing costs because of fears Greece might default.

So one of the biggest questions still remains - how much money is being set aside, and are the largest euro members, Germany or France, now prepared to lead the pack and write cheques for Greece should the country be unable to meet its commitments.

Source: www.bbc.co.uk

IMF: Greek woes ‘unlikely to spread'

Catherine Deshayes — 08/03/2010 11:13:00

Greece's financial crisis is unlikely to spread to other eurozone countries with high debt levels, the head of the International Monetary Fund has said.

IMF managing director Dominique Strauss-Kahn said "there's no reason" to expect that Spain and Portugal would also need to call for external support. Mr Strauss-Kahn's comments came after the Greek prime minister met French president Nicolas Sarkozy. Mr Sarkozy pledged French support for Greece, which helped lift the euro.

Although the French president stopped short of detailing what support France will offer, he said it would stand "resolute" behind Greece. German Chancellor Angela Merkel made similar comments on Friday.

Mr Strauss-Kahn told the Reuters news agency: "We have a problem with Greece. We don't have a problem with Spain to date. The eurozone has to deal with the Greek problem. They are doing this. No one knows what's going to happen tomorrow morning but there's no reason why the spillover to Portugal or to Spain will take place."

Mr Strauss-Kahn added that while the IMF would be prepared to help Greece, "so far I think that the Europeans will be able to deal with the problem".

'Concrete methods'

Greece is trying to reduce its public deficit this year from the current 12.7% - more than four times eurozone rules - to 8.7%. The country's Prime Minster George Papandreou says he does not want direct financial aid from other countries, merely assistance to make it cheaper for Greece to borrow funds from the international markets.

At present concern about the state of the nation's finances make it more expensive it for it to borrow compared with most other European countries. It has been widely speculated that France and Germany will assist Greece through their leading banks buying up Greek government bonds, but so far nothing has been confirmed.

Mr Sarkozy said "concrete, precise methods exist" to assist Greece, but declined to reveal them.

"They will allow us - when the time comes - to show that Greece isn't just supported politically but supported in all the aspects of its eventual requests," he added.

Mr Sarkozy also suggested that there may be moves to clamp down on financial speculators exacerbating Greece's problems."If Greece needs them [the measures], we'll be there. Speculators...must know that 'solidarity' means something."

Source: www.bbc.co.uk

Greece 'must do more'

Catherine Deshayes — 02/03/2010 02:09:00

Greece must to do more to reduce its budget deficit, the visiting European Union (EU) Commissioner for Economic and Monetary Affairs has said.

"I am asking the Greek government to announce new measures in the coming days," said Olli Rehn after a meeting with the Greek finance minister.

Greece is moving ahead with efforts to trim its vast budget deficit, as it struggles to sort out its finances. The Greek government said it would take extra measures "if necessary".

"The government will do whatever it takes [to cut the deficit]," said Finance Minister George Papaconstantinou.

The euro, which has recently fallen as a result of concerns about Greece, was up slightly against the dollar following Mr Rehn's comments. It gained 0.15%, or 0.00210 cents, to $1.35930.

The EU has asked Greece to report on 16 March on how its budget cuts are progressing, warning that it may force the government to carry out more extensive cuts if those already in place are not shown to be working fast enough.

Source: bbc.co.uk

November Top of the Props

Catherine Deshayes — 23/12/2009 12:42:00

Whilst the USA remained in the top spot for the second month in a row in November's Top of the Props chart - which provides a monthly pop chart snapshot of the most popular countries on the site - it was surprise entry Greece that caught my interest - making its first entry onto the top ten chart -Nicole Rapaport from HomesOverseas.co.uk checks out what it has to offer investors and holidaymakers alike...

Ten years ago, Greek property was largely overlooked. Buyers were either repeatedly drawn to old favourites such as Spain and France, or looking further afield to the emerging markets of Morocco or Bulgaria. But interest in property in Greece remains alight for a number of reasons: the healthy lifestyle, sunny climate, great beaches and food, and a superb quality of life for a fraction of the cost, to name but a few.

An established democracy, Greece is a fully-fledged member of the EU, which means that for Europeans the purchasing process can be simple. It also gives Spain a run for its money on the British package-holidaymaker front, which is good news for anyone planning to rent out their property in Greece.

Property investors generally regard Greece as a strong market due to its healthy tourist industry, which is backed by the government. Prices remain very affordable in many parts, and homebuyers can purchase far more for their money than in other popular European holiday destinations. Most rural and coastal areas provide an idyllic lifestyle that many British retirees choose to adopt.

In terms of the global recession, Greece is holding out according to some experts. Mike Saunders, marketing director at Snobby Homes says, "Property prices on the whole remain unchanged. Personal borrowing in Greece is nowhere near so highly geared as it is in the UK. The Greek banks have not been caught up in sub-prime lending, so mortgages are still available for UK buyers to purchase property in Greece."

So if the overall prognosis for Greece is good, it may well prove a calm investment spot among a tempest of economic uncertainty. Greek sellers appear reluctant to drop prices, hoping to weather the storm, although there is the odd bargain to be had.

Robert Key, senior partner at Cluttons Greece, concurs saying that despite what is happening in the rest of Europe, the market for Greek real estate is holding up well. "Property prices increased in the first half of 2008, and there was only a slight drop in values towards the end of the year. At time of writing the average price of residential properties in Greece has fallen by five to 10 per cent. It is true that the number of transactions taking place is around 40 per cent less than this time last year - but this is due mainly to the banks having tightened lending criteria.

"Prices may still fall a little in 2009, but any drop is not expected to be significant. This is due mainly to Greeks having one of the highest rates of home ownership in Europe - hence mortgage repayments and forced sales are not a worry for most. For those willing to research the market, however, properties with higher price reductions do exist. These come mainly in the form of price reductions by developers who have over-borrowed and must now meet loan repayments."

He adds: "Overall Greek property represents excellent value for money when compared to other European destinations - and it's a market which historically holds its value. Greece with its diverse mountain ranges, lakes, valleys, island paradises, ski-centres and the cleanest of seas offers everything one could desire - with heaps of culture. And that's without mentioning the cuisine...

"Be it an investment in land, a villas or an apartment, we remain confident that Greece will continue to be a safe and profitable place to invest in property - providing the advice of a reputable surveyor and lawyer is taken."

However, Babi Prokas of PK Developments paints a somewhat bleaker picture of the property market in Greece, claiming that the recession has hit it so hard there that not only is there a virtual standstill in construction, but that violence and theft is on the rise among frustrated and unemployed youths.

"Greece has over 160,000 newly built houses that haven't been sold and that number is expected to climb this year," Prokas estimates. "I believe that it will take a good six months to see the beginning effects of the stimulus packages that the G20 nations have committed to. I believe we will see a price stagnation in the property market for the medium term, before prices rebound."

In terms of location, there are hundreds of inhabited Greek islands, so choice is by no means limited. Crete is one of the most appealing areas for Brits who are looking for a permanent base or a holiday home. Every year its sandy shores, green hills and olive groves attract almost a million British holidaymakers.

"Over the last two years, there has been an increase of almost 40 per cent in the number of Brits purchasing property in Crete. Four out of five new property buyers are British and the final statistics show that more than 15,000 Britons are owners of a property in Crete," says George Skouloudis Director of Artec Homes (which has projects in Tavronitis and Kissamos).

Maria McLaren, an estate agent specializing in Crete property, says: "The cost of living here is around 35 per cent less than Britain, and the crime rates are minimal. People buy in Crete mainly because they already know and love it-they can switch off and relax here. It is the lifestyle that attracts them and the friendliness of the people."

Not forgetting the Greek capital, property in Athens remains popular with international investors, and the expansion of the metro system has increased interest in residences further away from the centre.

Lucy Russell managing director of Quintessentially Estates says: "Athens is the gateway to all the islands in Greece and has easy access from the UK. Properties vary from the cheaper apartments around £200,000 to grandiose villas in the millions. Athens tends to attract people buying second and third homes rather than holiday home, and house prices have risen around 40 per cent in the last five years. The rental yields are fairly low, at around two to three per cent, and the average rent is around between £2,000 to £3000 per month."

Kefalonia, the setting for Captain Corelli's Mandolin, is the largest of the seven Ionian Islands. Despite its film fame, Kefalonia largely unspoilt, with low-profile tourism. As a mountainous island of almost 45,000 inhabitants, most residents are gathered in the island's capital and main port, Argostoli.

Lucy Russell advises: "Kefalonia is one of the most popular of the Ionian Islands. There is still an emerging property market, and a number of areas are still undiscovered. Prices of property in Kefalonia are rising on average between 10 to 15 per cent per annum, depending on the location and type of property. The island has become popular with investors who are looking to purchase a property which they can use as both a holiday home, and receive a rental income by offering the villa for holiday rental either independently or through a tour operator specializing in villas."

Robin Barrasford, managing director of Barrasford & Bird Worldwide says: "Greece has a strong second home and holiday market, coupled with strict planning regulations that keep the housing supply low, this balancing act between supply and demand means the Greek property market is one of the most resilient in Europe today, despite the tough economic times.

