Global Property Scene Edition 25 by Knight Knox

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PROPERTY NO. SCENE ISSUE 025

The Investment Publication | www.globalpropertyscene.com

This issue: The resurgence of the high street | Trade war and how it's affecting the global economy Co-living projects, are they the future? | Should I move to Montevideo?

MARKET IN FOCUS: PORTUGAL

PAKISTAN, A GROWING ECONOMIC POWER

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INSIDE / ISSUE 025 FEATURES

23 The story of micro apartments

51 Sound of the underground

64 The growing trend of co-living

77 The resurgence of the high street

Micro-apartments generally refer to a property with a total floor space of under 37sqm, for reference, that’s just larger than two car parking spaces. The popularity of these tiny homes in urban areas is growing as space becomes a premium that most can no longer afford. But as numerous micro-apartment developments spring up, some worry they could be the cause of a bigger issue.

If you’ve just bought yourself a property or, indeed, a plot of land, I bet you’ve never wondered how far down and up your land actually covers have you? Say that religion, or mainstream religion, is right and there exists a heaven and hell; if you’ve bought a piece of land does your right over that land stretch all the way up to eternal rest?

As a young professional pressing on with my career in a growing city in Western Europe; after a long day at the office I commute home to my three-bedroom property which I share with three others. We split the rent, split the living costs and even communally shop to save money. It makes us more social, reduces our carbon footprint and stops us getting lonely, to name a few benefits.

The high street is certainly changing. Household names like Woolworths, BHS, Toys “R” Us and Blockbuster have completely disappeared from our streets, while big brand names like New Look, House of Fraser and Homebase are all reportedly struggling. Some experts have even gone as far as to predict that 100,000 high street shops will become vacant in the UK within the next decade.

REGULAR ARTICLES

LISTINGS

11 Market in Focus: Portugal

94 UK Residential and Student Buy-to-Let

Portugal can trace its history back thousands of years, however what we may now consider modern day Portugal started it’s life as a county of the Kingdom of Leon.

Home of the Industrial Revolution, the UK has long been established as a major commercial centre, benefiting from strong trade links with companies on every continent. With a long history in international cooperation, the country is an attractive place for investors both foreign and domestic.

INVESTING IN PAKISTAN | 42

89 Should I move to Montevideo? Montevideo, a beautifully paced place where the fast-moving globalised world is far, far away.

Knight Knox has sold thousands of properties. We have experts on the ground that can help to find your perfect property. Why purchase with anybody else?

SEP/OCT 2018

GLOBAL

PROPERTY NO. SCENE ISSUE 025

EDITOR’S NOTE

The Investment Publication | www.globalpropertyscene.com

This issue: The resurgence of the high street | Trade war and how it's affecting the global economy Co-living projects, are they the future? | Should I move to Montevideo?

We have had a summer to remember here in the UK, as long-term sun and high temperatures have helped us make the most of our gardens and parks. At the same time temperatures in Downing Street have been running high, as the looming date for the UK’s exit from the EU fast approaches. Despite the Bank of England giving some assurances that in a worst case we have stability, some remain tentative on the matter. Only a few weeks ago we acknowledged the tenth anniversary of the global economic downturn, and one would hope current uncertainty will not persist.

MARKET IN FOCUS: PORTUGAL

PAKISTAN, A GROWING ECONOMIC POWER

Available space is something that does deliver a persistent issue, as the global population increasingly looks to live in city centre property, creating an unaffordable bubble which seems impossible to sustain. Rapid urbanisation has resulted in more than half of the world’s population living in cities for the first time ever. Given this mass migration, we take a look at how micro-apartments are becoming a more common option, and what effect this form of living can have on the health of many.

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Pakistan is a county with much experience in mass migration. The country's independence created the world’s largest ever migration as 6.5 million Muslims moved from India to West Pakistan, and 4.7 million Hindus and Sikhs moved from West Pakistan to India. Its complex history has caused great loss, but its economic future looks bright. In this edition we look at how now could be the right time to invest in South Asia’s hottest prospect.

CONTACT +44 (0)161 772 1394 info@globalpropertyscene.com www.globalpropertyscene.com

CREDITS Individual Samantha Edwards, Alex Timperley, Will Leyland, Emma Martin, Sam Taylor, Alistair McGovern, Michael Vickers, Mark Williams, Richard Ellis, John Power, Martin Copeland

If you’ve just bought yourself a property or, indeed, a plot of land, I bet you’ve never wondered how far down or up your ownership actually covers? As cities like London introduce new underground networks and tunnels to help ease congestion, we look at how ownership of the air or underground might not extend as far as you think.

Commercial Knight Knox, X1, Fortis Developments, Forshaw Land & Property Group, INTUS Lettings, Gold Key Media, Shutterstock, Unsplash, Property Investor, Qualis Developments, yieldit, Top Marques Monaco, Spectrum Digital, COS Printers, abc, BREAD studio

And finally, we take a look at the resurgence of the high street, which after a long period of closures and job loses, could now be witnessing a whole host of new and exciting outlets. That’s it for now, we hope you enjoy edition 25.

Editor-in-chief Michael Smith

La Sagrada Familia

BIOMIMETIC ARCHITECTURE ... ALEX TIMPERLEY

“What if every single act of design and construction made the world a better place?”

his is the question posed by the International Living Future Institute which inspires people from around the world to design buildings that give more to the world than they take from it. Conventional modern buildings stand alone in the world. They tend to be linear, wasteful and heavily dependent on fossil fuels for both their construction and workings. They are mostly designed and developed to fulfil a singular function and achieve one goal. By existing apart from everything else, and being unable to act as part of a whole, the modern building can be a cold, solitary thing, a manifestation of how far we have moved away from nature and our place in the world. Natural influences Is there a solution to this? For many years architects and designers have tried to restore the broken links to the natural world through zoomorphism – using the shapes and forms of animals. In this way, architects use the natural world as inspiration and blueprint and as a response to the often sterile nature of modernism.

“What if every intervention resulted in greater biodiversity; increased soil health; additional outlets for beauty and personal expression; a deeper understanding of climate, culture and place; a realignment of our food and transportations systems; and a more profound sense of what it means to be a citizen of a planet where resources and opportunities are provided fairly and equitably?” - International Living Future Institute

Santiago Calatrava is a noted proponent of using natural forms in his work. A great example of this is the Milwaukee Art Museum which has a genuinely incredible 90 tonne sunscreen roof – the Burke Brise Soleil – which resembles the wings of a great white bird, opening and closing in time with the sun to provide shade in a fashion which manages to be both practically functional and poetically beautiful. Another good example is 30 St Mary Axe in London – a

building better known by its vegetal nickname ‘the Gherkin’. This 180 metre tall tower is supported by an exoskeleton which allows air to flow through the building and naturally ventilate it. This system is based on the structure of the siliceous glass sponges which feed by directing sea water to flow through their bodies in specific patterns. One step beyond However, if the new mission for architecture is to reconnect human endeavour with the natural world then simply making buildings look like birds, leaves or sea creatures isn’t enough. We need to be more ambitious. One of the most intriguing new ideas which aims to address this issue is the concept of biomimetic architecture, a school of thought that goes beyond basic imitation and embraces a more thorough integration between man and nature. The world is inspirational, complex and captivating, and by expanding the horizons of how we build we can create a sustainable new architecture for the future. These new ideas can take diverse forms. For example, we can look at the contrast in scale between the BIQ Building in Hamburg, Germany and the Eastgate Centre in Harare, Zimbabwe. The BIQ Building – better known as ‘algae house’ – is a fine example of a bioreactor façade. One side of the building’s mostly-transparent surface is glass which is filled with water and algae. The algae grow in the summer and die back in the winter, thereby providing residents with more shade in the summer and not impeding the sunlight in the winter. The excess algae is harvested and turned into biofuel to provide residents with renewable energy. The Eastgate Centre in Harare is on a different order of magnitude altogether. Inspired by termite nests, this office complex is essentially a series of ventilated mounds permeated with holes which create a passive ventilation system. The building’s ‘skin’ takes heat out of the daytime air and stores it for release in the cooler evenings, heavily reducing the energy load of the building by mimicking natural processes. In this way the Eastgate Centre uses less than 10% of the energy normally required to cool a building of this size in the Southern African climate. It has been called the best example of biomimetic architecture in the world. Biomimetic architecture aims to make buildings more efficient by mimicking the biological patterns and the zero-waste closed-loop systems of nature. By implementing these principles we can build things which go beyond the basic idea of doing no harm; instead we can construct regenerative and restorative architecture which creates resilient communities and secures our place on earth in the long term. This is the true meaning of biomimetic architecture – design inspired by biology and ecology.

Built with your future in mind Qualis is proud to deliver sustainable developments which are built with your future in mind. We believe that all property developers have the responsibility to build quality homes that in turn can help to grow thriving communities. For more information and details about products contact: Tel: +44 (0)161 772 1394 Web: www.qualisdevelopments.com

MARKET IN FOCUS PORTUGAL Words : Will Leyland | View : Perart

t’s easy to forget sometimes, however patronising it may sound, that Portugal once ruled the world. I mean this in the sense that, for a country with such rich history and culture, they’ve played a somewhat bit-part in the teachings of European history when considered in comparison to her neighbour Spain, or our own Great Britain.

the Spanish and British in terms of influence, but in terms of wealth and size was not far off.

Whatever your views on empire and colonialism, it can’t be denied that Portugal left her mark on a sizeable section of the globe. Either through language, institutions or culture, many modern societies bear the unmistakable influence of the Portuguese.

In modern state, Portugal remains influential in Europe culturally and economically as well as in sport and politics. It’s a wealthy nation that has received much credit for many of its policies around drug treatment, becoming the first European nation to treat drug addiction as a health issue rather than a crime, and has seen relatively good success.

Portuguese is the world’s 6th most popular language ranked by native speakers, with 205 million people across the globe speaking the language, including Brazil.

Portugal can trace its history back thousands of years, however what we may now consider modern day Portugal started it’s life as a county of the Kingdom of Leon. Originally known as Portus Cale, the region grew in wealth and influence throughout the years and, eventually, was declared an independent kingdom itself by Afonso, self declared Prince of Portugal.

Before the introduction of the Euro in 2002, Portugal had one of the healthier economies of Europe, with relatively high average incomes and living standards. The main measurement of economic performance, Gross Domestic Product (GDP), could be seen growing by anywhere between 2% and 4.5% between 1995 and 2001, but once the Euro had been introduced the Portuguese economy saw extremely tumultuous times, especially following the world economic crisis of 2008 and the European Sovereign Debt Crisis. Between the years of 2002

Moving forward into the early 15th century, Portugal began first endeavours into empire building with Ceuta in North Africa being its first conquest, seeking to take control of the wealthy spice trade route based there. Throughout that century and leading into the following, Portugal built an empire not necessarily rivalling

and 2013, the country’s GDP fell 7.9% from peak to trough. In context, the US economy contracted by 12% at the height of the Great Depression. In 2011, Portugal accepted a bailout from the European Central Bank (ECB) of €78bn, one of the biggest ever recorded. The terms of the bailout were similar to those seen across other countries in need of such fiscal rescue like Spain, Greece and Italy. They were expected to cut expenditure sharply through austerity and cuts in public services. They duly obliged but economic recovery was slow. The economy between the bailout and the election of the new socialist government in 2015 hovered frustratingly around 1%, barely recovering enough to take unemployment below 18%, with youth unemployment sitting at nearly 40%, one of the worst rates in the developed world. Somewhat interestingly, since the election of a new government of socialist ideals, Portugal refused the last round of bailout loans and instead rejected austerity, investing heavily into its own economy and cutting taxes for small business owners. Growth this year is predicted to exceed 2.5% for the first time in over a decade and unemployment is under 10% for the first time in nearly as many years. That’s not to say there aren’t vulnerabilities about this economy, with government debt expected to reach nearly 130% of GDP this year with private debt growing. That being said, which economy doesn’t have it’s vulnerabilities? This year has seen CNBC, The New York Times and many other mainstream news outlets run detailed articles and analysis asking why this economy has seen such a stunning revival against its struggling Spanish, Greek and Italian counterparts. The answer appears to be the same regardless of the source; austerity was crushing them. Tourism has played a huge part in Portugal’s economic recovery, as well as lower taxes for business owners and investment, but one of the big players has been a resurgent property market. Major cities such as Lisbon and Porto offer some of the most alluring and breathtaking scenery anywhere in Western Europe, with the coast of Portugal looking out across the Atlantic and boasting almost exclusively lovely weather all year round. As such, there are two main types of property investment across Portugal: holiday home investment and domestic property investment. Both are robust, with the Royal Institution of Chartered Surveyors releasing an article titled as such in September of this year, depicting a housing market going from strength to strength with investment increasing and yields that are strengthening. According to Global Property Guide, which tracks the average prices of property per square metre across the west, “Portugal's housing prices continue to rise strongly, fuelled by surging demand as well as improved economic conditions. Property prices in Portugal rose by 4.84% (3.26% in real terms) in November 2017 from a year earlier, to an average price of €1,144 (US$1,373) per square metre (sq. m.)”. Given in context of stuttering price growth and demand in other similar countries, it seems to be the case that a strongly growing economy and living conditions in Portugal is translating into booming tourism, wage growth and, by osmosis, a resurgent and aggressively growing property market. Ricardo Guimarães, Director of Ci, when discussing the performance of the market, said: “The latest results from the Confidencial Imobiliário House Price Index (HPI) show an annual increase of 14.2% in March 2018. This is the strongest growth seen over the last 26 years, coming as a result of several forces identified by the Portuguese Housing Market Survey, especially the demand pressure.” There are those who would argue, of course, that ECB action and intervention into Portugal has been positive in the long term, and

