What to do with real ESTATE???...the AMBIGUOUS predictions... news about real estate, Kiev, Kyiv region. Real Estate In Ukraine
What to do with real estate - building, to purchase, sell, or wait for a more opportune moment? As the influence...Investors in hotel real estate is ambiguous in its forecasts of market developmentWhat to do with real estate - building, to purchase, sell, or wait for a more opportune moment? As the impact of the liquidity crisis becomes more apparent, hotel investors in Europe, Middle East and Africa have become more cautious.Jones Lang LaSalle Hotels has conducted a survey of the opinions of hotel investors (Hotel Investor Sentiment Survey (HISS), which allows to predict market trends. The research of Jones Lang LaSalle Hotels is focused on the target audience, numbering 4,000 for the world's leading investors and/or owners of objects of hotel and resort real estate, and includes those markets where they are already investing or seeking to invest. As this study is prepared for investors, this does not include the opinions of analysts or consultants.The study analyses the decline in investors ' expectations on the hotel market in the region due to financial instability. Compared with the previous year, investors the projected operating results of the hotels seem to be more conservative in the short to medium term. Investors argue that a period of lower profitability of the hotel real estate sector, although this trend is not characteristic of the entire region.In this respect the strongest concern among investors is called the regional markets of the UK, however, investors note that even in such traditionally successful markets such as London, Madrid and Barcelona are unlikely to avoid the decline in investment activity.Nevertheless, there are positive trends associated with maintaining high investment expectations in Moscow, Istanbul, Dubai, and (unexpectedly) in major European cities like Munich, Berlin and Rome.Investors agree that the downturn in the property market will not be sharp and short. Market players predict a deterioration of operating performance in the medium term across the region, with the exception of some cities, such as Berlin and Copenhagen, where, in comparison with the study by December 2007, expected to increase the potential development of the hotel market.Mark Wynne-Smith, CEO for Europe, Middle East and Africa at Jones Lang LaSalle Hotels, said: "the Latest survey HISS shows that investors become more cautious, resulting in the share of "passive investors" (aka "hold " sentiment") increased from December 2007 to 8.5%. The share of investors-buyers" ("buy sentiment remains stable, however it is not surprising that the proportion of investors looking to sell or build, declined by 4.4% and 9%, respectively. Thus, the most common solution to investors was the acquisition of the hotel property, but because we offer the sale of property are insufficient to satisfy the growing appetite of customers, we expect that they have achieved low investment activity will remain for some time".The majority of surveyed investors from Western Europe are still wary of buying hotels in the middle East and in Central and Eastern Europe, apparently fearing the unpredictability of the market, but the British markets like Birmingham and Manchester today do not promise great prospects for development.In the current situation in the markets of Europe, Middle East and Africa requirements for the internal rate of return (IRR) and rates of return (yields) increased by 2.5% and 0.4%, respectively, which generally reflects the increasing risks in the property market. Indicators IRR and yields have increased in all markets except London, where the figure fell by 1%.M. Wynne-Smith said: "overall, our findings show significant changes in the status of the investment property market is not observed, and the highest expectations indicators IRR remain among the key cities of the region of Central and Eastern Europe: Zagreb, Moscow and Istanbul. The reason for this situation may be that these markets are still not fully understood for most investors in Western Europe. On the other hand, the lowest IRR fall on the markets of the European cities of Rome, Barcelona, Milan and Paris. The expected IRR in all major cities of Germany is about 14%, reflecting the importance of institutional capital and the growing interest in open ended investment funds. In addition, the impact of the global financial crisis in Germany is significantly less compared to the UK.