"Samos benefits from easy international access, with direct flights from the UK. This island has an instantly recognisable topography and is popular with the yachting fraternity. The majestic mountain sides and green cypress laden valleys, with their patchwork of vineyards makes Samos one of the most beautiful Greek islands and property in Samos a traditional favourite of international buyers."

Irini Tzortzoglou, deputy branch manager of Piraeus Bank UK, says: "Greece and her islands remain a largely unspoiled haven for those looking for a holiday home or investment property in a mature European country. Although often cheaper than comparables in Italy and France, Greece has retained an air of exclusivity, which means that it remains popular with the more discerning purchaser.

"This in turn largely removes the short-term investor from the market, which makes for more stable long-term property values. Mortgages remain available for property purchases - it should be pointed out that no Greek banks participated in any of the toxic debt which has led to so many problems."

Jonathan Salsbury, Cybarco UK manager still holds faith in the Greek market. "Sales have held up well in Greece, because although the numbers of British buyers reduced during 2008 (due to the fall of the pound against the euro), other North-Europeans who are in the Eurozone have been continuing to buy, seeking out value for money," he explains.

He adds: "Both Crete and Rhodes are well established holiday destinations and continue to attract buyers who have been drawn to the idea of owning a home in the sun or dream of a happy, relaxed retirement. Athens will continue to gain interest from investors, particularly those who had avoided the emerging Eastern-European capitals, and now favour established European capitals that offer long-term rental demand."

Salsbury believes that the Greece property market is comprehensive with opportunities throughout the country, and there is plenty of evidence that Greece will succeed in its aim to become one of the world's top five tourist destinations within the next ten years.

Source: www.homesoverseas.co.uk/news

Other movers and shakers

The USA claimed first place, swiftly followed by Spain and Portugal, in second and third places respectively.

Brazil took fourth place, followed by France and a pre-Christmas Turkey in a sixth place. Lucky number seven went to Bulgaria, swiftly followed by Cyprus and Italy in eighth and ninth.

Last but not least was Greece - a new entry to the top ten chart.

November's Top of the Props chart

Overall Enquiry Volume for November 2009

Rank	Country	Share	Change	Comment
1	USA	15.97	Non-mover	1 month in top spot
2	Spain	12.3	Up 1
3	Portugal	8.46	Down 1
4	Brazil	8.07	Up 6
5	France	6.28	Up 3
6	Turkey	5.87	Down 2
7	Bulgaria	4.42	Down 2
8	Cyprus	3.84	Down 2
9	Italy	3.52	Down 2
10	Greece	3.52	Up 3	New to top 10!
11	Morocco	2.07	Up 8
12	UAE	1.55	Down 1
13	Thailand	1.53	Down 4
14	Germany	1.34	Up 14
15	Egypt	1.25	Down 3
16	Australia	1.23	Down 2
17	Barbados	0.89	Up 15
18	Bahamas	0.89	Up 16
19	Dominican Republic	0.8	Up 16
20	St Lucia	0.75	Up 2
21	Cayman Islands	0.58	Up 3
22	Canada	0.48	Down 1
23	New Zealand	0.45	Non-mover
24	Poland	0.43	Up 17	Highest climber
25	Romania	0.39	Up 2
26	Cape Verde	0.39	Down 1
27	India	0.26	Down 11
28	Croatia	0.24	Up 3
29	Sweden	0.24	Up 11
30	Tunisia	0.24	Up 8
31	Costa Rica	0.22	Up 8
32	Indonesia	0.22	Down 3
33	Ukraine	0.21	Down 13
34	Jamaica	0.19		Highest New Entry
35	Malta	0.19	Down 2
36	Malaysia	0.19	Down 10
37	St Vincent & Grenadines	0.17		New Entry
38	Slovakia	0.15		New Entry
39	Philippines	0.15	Down 21
40	Panama	0.15	Down 25	Biggest faller

Check out properties for sale in Greece at http://greece.themovechannel.com/

Photo of Port of Rethymno, Crete, Greece by Wolfgang Staudt

Crete ‘selling like hotcakes'

Catherine Deshayes — 19/10/2009 11:13:00

The decision to undertake detailed market research to establish the nature and needs of the prime target market for property in Crete has paid off for a UK developer which reports that a third of the villas it has built on a rural site in western Crete have been sold or reserved...

The Litsarda Villas Crete property development located to the west of the island comprises nine individually-designed homes in an elevated location enjoying panoramic views of Crete's White Mountains and Souda Bay in the Mediterranean.

Located 40 minutes by road from Chania International Airport (75 minutes from Heraklion Airport), the development is close to the heart of the village of Litsarda and 2km, from the shops, bank, post office and healthcare facilities in the small town of Vamos.

The villas have floor areas ranging from 127sqm to 170sqm, including a self-contained lower ground floor in each property.

"Each of the purchasers matches the profile of the buyers for whom the properties were designed and built," reports Said Marie, principal of Berkshire-based Caversham-Barnes which has developed the Litsarda Villas scheme.

"Research showed that a significant part of the target market for property in Crete comprises discerning British people approaching retirement who require a holiday home in the sun which, in due course, will become their permanent home," says Said. "We then researched the facilities expected by Britons seeking comfortable lifestyles in Crete. They told us they wanted a private heated pool with a huge sun terrace, air-conditioning - but also central heating for use during Crete's brief winter period - gardens and a garage.

"Those were our design criteria and, because potential buyers can see that we have taken the trouble to build what they actually want, we are selling the properties despite the recession."

Prices of the properties still available at Litsarda Villas start at €269,900 (£245,000) for a two-bedroom villa, including a self-contained lower ground floor with the potential to create three additional bedrooms. The properties are supplied fully-furnished and equipped, so prices include everything from beds to bottle-openers.

Source: www.homesoverseas.co.uk/news

Investors eye peaceful Patmos

Catherine Deshayes — 04/09/2009 10:15:00

While many tranquil spots in Europe remain pricey, others like the Greek island of Patmos have remained somewhat easier on the wallet, which is good news for property investors.

Patmos also offers peace and quiet, with a population of just under 3,000 and space of 13 square miles--and it isn't teeming with tourists. The only means of transport to and from there is a ferry boat from the neighboring islands of Samos or Kos, yet visitors who know of the place return time and time again.

"Patmos' saving grace is that it has no airport," says Patricia Schultz, author of 1,000 Places to See Before You Die. "It is quiet, traditional and removed but not primitive. That and a beautiful interior and great beaches draws a very sophisticated crowd."

Yet living here won't dent the wallet too much. A three-bedroom house located about a five-minute walk from the beach will set you back 300,000 euros ($428,700). A one-bedroom house, also near the beach--it's hard not to be on such a small island--costs around 160,000 euros ($228,650).

"Prices in Patmos haven't really moved too much in the last year," says Elena Panagopoulou, of GoldAcre Estates in Patras, Greece. She adds that while property prices have slid in Athens, they've been resilient on the country's 227 inhabited islands.

Source: Forbes

The Mamma Mia Effect

Catherine Deshayes — 02/09/2009 10:04:00

With the UK market stalling, property purchasers are looking overseas for their next investment bargain with films such as Mamma Mia prompting savvy investors to turn their attentions to Greece.

Greece has long been a popular holiday haunt, due to its charming white washed villages, colourful nightlife, sun basked beaches and countless historical sites. Property prices here have risen steadily over the past five years, avoiding the much hyped property booms of its neighbours that are now witnessing substantial losses. It is this stable property market coupled with high rental demand that makes Greece an inviting property prospect.

Mrs. J McFadzen of Bradford (Interviewed by Barrasford and Bird) saw Greece's potential after watching ‘Mamma Mia' and becoming enchanted by the Greek way of life. She says, "I honestly hadn't thought of Greece until seeing the film Mamma Mia." She explains, "I am looking to make profits overseas...as well as having the pleasure of using it for a few years. I am a divorced woman aged 39 with four children and love any investment opportunity."

Having several properties in the UK, Mrs. McFadzen is one of many property investors looking to Greece to find property they can not only benefit from financially but also enjoy the enchanting lifestyle and health benefits of Mediterranean living.

Source: Barrasford and Bird

It's Turkey time!

Catherine Deshayes — 01/09/2009 11:37:00

Greece and Turkey have experienced a massive influx of tourists and business travelers over the last year.

New figures from the National Statistical Institute have revealed that the number of Bulgarians entering Greece increased by 63% in July 2009 (year-on-year). Tourist visits to Turkey also increased by 14%.

The figures also revealed that Bulgarians are travelling abroad more this year, with an increase of 14.2% recorded in July alone.

There was a decrease in visitors to the US, Canada and Israel, while the biggest fall is in the visits of Bulgarians to Japan, with only eleven Bulgarian citizens visiting the land of the Rising Sun in July 2009, a decrease of 76.1% (year-on-year).

It seems then that Greece is definitely the preferred holiday destination for Bulgarians at the moment, which could be good news for investors with property in the country.