25 de Abril Bridge, Lisbon

that argument carries some weight as the ECB continue to buy Portuguese sovereign bonds. This unquestionably has allowed the left leaning government to borrow the necessary funds to invest in exactly the kinds of places where the economy has been stimulated. PricewaterhouseCoopers in fact published a report recently, entitled Europe’s best kept secret, in which it described Portugal as Europe’s best destination for investors, looking towards the favourable tax reforms enacted by the recent government as well as a welcoming government and people. According to Forbes, new residents from the EU/EEA/Switzerland or holders of Portuguese residence permits are eligible for the Non-Habitual Residents regime (NHR) for the first 10 years they are in Portugal. After that, they are subject to Portuguese rates of taxes which, at a top tiered rate of 48%, tend to be lower than elsewhere in Europe.

“Portugal's housing prices continue to rise strongly, fuelled by surging demand as well as improved economic conditions.”

That, they say, has meant that international investors have flooded in from all over the world, most notably Chinese investment into property and business. The Forbes article goes into more detail on the matter, pointing out that the nationalities making the most of the rich climate are the French, much to the irritation of their government, as well as further afield investors from Brazil, Mexico and especially retired oil executives from the Middle East. It’s an interesting juxtaposition in essence when a left wing government celebrated by socialist commentators creates wealth not just by investing into industries and dropping austerity but also by opening its doors to the world’s wealthy. Perhaps it’s true that capitalism can serve to enhance living standards if adhered to through a socialist lense. There are downsides to this, however, with many reporting that, as in Greece, the wealthy are buying up prime property in tourist hotspots and then simply renting them out through Airbnb, making them ghost towns out of season. So what to make of such a situation? A country with a rich and diverse heritage, as well as a dark history of colonialism, experiencing the crushing lows of the financial crash only to buck the trend of the somewhat harshly nicknamed PIGS of the recession (Portugal, Italy, Greece, Spain), to ditch austerity and become the success story of Europe in many ways. In electing a left wing government they appear to have matched socially responsible government policy (think drug reforms and generous welfare) with a decidedly free market approach to property and investment. As with anything, it could be argued, a mix of progressive and conservative ideas can and does work when looking to stimulate a badly stagnant economy. Portugal experienced some of the worst economic hits of the 21st century and yet stands on the brink of redemption. It’s perhaps useful to remember that it could yet all come to nothing, after all debt still teeters dangerously out of the reach of total GDP, whilst low tax high spend has seen its way to destroying economies much stronger than that of Portugal. What can be taken away, and exported, is the idea that cultivating fertile ground for responsible foreign investment grows confidence in an economy and often the seeds for a rich harvest are sewn within a robust and high yielding property market. Perhaps we’ll see this model copied many times over in the years to come.

Ribeira Square is included in the historical centre of Porto, and is designated a World Heritage site by UNESCO.

Ribeira Square, Porto

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August 7th Germany turning against foreign investment? The German government is making moves to increase its power over large foreign investments into the country. Big enough deals are subject to a final ministerial veto which can be exercised to halt takeovers which are considered to be undesirable for the larger German economy. Now the threshold at which this veto kicks in is set to be lowered significantly. Berlin can currently veto deals in which at least 25% of a German company is being purchased by foreign entities from outside the EU, and it is seeking to lower this threshold to 15% in the face of an increasingly aggressive Chinese acquisition strategy. Peter Altmaier, the minister for economic affairs and energy, says that the policy will allow the German government to “check more acquisitions in sensitive sectors of the economy”. It is thought that the measures are being put in place specifically to protect Germany’s defence, technology and critical infrastructure sectors. Germany’s turn towards a more protectionist economic strategy concerning money from outside the EU is perhaps coming at the right time. China’s trillion dollar Belt and Road project aims to do nothing less than reshape half the world and push China into becoming the hegemonic global power. This network of roads and ports reaches as far as Duisberg, an industrial city in the heart of Germany’s famous Ruhr Valley. It offers a real-time exhibition of what Chinese involvement in German industry may look like in the future. Regarded as the world’s largest inland port, Duisberg sees 30 Chinese trains a week which ferry cheap consumer items from the Far East into the heart of Europe’s powerhouse economy. In return the trains are packed full of premium European goods such as Scottish whiskey and German cars for the domestic Chinese market. The Belt and Road project is turning Duisberg into Europe’s central logistics hub, and about 80% of Chinese trains into Europe now make it their first stop. The Mayor of Duisberg, Sören Link, has called it “Germany’s China city”. Whilst Duisberg is only one case, it is understandable that German lawmakers are beginning to worry a little. The country has achieved its status as an economic giant through a strong inward investment strategy which has strengthened its major industries into world leaders during turbulent times. By taking steps to resist foreign investment in this manner, Germany is acting to protect its hard work in the past and its stability in the future. Kuka, a leading German robotics manufacturer, was bought for €4.5bn in 2016 by Chinese appliance maker Midea, and now China has refocussed on Made in China 2025 – its policy to transform itself from a low-cost manufacturer into a global high tech powerhouse by 2025. With that in mind, aggressive expansion into foreign high tech industries can start to look a lot more ominous. By moving early to protect its industries, Germany hopes to maintain stability and preserve its economic power far into the future. Time will tell if this gentle new form of protectionism will be beneficial in the long term.

August 13th Carrots and concrete When you think of root vegetables the first thing that comes to mind probably isnâ&#x20AC;&#x2122;t strength, even after a cursory battle trying to chop a sweet potato. However new research being carried out by a team at Lancaster University has found that carrots and other root vegetables actually hold "nano platelets" in their fibres which, the team say, can significantly improve the strength of concrete. As well as strengthening concrete in a cost effective way, using vegetables like carrots and beets in cement mixtures is far more eco-friendly and could lead to a reduction in nasty carbon emissions released in cement production. Research has shown that the current cement manufacturing process is accountable for 8% of total CO2 emissions globally. When we couple this with the growing demand for concrete in order to keep up with building demand, a worrying picture emerges should we not find a more green alternative like that of root vegetable nanoparticles. Interestingly the initial research has shown that the root vegetable nano platelets are actually far more efficient

to currently used additives including graphene and carbon nanotubes. The team also reported that they used 40kg less Portland cement per cubic metre of concrete when using the root vegetable additives. With this in mind it is hoped that using additives from carrots and sugar beet would reduce the overall amount of concrete used in the construction industry. Lead researcher of the project and engineering professor Mohamed Saafi explains: "These novel cement nanocomposites are made by combining ordinary Portland cement with nano platelets extracted from waste root vegetables taken from the food industry," He added, "The composites are not only superior to current cement products in terms of mechanical and microstructure properties but also use smaller amounts of cement. This significantly reduces both the energy consumption and CO2 emissions associated with cement manufacturing." To support further research the European Union's Horizon 2020 programme has pledged ÂŁ195,000 in funding for the team at Lancaster University.

August 20th The wine world under threat? Vineyards are fairly susceptible to diseases and pests. The majority are monocultural – planted with only one crop – meaning that when a problem appears it tends to be a big one. Farming a field which has been home to only one crop for centuries goes against the natural order of life which creates rich tapestries of floral variety. Without this crop variation, vineyards are susceptible to any sort of change at all. The 19th century saw no less than three devastating events for the vineyards of the world. Downy and powdery mildew, two fungal diseases, spread in succession and were later joined by phylloxera – a vine insect pest that was the worst of the lot. As a consequence most vines around the world are a spliced version of two separate species designed to be resistant to phylloxera. Whilst this has worked as a short term fix, the problem with combatting diseases on an ad hoc basis is that it does nothing to solve the underlying issue that vines are still grown in a monoculture. Successfully solving one issue doesn’t really do much more than start the countdown for the next one. And now the wine world may well be staring down the barrel of the next major problem: grapevine trunk disease (GTD). Described as “insidious” and “cancer-like”, GTD is actually comprised of many different fungal pathogens under one umbrella which are a mixture of old and new. At one end you have esca which was known to the Romans and called “the heart attack of the vines” by the French; at the other you have diseases which can’t be diagnosed without cutting into the wood, an act which kills the vine. Whilst not as dramatic as phylloxera, GTD is spreading rapidly and has the International Organisation of Vine and Wine worried. It estimates that 20% of the world’s vineyards are now affected and that there will need to be a vast programme of replanting if the wine trade is to survive. Given that replanting generally means five years of lost production and colossal expense it is probably a good idea to grasp the nettle and get on with it if the job needs doing. It is being described as the best solution, but it appears the cost and hassle is causing many to bury their heads in the sand at the present time. The consequences for wine drinkers are the usual ones: prices will go up as wine becomes scarcer and the quality of the drink will decline as fewer vines survive to reach maturity. Some varieties are more susceptible than others, so if you enjoy sauvignon, syrah, grenache or chenin blanc then you perhaps need to consider embracing new varieties in the future.

August 29th Toyota bets big on Uber Uber has had a pretty bad year. The company’s reputation has been rocked by everything from sexual harassment lawsuits to claims that it stole technology from Google to its self-driving car being involved in a fatal collision. In addition, the company posted losses of US$4.5bn in 2017. All in all, a stressful time for the people in charge; luckily for them Toyota has arrived on the scene with some good news. A US$500m investment from the Japanese carmaker into Uber’s self-driving car programme will deepen ties between the two companies and allow them to catch up with rivals in the emerging market. The new investment values Uber at more than US$70bn and aims to use technology from both companies and deploy purpose-built Toyota vehicles across Uber’s ride sharing network by 2021. This is a big ask, but both sides of the deal are feeling optimistic. The executive vice president of Toyota, Shigeki Tomoyama, said: “this agreement and investment marks an important milestone in our transformation to a mobility company as we help provide a path for safe and secure expansion of mobility services like ride-sharing that includes Toyota vehicles and technologies.” Following the aforementioned fatal crash involving a self-driving Uber vehicle, the company withdrew all its autonomous cars from the road, fired hundreds of test drivers and closed its self-driving test hub in Arizona, USA. The deal with Toyota is Uber’s first major move back into this market it temporarily abandoned and will be vital for its future. Autonomous vehicles represent an existential threat to Uber. The company currently thrives by offering artificially cheap prices to aggressively undercut traditional taxi firms in an attempt to drive them out of business. Then, when Uber is the only major player in the field, it hopes to implement a full self-driving fleet and remove the need for drivers completely, thereby cutting costs to the absolute minimum they can possibly be, in a field in which it no longer has any competitors.

