explore the power of International Property Markets...
4000+ satisďŹ ed customers have entrusted their faith in us for more than USD 500 Mn worth of Real Estate investments globally. Backed by the trust of an eclectic clientele Square Yards has become the largest player in the residential real estate advisory segment in India in a short span of 2 years.
We are an award winning global Real Estate advisory for real estate investments, catering to the reďŹ ned needs of the Intelligent Investor.With presence in 10 countries around the globe spanning 26 cities, Square Yards enjoys excellent working relationships with 500+ premier developers who offer blue chip projects globally. Squareyards features in the top 30 agencies in Singapore and Hong Kong. No.1 in India, Virtual Monopoly for NRI diaspora in GCC & UK. Our drive to be a one-stop-shop for all real estate investment needs has positioned us as a truegame changer in the Real Estate market by ushering in unparalleled transparency into this opaque industry and educating investors with trusted analysis of market trends and offering customized investment opportunities. Understanding the resurgence in the global property markets & increase in appetite amongst the investor community towards international properties, Square Yards has introduced International Property Market (IPM). As the name suggest, IPM is a specialized wing that caters to the speciďŹ c real estate investment needs of the investor community looking forward to invest in International property assets. Consisting of a team of seasoned property management advisors & consultants, IPM sources a range properties from around the world that can offer great yield without any risk involved.
ACCOLADES
ABOUT SQUARE YARDS
IPM IPM takes pride in assisting the High – Net - Worth Individuals to identify, invest and effectively manage the high yielding properties across the globe. With various kinds of property sub-classes, spread across the globe, it is challenging to identify and select the most suitable investment. Furthermore, the nature of registration & management of property varies from city to city in each country, creating an information gap and inconvenience for the prospective buyers. The specialized investment & management engine IPM bridges the gap between discerning investors & highly proďŹ table opportunities cutting across property classes & geographies. Its approach is based on offering end-user centric research work, along with hand-holding the investors through every nuances of property registration & management, thereby ensuring both – Greater Returns & Peace of Mind.
Global Real Estate Outlook. The global real estate is once again up & bullish with new investment opportunities emerging, both across new locations & asset class. With regeneration stories in London & other parts of Europe, recovery in top tier US cities & recent correction in South East Asian markets in Singapore & Malaysia- the Investors community across the globe have started looking at the global realty with new optimism. However, this new optimism, has its fair share of cautiousness & investors need to be selective when it comes to make the right decision pertaining to the location & asset structure that can ensure highest possible returns with minimal risk involved. In such circumstances IPM with its customer centric research approach, can bridge the gap with guiding & educating the discerning investors to put their monies on the right product class & geographies. The strong research team with a practical customer centric approach keeps a close eye across the global real estate markets & suggest investors the right set of products that is in sync with their individual investment requirements. The subsequent part will mention Individual Research Reports of various International Markets across the globe & capture the various underlying factors that deďŹ ne the present sentiments in these individual markets.
PORTFOLIO APPROACH As an engine to enable meaningful & proďŹ table investment, IPM strongly emphasizes on the concept of following a portfolio approach. Embracing the portfolio approach helps in channelizing the investments in different property products located across numerous geographies that helps in mitigating risk, enhancing returns along with ensuring low volatility & ination protection. Propelled by a team of proven experts of international property advisory & powered by cutting edge information on property markets across geographies & asset class, IPM's portfolio approach is one of the best & safest tools to invest in global properties.
Economy (5) Rental Income Tax (5)
Rental Yield (15)
Capital Gain Tax (10)
Exchange rates w.r.t. USD (3 years) (8)
LTV (5) Capital Appreciation (20) Average Ticket size (4)
Cost of Capital (8) Transaction Cost (5) Vacancy (10) Per Capita Income (5)
INVESTMENT ATTRACTIVENESS INDICATOR
Australian economy is being driven by high rate of immigration, stimulatory monetary policies & surge in employment. The initiatives proposed by the New Zealand government to build a stronger economy, investment in world class infrastructure & better public services are helping the nation's economy. The positive economic cycle and lower value of Australian Dollar has increased the demand for Australian real estate across all sectorsespecially from overseas investors. Australian apartment capital value growth has averaged around 7% annually since the start of 2014. In both the capital cities of Canberra and Wellington, there has been signiďŹ cant capital & rental growth in 2015. After the slowdown in China, the Chinese Investment in Australian realty has doubled.