Source: Novinite

Stop these bingeing Brits

Catherine Deshayes — 24/07/2009 10:29:00

Britain urged Greece yesterday to ban organized "bar-hopping" tours and clamp down on doctored drinks to help stop young British tourists getting into alcohol-related trouble, officials said...

British holidaymakers account for about a fifth of the 15 million tourists a year who visit Greece, one of Europe's top holiday destinations. But young Britons have gained notoriety for drunken, violent and sometimes indecent behavior.

Police officials from both countries met on the island of Zakynthos to discuss the problem on Thursday. Britain has already urged young tourists not to drink too much while on holiday in Greece.

"The British police officials called for more controls on bars to prevent drink adulteration and the illegal sale of alcohol to minors, and asked police to use less violence when arresting drunken tourists," said a Greek police official who declined to be named.

British embassy officials declined to comment.

According to British Foreign Office data, 16- to 20-year olds represent a third of all Britons visiting Greece, but account for more than 70 per cent of Britain's annual 800-900 consular cases there.

In May, 17 British men went on trial dressed in nun's habits after being arrested for baring their bottoms in public on the island of Crete.

Greece's conservative Government vowed to clean up resorts last year, saying much drink-related misconduct was due to profit-hungry bar owners supplying tourists with drinks adulterated with industrial alcohol.

Flyers, beer mats and business cards reading "If you drink too much, things can get out of control" will be handed out to British tourists on Greek islands this year as part of a British campaign titled "Another side to paradise."

Source: www.theage.com.au

Celebrity neighbours

Catherine Deshayes — 20/03/2009 09:41:00

Ever wanted to move abroad but don't know who you'll end up living near to? Britain's favourite celebrities are among the hundreds of thousands of Brits now owning properties overseas...

Spain
Why buy? Economic downturn or not, Spain still offers sun, sea and accessibility, making it our number one second-home and retirement destination. If you want to buy now, and are looking for quality, then you should be able to negotiate at least 20 per cent off last year's prices for both new and resale.

Who's here too? Former England football manager Terry Venables, PR guru Max Clifford, chef Antony Worrall Thompson, composer Andrew Lloyd Webber, former cricketer Ian Botham, singer Annie Lennox, actor Catherine Zeta-Jones, Olympic athlete Daley Thompson

France
Why buy? France has plenty going for it. It has a good supply of character properties and fantastic food and drink, plus it's easy to get to. The country's size means there's a huge variety of properties available. You can get away from it all in a tumbledown cottage in a beautiful rural location, or rub shoulders with the chic while living in a pied-a-terre in Paris.

Who's here too? Brand Beckham David and Victoria, singer Elton John, national treasure Terry Wogan, singer Toyah Willcox, footballer Steven Gerrard, opera singer Lesley Garrett

Portugal
Why buy? Similar in size to Scotland, Portugal is greener and more rugged than Spain. Only a short flight from the UK, it boasts golf courses galore, fabulous beaches and reliably sunny weather. But while Portugal may be feeling the effects of the downturn, the country is unlikely to see the large price drops that some of its neighbours are experiencing, resulting in relative stability in the housing market.

Who's here too? Former England goalie David Seaman, actor Clive Dunn, singer Cliff Richard, presenter Judith Chalmers, footballers Michael Owen and Alan Shearer, ex-Liverpool forward John Aldridge, former England defender Tony Dorigo, ex-Goodie Tim Brooke-Taylor, presenter Chris Evans, golfer Padraig Harrington

Cyprus
Why buy? Year-round sunshine is Cyprus' biggest asset. This complements the island's friendly people, beautiful coastline, British legacy and favourable tax regime - little wonder a growing number of British emigrants and retirees are buying and moving there.
Who's here too? Celeb couple Jordan and Peter Andre, former Liverpool and Wales international footballer Ian Rush

Turkey
Why buy? Turkey has emerged as a popular holiday home destination thanks to being able to offer very affordable property close to beautiful beaches.
Who's here too? Premiership footballers Andrew Johnson and Tim Cahill, golfer Lee Westwood, actor Ricky Tomlinson, boxers Joe Calzaghe and Ricky Hatton, athlete Sally Gunnell, actor Claire Sweeney, athlete Jason Gardener

Greece
Why buy? One of Europe's most popular holiday hotspots, Greece and the Greek islands perhaps aren't quite the bargain break they used to be in the days of the drachma, but the pretty white-washed houses, clear seas and warm climate appeal to everyone.
Who's here too? Private Eye editor and Have I Got News for You panelist Ian Hislop

Italy
Why buy? A destination favoured by Brits for its dolce vita lifestyle, culture and food. Traditionally we've bought rustic gems in the hills, often for restoring, but we're now waking up to its affordable seaside properties and village houses.
Who's here too? Singers Sting and Mick Hucknall, A Place in the Sun presenter Amanda Lamb, Dame Helen Mirren

USA
Why buy? The third largest nation in the world, America offers fast city life in New York and LA, casinos and bright lights in Las Vegas, and glorious sunshine in Florida. Evidence suggests the economic climate hasn't dampened our desire for property in the US, and given the state of the market, many Brits are on the lookout for a bargain.
Who's here too? Music svengali Simon Cowell, singer Rod Stewart, singer Daniel O'Donnell, actor Catherine Zeta-Jones

Australia
Why buy? It's English-speaking, has beautiful beaches complemented by a glorious sunny climate, isn't over-populated, has world-class healthcare and is crying out for professionals/trades people. With the largest population of British expats in the world (around 1.3 million), Australia remains the UK's number one emigration destination.
Who's here too? Singer & actor Kylie Minogue (OK, she's not British, but she's practically one of us), actor Cate Blanchett (well she played Elizabeth I didn't she?)

Canada
Why buy? With a laid-back atmosphere and dramatic landscapes, it's little wonder that Canada is such a popular destination. Expats flock there in search of a healthy lifestyle and breathtaking natural beauty, while for holiday homes, the buzz phrase is ‘four season appeal': if you want skiing, hot summers, white-water rafting, golf, salmon fishing and lakeside living - come to Canada.
Who's here too? Singer Midge Ure

From 3rd-5th April 2009, the A Place in the Sun Live exhibition at Earls Court 2 London promises an all-encompassing look at how to get onto the overseas property ladder. Visitors looking for a great investment, idyllic holiday home, retirement property, or a permanent home abroad will find thousands of great properties and advice from experts they can trust

Source: A Place in the Sun

Greece: The ‘dancing queen' of 2009

Jaimie Kanwar — 18/02/2009 10:12:00

Low cost airlines are increasing the number of flights to Greece in a bid to capitalise on its burgeoning popularity...

After the success of the hit film Mamma Mia in 2008 - the highest grossing film of all time at the British box office - there can only be a small minority of people who have escaped the draw of the crystal clear waters and the archetypal white wash houses against the piercing blue skies of the southern Mediterranean.

Well it appears that Greece hasn't escaped the attentions of the low cost and leisure airlines either, with several announcements recently to increase numbers of flights to the mainland and islands from the UK. Greece is sure to be the 'dancing queen' of 2009.

Lots of new flights

EasyJet has a number of target destinations in Greece including Santorini, home to one of nature's great wonders, the Santorini Caldera, and Corfu, made famous by Gerald Durrell in his novel 'My Family and Other Animals'. EasyJet will be flying to Santorini three times a week from London Gatwick with Manchester and Bristol adding flights to Corfu to their schedule.

It isn't just the islands which are proving popular, Monarch has announced new flights to Volos on the mainland, Greece's third city, famed for some of the best seafood in the country and a good base if one wants to visit the beautiful Sporades islands of Skiathos, Skopelos and Alonissos.

The flights will jet people over from London Gatwick and Manchester every Friday between 15th May and 9th October. EasyJet too have made the addition of a twice-weekly service from Manchester to the historic capital city of Athens starting in August.

Rental boost?

The increase in passenger numbers to every corner of Greece will no doubt have a positive knock on effect to the rest of the tourism industry, which will be reflected in greater demand for hotels and rental accommodation.

It is a glorious prospect to think of bustling streets of happy holiday makers, something some resorts can only dream of in the unfortunate economic downturn.

London based Piraeus Bank UK, commented: "Greece is fortunate to have been a focus on the big screen in 2008, which I believe, has further positively profiled this diverse and beautiful country.

"Whether it has been the Mamma Mia effect or other factors leading airlines to increase flights to Greece, Easyjet's takeover of GB Airways routes for example, it is certainly bright news in what can only be described as a very grey time".

Source: www.piraeusbank.co.uk.

Lifestylers go crazy for Crete

Jaimie Kanwar — 17/02/2009 10:20:00

Crete has not been especially fashionable in recent years, but that may all be about to change.

Inland from 1,000km of coastline, there are ancient sites, gorges and villages which are little changed in centuries. Only one place - Malia - has a reputation for the excesses of cheap package-tourism.

But investors have found the double-digit property rises of Cyprus, Turkey or Morocco more attractive than the steady increases in Crete, which is nearer Libya than Athens.