September 10th Nike offer more than marketing You will have seen Nike’s latest advertising campaign by now featuring Colin Kaepernick, the American football quarterback who attracted controversy for kneeling during the national anthem as a protest against police brutality and continuing discrimination against African Americans. This did not go down well with everyone, including NFL owners who have all but ended Kaepernick’s career in retaliation by refusing to employ him. Following Kaepernick’s Nike campaign the uproar grew in volume. A few twitter oddballs burning their Nike clothing in protest at a man they saw to be disrespecting America were allowed to take over the narrative by dint of being featured on all major news programmes. The number of people burning trainers, cutting the Nike logo out of their shorts and generally being strange was small, but the coverage they got led to the impression that Nike would lose out from this campaign. It turns out that the breathless news coverage of noisy right wing voices as if they represented a large number of people – as opposed to a small number of people adept at using social media – turned out to be misleading. Nike is absolutely on course to win this battle and there is nothing that the people burning merchandise or irritated NFL team owners can do about it. The campaign itself is a brave and principled one. By proclaiming “Believe in something. Even if it means sacrificing everything,” Nike has put itself directly on the side of the Black Lives Matter movement, the anti-racism movement and the anti-police brutality movement. Given that the forces arrayed against this include the majority of police, the aforementioned NFL team owners, the Republican political party and their donors, and President Trump, this is a bold move which Nike should be rightly proud of.

Conversely, if Uber does not manage to be at the forefront of this market then someone else will get there first and almost certainly drive them out of business for good. The stakes are high and Uber is playing the game in just about the most ruthless way possible.

However it is worth noting that Nike would not have entered this battle without having done the maths. The company would not have started a fight it did not know it would win. Please note this is not a bad thing. Nike could easily have chosen to not do this, and even when you are sure of victory it takes courage to enter the battle on the side of the oppressed.

Toyota betting big on Uber therefore becomes something much more interesting than a normal investment and the progress of this deal will be one to keep an eye on in the future.

The first aspect to consider is that losing the business of the NFL and American football fans is not the financial deathblow it once was. The sport’s audience is declining year on year. Since 2016

fewer people from all demographics have been tuning into games, as per a report from MoffetNathanson. If it was one group of people it would not be a worry, but the fact it is all groups turning off the sport has prompted analysts to warn television networks that this trend will only get worse for them. The second aspect is that Nike’s target audience and biggest customers are most definitely not the sort of white conservative men who are busy burning their trainers on twitter – as an aside, burning something you already bought is not the same as boycotting a company, but that is a different story. Instead, Nike’s main market focus is by all accounts women and young people – specifically young black people. For those unfamiliar with American politics these are the exact two demographics most likely to be turned off by the sight of white male outrage and most likely to embrace companies or brands which explicitly kick back against it. So this was a calculated gamble from Nike, but a gamble nonetheless. Given that the company’s latest fiscal report showed annual revenues had increased 6% up to a total of US$36.4bn this was a fight that the company did not need to wade into, but it did. It is a slick marketing move that holds a lot of lessons for other companies, but we should also not lose sight of the fact that this is that rarest of things – a gigantic international company putting something other than maximising profits at the centre of its global strategy. This is not the first time Nike has done this; its Just Do It campaign now has a 30 year history of addressing social issues. The very first campaign in 1988 addressed ageism and the second a year later advocated for the disabled. One campaign in the 1990s starred openly gay, HIV-positive runner Ric Munoz at a time when this was seen as unacceptable on television, and another called If You Let Me Play was arguably the first campaign to argue for sport as a way to empower women. It is not a stretch to say that Nike is the most progressive sportswear company in the world and that these advertising campaigns have helped to put cracks in walls which continue to hold many people back. Good business? Undoubtedly. But also a lot more than that. The rage of a small number of white men on the internet shouldn’t overshadow that, and it won’t stop the all-conquering Nike.

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MICRO-APARTMENTS, A SOULTION FOR SPACE BUT NOT MENTAL HEALTH Words : Emma Martin | View : Chen Min Chun

icro-apartments generally refer to a property with a total floor space of under 37sqm, for reference, that’s just larger than two car parking spaces. The popularity of these tiny homes in urban areas is growing as space becomes a premium that most can no longer afford. But as numerous micro-apartment developments spring up, some worry that although they might be a solution to space they could be the cause of a bigger issue.

called micro-apartments now account for 12.4% of all apartment sales, having risen from 9.3% in 2017. Often viewed as stylish and modern, micro-apartments are certainly in fashion as the numbers indicate. Architects, developers, interior designers and homeware suppliers are all jumping on the bandwagon, with the challenge that comes with creating a functioning home in a small space akin to art. Space-saving furniture, minimalist décor and even Japanese organisational techniques are all being employed as ways to promote a new approach to modern living.

Rising property prices in line with global population increases are turning prime city centre markets into unaffordable bubbles which seem impossible to sustain. Rapid urbanisation has resulted in more than half of the world’s population living in cities for the first time ever according to the Cities Alliance. This is putting concentrated pressure on our cities which are packed to the rafters, making it harder and harder for people to find affordable homes as thousands move out of the country and into the city.

Australian architect Nicholas Gurney, responsible for transforming a 24-square-metre apartment into a space saving minimalist home, explained his inspiration to Dezeen: "The 5S apartment promotes living with less. It was intended the design deliberately place importance on selecting, organising and caring for one's belongings. The design elevates a seemingly one dimensional space and in doing so, confidently dispels conventional notions surrounding small space living and provides considerable quality of life for the inhabitants.”

Hong Kong, dubbed the world’s least affordable housing market, has seen prices for homes in the city centre increase by 160% in the last decade according to Savills. The Financial Times reports that average prices for Hong Kong properties are now at an eye-watering HK$24,900 (US$3,182) per sqft which is more than a quarter higher than prices in central London (US$2,510 — roughly £1,800), and nearly double the cost in regional neighbour Singapore (US$1,757).

And it’s not just architects and developers who are shouting about minimal living. Micro-apartment schemes located in fashionable cities like Los Angeles, New York, London, Frankfurt and Singapore are in high demand from renters, generally in the form of young single professionals, commuters and trendy couples in search of the good life.

These sky high prices are creating a real problem for local residents and newcomers who are struggling to find homes and as a result, a ‘stack ‘em high’ approach is emerging in which developers and architects try and fit as many homes into tiny spaces as physically possible. Illustrating the growth of this trend, sales of units under 300sqft increased by 52% during the first eight months of 2018 in Hong Kong compared to the same period the year before and so

One such company profiting from the rise in micro living is Ollie, which claims to provide all-inclusive co-living in ‘hotel-style luxury’. Ollie boasts developments in some of the USA’s most in demand rental locations, and the company claims that its apartments are a

solution for both space and the planet. Co-founder & CEO of Ollie, Chris Bledsoe, says: “By the very nature of what they are, small space living units are inherently greener than the alternative. Most of those emissions are coming from the energy required to heat, cool, and light the home. Part of our philosophy is ‘space is waste.” But are there shortcomings to micro-apartments like those at Ollie? ‘Micro Studios’ at its Kips Bay Manhattan development, Carmel Place, range in size from 260-360sqft and start from US$2,775 per month. Although Ollie chuck in Wi-Fi, monthly community events, housekeeping (every two weeks) and communal space as part of the price, it seems a lofty price tag for not a whole lot of space. In fact, the Ollie micro homes do not even meet New York’s minimum housing standard of at least 400sqft but the rules were waived because, according to experts, the design of the studios focused on high ceilings, balconies and large windows which provide adequate light and air. And Ollie didn’t just get away with their small space homes. Carmel Place – which is hugely popular with renters –received critical recognition for its unique design and sustainable construction, including an AIA Award for Architecture (nArchitects) and a ULI New York Award for Excellence in Housing Development for the building's developer, Monadnock, according to the firm’s website. So what’s the problem? The big issue that surrounds micro-apartments has little to do with the hipster trend sweeping through trendy urban neighbourhoods. We can certainly see no problem with affluent city centre professionals choosing to pay top dollar for chic micro-living, but this is not the case with the majority of micro-apartments. Concern arises when you have less prosperous households forced into smaller spaces, like those seen in Hong Kong and China. Micro-apartments are fast becoming the norm, and they look nothing like the apartments in New York. Extreme examples of micro-housing like the OPod Tube Housing are stacking 2.5 metre wide, 9.29sqm apartments in gaps between buildings in order to cram more people in. It’s hard to think of these modular apartments as being anything other than a hamster cage for humans. Troublingly a quick Google of ‘micro-apartments’ shows little else other than funky studio apartments kitted out by fans of Ikea and Urban Outfitters, but it only takes a little bit of digging to find the darker side of compact living. One dangerous illustration of space restrictions resulting in people living inadequately can be seen, once again, in Hong Kong. For a number of years so called ‘coffin cubicles’ have been popping up to deal with the overflow of people requiring housing. These 15sqft boxes, sometimes made of mesh, sometimes of wood, are the reality for thousands of people, with the Society for Community Organisation (SoCO) stating that there are an estimated 100,000 people in Hong Kong living in inadequate housing. Whilst the OPod Tube Housing project is a far cry from the coffin cubicles, boasting a modern and efficient design, it is clear that there is a danger of a trend emerging in which people are forced to live in tiny quarters. In fact, research has shown that a lack of living space can result in irritability, stress, agitation and chronic fatigue, particularly in children. University of Texas psychology professor Samuel Gosling, who studies the connection between people and their possessions, explains: “When we think about micro-living, we have a tendency to focus on functional things, like is there enough room for the

Kowloon, Hong Kong

Around 7% of land in Hong Kong is zoned for housing, leaving little available for new residents.

fridge, but an apartment has to fill other psychological needs as well, such as self-expression and relaxation, that might not be as easily met in a highly cramped space.” In the UK the minimum space standards for housing dictate that a one bedroom flat for one occupant should not be below 39sqm, and 50sqm for two people sharing. This means that whilst trendy micro dwellings might seem like the next big thing, they actually break the minimum space health standards. Although micro-apartments are proving popular it is important to remember that living in cramped spaces has not always been considered fashionable. A post-war building frenzy in the UK between the 1950s to the late 1970s resulted in a huge number of tower blocks fly up across the country. A cost effective and uniform design of the tower block became popular, but brought with them a number of social problems. Dubbed as 'slums in the sky' by author Lynsey Hanley who grew up on a UK council estate of 60,000 close to Birmingham, tower blocks are the perfect solution for money and space but little else. Families growing up in these concrete jungles are forced to live in close proximity and children have little safe space to explore and grow.

“Sales of units under 300sqft increased by 52% during the first eight months of 2018 in Hong Kong compared to the same period.” Dak Kopec, director of design for human health at Boston Architectural College and author of Environmental Psychology for Design, explains: “Sure, these micro-apartments may be fantastic for young professionals in their 20s, but they definitely can be unhealthy for older people, say in their 30s and 40s, who face different stress factors that can make tight living conditions a problem.” With all of this in mind there is no denying that there is certainly a place in society for micro-apartments. Where designed and built appropriately these homes act as more permanent hotel rooms for young adults who can often enjoy the social benefits and extra amenities that come with taking up residence in a popular new micro-apartment development. But (and it’s a big but) allowing laws to be flouted in order to provide ‘cool’ homes for city dwellers is likely to set off a chain reaction where developers are allowed to get away with lowering space standards until corporations begin chucking up towers of the things with none of the amenities – like the coffin cubicles of Hong Kong which cause an emotive reaction from those better off. It’s easy to accept micro-apartments when they are a choice, but we predict that this trend is beating the path for a dangerous future where the less wealthy will be exploited to the gain of developers.