Mumbai
06
Bangalore
12
Kuala Lumpur Singapore New York
13 06
13 20
San Francisco 14
Chicago
22
Los Angeles Toronto
11 Sydney
Brisbane
13
Melbourne Auckland
25
14 14
Vancouver
15
60,000 US Dollars Per Capita Income of Sydney
Chicago Rental Yield-6 Capital Appreciation-5 Cost of Capital-3.5
1550 Per sqft(USD) per capita income Making Singapore the most expensive reality market
14.3% Is the Capital Value movement in Sydney, second highest after Istanbul
Los Angeles Rental Yield-4.6 Capital Appreciation-14 Cost of Capital-3.5
New York Rental Yield-2.4 Capital Appreciation-5 Cost of Capital-3.5 San Francisco Rental Yield-3.16 Capital Appreciation-12 Cost of Capital-3.5
2.20 Lowest rental income tax in Singapore (I don’t know what to infer out of it)
-1% capital value movement in Dubai in past 3 years.
Toronto Rental Yield-4.9 Capital Appreciation-2 Cost of Capital-3.64
Gurgaon Rental Yield-2 Capital Appreciation-4 Cost of Capital-9.65
Vancouver Rental Yield-4 Capital Appreciation-7 Cost of Capital-4
Mumbai Rental Yield-2.5 Capital Appreciation-8 Cost of Capital-9.65 Bangalore Rental Yield-3.5 Capital Appreciation-11.4 Cost of Capital-9.65
Singapore Rental Yield-3.5 Capital Appreciation-3 Cost of Capital-1.8
Kuala Lumpur Rental Yield-4.5 Capital Appreciation-7 Cost of Capital-4.45 Sydney Rental Yield-4 Capital Appreciation-14 Cost of Capital-4
Melbourne Rental Yield-4 Capital Appreciation-5 Cost of Capital-2
The Americas consists of two of the vast continents of the globe- North & South America. While North America consists world's largest sovereign nations – USA & Canada, its Southern counterpart comprises of some of the vibrant Latin American economies such as Argentina, Brazil & Uruguay etc.
REALTY TRENDS
With a cumulative population of close to 360 million, USA & Canada boast of some the highest standards of living in the world. These economies are spurred by stable political administrations and a healthy contribution from a wide range of industry segments like agriculture, natural resources, manufacturing, trading, financial services, technology, research & much more. On similar lines, markets in South America is also witnessing vibrant economic growth that is reflected in the form of rise in stock market prices, better standards of living & surge in foreign investment.
Growth Drivers Increased consumer spending and business investments have enabled the US economy to demonstrate a period of strong recovery. The pace of job creation and wage growth are also expected to remain strong in times to come. In 2015, USA had added over 2.5 million jobs- Highest after 1999. Expansion of job markets & surge in wages in USA is going to increase the demand for quality residential units in the coming time, along with commercial, retail & industrial real estate. US realty is also witnessing a massive surge in foreign investment, with more than USD 100 billion invested over the last 12 months. Economic growth in western Canada will continue to drive signiďŹ cant opportunities in Vancouver, Calgary, Edmonton, and Saskatoon- Both in the residential & commercial sectors. Prices of properties have reduced by up to 20% in Brazil & Argentina in 2015. However, this is enticing international investors as prices are expected to appreciate in the near future.
San Francisco, USA Denver, USA Calgary, Canada Vancouver, Canada Montreal, Canada Rio De Janeiro, Brazil Buenos Aires, Argentina Santiago, Chile
Top Performing Markets
Key Growth Drivers Australian economy is being driven by high rate of immigration, stimulatory monetary policies & surge in employment. The initiatives proposed by the New Zealand government to build a stronger economy, investment in world class infrastructure & better public services are helping the nation's economy. The positive economic cycle and lower value of Australian Dollar has increased the demand for Australian real estate across all sectors- especially from overseas investors. Australian apartment capital value growth has averaged around 7% annually since the start of 2014. In both the capital cities of Canberra and Wellington, there has been signiďŹ cant capital & rental growth in 2015. After the slowdown in China, the Chinese Investment in Australian realty has doubled.
Sydney, Australia Melbourne, Australia Brisbane, Australia Perth, Australia Adelaide, Australia Auckland, New Zealand Wellington, New Zealand Christchurch, New Zealand Hamilton, New Zealand
Top Performing Markets
The two nations of Australia and New Zealand on opposite sides of the Tasman Sea are referred to as Australasia. Although the smallest continent in the world, it contributes a signiďŹ cant USD 1.642 trillion to the global economy. Major components of the economy include, Manufacturing, Services, Real Estate Services, Transportation, Technology and Research apart from a host of other sectors.
REALTY TRENDS
Africa is where the growth opportunities for the future exists. With IMF's forecasts suggesting that 13 of the world's 20 fastest growing economies over the next ďŹ ve years will be from Africa- it won't be an understatement to say that future belongs to Africa. The cumulative GDP of Africa is around USD 4.3 trillion with an average growth rate of nearly 4% in 2015, substantially higher that the global average. It is spurred by a healthy contribution from a wide range of industry segments like Manufacturing, Mining, Agriculture, Communication, Tourism, Wholesale & Retail Trade and Finance & Business Services. Africa is expected to ride the growth wave on the back of the 3 countries - South Africa, Nigeria, and Kenya.