Oonagh Karanjia of Crete property Consultants, noted: "People have always bought in Crete because they love the lifestyle and the fact that flipping [selling a newbuild property on quickly for profit] doesn't work here".

"Many buyers still want the traditional village house, although the past few years have seen much new development. The low cost of living is attracting would-be Spanish purchasers and Easyjet's take-over of GB Airways' Gatwick-Heraklion route gives people the impression that Crete is more accessible."

Little Britain?

The long, sandy beaches and lusher north-west of Crete has attracted most of the tourism, and newbuild complexes have mushroomed west of Heraklion, the island's capital and main airport, around the towns of Chania and Apokoronos - nicknamed "Little Britain".

But in the drier east, the topography of mountains dropping into the sea has restricted mass development and the area around Elounda and the regional centre of Aghios Nikolaos is associated with small, upmarket projects.

It doesn't have the expat population of, say, Chania, and while it can be too quiet during winter for full-time residents, villa owners no doubt love its comparative isolation.

However, that remoteness may be about to change as the area becomes more accessible, with the extension of the island's new main road - cutting the journey to Elounda to 40 minutes from Heraklion airport - and a new airport mooted at Sitia could open up the far east of the island.

A fantastic opportunity

Some newbuild properties are now selling for 10 times the average cost of a typical Stone house, but will buyers consider Crete a luxury destination?

John Batty, of Greek property specialist Aegean Blue, commented: "A market is being created. People who have never considered buying in Crete before are realising it is a fantastic opportunity. It is good value compared with other EU countries."

Source: www.aegean-blue.com

Greece is the word

Jaimie Kanwar — 13/02/2009 12:05:00

Greece is the second most popular European destination for British tourists, a new survey has revealed...

After surveying 25,000 readers, the Telegraph Travel awards 2008 recently recorded Greece as the second most popular European destination with UK tourists -- more popular than Spain.

In fact Greece was put in second place behind Italy, with 1st and 2nd places remaining as they were in the same survey a year ago. This increases the allure of Greece property as an investment, according to Frank Crowley, director of overseas property specialists Azure Overseas.

Mr Crowley commented: "Though Australia and New Zealand are the readers favourite destinations in the world, Brits have bought more property in Spain, France and Italy than Australia and New Zealand.

"Whatever the reason, cheaper flights, more frequent use of holiday homes etc, the fact is that UK property buyers tend to buy in their favourite European destination than their favourite worldwide destination. Greece's continued popularity with Britons as a holiday destination is therefore very good news for the property market".

Substantial growth

He continued: "It has generated substantial growth in Greek property prices in the past few years, and even now as growth slows because of the global situation it presents the opportunity of earning substantial rental incomes from Greece property.

"On top of that, like many places, off-plan properties in Greece are currently coming onto the market at a lower price than they would have when times are good.

"So even investors should buy a holiday home in Greece; have some great holidays, earn some good money from holiday rentals, and then sell at a massive profit when the development is completed, or when the global property recovery begins, whichever comes first."

Source: www.Azureoverseas.com

Super marina to boost Samos tourism

Catherine Deshayes — 17/12/2008 09:16:00

Constructed with a budget of £25 million and due for completion in April of next year, the Dogus Marina at Didim, on the western coast of Turkey is already boosting tourism and trade in nearby locations and on neighbouring Greek islands, including Samos...

With a capacity of 1100 yachts, D-Marin will be the largest marina of its kind in Turkey. Murat Yaprak, D-Marin Didim's Manager, said the marina will mainly attract luxury yachts, an important asset in tourism. "D-Marin Didim will generally host mega-yachts, between 75 and 100 meters in length," he continued, "It will have a capacity for 650 yachts at the pier and a further 450 yacht space in the sea."

The marina will feature many other facilities, such as gas stations, banks, swimming pools, restaurants, culture centres, cafeterias, shopping malls, sport centres, a beach club, heliport, a yacht club and yachting equipment shops. The state of the art facilities at the marina mean it is set to become an attraction in itself.

Situated just forty one miles from the Greek island of Samos, the facilities and sheer scale of D-Marin Didim will significantly increase tourism in the area and on nearby islands. Couple this with the new marina on Samos, located at the five star resort of Halcyon Hills, and the two new upmarket developments will invariably bring vast amounts of tourism investment into the regions.

Robin Barrasford, Managing Director of the marketing company behind the development of the marina at the five star Halcyon Hills resort sees great future potential for the region. "Both Greece and Turkey have a blossoming upmarket tourism trade, and yet the supply of suitable facilities and accommodation for this market is playing catch-up. The completion of the D-Marin at Didim and the completion of the Halcyon Hills marina a few years later will be testament to the implementation of Government initiatives to increase upmarket tourism on the islands."

Didim Mayor Mümin Kamacý hailed the construction of the marina. "Having many tourism assets with its history, culture and nature, Didim will welcome tourists during twelve months of the year, not only in summer months, after the marina has opened," said Kamacý. "D-Marin Didim will help our district to begin a new era."

Opening the tourism market to twelve months of the year naturally extends the need for accommodation and will increase property prices in these regions as rental demand also steadily increases. Property buyers at the Halcyon Hills Marina & Spa Resort will benefit from this new development as once this resort completes in 2011, the Didim marina would have established itself as the leading marina for the Aegean sea.

Luxury properties at the Halcyon Hills resort start at £160,000 with fractional ownership available on selected properties. Assisted 100 per cent finance is available.

Source: D-Marin Didim

Global phenomenon

Catherine Deshayes — 11/11/2008 10:45:00

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

Greece is the word

Catherine Deshayes — 06/11/2008 09:49:00

Greece is voted the 'top place to go in 2009' by Flight Centre...

Greece has been ranked in poll position in Flight Centre's 'Top 10 Where To Go in 2009' list. Based on the data revealing the destinations that have grown in popularity over the last year, Greece has been voted top thanks to its offering of "an affordable holiday, delicious food at reasonable prices, cheap sailing, local wine, beautiful beaches, sunshine, quaint villages... and little islands full of scenic surprises".

This recent accolade adds to the commendations that the country has received in recent months, with it also having done remarkably well in the World Travel Awards 2008, attaining awards for Europe's Leading Beach Resort; Europe's Leading Boutique Hotel; Europe's Leading Spa Resort; and Europe's Leading Conference Resort.

With these top awards increasing the appeal of the beautiful country, it is clear to see why the latest World Travel & Tourism Council (WTTC) report has also been mightily favourable for Greece. Figures for Travel & Tourism Economy GDP growth have shown a likely 3.7 per cent for 2008, with an average 3.9 per cent increase predicted annually for the next ten years. These figures show that Greece is a popular market, with an increasing tourist market. Irini Tzortzoglou, Head of Retail Banking for Piraeus Bank UK, who offers mortgages on Greek properties, agrees,

"Greece has always been an extremely popular choice for traditional holidays but more recently residential tourism has been gaining ground fast. The latest list of accolades achieved by the country has further still increased its popularity as one obvious but still fairly unexplored overseas property market. Accolades such as the one bestowed by the readers of Voyage magazine who voted Greece as 'Best Worldwide Destination' at the 2008 International Tourist and Cultural Festival in Bejing-Chaoyang are adding to the interest Greece has been recently attracting.

"In the current economic climate it is encouraging to see such positive news announced from the travel and tourism sector. Greece is a firm favourite, and it looks likely to stay that way. There are many synergies between the travel and property industries and even if current economic conditions cast some doubt as to the absolute number of visitors expected next year, the popularity of the country is growing both as a tourism and second home destination."

Source: www.piraeusbank.co.uk

Titanic's twin

Catherine Deshayes — 30/10/2008 09:20:00

The HMS Britannic, the sister ship of the Titanic, currently sits in approximately 120 meters of water about three nautical miles off the Greek mainland...

The less celebrated of the two ships, but just as ill-fated, the Britannic could soon become a tourist attraction for divers and visitors to Greece.

The Britannic Foundation and the Hellenic Centre for Marine Research (HCMR) recently conducted a dive to see what shape the ship was in and what is its effect on the surrounding ecosystem.

The ship was sunk in 1916 by a presumed underwater mine -although some believe it was torpedoed by a German U-boat - as it was on its way to pick up soldiers who were injured in the First World War.

Simon Mills, President of the foundation, is looking forward to the day when the public can visit the wreckage in submersibles.

He hopes that will be within the next few years. In addition to its attraction as a virtually intact 269 meter vessel, it has developed a min-ecosystem around it with all kinds of marine life.

Mills notes that his goal is both to conserve the ship and allow people to see it: "There is the possibility here to create a unique project that can only help all parties. It is a wonderful thing that can happen to Greece if we can complete this project."

Source: www.homesgofast.co.uk

Cluttons going Greek

Catherine Deshayes — 24/10/2008 10:45:00

Cluttons LLP announces that it is extending its Mediterranean coverage with an associated office in Athens. Cluttons Greece, which will oversee the markets of Greece and Cyprus, will focus primarily on high-end residential properties...