Quarry Bay, Hong Kong

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VINEXPO 2018 HONG KONG Words : Michael Smith View : Joanna Margan, Phil Labeguerie

Hong Kong Convention and Exhibition Centre 28

Fine wine has long been an industry that has been most associated with European producers, with Italy and France yielding some of the most popular wines globally. And yet this isn’t really the case, with South America, Australia and South Africa offering just as much potential. This misunderstanding also applies to grapes, with many exported blends from central Europe often becoming more celebrated in their new homes. Tannat for instance is a grape originating from South West France in the Madiran AOC, but if you were to speak to someone less knowledgeable about a grape lineage you could forgive them for thinking its roots come from Uruguay. The same can be said about production, most would think that the world’s largest producers herald from either France or Italy, as both have long histories of producing wine. They have very high densities of producers all over the country, but again neither hold that title. In 2017 Spain produced the largest crop, yielding 22.1 million hectolitres with around 80% going overseas. Export has become an even more lucrative market for much of the established producers as Asia’s taste for wine has continued to grow. As this region becomes more developed, demand for western products only goes one way. Demand for red wine in particular has rocketed despite pallets taking time to evolve, with some drinkers opting to use mixers in their wine. In China the consumption of the world’s most valuable and sought-after wines will often be mixed with Coca-Cola to sweeten the flavour. Despite this unusual approach to wine consumption, China is vying to become one of the world’s largest produces over the next decade. As a country they’re the largest importer of Bordeaux wine, and many wealthy Chinese citizens have purchased vineyards in the region to capitalise on local knowledge and business. Much of this experience is now moving over to Asia as vines start to deliver good harvests for wine. In 2005 the quality of wine being produced was barely passable, with flavours proving flat and highly acidic. Fast forward to 2018 and we see China’s main wine region (Ningxia) delivering well balanced reds having seen production grow to over 40,000 hectares in just 12 years. This production is creating a real snowball effect, and given the potential for more consumption across Asia, Vinexpo Hong Kong has become a very important event for the industry. This year, the three-day trade fair had a strong international presence and a higher attendance of visitors from mainland China, up 10% compared to 2016. Attracting exhibitors has been an easy process as the world’s largest producers look to impress a new market of drinkers. An unprecedented 1,465 representing 30 countries, including 305 new exhibitors, descended on the Hong Kong Exhibition centre looking to try some of the industry’s best wines. There was also a record number of organic producers represented, boasting 62 exhibitors from 11 countries. As is the tradition, this year’s ‘Country of Honour’ was Australia, who made its biggest ever appearance at an international trade show with 225 wine brands attending. Standing as the focal region of the event, Australia certainly didn’t disappoint delivering 26 masterclasses along with their signature networking event, The Blend. Andreas Clark, chief executive of Wine Australia commented: “Vinexpo Kong Kong is an excellent platform to meet and build on our existing relationships with importers from all over Asia-Pacific

Almaviva 1996 grand cru classé --Almaviva was founded 20 years ago, in 1997 in Chile’s Maipo Valley. A collaboration between Baron Philippe de Rothschild of Château Mouton Rothschild, and Concha y Toro.

and to connect with influential trade professionals, create leads and break into new markets.” China too was well represented at the event, with 27 exhibitors including first time exhibitor COFCO’s GreatWall winery, one of the best-known Chinese wine brands. Despite announcing a reduction in production last year, GreatWall produces some of the best cabernet sauvignon coming out of Asia. The exponential growth of e-commerce and its importance to the millennial generation was a real talking point at this year’s event, as more producers in China look to stand as their own shop fronts rather than looking at the direct merchant or wholesale routes. Vinexpo also partnered with Alibaba, the world’s biggest online retailer, to launch a transformative retail strategy that employs completely automated sales outlets with robot waiters. Attendance to this three-day trade fair also showed healthy growth, with overall visitor figures up 2% on 2016. Registered attendees gave an interesting insight into the wide cross-section of Asian markets with mainland Chinese visitors leading the way, followed by Hong Kong, Taiwan, South Korea and Australia confirming that interest in wine has strong local roots. Many visitors made the most of 2016’s new initiative, ‘One to Wine Meetings, which was introduced to encouraging trade interaction

and networking as new producers often find it difficult to establish connections with the right suppliers for their brand. In total 1,609 scheduled meetings took place during the show, illustrating the importance of these events in building new relationships. Closing this year’s event, outgoing Vinexpo CEO, Guillaume Deglise, said: “The ability of Vinexpo to meet exhibitors’ business objectives by bringing visiting professionals together is second to none. That’s why we continue to attract such a wide variety of countries and why key professionals in the industry consider this a must-attend event.” If you’re interested in trying some of the world’s best wines, along with speaking directly to the producers responsible then I’d say Vinexpo is a must attend. The knowledge I garnered from the event has helped me make informed decisions about my own personal tastes. I found myself staying in the same lane often buying very similar wines. With my horizons broadened, I certainly look forward to next year’s event. Keep an eye out for 2019’s edition of Vineexpo, which will start on Monday the 13th of May in Bordeaux, France.

Bodegas Faustino vineyard --The Bodegas Faustino vineyard was established in 1861 by Eleuterio Martinez Arzok when he purchased the palace and vineyards of the Marques del Pierto. The objective was to make wine and sell it in bulk and over following years it steadily grew in size and quality.

PEOPLE PLACE IDEA What we build shows what we value, how we think and what we are trying to achieve at a specific point in time. It is how we take the world of thoughts, ideas, fears and dreams and make it real – a time capsule by which future generations can know us, or by which we can look backwards and understand those who came before. In this series, Global Property Scene examines the midpoint between architecture, history, culture and society in order to explore what the built environment can tell us about our past, present and future.

TOGETHER AT THE END Words : Alex Timperley | View : BREAD studio

y most estimates we have been putting time and effort into caring for our dead for at least 10,000 years and probably a lot longer than that; anything that persists for so long is bound to be important to us in some way. After all, whatever makes us human is gone from the body after death. There is no logical reason to care for our dead, so why does the practice matter to us so much? The Ancient Greek philosopher Diogenes – described by Plato as “a Socrates gone mad” – professed maybe the most extreme version of this logic. Following a lifetime spent living on the street in accordance with his teachings that people should not be afraid to do private things in public, he managed to shock his colleagues one more time by requesting that his body be thrown over the city walls on the event of his death. By doing so he aimed to ask the deeper question of what a body is beyond an empty shell. Whilst we do not need to go that far, it is worth wondering whether we can or should continue to bury and cremate people as we have always done in an age where more of us are living more closely together than ever before; do we have the space to continue in the same way we have for thousands of years? The biggest cities have been struggling to solve this problem for many years, building increasingly large cemeteries on the outskirts and slowly filling them up. Now we are seeing hundreds of new cities and all of them will have to consider this problem as it will change considerably how we design our urban spaces. Why do we do it? How we take care of our dead matters simply because somewhere along the line we decided that it mattered a great deal. Humans are the only animal we know of with a true consciousness and a constant awareness of our own mortality, making anything that offers even the smallest sense of immortality extremely powerful. Physical death can often be quick and is always final, even if you believe in some sort of afterlife. What takes longer is the death of memory. Through communal care and effort we keep people with us for just a little while longer, thereby softening the blow of loss

“The biggest cities have been struggling to solve this problem for many years, building increasingly large cemeteries on the outskirts and slowly filling them up. Now we are seeing hundreds of new cities and all of them will have to consider this problem as it will change considerably how we design our urban spaces. ”

as well as honouring those we love and respect. The transition between life and death may be sudden, but that between society and memory cannot be so fast. A history of change However, the idea that we should continue to bury or cremate people in the ‘traditional’ way – whether for reasons of spirituality, religion or sanitation – because we have always done so, is a fallacy. The way we take care of bodies has a long history of changing with the times and we should expect this to continue. By taking Western Europe as an example we can see clearly the trend for change and also how the way we deal with our dead has reflected society and helped to define town planning across the years. Cremation was a commonly accepted norm in the 1st century AD but it had become a rare exception as soon as 300 years later. By the 9th century it was almost unknown and burial became the dominant Christian way. However, by the 11th century the church yard had become the only proper place for a burial across Western Europe and, in turn, our towns and cities were physically planned around them. They were at the centre of life for families and communities and burial there symbolised a life well lived; conversely, people expelled from the church yard were witches, heretics and other such villains. The status of burial as a core part of Christian culture ensured that it would be at the forefront of the cultural wars that swept through Europe in the 18th and 19th centuries – embracing cremation became a symbol of embracing the classical world and its culture and rejecting the religious Christian world which replaced it. In other words, cremation became a symbol of progress. As with many major changes in Europe this one began in France. Jacobin revolutionaries brought public cremations back in 1794 as an explicit alternative to Christian traditions. The burning of the deceased Charles Nicolas Beauvais de Préau, a doctor and politician, was the first cremation of any sort in France for 1,000 years. Cremation was also used as a weapon against Christianity across the rest of Europe. Giuseppe Garibaldi, the man who united Italy, demanded a cremation as a final rebuke to the church hierarchy; in Germany everyone from military doctors to working-class movements used cremation as a way to align themselves with the future; the Bolshevik revolutionaries in Russia similarly promoted it as part of a larger rejection of religion. The timing of Europe beginning to turn away from the church chimed with another major historical change. The ongoing Industrial Revolution was forcing cities to grow faster than ever before and there simply was not space for big inner city communities based around churches.

Annual commemorations known as "La Alumbrada" during the day of the dead (día de muertos) at the Church of San Andres Apostol, Mexico Graveyards across Europe were literally overflowing and presenting a public health hazard at the same time as the tyranny of the church was being challenged; it was in this climate that Victorian London developed a solution to the problem which rearranged our cities for good and is now the standard across the world. Following the cholera epidemic of 1848 which killed 60,000 people the government passed the Burial Acts in the early 1850s which made burials within the city limits generally illegal. Sanitary reform was sweeping the UK’s capital at the time, most notably in the form of Joseph Bazalgette’s revolutionary sewer system, and the mistaken belief that overcrowded church yards were contributing to an unhealthy ‘miasma’ naturally followed. Earlier, in the 1830s, large sites such as Brompton Cemetery and Tower Hamlets Cemetery Park had been established and the Burial Acts granted them a final supremacy over older church-based graveyards. If a city was going to such expense to clear waste out of its streets and waterways then removing overflowing graveyards as a next step followed quite logically. There were some missteps along the way such as the idea for a Metropolitan Sepulchre – otherwise known as the ‘Pyramid of Death’ – which was proposed in the 1820s. Standing at 94 storeys tall this pyramid designed to house bodies would have been taller than the Shard is today and that is before we take into account its intended position on top of Primrose Hill. Unbuilt oddities like this were the exception, but they rather prove the point that the most progressive ideas about modern graveyards would permanently changing cities. Since then we have developed a full germ theory of disease and become even more concerned with hygiene and sanitation. At the same time our cities have grown and the old out of town graveyards are often now within city limits. With all of this in mind why would we not expect a new solution for this old problem? A crowded future The only thing we can say for sure about the future is that continual change is likely to be its defining feature. For the first time ever the majority of us not only live in cities but move between them with relative freedom as we wish. It is probable that we will be encouraged and required to switch between careers and life paths more frequently than ever before, and as we do so we will use mass communications technology to share our lives to an unprecedented degree. Fluidity and adaptation are the order of the day as we mix together more than at any other time in history. People across the world are closely connected and we appear to be placing less value on individuality and more on blending more fully into a larger whole. Technologies such as social media, which appear to promote individualism, actually promote a shared global culture beyond anything we have seen before. For example see how the English language, and in particular English slang, has begun infiltrating almost every other language in the world more rapidly than ever before thanks to services such as Facebook and Twitter. With that in mind, the idea that we will all end up buried in individual plots in the ground or burned separately with our remains stored in little urns seems suddenly anachronous. With a greater awareness than ever of our place in a larger whole, and urban centres growing

at a historically unprecedented rate, it is not inconceivable that modern versions of the church yard or cemetery will be built with completely different underlying principles.

real way which, as discussed, is unlikely to hold sway in a changing society if historical precedent is correct. However, it points towards an angle which might well bear fruit.

What does the future look like?

Begun in the USA, the Urban Death Project aims to radically reshape both how we bury people and how we think about death by charting a new route between burial and cremation.

We are at that interesting stage of a revolution where dozens of weird and wonderful ideas are tried out around the world without any certain idea of what will eventually win out. In 50 years we may look back and think it was obvious, but today we cannot tell. The most interesting runners and riders in this new race are all radically different from each other even if some share a similar soul.

The heart of the idea is a three storey building in a city centre where people can bring their departed friends and family. They would take a circular path up to the top of the core where the body would be interred in a ‘laying in’ ceremony before being covered with organic materials like wood chips and straw. The centre of the core would be made up of 10 bays which each store several bodies separated by a few feet of wood chips. Bodies descend thanks to the effects of gravity and microbial activity over the space of weeks or months. Once they reach the bottom family can return and collect some of the remains of the deceased to do with as they wish.

The most familiar is the idea of a ‘green’ burial where the process contributes to either the creation or preservation of a natural habitat. The person undergoes something reminiscent of a ‘traditional’ burial but is wrapped in a shroud or other biodegradable material to minimise the environmental impact of embalming chemicals and the materials involved in coffin building materials.

The obvious question here is: how can we ensure that this will be the remains of your loved ones and no one else’s? This is the part that will seem most radical; the reality is that you can’t be assured of that and you will go home with a mixture. Our loved ones will have company at the end of it all.