REALITY TRENDS
Growth Drivers l African countries have notably improved their macroeconomic
performance in recent years, as reflected in higher average growth, generally moderate and stable inflation, and the accumulation of ample international reserves. l The influence of government policy and legislation on the decision to
invest will increase, while local partnerships will become increasingly important. l Continued advancement within pension funds, stock exchanges and
banking regimes will facilitate investment, and an increased range of investors will drive demand for real estate investment opportunities in Africa. l As a result of rapid urbanisation in response to population growth and
sustained economic expansion, the realty sector of Africa is booming. Industry reports indicate, Apartments constitute 40.1% of the market, Town Houses 26.5% while Standalone houses are at renaming 33.4% of the market.
Lagos, Nigeria Cape Town, South Africa
l The prime residential market has seen increased interest from foreign
Johannesburg, South Africa Nairobi, Kenya Cairo, Egypt Gauteng, South Africa Accra, Ghana Kano, Nigeria Abuja, Nigeria Luanda, Angola
Top Performing Markets
buyers as the cost of living is extremely low and African cities are centres for tourist attraction. Currently, buyers seem to prefer spending on luxury 3 to 4 bedroom apartments l The residential and commercial sectors offer maximum rate of returns
equivalent to 12.2% and 13.5% respectively.
Despite being the second smallest continent in the world by area, Europe contributes roughly 30% to the world economy. Home to almost 50 countries, it includes some of the most powerful and afuent nations of the world such as UK, France, Germany, Spain, Netherlands etc. After the recent global economic crisis, European nations are undergoing economic recovery with surge in activities in Consumer Goods, Automobile, Engineering, Manufacturing Software & Computer Services along with various other sectors. The Gross Domestic Product (GDP) of the European Union has been worth USD 18.46 trillion.
REALITY TRENDS
London, Great Britain Paris, France Berlin, Germany Milan, Italy Barcelona, Spain Dublin, Ireland Rome, Italy Amsterdam, Netherland Budapest, Hungary Munich, Germany
Top Performing Markets
Growth Drivers The 'Quantitative Easing' policy of the European Central Bank has helped driving down the interest rate while lower oil prices & weaker Euro have been supporting the manufacturing & export sectors respectively. The combined effect of lower interest rates and a more favourable economic climate is causing housing prices to rise in most of the European countries in 2015. Driven by strong investment demand, surging economy & tight supply the realty markets of the United Kingdom such as London, Leeds & Manchester are focal points of European Real estate. There has been a substantial rise in investment activity in the Central European markets of Poland, Czech Republic, Slovakia, Hungary and Romania. In Southern Europe Spain is witnessing massive interest from foreign buyers due to expansion in mortgage markets, favourable pricing & anticipated surge in price.
INDIA - a country ďŹ lled with colour, culture & aroma is amongst the most vibrant & dynamic economies of the present era. With a GDP of over USD 2 rd Trillion, it is presently the 3 largest economy in the world. Indian economy which sometimes draws parallel with an elephant due to its resilience & size has remained unscathed from the global economic meltdown & showcased spectacular GDP growth in the recent times. The country's economy is propelled by a healthy contribution from a wide range of industries such as Manufacturing, Services, IT, Education, Tourism, Steel, Pharmaceuticals, Health Care & much more.
REALITY TRENDS
Growth Drivers The 'Quantitative Easing' policy of the European Central Bank has helped driving down the interest rate while lower oil prices & weaker Euro have been supporting the manufacturing & export sectors respectively. The combined effect of lower interest rates and a more favourable economic climate is causing housing prices to rise in most of the European countries in 2015.
Bangalore Pune Chennai Mumbai Gurgaon Noida Greater Noida Hyderabad Ahmedabad Thane Kolkata
Top Performing Markets
Driven by strong investment demand, surging economy & tight supply the realty markets of the United Kingdom such as London, Leeds & Manchester are focal points of European Real estate. There has been a substantial rise in investment activity in the Central European markets of Poland, Czech Republic, Slovakia, Hungary and Romania. In Southern Europe Spain is witnessing massive interest from foreign buyers due to expansion in mortgage markets, favourable pricing & anticipated surge in price.
The Economy of the Middle East is very diverse consisting of hydrocarbon exporting Sheikhdoms, government led socialist countries & technology enabled free market economies. Collectively, with a population of 197.24 million and GDP of USD 2.34 trillion, Middle East's economic pillars consists of hydrocarbon, tourism, aviation, real estate & retail. Located on the crossroads of East & West, Middle East is strategically positioned to the developing nations of Europe as well as emerging economies of Asia & Africa.