Commenting on the expansion, Richard Cotton, Senior Partner of Cluttons LLP said, "We are seeing increased interest in high quality residential properties in Greece, particularly from our Russian and Middle Eastern clients.

"The Cluttons brand is synonymous with quality and integrity and we have unrivalled experience in the luxury homes market which we hope to bring to Greece. Through our Athens office and our international network we look forward to showcasing the best property that Greece has to offer."

Robert Key, Managing Director of Cluttons Greece, commented, "Despite current global economic conditions, we are very confident in the future of the Greek and Cypriot luxury homes markets.

"By marketing properties through our international network of offices we are able to offer private home owners and developers alike the best possible exposure to foreign buyers.

"We also look forward to introducing Greek buyers to opportunities that Cluttons has access to around the world," added Mr Key.

Source: Cluttons

Athens - An Ancient Arena of Archaeological Artefacts

Jude Buttle — 20/10/2008 10:28:00

Nowadays Athens is alive with the hustle and bustle of day to day activity, but behind the scenes there is still the undeniable essence of a part of history that is significant to the modern world.

Athens has one of the most recognized and eulogised ancient sites on the planet in the Acropolis, which is a magnificent monument that dates back to the Mycenaean era. Within the Acropolis is another legendary structure, The Parthenon, which is a temple of the Greek goddess Athena, built in the 5th Century B.C.

It is the most important surviving building of Classical Greece and is an enduring symbol of ancient Greece and Athenian democracy.

The city is also one of the world's main areas for archaeology. With an archaeological society, museums, laboratories and libraries, Athens is a great place to unearth ancient artefacts.

The National Archaeological Museum of Athens is home to some of the most important artefacts from a variety of archaeological locations around Greece, from prehistory to late antiquity.

It is respected as one of the great museums and contains the richest collection of artefacts from the Greek antiquity worldwide.

The Archaeological Society of Athens is a branch of the Hellenic Republic's Ministry of Foreign Affairs. The society was founded in 1837, just a few years after the establishment of the Greek State, with the aim of encouraging archaeological excavations, maintenance, care and exhibition of antiquities in Greece.

But Athens isn't just about historical monuments and archaeology; it is also one of the best places in the world for food and drink.

Athens has some wonderful food markets, in particular the Central Market, a temple of fresh produce. It is a lively, bustling place, full of fish, meat, fruit and vegetables from all over Greece.

Although the restaurants in the market area offer food at some of the cheapest prices in Athens, there are a number of other options of places to eat in the city as dining out is a national pastime.

The Greeks love to eat and enjoy taking their time over lunch and dinner. The city has many ouzeri and mezedopolio diners, which are open only during the day and tavernas for the evening meal.

It's common for Greeks to make a lunch of mezedes, or hors d'oeuvres. Typical dishes to whet the appetite at lunchtime include meatballs, octopus, shrimp, squid, cheese, olives, stuffed vine leaves, tzatziki (garlicky yogurt and cucumbers), and small sausages.

When the day starts to fade, the Greeks like to sit around and sample specialities as moussaka (lamb, eggplant and béchamel sauce), pastitsio (lamb or goat meat with macaroni and tomatoes), stifado (braised beef with onions) and paidakia (grilled lamb or goat chops).

The Greeks also like their drink, preferring locally produced wine and beer or the anise flavoured liqueur, ouzo.

With so many historic sites to visit and numerous places to eat and drink, Athens will keep you nourished culturally and gastronomically. An enchanting city that has an appeal and energy that is unforgettable, making it a must see for any tourist.

Search for property in Greece

Browse for property in Greece for sale

Photo by Alun Salt

New property sites launched

Catherine Deshayes — 10/10/2008 09:49:00

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Forget Me Not: 5 Reason to Remember Athens

Jude Buttle — 18/08/2008 14:15:00

Referred to as the birthplace of western civilization, Athens is synonymous with ancient history, philosophy and democracy. A city that has an unequalled past is presently looking forward to the future.

Acropolis: Parthenon (West Side) - photo by wallyg

1. Dining Out

Eating out in Athens is a national pastime and the Greeks like to eat their food at a leisurely pace. Much of Greek cooking concentrates on simple seasoning and fresh meat and vegetables.

Bakery-fresh tiropitas (flaky cheese-filled pastries) are the choice to start the day for many Athenians. The Greeks like to eat lunch and dinner late, so they are known to snack in-between on souvlaki (garlic-marinated lamb kebabs).

It's common for Greeks to make a lunch of mezedes, or hors d'oeuvres. Popular dishes include fried meatballs, seafood, cheese, olives, stuffed vine leaves, tzatziki (garlicky yogurt and cucumbers), small sausages and giant beans. You can find mezedes at an ouzeri (serving ouzo, an anise-flavoured liqueur) or at a mezedopolio (serving locally produced wine or beer); both of these types of restaurants are open only during the day.

For the evening meal, Greek tavernas serve such specialities as moussaka (lamb, eggplant and béchamel sauce), pastitsio (lamb or goat meat with macaroni and tomatoes), stifado (braised beef with onions) and paidakia (grilled lamb or goat chops).

2. Archaeology

With its amazing history, it's no surprise that Athens is one of the world's main centres of archaeological research. With national institutions like Athens University and the Archaeological Society providing the breeding ground for the study of past cultures.

Athens also boasts several archaeological Museums (including the National Archaeological Museum, the Byzantine Museum, the Cycladic Museum and the Epigraphic Museum).

Additionally, the city hosts 17 Foreign Archaeological Institutes which promote and facilitate research by scholars from around the world.

As a result, Athens has more than a dozen archaeological libraries and three specialized archaeological laboratories, and is the venue of several hundred specialized lectures, conferences and seminars, as well as dozens of archaeological exhibitions, per year. All in all, Athens is one great place to go digging.

3 & 4. The Acropolis and the Parthenon

You can't refer to one without mentioning the other; the Acropolis and the Parthenon come as a pair.

The Acropolis of Athens is the quintessential symbol of Greece and of the Greek Empire; it is the most famous acropolis (high city, The "Sacred Rock") in the world and home to the magnificent Parthenon.

Once a fortified citadel and the state sanctuary of ancient Athens, the Acropolis developed into the safe haven of the goddess Athena, the patron divinity of the city.

In the second quarter of the 6^th century B.C., there was a surge of architectural activity and the first monumental stone, Doric temple of Athena, was built on the Acropolis.

Another monumental temple was built after the Athenian victory over the Persians at Marathon in 490 B.C. and in the mid-5th century, the Athenians were persuaded by the statesman Pericles to rebuild the temples on the Acropolis on a grand scale. And it is during the second half of the 5th century B.C. that the most famous building on the Acropolis was created - the Parthenon.

The Parthenon is a temple of the Greek goddess Athena and widely considered a key landmark of early Western civilization. The Parthenon was built in the 5th century B.C. on the Acropolis and is the most important surviving building of Classical Greece. Its decorative sculptures are considered the zenith of Greek art. The Parthenon is regarded as an enduring symbol of ancient Greece and of Athenian democracy, and is one of the world's greatest cultural monuments.

The Parthenon, the centrepiece of the Acropolis, has a museum adjacent to it that houses marble carvings, statues, and other artefacts from the area.

5. The Central Market

The Central Market on Athinas Street is a lively, bustling place, full of fresh fish, meat, fruit and vegetables from all over Greece.

The market is open from Monday through to Saturday and the area is comprised of a long, narrow meat market, separate produce market, and dozens of surrounding shops selling everything such as spices, herbs, sweets, pottery and kitchenware.

The restaurants in the meat market offer food at some of the cheapest prices in Athens.

Conclusion

Athens is an amazing city with an incredible history of ancient monuments and archaeological discoveries. With one foot planted firmly in its famous past and the other moving in a modern direction, Athens is an alluring mixture of old and new.

Search for Property in Greece

If you are looking for Property for sale in Athens, such as villas, apartments or other types of real estate, why not check out TheMoveChannel.com Greece, which has a large number of listings from Greek estate agents and developers selling properties in the area: http://greece.themovechannel.com/

Greece: A change of direction?

Jaimie Kanwar — 24/07/2008 10:00:00

The Greek Government is taking action to improve its ‘underperforming’ tourism market.

In its recent special report on the travel and tourism economy in Greece, the World Travel and Tourism Council (WTTC) took specific time out to praise the previous Minister of Tourism, Fanny Palli-Petralia, for bringing strong leadership and sound strategy to Greece’s previously under performing tourism market.

A spokesperson for the WTTC stated: “Whilst Greece is already doing well in terms of the amount of market share it commands, (Greece has a 10% share of the Mediterranean tourism market), it could do far better given its natural assets and attributes”.

The WTTC cite issues such as governmental under-spending on the sector, bureaucracy, sub-standard facilities and restrictions on capital investment as having held the market back – and interestingly, these are exactly the same sort of issues that had held the property market back in Greece as well.