In the first year of a traditional burial approximately 4.5 litres of embalming fluid leaks into the soil where it contributes to the general poisoning of the land – a green burial avoids this and allows the body to decompose naturally. However it does not change the fact that huge cemetery-style areas will still be needed outside cities which will eventually cause the same issues we have now.

Of course in any burial people’s remains eventually mix, but current rituals allow us to pretend this isn’t the case. An urn of ashes or a burial plot represents a singular, discrete person in our minds even though that is not the case in reality; bodies eventually decompose into the ground with everyone else and ashes in a crematorium cannot help but mix.

The second set of alternative ideas is being pioneered in the Far East, in particular in Hong Kong which has a big problem with graveyard storage space. It is one of the most densely populated areas on earth and simply has no more land to use – its last remaining burial space was used up in the 1980s and now competition for recycled spots is fierce. Cremation is popular for obvious reasons, but even then the space for urns is running out.

The Urban Death Project has a lot going for it which points to longevity. Firstly, it will bring burial back into the centre of our cities from its currently outcast position on the fringes. In doing so it will revive the best community aspects of the old fashioned church yard burials without imposing on the space we need for everything else – something which is vital given that cities are scheduled to be home to 70% of humanity by 2050.

One solution is the ‘floating eternity’, a storage space for 370,000 urns at sea which takes inspiration from ‘skyscraper cemeteries’ like the aforementioned Pyramid of Death or more modern versions in places like Oslo. You can read elsewhere in this edition of Global Property Scene how the modern solution to overcrowding in Hong Kong is the construction of micro-apartments for the living – apparently that is also a solution for the dead.

Secondly it is environmentally friendly. Like resomation the process is essentially cremation, though this time by organic material and microbes rather than the violence of fire or the cold science of an alkaline solution. This way brings the elemental simplicity and reassuring natural feel of a green burial. It also taps into the ‘rebirth’ aspect of a green burial with estimates saying an average human adult can provide six pounds of nitrogen, two pounds of phosphorus, and one pound of potassium—the three most common nutrients used as fertilisers. It would be a version of scattering ashes in a garden which is actually useful.

An alternative innovation gaining popularity in Hong Kong and Japan is the oh-so-modern idea of virtual graves. Developed by I-Can Corp, mourners can visit a virtual cemetery with an illustration of a gravestone, a traditional scoop, incense sticks and bouquets of flowers which users can choose online as they ‘visit’. And with this being the 21st century, Hong Kong has gone a step further and created a social media network of virtual graves for families and visitors. Disposing of bodies and transferring our memories of the dead into a form of virtual reality certainly solves the space issue.

Thirdly, the communality provided by the Urban Death Project resonates with our connected and social age. Traditional burial gives the illusion that we are all special by burying us alone, an idea which is becoming increasingly outdated. As discussed above we are more aware than ever of our small part in a larger whole – whether that is a wider human society, the greater earth ecosystem or whatever else – and the idea that we might one day end up on our own and separate from everything else that makes us alive and human is now strange to contemplate. Loneliness is being described as a medical epidemic – why would people want to die alone?

The third major direction that modern graveyards are taking is somewhat different and revolves more around reuse and a form of rebirth. Whilst it sounds like pseudo-religious nonsense it appears to have all the ingredients to thrive. One method is called resomation, or ‘water cremation’, where bodies are turned back into their biological building blocks through an alkaline hydrolysis process. This is an environmentally friendly option which still returns ashes to the family, but instinct says that this process is too cold and scientific to truly catch on. In addition it does not alter the current process of burial in any

The Urban Death Project may not be the answer on its own but it feels like a step in the right direction. If we can work out a way to bring all the best parts of all previous types of burials back into our urban centres then it is likely that the cities of the future will adopt it one day.

Floating Eternity – Offshore cemetery Image: © BREAD studio

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FAITH, UNITY, DISCIPLINE Words : Michael Smith | View : Khalilshah

oasting one of the largest populations globally, Pakistan is on the charge to become South Asia’s largest economy. It has the potential to forge the path of its close neighbours, India and China, which continue to lead the way towards a more technologically developed culture. And yet there is still a lot of uncertainty surrounding its future. There is an impression of lawlessness and upheaval that follows Pakistan around, and despite the government’s best efforts it’s proving to be a difficult marketing exercise.

States offensive. This migration has created real friction between Pakistan and the West, with the United States in particular voicing its displeasure at the inactivity of the Pakistan authorities to rappel the migration. Pakistan has been portrayed in a similar vein to Qatar as a terrorist sympathiser, and despite the government trying to improve relations it seems to be having little effect. Conflict is something this region has had to endure throughout its long history, with Pakistan suffering at the hands of colonial rule much like its neighbours. The gradual decline of the Mughal Empire in the early 18th century enabled the Sikh Empire to control larger areas until the British East India Company gained ascendancy over South Asia. Divergence in the relationship between Hinduism and Islam created a major rift in British India, which would later play a major part in the creation of an independent Pakistan.

Only recently Donald Trump outlined his plans to revoke all foreign aid into Pakistan, as allegations of harbouring terrorists continue to persist. Long before the Trump administration started pulling the plug on overseas support, the United States was a long way into a campaign of drone strikes around the north easterly parts of the country in a bid to limit the capabilities of the Taliban and other terrorist cells.

In 1946 a vote was conducted to decide on the creation of the state of Pakistan, and with the vote going in favour of a divide the motion was put forward. The British at the time did not want India to be carved up and proposed a transfer of power known as the “Cabinet Mission Plan”. This outlined a transition of power towards

Pakistan shares a long border with Afghanistan, and the conflict there has driven many fighters across the border in a bid to avoid both the local Afghan authorities and a large-scale United

Defence Day is celebrated in Pakistan as national day to commemorate the sacrifices made by Pakistani soldiers in defending its borders.

Domes of the The Badshahi Mosque (Emperor Mosque) built in 1673 by the Mughal Emperor Aurangzeb in Lahore, Pakistan

â&#x20AC;&#x153;The gradual decline of the Mughal Empire in the early 18th century enabled the Sikh Empire to control larger areas until the British East India Company gained ascendancy over South Asia.â&#x20AC;?

The Pakistan Monument is a landmark in Islamabad, which represents four provinces of Pakistan

a fully independent India on the grounds that it remained one unified state rather than two separated states as per the result of the vote. This agenda found no support, bringing an end to British rule over the region. The United Kingdom agreed to the separation of India and the creation of the modern state of Pakistan. Despite hopes the divide would bring an end to religious tensions, riots in the Punjab Province yielded heavy casualties. It is estimated between 200,000 and 2,000,000 people were killed in what some have described as a retributive genocide between the religions involved, along with a whole host of other discriminatory crimes. The divide caused the world’s largest ever migration as 6.5 million Muslims moved from India to West Pakistan and 4.7 million Hindus and Sikhs moved from West Pakistan to India. Democracy and party membership have both featured heavily over the last fifty years. In 1970 Pakistan held its first democratic elections in a bid to transition from military rule to help engage the population. However, after the East Pakistani Awami League won against the Pakistan People’s Party, Yahya Khan and the military establishment refused to hand over power. A wave of brutal conflicts broke out resulting again in hundreds of thousands of deaths. By 1972 democracy was able to be reintroduced and military rule was ousted until another coup in 1977, with General Zia-ul-Haq becoming the president in 1978. He managed to lead the Pakistan People’s Party until 1988 when he died in a plane crash. The party managed to keep control despite further conflict and the threatened impeachment and resignation of President Musharraf in 2008. Most recently, Imran Khan, chairman of Pakistan Tehreek-e-Insaf won the Pakistan general election, becoming the 22nd Prime Minister of Pakistan by a significant margin. Although Pakistan has suffered significant political and social difficulties, it stands today as one of the most investable countries in the region. Its location gives it a real economic advantage with it bordering Iran, India, China, and Afghanistan. It also offers great access to shipping with its ports in Karachi giving easy access to both the Arabian and Indian Ocean. This region continues to see growth in shipping as more production continues to move to South Asia. The country’s strong background in producing construction materials, agriculture and textiles is helping to stimulate a strong upward drive in GDP, with estimates placing growth around 5.28% in 2017. These figures place Pakistan as one of the fastest growing emerging markets in the world and help to cement its ambitions to become a Next- Eleven country, which refers to a state which displays the potential to become one of the world’s largest 21st century economies. Much of this growth is being driven by a large population which is expanding at a staggering rate. At current levels Pakistan’s population will grow by a further 50% by 2050 creating a vast labour pool. Like much of the developing world, salaries are a long way behind what you might expect in Europe and North America. Average salaries sit at around US$125 per month, with more skilled jobs yielding around US$339, representing a real disparity from their European counterparts. Neighbouring countries too struggle to compete with salaries this low, with China on average paying US$348 and India paying around US$160.

Minar-e-Pakistan is a monument built to represent the first official call for a separate and independent homeland for the Muslims of British India, culminating in the creation of the first independent Pakistani state

The Wazir Khan Mosque is considered to be the most ornately decorated Mughal-era mosque in Lahore, Pakistan

Pakistan is also benefiting from a young population with strong foundations in the tech industry. As more global business moves online the opportunities for young developers continues to grow. In the past workers from Pakistan had to move abroad to earn a good living before resettling in Pakistan in later life. Online business allows a marked change in this migration, helping boost the local economy. Shops, cafes and other service industries are able to thrive with more local support. This new-found wealth is creating a middle-class with serious spending power who are pouring funds into local development and property. The government has recognised this interest, planning large scale infrastructure projects to help both the growing population and help boost the quality of living for wealthier citizens. As part of the China-Pakistan Economic Corridor (CPEC) which consists of various infrastructure projects aiming to improve connectivity within the region, the government is forging new plans with China in a bid to improve the speed of freight and connectivity within the region to Europe.

“The country’s strong background in producing construction materials, agriculture and textiles is helping to stimulate a strong upward drive in GDP, with estimates placing growth around 5.28% in 2017.” These large projects are creating real interest from overseas investors, who are being increasingly encouraged by the local government to invest in the country. Unlike some of its neighbours, Pakistan has introduced several different processes to attract new business and encourage new start-ups to settle in the country. Through this drive Pakistan estimates this investment will grow by 17.2% by 2020, creating over a million new skilled jobs. The property market in Pakistan has grown exponentially over the past three decades, with prices growing despite some difficult and expensive purchase processes. Major new legislation has been tabled to shake up the complicated and overtaxed property industry in Pakistan, which for some places doubt on what an external investor might experience. Some commentators have suggested prices will tank, evaporating billions out of the country’s economy and creating a scenario where buyers and sellers will exit until the market stabilises. It would potentially be ill advised to invest in property in Pakistan right now, with the new government only now settling into its new role. Although legislation was outlined back in April the effects are yet to be established. Rates have been reduced to 1%, along with a proposed end to the Federal Board of Revenues which has complicated matters for a long time. It is certainly a market worth watching as once the dust settles the returns could be significant. It’s a hard place to sum up, Pakistan, with its public image as a terrorist and conflict hotspot. Due to its location and population its potential is limitless, with its economy only going in one direction. Its people deserve the support of the international community, and I’m certain once the new government gets up to speed with a handle on the last pockets of local resistance we could soon see Pakistan as a world leader.

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SOUND OF THE UNDERGROUND Words : Will Leyland | View : Dmitry Tkachenko

f you’ve just bought yourself a property or, indeed, a plot of land, I bet you’ve never wondered how far down and up your land actually covers have you? Say that religion, or mainstream religion, is right and there exists a heaven and hell; if you’ve bought a piece of land does your right over that land stretch all the way up to eternal rest? Does it cover you should the worst come to the worst and you’re sent to...the other place?

murkier and appears to extend to you having control over as much as the government or a corporation do or do not want you to have.

I’d suggest that it would almost be a hell unto itself should you make it to heaven only to find that you’ve only been allotted the space you legally owned on earth, given that most of us will never be wealthy enough to own a plot wider than 50 steps.

How can that be? The majority of the land, it is said, is primed for fracking and other types of extraction for its natural resources and, at least according to the Times, the church wants a piece of the action.

You’d be correct in wondering what you’re entitled to, as it’s not always entirely clear. After all, if you’ve luckily bought a ten acre plot over a gold or oil reserve, does it make you the rightful owner? The answer is probably not.