REALITY TRENDS
Dubai, UAE Doha, Qatar Abu Dhabi, UAE Sharjah, UAE Erbil, Iraq 路Beirut, Lebanon
Riyadh, Saudi Arabia 路Jeddah, Saudi Arabia
Manama, Bahrain Ajman, UAE
Top Performing Markets
Trends & Growth Drivers Ÿ Continued infrastructure spending, rise in tourist inflow &
the government's diversification drives are likely to support future growth. Ÿ Young demographic will add momentum to growth
numbers. Ÿ UAE & other GCC nation is expanding their non-oil
economy thereby reducing the reliance on hydrocarbon exports. Ÿ Government spending, economic diversification &
surging tourist number will be driving real estate & construction sector. Ÿ The World Expo 2020 in Dubai & Qatar World Cup in
2022 will add thousands of new jobs & millions of international tourists, thereby further stimulating demand for residential & commercial real estate. Ÿ Total value & volume of real estate transactions in Dubai
has increased by 8 & 18% respectively in 2015 over previous years. Ÿ Total real estate transaction in Qatar has been estimated
at USD 15.4 billion in 2015- 5.6% rise over 2014.
Southeast Asia is the region located on the East of India, South of China & North of Australia. It consists of eleven countries including some of the vibrant economies such as Singapore, Thailand, Malaysia & Vietnam (Culturally China & India are also believed to be part of South East Asia). The cumulative total GDP of the region is USD 14.14 trillion with a population of 1.96 billion. The region consists of some of the global & world class cities such as Singapore, Hong Kong, Shanghai & Bangkok. A distinct feature of Southeast Asia is its cultural diversity. Of the six thousand languages spoken in the world today, an estimated thousand are found in Southeast Asia. These economies are spurred by the healthy contribution of various sectors such as Manufacturing, Construction, Healthcare, Automobile, Services, Transport and Trade. The region comprises of two of the largest re-export centres in the world, Singapore & Hong Kong.
Singapore Kuala Lumpur, Malaysia Jakarta, Indonesia Beijing, China Shanghai, China Hong Kong, China Seoul, South Korea Hanoi, Vietnam Manila, Philippines Bangkok, Thailand
Top Performing Markets
Trends & Growth Drivers Ÿ The real estate industry in Singapore is lukewarm at the
moment but high volume of transaction can be expected in the high end of the market with global HNIs investing in luxury real estate. Ÿ Though Chinese economy has shown signs of slowdown,
major commercial hubs such as Shanghai are demonstrating healthy demand with property prices expected to climb up in the coming time. Ÿ Vietnam is one of the fastest growing markets in the region
driven by internal demand along with 30,000 foreign workers stationed in the country & 4.2 million With the governments' ongoing emphasis on the REITs, international investors can enter into the Indonesian real estate & gain better returns. Ÿ Malaysia is another good bet for the property markets with
prices being appreciated by 77% since 2004. Ÿ Real estate sentiments are subdued in Bangkok, but
condominium market appears to be strong with double digit growth in the recent past.
SERVICES
PROPERTY MANAGEMENT RESEARCH The nature of the present global property market requires unparalleled research expertise & market knowledge that can guide investors towards most suitable investment opportunity. Research is the core Nucleus of the IPM services. The IPM research team which is backed with a team of over 50 research professionals offers comprehensive & unbiased market-analysis, due-diligence, indices & much more. Capturing every significant aspect of the realty eco-system such as market trends, developers, location, government & legal framework, banking & financing institutions; our Research can ensure that the investor will put their monies on the safest & soundest property option available.
CLIENT SERVICING The role of IPM does not stop at identifying right properties. Once the property/ portfolio has/have been identified, the client servicing team handhold & guide investors through the individual processes of transaction. IPM offers last leg service involving every possible step in property acquisition cycle such as, payment, registration, monitoring of development & fulfilling of various legal obligations & much more. Running the show on behalf of the investors, the client servicing team offers a great peace of mind & comfort to investors & prevent them from being involved in time consuming activities.
One of the very crucial dimensions of owning an international property involves managing the property. There are various dimensions such as pricing, tenanting, maintenance & adherence to legal obligations, which call for timely attention. As an entity that philosophizes on the concept of across the spectrum service to ensure highest level of comfort for investors, IPM with a team of well experienced international property management veterans can very effectively take care of the same.
FINANCING ADVISORY In the present time, a successful real estate investment corners around an equally effective financing strategy. A prudent financing cannot only help in meeting investment needs but also results in higher return through leveraging. As an entity focused on the concept of maximum capital appreciation & returns, IPM focuses enabling the client to procure the best & safest financing option available in the location of investment.
INVESTMENT CONSULTANCY IPM leverages the service of a team of highly qualified property advisors with in-depth knowledge of the international markets they operate into. With the objective of nurturing long term relationship with every client, IPM advisors are proficient in offering tailor made advice that matches with the individual investor's objective & appetite.