Steady change of direction

Fortunately, in 2004 a change of government and a total change in political direction in Greece has resulted in a steady change in direction - for the economy and for certain specific economic sectors in particular, such as tourism and real estate. Everything from the high unemployment rates, heavy taxation levels and endless red tape are now changing for the better.

The current Minister of Tourism, Aris Spiliotopoulos sees the promotion of Greece as an obligation, not a privilege.

In his speech at the official presentation of the new promotion campaign of Greece Abroad, he said: “My intention is to show the world that Greece has the same capacities, services and infrastructures as the rest of the developed countries in the European Union”.

‘Delightful’ Samos set to soar

Jaimie Kanwar — 23/06/2008 09:00:00

The Greek Island of Samos is about to becoming hugely attractive to property investors…

A new ferry service launched in May, which links Bodrum, Turkey to Samos, Greece is expected to bring in an extra 50,000 tourists.

Part of the Government initiative to increase tourism on the Greek islands, this is exciting news for Samos inhabitants and of course property investors on the island, especially with an estimated increase in tourism of 50,000 by 2009.

Greece has many fine qualities that ensure the tourism market continues to increase year on year. The wealth of character and of course the historic significance of the country need to be experienced to be believed, one of the reasons why the Greek Government have set targets of increasing tourism throughout the Greek islands by 50% before 2013.

Excellent incentive to buy property

One such Greek island untouched by the tourism spotlight is Samos. This delightful island sits to the southern eastern corner of the Greek islands, languishing along Turkey’s west coast. Meandering streets provide ample shopping opportunities while the array of tavernas offers a relaxing taste of Greek life by the waters edge.

The island has its share of historic claims to fame and is said to be the birthplace of Hera, Mother of the Gods. The remains of her temple can be visited today, as can the spectacular Eupalinos tunnel constructed during the 6th Century BC.

A spokesperson for Barrasford and Bird commented: “The timing of this new ferry route is an excellent incentive to purchase property on Samos and benefit from this new influx of tourism. Direct UK flights already operate during the summer, making the island an accessible 3.5 hours away.

“Property investors have noted the charms of Samos and are turning their attentions to the buoyant Greece property market, especially as the UK housing market stalls”.

Eurozone ‘losing momentum’?

Jaimie Kanwar — 09/06/2008 00:00:00

After a strong start to 2008, the economy of the Eurozone is showing signs of fatigue...

This is the view of Holger Schmieding, senior european economist at Bank of America, who was responding to the European Central Bank’s decision hold interest rates at 4%: "After a strong start into 2008, the eurozone is losing a lot of momentum”, he said.

After Friday’s rate hold, ECB President Jean-Claude Trichet admitted a future rise was "possible" and conceded that some members of its Governing Council favoured a hike. Said Mr Trichet: “The Governing Council is in a state of heightened alertness over economic conditions, but it will take into account all prevailing factors before making a decision”.

He added: "We considered - it is not excluded - that after having carefully examined the situation, we could decide to move our rates [by] a small amount in our next meeting in order to secure the solid anchoring of inflation expectations, taking into account the situation. I don't say it's certain. I say it's possible."

There are growing signs that the eurozone economy is weakening. Inflation in the eurozone was 3.6% in May, above the target of about 2%, and official EU data shows that retail sales fell in April, adding to the call from some sectors for a reduction in rates.

IMF relaxed over inflation woe

Jaimie Kanwar — 03/06/2008 00:00:00

Eurozone inflation is at 'uncomfortable' levels, but there's no need to worry, claims the IMF…

In its latest report, the International Monetary Fund (IMF) argued that Eurozone interest rates ‘should not fall because inflation is at ‘uncomfortably high levels’. The IMF predicts that the rate would fall below 2% late next year without a rate rise.

The IMF also revised its forecast for eurozone growth this year upwards from 1.4% to 1.75%. The report stated: "In these circumstances, it is appropriate to keep policy rates on hold”.

Eurozone inflation was 3.6% in May, well above the European Central Bank's (ECB) target rate of about 2%.

Greece’s ‘Hollywood haven’

Jaimie Kanwar — 02/06/2008 00:00:00

A relatively unknown Greek Island is attracting the attention of star-struck property investors…

Skopelos is a lesser-known Greek island that has suddenly become popular with the Hollywood set. Tom Hanks has played his part in making the island famous as he’s a producer behind one of the biggest and most hotly anticipated summer 2008 movie releases, namely ‘MAMMA MIA!’ starring Meryl Streep, Colin Firth, Julie Walters and Pierce Brosnan, who all had the pleasurable task of filming the movie on Skopelos.

A spokesperson for Greek property company Aegean-Blue commented: “Once the film hits the big screen this July and moviegoers all over the world see for themselves how stunningly beautiful and perfect the island is with its pristine beaches, pretty white washed houses, ancient cobbled streets, blue waters and blue, blue skies, Skopelos can expect an invasion of holidaymakers and holiday-home buyers too.

Investors eye ‘celebrity Greece’

Jaimie Kanwar — 30/05/2008 00:00:00

A barely known Island in Greece is attracting the attention of property investors…

The Greek island of Antiparos is growing in popularity as a result of the glittering array of celebrities who have visited for holidays. High profile visitors such as Tom Hanks, Jennifer Anniston, Prince Albert of Monaco and Brad Pitt have raised the profile of the island and piqued the interest of curious investors.

The appeal for the famous names that arrive each year is the relative seclusion and solitude achievable on the island which is only reachable by ferry from the neighbouring island of Paros for example. But the greater appeal of the destination lies in the almost unrivalled beauty of the place.

The sea around the island is jade green rather than the indigo blue usually associated with the seas around Greece, and on the island itself the striking landscape is a picture perfect backdrop to the sleepy villages and communities dotted across this perfect paradise.

A recent Travel and Tourism in Greece report by Euromonitor International stated that “tourism demand is experiencing an upwards trend”, which backs up the strongly held local belief that Hollywood’s love affair with the nation is pushing up tourism arrivals.

Irini Tzortzoglou, Deputy Branch Manager of Piraeus Bank UK, commented: “if you want to beat the crowds now’s the time to discover hidden Greece, explore the lesser known islands such Antiparos and perhaps even buy yourself your own Greek island villa in the glorious sunshine”.

Going to Live in Greece

Jaimie Kanwar — 23/05/2008 00:00:00

A free to access guide to living and working in Greece…

‘Going to Live in Greece’ provides comprehensive advice on how to relocate and find a job in Greece and provides useful insights into Greek people and culture

Visitors to the WeBooks website can read the whole book for free online, or download a PDF from the online shop for future reference. Visitors can also read the author’s blog, chat to other users in the forum and find useful websites in the directory.

Peter Reynolds' passion for Greece began in the 1970s when he worked as a travel courier around the mainland islands. He has a home in Greece, and is a director of The Peloponnese Walking Tour Company

With over 200 Webooks set to go online during the remainder of 2008, visitors can also sign up to the newsletter to receive alerts when new titles are added to the online library.

You can read the book on the WeBooks website below:
http://www.goingtoliveingreece.info

ECB slams ‘oil shock’ mistakes

Jaimie Kanwar — 20/05/2008 00:00:00

The head of ECB has warned that the global financial crisis is far from over…

ECB President Jean-Claude Trichet compared the current problems with the oil crisis of the mid-1970s and suggested that if central banks allow inflation to run out of control it could lead to mass unemployment.

He said: "These are demanding times, challenging times. We have this accumulation of the oil shock and the food and agro-products shock. Banks must take care not to trigger the second-round effects of spiralling inflation and unemployment.

"In the first oil shock, we took the wrong decisions and embarked on second-round effects and tried a high level of inflation for a long period of time. We created by our own absence of lucidity mass unemployment in Europe, when before 1974 we had no mass unemployment.

"Price stability, and credibility in price stability, in the medium term, is the best way to have a high level of sustainable growth and sustainable job creation."

Top of the Props – April 2008

Jaimie Kanwar — 09/05/2008 00:00:00

Interest in the United Arab Emirates from visitors to TheMoveChannel.com has soared over the last month, with the progressive Federation breaking into the top ten of our ‘Top of the Props’ chart for the first time…

Never content to rest on its laurels, the UAE’s defining characteristic seems to be its unshakeable quest for continuous improvement – something that has underpinned the success of States like Dubai and Abu Dhabi. And with major infrastructure investment occurring across the Emirates, it’s an exciting time for prospective investors.

Elsewhere, the titanic struggle at the top of chart between Europe’s heavyweights continued, with Italy, France and Spain shuffling places once again, and a new number 1 taking over. Far flung destinations continued their march up the chart, with two exciting emerging markets consolidating their positions in the top 10.

To view the complete chart, along with analysis and expert comment, please visit: http://www.themovechannel.com/articles/viewpoints/108-5-1.asp

You can also view the very latest global investment opportunities on our Property Investment Portal

Crete joins the UK budget club

Jaimie Kanwar — 06/05/2008 00:00:00

UK investors can now take advantage of cheap flights to Crete…

Direct services to the Greek island were launched from Manchester Airport earlier this week by low-cost carrier easyJet. This means that people who are based in the north-west of England will be able to access affordable and frequent services to the tourist hotspot.