In the report, the church insisted it had no plans to profit from fracking, but thanks to ancient property laws that allow the church some rights over the land, they’re allowed to seek compensation from the companies that may profit from such an endeavour.

Back around the time property laws were conceived, property law in the US and UK was enshrined in the Latin phrase “Cuius est solum, eius est usque ad coelum et ad inferos” – which roughly translates as: “Whoever owns the soil, holds title up to the heavens and down to the depths of hell.”

According to a Daily Mail article, a recent report by the church’s investment bodies concluded that there was no Christian reason to object to the extraction of underground resources as long as the environment and local communities were protected.

An excellent example of this type of ambiguity in practice is demonstrated in the fact that the Church of England, it was recently revealed, have laid claim to the mineral rights of an amount of land roughly equal to the lake district despite owning none of it.

Perhaps most interestingly, however, the church cannot profit directly from fracking because shale gas, such as oil, is owned by the Crown.

That’s easy enough to enshrine in law when a) you believe in the concept of eternal damnation or saviour, and b) this was before a Boeing 747 wanted to fly over your house or a villainesque billionaire wanted to dig a magnetic hyper-highway underneath your house.

London Underground Subterranean London has to be one of the most interesting prospects when looking at who owns the earth beneath which we walk. Indeed, when building the new Crossrail underground network, it’s reported that the mammoth cost involved was heavily

Property laws in Sydney, for example, have now been updated to note that property ownership allows you the legal right over 15 feet below and above your property. In the UK and US this is somewhat

Famous Baker Street, London Underground

tied to the incredible precision that engineers had to work to in order to avoid drilling through key piping, cables and existing underground lines. There was a growing trend, until recently, for the wealthy of London to simply dig underneath their house to extend its available space. The trend has been abated somewhat by the declining London property market and increasingly reluctant planning permission departments which have been inundated with complaints about noise and disruption. There was the mysterious case covered in the New Yorker, for example, of Witanhurst, which in Old English means “Parliament on the Hill.” A vast, sprawling mansion, it was recently purchased for £50m after being left uninhabited since the 70’s. Built in the early 20th century by a soap magnate, nobody knows to this day who owns the building as it was purchased by a shell company in the British Virgin Islands and when the journalist investigating sought the truth was told in no uncertain terms to “find another story”. This particular building was approved by the local council to build a second basement, making the overall interior space just over 90 thousand square feet, second only to Buckingham Palace in the capital. In more humble circumstances, there was the interesting case of the Mole Man of Hackney, who had spent 40 years digging down into the London terrain underneath his house, just to see what was there. According to the Guardian, “no one knows how far the the network of burrows underneath 75-year-old William Lyttle's house stretch. But according to the council, which used ultrasound scanners to ascertain the extent of the problem, almost half a century of nibbling dirt with a shovel and homemade pulley has hollowed out a web of tunnels and caverns, some 8m (26ft) deep, spreading up to 20m in every direction from his house.” If that seems extraordinary, it’s because it is. Regularly, it is reported, whole streets lost power as Lyttle whacked through 450 volt electricity cables, causing thousands of pounds worth of damage. Lyttle has never offered a coherent explanation for his digging, saying he was simply digging a large wine cellar, but admitted he had dug as far as the water board, which is as low as he could get. The fascination for what lies underneath the streets is one which has consumed almost all of us at some time, given that we know that there are hundreds of disused tube stations, tunnels and even medieval London escape tunnels under the streets of London. Many have been immortalised in film or fiction, and recently the Land Registry opened up its entire records for free, showing who owns what under London. A blog named Who owns England? Did some digging. They discovered that one of the biggest owners of such tunnels is the Post Office, which owns a labyrinth of tunnels underneath London built after the war, when it was decided that vital national communications needed to be protected from aerial assault and, with the threat of nuclear war looming, grew in importance until the end of the cold war. A journalist from the New Statesman was able to evade security in the late 1980’s and publish fascinating photos of the tunnels as he was able to ride a bicycle around them freely, even popping his head up underneath manhole covers in busy London streets. Another interesting feature of these records is a vast telephone exchange built to survive nuclear war, dug 100 feet underground underneath Holborn by the old British Telecom. The tunnels have since been decided surplus to requirements and have been given

"Understanding what's below is of great importance to world governments which are now looking at increasingly innovative ways of utilising the subterranean world to answer questions of how to service increasingly populous cities which now must serve millions of people in communications, transport, sewage and water provision."

to BT to dispose of the property, although what one does to dispose of humongous underground bunkers is something I cannot answer. Hyperloop Governments across the world are now racing to be able to map what lies underneath the surface of the earth and perhaps the most successful so far may have been the US Air Force who, over 20 years ago, started a project to map subterranean earth using satellites and monitoring activity in the Earthâ&#x20AC;&#x2122;s gravity fields. Itâ&#x20AC;&#x2122;s reported to have been very successful. This appears to be of great importance to world governments which are now looking at increasingly innovative ways of utilising the subterranean world to answer questions of how to service increasingly populous cities which now must serve millions of people in telecommunications, transport, sewage and water provision. One person looking to utilise such an environment is Elon Musk who is planning to build a Hyperloop travel system which would see small pods magnetically shot through small tunnels under the surface at rapid speed with almost zero carbon emissions. Through his other company, the Boring Company, Musk hopes to bore enormous tunnels underneath LA which are capable of carrying humans and cars at high speed across the city, before eventually hoping to expand his project across the country. Is it possible? I guess time will tell. The idea of subterranean conspiracy has been one that has fascinated humans for centuries, with ancient literature often telling of mysterious people living underneath the surface of the Earth. Ancient art, too, often depicts devils and demons as well as mutant species living underneath our feet. Even today, similar to Flat Earth theory, there are many who believe the Earth is hollow and contains mythical creatures and other worlds, and that we may be banished to the outer crust to live our days in ignorance. Whatever the truth may be, and we know the earth isnâ&#x20AC;&#x2122;t hollow, we can be absolutely sure that the race down from the surface is one that is certain to become increasingly competitive as space around us continues to decline. Section of new rail tunnel under construction for the London Crossrail project at North Woolwich, London

Illuminated Crossrail Place in Canary Wharf, financial district of London

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A PERSONAL INSIGHT INTO CO-LIVING Words : Sam Taylor | View : Ruud Morijn

Are millennials changing the way we live in urban areas?

s a young professional pressing on with my career in a growing city in Western Europe; after a long day at the office I commute home to my three-bedroom property which I share with three others. We split the rent, split the living costs and even communally shop to save money. It makes us more social, reduces our carbon footprint and stops us getting lonely, to name a few benefits. But mainly, living alone is financially impractical while wages stay stagnant and rents continue to rise – it’s for this reason living alone amongst my peers is unusual.

has grown into a new and thriving property market, with the number of 18-30 year olds living with roommates doubling since the 1980’s. My research into this topic, and subsequently this article, explores how my generation is opposing the traditional housing structure, creating a new investment product which developers are capitalising on. What we are seeing is a new housing product especially for those, like me, wanting to share and live in a collaborative manner for the many financial and social benefits. Motivated by a new set of personal goals and an aspiration to climb the professional ladder in cities, our values are shaping new ways of living and working in the future: co-living. But, although some might think this new-fangled millennial way of living has been born in our generation, the truth is that co-living has a deep rooted and interesting history which spans the globe.

‘Millennials’, as we’ve been coined, are simply defined as being born between 1980 – 2000 and make up more of the working population in urban areas than any other demographic, attracted to cities for the excellent job prospects and cosmopolitan lifestyle on offer. Research by PricewaterhouseCoopers (PwC) estimates millennials will make up to 50% of the global workforce by 2020. This generation, my generation, is different to those that came before and has been the focus of much attention (and sometimes) negative press because of our lifestyle choices.

People have lived together in groups for safety, security and community, for as long as recorded. One Indiana University history professor, Wendy Gamber, has looked in to the late 19th century trend of boarding houses, where immigrants to urban areas would stay in cheap boarding houses while they found their feet in UK cities. She notes: “between one third and one half of nine 19th century urban residents either took in boarders or were boarders themselves.”

For my parents’ generation success was measured by a career, followed by a house and marriage in your twenties: a one size fits all “good life”. However, inflated house prices, the integration of technology during our upbringing and more social mobility has quashed this norm and made my generation's aspirations for living very different. Instead of seeking stability we measure success with experience and happiness. As a result, our needs are shaping the urban form and accommodation offering in growing cities, as more and more young people learn that home ownership is further from our grasp than it was for earlier generations. One result of this is a more critical opinion of the rental offering available to us.

In fact, American poet Walt Whitman, who experienced life in boarding houses for a good proportion of his life, was quoted on the subject in 1842: “Married men and single men, old men and pretty girls; milliners and masons; cobblers, colonels, and counter-jumpers; tailors and teachers; lieutenants, loafers, ladies, lackbrains, and lawyers; printers and parsons—‘black spirits and white, blue spirits and gay’—all ‘go out to board.’” This trend was a popular one, and

So, born out of preference and necessity, a trend of house sharing

“In more modern times, a world away from historic boarding houses, architects across the world started experimenting with cooperative communities.” not reserved for any one type of person. In more modern times, a world away from historic boarding houses, architects across the world started experimenting with cooperative communities. I can see why this would have been a foreign concept as the post-war boom saw the rise of the American dream, white picket fences and the family man across the developing world; where before a home was where a family unit resided, now people are becoming more comfortable in living with people that are not part of their immediate family and in some cases (such as mine) not even part of their immediate friendship group. A group of architects from Denmark experimented in communal family living, designing and occupying a ‘co-housing’ development with shared facilities and communal living spaces in the late 60s. This sparked the interest of Kathryn McCamant and Charles Durrett who visited these Danish housing cooperatives and returned to the USA to author Cohousing: A Contemporary Approach to Housing Ourselves; bringing the concept back up in an academic discussion to be taken seriously once again. From there Americans, in New York for the main part, began experimenting with the concept as a natural evolution of their already established service apartment market, where demand for residential developments providing gyms, cinemas and communal space boomed, but rising costs priced out many. WeWork and other companies in the US saw a gap in the market, beginning to diversify their serviced apartment stock, bringing down the sizes and costs and in turn replacing these with more communal facilities. This model soon gained traction across major cities around the world, especially in the UK as house prices continued to rise. In 2010 a young entrepreneur, Reza Merchant, began managing student properties for landlords in London, he quickly began to build a portfolio of high-end HMOs (Houses in Multiple Occupation) for young professionals. The natural iteration of this model was the UK’s first purpose built ‘co-living’ building, Old Oak Common in Willesden, north London, developed by Merchants’ company The Collective in 2015. I think many hear the term ‘co-living’ and what springs to mind is a bunch of students in a four to five-bedroom house, sharing a bathroom and kitchen and generally living in squalor. Now-a-days, this could not be further from the truth. Old Oak combines a micro-apartment, gym, spa, library, co-working space, a cinema, various classes and all utility bills in a single monthly bill starting at £800. Merchant, founder of The Collective, says the site is currently at

100% occupancy, with an average age of 28 and an annual tenant turnover of around 50% (average for tenants that age). In London, micro-apartments have been booming in far-flung corners of the city like Croydon, with relaxed planning regulations helping developers squeeze more apartments into smaller spaces. Many local residents and councils across Britain have criticized the creation of such tiny properties, regularly comparing them to prison cells, but demand remains strong among renters. So is this trend here to stay? Philip Hillman, chairman of the UK Alternatives team at property consultancy JLL, one of the consultants working on The Collective project in London, was recently interviewed by Forbes. They looked at what is driving people to the development and contributing to its success: In his interview, Hillman stated; “A lot of the people living at Old Oak had just moved to London; many went through major life changes such as divorces and moved there in an attempt to revamp their lives. Being part of a community helps them settle in quickly and find friends. “The demand for co-living is growing from the corporate side as well. Multinational corporations and start-ups alike want collaborative living spaces with high quality facilities and office-standard technology for their project teams and interns wherever they are in the world. Having access to a variety of ‘public’ spaces also makes working from home much easier.” To me this sound very similar to those people attracted to the 19th century boarding houses – old and young, rich and poor, all doing a variety of jobs. Co-living is a great solution to several demographic trends, creating a new offering of accommodation for the next generation. We are all busier, more likely to travel, and subsequently have less time to get to know each other. As well as this, our over-reliance on technology and social media exacerbates the trend of loneliness and isolation among millennials – co-living addresses this issue, offering a way to socialise from the comfort of the home. As well as providing an answer to a growing issue of loneliness, co-living makes perfect financial sense, as well as a way to move around the country without being tied down to one place. Co-living is a relatively inexpensive way for people to move, up root, jump right in and out and still have personal space, utilities, furniture – all without any preplanning. Housemates can cheaply rent a room, often with a flexible contract and simply turn up and live – making co-living the Airbnb of rental accommodation. For a generation that is shrouded in the gloom of the ‘housing crisis’ and unrealistic prospects of getting on the housing ladder, co-living is a refreshing take on an otherwise closed sector for many. Co-living offers freedom and support that the traditional private rental sector doesn’t in many ways. While there will always be a demand for traditional city centre accommodation and larger serviced apartments, especially for people with families and for those who are settling in for the long run, there is no denying that co-living has a role to play as millennials come to dominate the workforce. As the trend continues and our segment of the working population grows, property and investment markets are starting to react and co-living projects are being proposed in secondary cities such as Manchester and Hamburg. Watch this space; we’re bringing the age-old trend of community living back!