As a result, holiday accommodation on the island will be likely to see greater demand this summer. Furthermore, prospective second home buyers may be more inclined to consider Crete as a possible destination.

David Osborne, UK general manager at the airline, commented: "Mancunians can now take advantage of easyJet's famously low fares to the summer hotspots across Europe, with the care and convenience when flying from your local airport."

ECB ‘shuts the door’ on rate cuts

Jaimie Kanwar — 11/04/2008 00:00:00

The European Central Bank has ignored calls for a rate cut this month…

The ECB has kept interest rates unchanged at 4% as concerns about inflation outweigh evidence of slower economic growth. Inflation is being stoked by record food and energy costs, and analysts have warned that it may prove difficult to slow price growth in coming months.

However, critics have called for a rate cut, saying economic growth may stall. Earlier, the Bank of England cut its main interest rate by a quarter of a percentage point to 5%.

Good news for the Euro?

The ECB's decision to hold rates will buoy the euro, which is currently at a record high against the pound. It has gained strength because of interest rate cuts in the US and UK, meaning that the dollar and the pound now offer lower returns.

Many analysts expect that there will be a long wait before eurozone rates change. The ECB was set to "keep the door shut for possible rate cuts in the foreseeable future", said Commerzbank economist Gavin Friend

ECB president Jean-Claude Trichet added: "Controlling inflation is the bank's priority".

In March, eurozone inflation hit 3.5% in March - well above the bank's 2% target.

IMF in ‘global recession’ warning

Jaimie Kanwar — 10/04/2008 00:00:00

The IMF has lowered its global growth forecast this week amid fears of economic downturn…

The Washington-based lender estimated a 25% chance of a worldwide economic downturn in its semiannual World Economic Outlook, released on Wednesday. The fund lowered its global growth forecast to 3.7% this year from a 4.1% prediction in January.

A spokesperson for the IMF commented: “We anticipate a mild recession in the U.S, with expansions slowing in Europe and Japan. While central banks have acted aggressively' to inject cash into the financial system, further efforts may be needed because of the danger of a full- blown credit crunch.

US and Europe need to act

The Fund also urged U.S. policy makers to strengthen their response to the housing slump and implored the European Central Bank lower interest rates to stave off a global recession.

This is the third time the IMF has lowered its projections since July, when it predicted global growth of 5.2% this year. IMF economists said the deterioration was due to the "largest financial shock since the Great Depression.''

The fund also warned that the new forecasts are more likely to be revised down than up. "The greatest uncertainty comes from the still-unfolding events in financial markets,'' the report said. Still, "a number'' of the fund's executive directors judged that "the staff's new baseline forecast has been marked down too sharply.''

Greece ‘going for gold’

Jaimie Kanwar — 04/04/2008 00:00:00

Property owners in Greece could see their profits soar over the next few months…

According to Lastminute.com, the number of bookings for holidays in Greece has shot up over the last few months.

John Bevan, Managing Director at the firm, commented: “The amount of reservations for April 2008 is 15 per cent higher than it was at the same time last year. This means that there will be greater demand for tourist accommodation across the country, particularly in hotspots such as Kos, Corfu and Rhodes.

"The unusually cold weather has led to incredible demand for late Easter sun holidays."

Holiday-Rentals recently revealed that the number of Greek properties it has on its books went up by almost two-thirds last year.

USA springs ‘Top of the Props’ surprise

Jaimie Kanwar — 04/04/2008 00:00:00

In a surprising twist to this month's chart, the USA has muscled its way into the top 3 of our ‘Top of the Props’ index for the very first time...

Over the last month, visitors to TheMoveChannel.com have ignored the negativity over the US real estate market and registered their interest in US property en-masse, which has led to the world’s largest economy muscling its way into the top 3 of our ‘Top of the Props’ chart for the first time…

Potential investors seem to be ignoring the negativity of the ongoing sub-prime crisis and cashing in the UK’s incredible currency rate. With two dollars to the pound, the potential for cheap bargains and doubling your money has never been better.

Elsewhere in the chart, the ongoing battle between Spain, Italy and France for top spot continued, with Spain usurping Italy once again to take top spot in the chart, It was the second bad month in a row for France though, as the world’s most popular tourist destination slipping 3 places to 5th – it’s worst position in over a year. Portugal shot up 4 places to 4^th place, whilst Cyprus and Morocco also continued to rise steadily up the chart.

You can view the full Top of the Props chart, along with expert comment and analysis, here: http://www.themovechannel.com/articles/viewpoints/108-31-2.asp

To see the latest hot US investment properties, please views our US property portal:
http://usa.themovechannel.com/property

‘Open Skies’ boost for investors

Jaimie Kanwar — 01/04/2008 00:00:00

The new Open Skies deal between the US and Europe is great news for property investors…

The new deal ends limits on which airlines can fly between the US and EU, and it is expected to lead to a large rise in the number of carriers on the routes. Analysts say the introduction of more competition will bring down prices, but that reductions will be limited unless the current high price of aviation fuel also goes down.

A key component of the new aviation agreement between the EU and the US is that any European airline will be able to fly to the US from anywhere in the EU - not just from its home nation. British Airways and Air France have already announced their intention to launch flights to the US from outside the UK and France respectively.

But European airlines also want access to domestic airline routes in the US, says the BBC's Europe business reporter Duncan Bartlett - flights, say, between New York and Washington.

Problems brewing?

Another change is that US airlines can now buy a stake of up to 49% in their European rivals; European airlines by contrast will still only be able to buy 25% in US carriers.

EU Transport Commissioner Jacques Barrot is, however, not happy with that arrangement: “We plan to improve that deal, and if we do not get parity, we will roll back some of the open skies agreements from 2010”

For April 2008, scheduled flights from the EU to the US have jumped by 11% on the same month last year, according to the International Air Transport Association (IATA). The highest rise in traffic is observed from London, where the number of scheduled flights has jumped by 25% to 640 from 511.

As competition begins for the cheapest airfare to America, investment property in the USA, particularly in coastal areas, could begin generating some outstanding returns to investors.

Open Skies: What is it?

It is the end of restrictions on air travel between the EU and the US
It means any EU airline can fly from any EU destination - not just their home country - to anywhere in the US and vice versa
Changes at key airports, including Heathrow, could be limited because of a shortage of landing slots, which are expensive to buy
There is debate on whether increased competition on routes will lead to cheaper tickets because of the high cost of fuel

Europe's 'phantom' property downturn

Jaimie Kanwar — 17/03/2008 00:00:00

The extent of Europe’s property slowdown has been exaggerated, claims Assetz…

If the UK property market has been subjected to some rather severe predictions about the property market in general and buy-to-let in particular, with the recent Homebuyer and Property Show in Birmingham having a debate entitled: "Is the UK buy-to-let sector facing its Armageddon?", the same can be said across Europe.

Here, some are predicting that it is as good as the end of the world for the continent's property markets as the global credit crunch hits home in a number of different countries.

Of course, what has happened is a slowdown across Europe, with the Royal Institution of Chartered Surveyors stating in its European Housing Review that the boom was over. While it noted that this trend was not without exceptions, describing Cyprus - where house price inflation rose - as "a rare case of a country shrugging off the gloom", the overall picture was indeed a dark one.

Investors still out there

Yet is it really so dark? Seeking to shine a torch on the situation, Paul Owen, chief executive of the Association of International Property Professionals (AIPP), said: "It is a bit apocalyptic to talk about the boom being over because prices have slowed [though] the argument that the market slowed up in the second half of last year is self-evident."

So in addition to Armageddon in Britain, Europe has been talked about as facing the apocalypse. But Mr Owen suggested such talk has been completely overblown. To him the situation has been one of uncertainty, punctured recently by a "collective sigh of relief within the industry" at the first two exhibitions staged by the AIPP this year, when it became clear that investors are still out there.

He added: "The change that we have seen in the last 18 months or so has been where a greater proportion of the buyers are investors as opposed to holiday home buyers but if you look at profits and the specifics of emigration there are still very strong numbers leaving the UK full-time looking to buy property. So it being the end of something I find a little over the top."

Knee-Jerk reaction

Maybe the reaction to the downturn has been a knee-jerk one, which having perhaps imagined that the boom years will never end now sees no light at the end of the tunnel in more fallow times. In the meantime, apart from tapping in to the Cypriot boom, many will still be drawn to the most popular places like Spain and France.

VEF pointed out this week that those looking to the latter country can find properties 28 per cent cheaper on average than their UK equivalents, or 50 per cent in comparison with homes in the south-east of England.

So for investors, there are still prospects out there and the market is still very much alive.

Top of the Props: Brazil 'on top of the world'

Jaimie Kanwar — 07/03/2008 00:00:00

Interest in Brazil from visitors to TheMoveChannel.com has soared over the last month, with the world’s biggest emerging market powering its way into the top 5 of our ‘Top of the Props’ chart for the first time…

It’s an exciting time for Brazil and its property investment market. With two recent oil and gas discoveries and an apparent immunity to the worldwide credit crunch, Brazil’s economy is prospering, and property prices are certain to receive a major boost.

There was another change at the top of the chart, as Europe’s heavyweights slugged it out for supremacy. The same three countries have waged war for top spot over the last six months and, surprising, the investment destination widely perceived to be the most popular may well be losing the battle.

Elsewhere, far flung destinations once again figured heavily in the chart, with two exciting emerging markets breaking their way into the top 10 for the first time in months.

To view the full article and the complete TOTP chart, which ranks the top 40 countries, please visit: http://www.themovechannel.com/articles/viewpoints/108-3-1.asp

Euro markets in hike ‘hangover’

Jaimie Kanwar — 05/03/2008 00:00:00

Europe’s property markets are still suffering the effects of 2007’s rate hikes…

The majority of housing markets slowed sharply or slid backwards across Europe during the second half of 2007 in response to inflation-induced interest rate rises, according to the European Housing Review 2008.

The prime cause, according to the report, has been the general rise in mortgage interest rates over the past 18 months. The knock-on effect of European Central Bank interest rate policies and general rises in interest rates have led to the noticeable slowing of Europe's housing markets.

The recent autumn credit crunch is yet to have significant impact, with household lending remaining fluid across the majority of Europe. However, the UK is one of the few countries to experience noticeable drops in borrowing levels.

Cyprus (15%) and Iceland (15%) were the only countries in which house prices outstripped their 2006 growth.

Baltics battered

Ireland was one of the worst-performing markets, with house prices falling at an estimated 7%. The Baltic States were also hit hard, with early year prices rises wiped out from summer onwards.

Poland recorded the highest rate of price increases (28%), however the reality of post-summer market conditions offered a sharp wake-up call. Oversupply issues have arisen due to an overhang of unsold property and the swift shift made by foreign investors’ from 'buy' to 'sell'.

Germany’s economy may have turned a corner but this is yet to be mirrored in its housing market. Meanwhile, the slowdown in the French economy has hit its housing sector, with Belgium, the Netherlands and Scandinavia also experiencing similar ‘quieting’.

Interest rates have also had a strong impact on the Spanish market with house price growth slowing to 3%. A more significant market decline is foreseen in 2008.

UK house prices were found to be the strongest of the big four recording 8% growth. Though the record from Autumn 2007 onwards has been one of gradually falling prices, anticipated interest cuts this year however should limit subsequent price falls.

Greater flexibility

The report's author, Professor Michael Ball, said: "The often repeated dilemma currently facing monetary authorities is that slowing economies - and housing markets - need lower interest rates, but higher inflation is against them. How Europe’s housing markets fare in 2008 depends on how that tug-of-war develops."

“There are prospects for some house price falls during 2008 but the scale of any housing market downturn is likely to be far less than the last downturn in the early 1990s. The UK housing market looks much better placed than many others in Europe because of the greater interest rate flexibility.”

Rebecca Gill Head of International Research at Savills, co-sponsors of the European Housing Market Review, comments: “This research illustrates the broad trends that impacted on European Housing markets in 2007.

“Except for Ireland and Germany, all markets experienced upward movement in house prices with Poland coming top of the table for the second year in a row.

“However, the final quarter of 2007 saw a sharp slowdown in the rate of house price growth which is likely to continue for much of 2008.”

Euro property markets ‘under threat’?

Jaimie Kanwar — 04/03/2008 00:00:00

The European property market is facing increased competition from some emerging property hotspots in other parts of the world...

The International Herald Tribune recently reported that countries in Africa and South America are attracting higher levels of interest from foreign property investors.

It says their ability to offer the sought after combination of sun, sea and sand as well as easy access to major cities is helping them to rival their European counterparts.

Morocco in particular is proving a popular destination and is fast catching up to the likes of Spain and Portugal as a top choice for foreign property investment.

Comparatively low prices are a big attraction to buyers and an increase in the number of tourists visiting the country is fuelling demand for rented accommodation, which means opportunities for buy to let investors are plentiful.

Tourism is the country is expected to be given a further boost thanks to the Moroccan government's Vision 2010 tourism strategy which aims to increase visitor levels five fold compared with 2002 levels.

Greece: The tide is turning

Jaimie Kanwar — 15/02/2008 00:00:00

Greece has long been overlooked by investors, but that may be about to change, claims Piraeus Bank …

It’s easy to believe that the success of one nation’s tourism market goes hand in hand with the subsequent successes of its property market, and that where there is a strong desire for a summer holiday it follows that there is almost equally as strong a desire for a summer holiday home.

This is particularly easy to accept in the Mediterranean region where so many British, Irish and Northern European citizens dream of spending their summer evenings and an almost equal number seemingly dream of owning a holiday bolt-hole or retirement retreat. However, in reality not every Mediterranean market does have as popular a property market as it does a holiday market.

The Greek mainland and the Greek islands are almost the epitome of 'destination perfection' for those who long for star sprinkled, sultry summer nights and lazy days played out against a backdrop of silvery barked olive trees, beautifully bright bougainvillea, azure skies and the sparkling crystal clear waters of the sea.

And yet Greece is not famous as a second home nation – it is not even in the top twenty countries in which British, Irish or Northern European buyers invest in holiday homes, retirement property or even buy to let real estate.

Why is Greece ignored by investors?

Why is it that Greece – beautiful, romantic, historic, accessible, welcoming and desirable Greece - is not where we’re all dreaming of buying that seaside villa or investing in that jet-to-let apartment? Well, the truth lies somewhere in a complex web of bureaucracy, rather socialistic politics, old fashioned laws, lack of financing and high taxes.

However, all that is beginning to change as Greece is keen to attract overseas buyers to its shores and willing to listen and learn from the mistakes made in other Mediterranean destinations.

In its latest special report on the travel and tourism economy in Greece, the World Travel and Tourism Council (WTTC) took specific time out to praise the previous Minister of Tourism, Fanny Palli-Petralia, for bringing strong leadership and sound strategy to Greece’s previously under performing tourism market.

According to the WTTC, whilst Greece is already doing well in terms of the amount of market share it commands, (Greece has a 10% share of the Mediterranean tourism market), it could do far better given its natural assets and attributes.

Steady change of direction

The current Minister of Tourism, Aris Spiliotopoulos sees the promotion of Greece as an obligation, not a privilege. In his speech at the official presentation of the new promotion campaign of Greece Abroad, he said that his intention is to show the world that Greece has the same capacities, services and infrastructures as the rest of the developed countries in the European Union.

Investment Property Watch - Feb 2008

Jaimie Kanwar — 15/02/2008 00:00:00

Real estate in emerging locations proved to be massively popular again in January on TheMoveChannel.com, with far-flung destinations dominating the top 10 list of hot investment properties on the site...

January’s top ten proves once again that investors are well and truly moving out their comfort zones and shunning established markets like Spain and France, preferring instead to take calculated risks on cheaper properties in expanding markets across the globe.

Last month’s top property came from Bulgaria, and this month there’s been no change, with ‘Super Borovets’ Apartments attracting huge interest from TheMoveChannel’s visitors.

This month’s major surprise was, however, the popularity of apartments in Albania. Apartments in Tirana, Albania. With the majority of investor interest focused on the Eastern European markets like Bulgaria, Romania and Slovakia, Albania is shaping up to the dark horse of 2008.

To view the full chart, please visit: http://www.themovechannel.com/articles/viewpoints/108-14-2.asp

Investors hail Greece flights boost

Jaimie Kanwar — 13/02/2008 00:00:00

Easyjet has announced new flights to Thessaloniki in Greece, providing prosepective property buyers with an even greater choice of destinations from their local airport...

Fares for the thrice weekly service (Wednesday, Friday and Sun), which increases to four times weekly from the 31 March 2008 to include Monday too, are available from £27.99 one way (£56.35 return) including taxes. The airline expects to carry 50,000 passengers on the route this year.

It is well known that the introduction of cheap flights to a destination usually has a big effect on local property values, and these new flights mean that Gatwick airport new serves a fantastic 34 destinations in Greece, including:

Athens
Chanios
Chios
Corfu
Heraklion
Iaonnina
Kalamata
Karpathos
Kos
Rhodes
Santorini
Volos

Thessaloniki is Greece’s second largest city and is a good starting point for seeing the best beaches of Halkidiki and the most beautiful spots in the region known as Macedonia.

The city is famous for its Byzantine monuments, Ottoman and Jewish architecture and fantastic nightlife. Picturesque restaurants, cosy tavernas, designer bars, and lively, modern nightclubs can all be found in the area of town nearest Thessaloniki Airport. Visitors to the city can’t afford to not try Bougatsa – pasty filled with custard, cheese, or minced meat, sold in bakeries throughout the city.

David Osborne, UK General Manager of easyJet enthused: “EasyJet has seen a huge increase in flights to summer sun destinations from London Gatwick, such as Pisa, Sicily, La Rochelle and Lisbon“. This new route reinforces our position as the favourite airline for independent travellers."