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THE RISK OF TRADE WARS Words : Will Leyland | View : Caron Badkin

10% tariff. This has fuelled fears of a trade war between the two countries, and possibly others.

y and large, the US economy is actually doing pretty well - in the short term at least. If you follow Donald J Trump on Twitter then chances are you’ll have heard it from the President himself how well things are going. Not just that though, you’ll notice an incredibly aggressive rhetoric emanating from the White House, one that hasn’t really been seen throughout modern history. The last time these types of policies were really around was back around the time of the Great Depression.

What is a trade war? Despite the calls of armageddon, chaos and depression, what do we actually know of trade wars and how they work? A trade war between two countries occurs when both attempt to harm the others’ trade and, ergo, economies, by imposing tariffs on goods that the other imports. A tariff is a tax a government imposes on imports coming over the border. For example, a company in America pays US$1 per item from a Chinese company, if the government were to impose a 100% tariff on that item, the company importing it would need to pay an extra dollar in import taxes, effectively doubling the price of that item. The hope is in these situations that the importer would then decide to buy their goods from a domestic producer.

One of the latest, perhaps most concerning, developments of Trump’s new trade policy was his insistence to an interviewer for CBS news that the EU was “a foe” when it came to trade. Trump has also, in recent months, managed to make enemies of the Canadians, the Europeans and, of course, the British. Trump has saved his most aggressive remarks for China though, talking almost endlessly of trade deficits in his pursuit of the protection of American jobs. We shouldn’t be surprised really as these were all things he spoke about at length on the campaign trail.

In this example, Trump has imposed large tariffs on Chinese exports as well as European steel, which he hopes will boost the American economy by keeping wealth within its borders. One thing the President has mentioned on multiple occasions is the supposed trade defecit with these countries, whom he accuses of ‘ripping off the USA’, but is that true?

On the 6th of July this year the President made good on his promises by bringing into force US$34bn worth of tariffs on chinese imports, prompting Beijing to hit back with levies on the same amount of US exports to China. In response, the White House last week released a wide-ranging list of Chinese goods, from tobacco to pet food, worth US$200bn that it would target with a

In one of the BBC’s ‘fact check’ features, in which it checks the

â&#x20AC;&#x153;On average China's exports have a value of around US US$2.27tr, while imports represent around US$1.23tr, resulting in a positive trade balance of US$1.04trâ&#x20AC;? 72

nationalism and protectionism was rampant not just in America, but all around the world. The government of the time was vulnerable to this rhetoric and was ultimately forced to adopt the legislation, leading to what many believe to be the final nail in the coffin before the Great Depression bit hard.

veracity of some of the President’s claims, it notes that “Trump seems to be citing the fact that the US imported US$810bn worth of goods in 2017, But in doing so, he's ignoring the amount of services the US exported in 2017, which totalled US$242.7bn. Discounting that contribution to US trade ignores a significant part of what makes the US economy tick.”

Analysis in the Economist said “the act added poison to the emptying well of global trade and the worldwide protection of the 1930s took decades to dismantle.” Perhaps most strikingly, there was overwhelming opposition to the bill by economists, of whom more than 1,000 co-signed a letter calling on The President not to sign it.

Many leading economists say that a large trade deficit in any area isn’t necessarily a good or a bad thing, depending on the context. As an example, if you owned a small business manufacturing shoes, and sold 100 pairs a month to another supplier, but purchased 500 from them, it may look to be a fairly bad deal. But if you were to then sell software to your competitor at roughly the value of 400 shoes, then the business deal works quite nicely for both of you.

It may come as no great surprise to you that even more economists, over 1,100, have now co-signed a letter to Donald Trump urging the President to rethink his strategy, lest he repeat the catastrophic mistakes of the past.

According to some, it’s this economical nuance that Trump seemingly doesn’t understand. There have also been comparisons to nationalist governments and regimes in the past who, by instinct, seek to increase manufacturing power and military power as a way of boosting the economy and showing the world what they’re capable of.

At the time of writing - this is key, as much can change in Trump’s America in just a day - China has already filed a complaint with the World Trade Organisation (WTO) with regards to the tariffs being imposed, the newest of which aren’t due to be implemented until September. Some have commented on how quickly the complaint has been made as a sign that the Chinese are starting to panic.

In this instance, a trade war between an economy that is heavily services-orientated and one that is heavily manufacturing-orientated seems nonsensical, in that it would take the US decades to increase its manufacturing output to the levels required to negate the need to import chinese goods and, certainly, workers rights would have to be nearly eradicated to make the labour cheap enough to make them competitive.

The International Monetary Fund, largely accepted as an American controlled world bank and economic police force, has even publicly warned that the policies could cost the global economy US$430bn, or 0.5% in growth in the near future, with the US particularly vulnerable. America First was Trump’s policy, and so far, it has worked on the basis that the American economy is growing quickly, and jobs are being created in high numbers, but the issue remains that, according to the government’s own findings, wages aren’t growing and much of the job creation isn’t happening in Trump’s heartlands of support.

“The International Monetary Fund, largely accepted as an American controlled world bank and economic police force, has even publicly warned that the policies could cost the global economy US$430bn, or 0.5% in growth in the near future, with the US particularly vulnerable.”

In fact, many are warning that as the year progresses we’re going to start seeing the harsh realities of the policies in potential economic contraction and job losses. There is, of course, the possiblity that Trump’s policies could work for the US economy but it must be made clear that in almost every single example throughout history there has always been a loser. In most cases all sides have lost and in the worst examples, and the most relevant, it has meant global economic catastrophe. Perhaps the most concerning element of this potential repeat of history, however, is that Donald Trump is not Hoover, and by most reliable accounts doesn’t seem to have a coherent policy beyond “getting tough”.

Trump has also made the point, fairly in some ways, that a lack of maufacturing capability is a threat to national security and on this he has history on his side. In World War Two the famous Detroit manufacturing belt was said to have won the war for the allies in that it was able to make vast quantities of munitions and war supplies at a quicker rate than the Germans could manage.

This was backed up by a recent article in the Financial Times which said: “Inside the administration, the view described by a number of current and former officials is one that more resembles chaos. The erratic course of the trade talks has been partly driven by fierce infighting among officials who have been sarcastically dubbed “The Magnificent Seven” by critics.

Knowing what the trade war is, what is the likelihood of its success? Will it work?

“There is little, if any, policy process to guide the US side. Most of all, there is a president determined to keep his campaign promise to get tough on trade but with little consensus on how to proceed”.

Rather than ask', will this work?', perhaps we should be asking' has this worked before'? In order to understand that question we would do well to remember the closest example known to us from modern history, namely that of the Smoot-Hawley Tariff Act, which was passed in the 1930s by then-President Herbert Hoover.

If this account is anything resembling truthful, then we can be very jittery indeed about the implications of a trade war initiated by somebody who has no historical or economic literacy in the consequences of such actions.

The act, otherwise known as The Tariff Act, increased nearly 900 American import duties and was passed as the world was tumbling into the Depression. It was written and debated at a time when

Air freight contiues to be an important market with volume up by 9% in 2017, the strongest growth since 2010. 75

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THE RESURGENCE OF THE HIGH STREET Words : Emma Martin | View : Matthi

Evidence of this has been reported by the Financial Times which states that the total market share of online sales of non-food items increased from 11.6% to 24.1% between December 2012 and December 2017, and it’s easy to see why some consumers are voting with their feet. Online shopping provides customers a quick and efficient service which it is becoming harder and harder to contend with. Online marketplaces give consumers the chance to make informed choices by comparing prices and reading reviews, as well as advertising tempting offers and tailored suggestions based on previous purchases and tracked internet habits. All of that, coupled with ever reliable next day delivery services, means that shopping from the sofa has never been so attractive.

here is no question that the high street is changing. Household names like Woolworths, BHS, Toys “R” Us and Blockbuster have completely disappeared from our streets, while big brand names like New Look, House of Fraser and Homebase are all reportedly struggling. Some experts have even gone as far as to predict that 100,000 high street shops will become vacant in the UK within the next decade – a symptom of changing consumer behaviour. But new data from mobile payment company YoYo, in partnership with YouGov, indicates that the high street isn’t quite as unpopular as we might think. Its research showed that the high street was the preferred way to shop for the majority of 18 to 34 year olds, with 42% opting to shop face-to-face, compared to 39% choosing to shop online. This data is interesting as it contradicts the many headlines which state that the death of the high street is just around the corner; instead it indicates a dip in overall popularity, far from the bleak picture painted by the media.

So what can high street retailers do to win back customers and rebalance the scales? The YoYo study interestingly revealed that more young people would use the high street in return for a more personal service. When asked whether they would be willing to hand over personal details like email addresses in exchange for a tailored service like they might receive online, over half said yes. Michael Rolph, co-founder and CEO of Yoyo, commented: “Despite all the doom and gloom reported, this data shows willingness among 18 to 34-year-olds for the high street to survive and prosper, but they’re asking retailers to elevate the shopping experience to match ever growing and changing expectations.”

Importantly though, the results did reveal that there was a significant number of responders (26%) who said they had shopped on the high street less in the last 12 months than they had in the previous year, suggesting that there is something drawing consumers away from traditional methods of shopping. The leading theory here is that more shoppers are opting to buy online rather than on the high street which is resulting in dwindling customer numbers, tumbling profits and the eventual store closures.

This means that retailers are going to have to get creative in order

to compete with the digital offering, laying the ground work for the rise of experiential retail. Experiential retail, as the name implies, refers to providing a shopping service based on the experience for the customer, something that many experts believe will be vital to the resurgence of the high street. JLL’s Beyond Buying Report 2018 highlights 6 dimensions of retail experience which are vital to providing the kind of experiential shopping trip that could be a springboard to a new era for the high street. When breaking down the dimensions JLL cite that consumers expect:

“New data from mobile payment company YoYo, in partnership with YouGov, indicates that the high street isn’t quite as unpopular as we might think. Its research showed that the high street was the preferred way to shop for the majority of 18 to 34 year olds, with 42% opting to shop face-toface, compared to 39% choosing to shop online.”

1. To see an interior that is distinct from other stores like it 2. To easily find what they are looking for 3. To encounter helpful and knowledgeable store associates 4. To receive special rewards or promotions based on loyalty 5. To feel like the retailer makes a difference in the lives of shoppers 6. To be able to access store, mobile or website when and where they want To further assess how current stores are performing JLL carried out a survey to measure the six dimensions of retail experience in popular US stores. Apple, Victoria’s Secret, Ulta Beauty, Bath & Body Works and Ikea all scored well, providing an insight into what we should expect from the future of retail. Take Apple, for example. From their minimalistic and modern store fronts, to ‘Genius’ assistants, in-shop diagnostics and repairs, charging points and free to use gadgets, spending time in an Apple shop is an immersive experience that you can’t compare to buying online. And Apple isn’t the only one already providing experiential shopping as part of its MO. Popular cosmetics company Lush posted a record turnover of £995m for the year to June 30th, up from £729m in the previous year, thanks in part to its unique and experience-driven stores. Lush is a fantastic high street success story and an example of a brand taking notice of what makes consumers tick. The experience Lush offers starts before you’ve even stepped through the door of one of its shops. The unmistakable smell of bath bombs, shower gels and scrubs cunningly pulls in consumers from the high street who might have otherwise walked past. Once inside the customer is then (more often than not) greeted by smiling shop assistants getting hands on with products in demonstrations. Insider Trends describes Lush as ‘a riot of colour and smell’ and comments on the experiential aspect of shopping at Lush “Through product interaction customers are buying into the theatre that Lush stores promise and falling in love with products. There’s the promise of surprise and magic with Lush products that your average bottle of bubble bath doesn’t have. Staff add to this by regularly ‘detonating’ bath bombs and other products in basins throughout Lush stores. Customers are invited to gather round and get involved. It also makes for a great shareable moment online as well, which means customers want to capture it.” It is anticipated that the emergence of experiential retail will, in the main, effect mid to high range retailers who focus on providing a luxury product. We can expect to see the rise of experience based shopping quickly filter down to the high street, with companies building on the already existing physical features that consumers are used to, like department stores with cafes, charging ports in tech shops and cosmetics stores which offer free samples and tutorials.

Royal Mile high street, Edinburgh

Experts believe that technology and virtual reality (VR) will play a central role in the development of the sector as new technologies provide creative ways for retailers to interact with customers. This could include clothes shops using digital screens in changing rooms which can help visualise outfits, or call an assistant; furniture stores providing tablets which can show you what the products would look like in your home; or even ‘retailtainment’, like the new L’Occitane store in Manhattan which uses VR to send their customers on a hot air balloon ride across the south of France whilst simultaneously being massaged with L’Occitane products. Topshop previously did a similar promotion with its #TopshopSplash campaign in which customers could go on a virtual reality waterslide through Oxford Street. Paired with the use of social media hash-tagging and the opportunity to have your photo taken at the end, it was a powerful sales tool which naturally increased footfall and sales as consumers are curious to try it out themselves.

Events, demonstrations and tasters are other ways that stores can increase footfall and build brand identity. Popular skate apparel brand Vans provide the perfect example with its flagship London event space – House of Vans. Rather than being a storefront, the mixed-use space is free to use and boasts a cinema, bars, cafes, art gallery and even a basement skate park. Not focused on making sales, but building on the brand, Vans is boosting customer loyalty which will positively impact sales figures further down the line. Steven Dennis, a brand strategy consultant, explains: “You either need to pivot more towards the Amazon side of incredible convenience and great selection and low price or you’ve got to pivot to the other extreme, which is to be more special and remarkable and differentiated.” Experiential retail is a direct reaction to the changing behaviours of consumers who, under an increasingly difficult economy, are more likely to spend time making a purchase – particularly for a high value product. Experience driven shopping which provides long lasting memories is sure to build a loyal customers base. We anticipate that the high street will turn away from being a place where sales are made to being a place where brands push their products and ethos, whereby consumers may well go online to make a final purchase once convinced by an enjoyable and remarkable shopping trip. Lush soap store

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WHAT’S THE ALTERNATIVE? RACEHORSES Words : Alex Timperley | View : Kamil Saks

cheap when compared to many investments which may be considered more ‘traditional’ such as property, gold or bonds.

hen you really break it down, serious investing is just betting for wealthy people. Betting on the ups and downs of stock markets, betting on how good people are at their jobs, betting on what people might want in the future, betting on everything staying the same, betting on everything changing.

Investing in horse racing also has many unique benefits which are unavailable to investors who stick with the more boring markets. You don’t get to watch gold bullion be nurtured and grow. You don’t get to cheer your stocks and shares as they gallop around a track. You don’t get to see your buy-to-let property tear across the finish line and win the adoration of thousands of people.

So if you are getting bored of traditional investments and looking for a new thrill why not go all in and put your money into horse racing? By this we don’t mean put all your money on an amusingly-named 100/1 outsider at next year’s Grand National; instead, why not look at investing in the horses themselves?

There really isn’t much else out there which offers the same thrill as investing in a racehorse – assuming that you are not in the sort of financial class that enables you to buy and run a football club, or something equally preposterous. Owning racehorses was largely the preserve of bored European monarchs once upon a time, but today people from all over the world are investing in the market. It is popular across the globe in countries as far removed as Qatar, Japan, Australia and the USA.

Horse racing, the Sport of Kings, is one of the most popular sports on the planet, though much of it can be confusing for an outsider. It pays to do some serious research to get your head around the seemingly-impenetrable terminology and traditions which define horse racing before saddling up and investing. For instance you don’t want to turn up at a UK bloodstock auction ready to buy a racehorse and have no idea why it is valued in guineas rather than pound sterling, or how much that means you will end up actually paying.

And they’re off! Once you have decided to inject a bit of excitement into your life and enter the world of horse racing, where is the best place to start? Right out of the gate you will have to choose between the two main ways to invest, with one being significantly more expensive than the other.

With the above in mind, you would be forgiven for looking at the world of horse racing and wondering if getting involved is more hassle than it is worth. After all, if you don’t belong to a great Irish stable or one of the various racehorse-obsessed royal families then how do you even get started?

The expensive track is the simplest way to do it, predictably enough. One way to start is to buy a horse outright from a specialist bloodstock auctioneer. Any racehorse you buy will cost thousands

However this impression could not be further from the truth. In reality investing in racehorses is accessible and can be relatively

of guineas, and the most promising horses from the best bloodlines can cost millions. The cost can also be affected by regular supply and demand factors; if fewer thoroughbreds have foaled in a year then the price will go up. As the sole owner you are responsible for the upkeep, stabling, training, medical bills, race entries and all other associated costs which come with your brand new horse. The Racehorse Owners Association estimates that the cost of owning a racehorse is an average of £20,000 a year, and it is worth bearing in mind that this is the same regardless of whether the horse is a winner or not. There will be champion exceptions, but the general rule is that every £100 you spend on a racehorse will only return £20 – a never ending 5/1 bet. If simply owning a horse is not enough for you, and you have monumental amounts of cash to spend, you could go even further and set up your own stable – though we would not recommend it. Horse racing is a mature market, meaning that the successful stables are already well-established and fine-tuned for winning. Breaking into this small circle will require a lot of time, money and the returns are likely to be frustration and disappointment. It would be wise to stick to the simple stuff. But what if you want to keep it simple but can’t afford a whole

horse? Worry not – we have a solution. Syndication For those who want to get the thrill of horse racing without it costing the earth, the answer is syndication. This is by far the most popular option with at least half of all racehorses in the world being owned in this way. A syndicate is a small group of people who club together to purchase a racehorse as a group in the hope of winning a small bit of the annual £110m prize money on offer within the annual racing circuit. Depending on how much you pay into the syndicate you could own the equivalent of a whole leg or an ear or whisker. From here it is likely that you will either pay an annual flat fee or a monthly subscription cost on top, which covers expenses such as stabling costs and medical bills. You make money from your syndicated racehorse in two separate ways; the first is that you will get a share of any race winnings; the second is that you will get a share of any money made if the horse is eventually retired and sold on for breeding purposes, thereby perpetuating the cycle of new racehorses for syndicates to invest in. It is worth re-emphasising the risks at this point. Much like purchasing a racehorse yourself, any potential profit from investing

in a horse racing syndicate is entirely hypothetical. No one can guarantee a horse will win a race because anything can happen. Likewise, no one can give you a 100% assurance that your racehorse will eventually find a profitable retirement after its racing days are done. However, the beauty of horse racing is that everyone can hope they will get lucky and find the next champion racehorse. There’s nothing to say that you haven’t put your money into the next Frankel, Sprinter Sacre or Kauto Star and are in line for serious returns. In the same way as no one can guarantee you a horse that wins, no one can tell you that the horse you’ve invested in definitely won’t win anything – you just have to make sure that the investment suits you. The important things to look at when considering investing in a racehorse syndicate include making sure the financial model suits you, that your expectations are realistic and you are not expecting instant returns, that the people in charge of purchasing the horse have a good track record and that a reputable trainer is employed. For instance, Highclere, one of the largest managers of horse racing syndicates in Europe, runs a whole range of syndicates each year which range in both price, and how many horses are included. As the favoured syndicate manager for celebrities around the world

Highclere has a first class reputation built on success stories such as Petrushka. Petrushka, a dark chestnut filly named for a Russian ballet in honour of its dam Ballet Shoes, originally cost the Highclere syndicate IR£110,000 and went on to win multiple major races in 2000. The Nell Gwyn Stakes, Irish Oaks, Yorkshire Oaks and the Prix de l’Opéra – these wins made Petrushka’s name and contributed to total prize winnings of £367,624 over her career. However, the best was yet to come for the syndicate investors; after three years of racing Petrushka was retired to stud and sold to a stable owned by HRH Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, for a then-world record US$5.25m Horses of Petrushka’s quality, temperament, courage and skill are uncommon, but they are the prize on offer when you invest in racehorses. Whether you go it alone or join a syndicate it is possible to make a lot of money off horse racing, though to view it in entirely financial terms is perhaps missing the point. As Stuart Riley of the Racing Post says, horse racing is more of a have-fun-quick rather than a get-rich-quick scenario for most people, but that shouldn’t put an investor off; racehorses are a fantastic alternative investment to brighten up a portfolio.

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SHOULD I MOVE TO? MONTEVIDEO Words : Michael Smith | View : Oriol Querol

time there, as people often pass you in the street with a smile and a hello. Much of this could be credited to the Uruguayans widely adopted views on transparency and a deep running hatred for corruption.

outh America has often been a region that attracts a lot of attention in the media, be that through political struggle, high mortality rates, financial hardship or the manufacture of illegal drugs. As a result of this one could be forgiven for thinking that this is a continent to fear, and yet this would be a massive oversight. Despite its difficulties, South America offers some of the richest, most vibrant and visceral culture anywhere, and its people certainly know how to make you feel welcome.

Unfortunately, much of the continent of South America is blighted by corruption, which in some cases has had a detrimental impact on both economic ambition and voter trust and sentiment. As countries like Argentina and particularly Venezuela face very difficult economic conditions, in stark contrast Uruguay boasts one of the continent’s most stable employment and financial markets.

Although my own personal experiences with this continent are limited, from where I’ve been thus far I feel a genuine connection with what I have found. Close friends living in Santiago form the basis for me to spread my wings into the neighbouring countries. On one such journey I found myself in Montevideo, a beautifully paced place where the fast-moving globalised world is far, far away.

There isn’t much of a class divide to speak of in Uruguay, with nobody having excessive amounts of power or wealth. The country’s government is run by a well-grounded socialist party, with ideals that stem around balance and support for all. Former President Jose Mujica fought against the country’s long-running dictatorship and has been described as "the world's humblest head of state", having shunned much of the pomp and circumstance a leader might embrace. He never wore a tie to work and during his time leading the country had little to no possessions other than a small farm and an old car.

Uruguayans would be the first people to profess they’re a little behind the times, but they would wear the statement as a badge of honour rather than a cross to bear. Its old-fashioned charm gives it a character very dissimilar to anywhere I’ve been before. In some ways I’d liken it to the pace of life you’d find in Havana, as people enjoy the rum, tropical climate and the permanently relaxed sense of urgency.

Uruguay’s current president, Tabaré Vasquez, is a popular physician who still practices medicine when he isn’t working on legislation and social concern. The country’s socialist government clearly sets a good example, with Uruguay having one of lowest crime-rates in South America. This isn’t to say that Montevideo doesn’t have its share of issues, but you do feel that help is never far away.

As you might imagine this approach can be a little jarring if you need assistance with a dispute or maybe find yourself in a rush to get anywhere. Between mid-December and mid-February much of the country will grind to a halt, with most Uruguayans taking the summer off to go to the beach. Some of the wealthier citizens can afford their own summerhouse on the coast where they take their whole families to relax, eat and enjoy the high temperatures.

For me, what stands out the most when I look back on my time in Montevideo is food and drink. As you might imagine the meat and wine in this part of the world is absolutely outstanding. Beef is king, with sirloin, rib eye and tenderloin featuring front and centre on nearly every menu you happen to read. Uruguayans produce

Family time is certainly a priority for most Uruguayans, and it’s clear these strong bonds have created a culture where people feel welcome and comfortable. I never felt a sense of danger during my

Montevideo, Uruguay

"There isnâ&#x20AC;&#x2122;t much of a class divide to speak of in Uruguay, with nobody having excessive amounts of power or wealth. The countryâ&#x20AC;&#x2122;s government is run by a well-grounded socialist party, with ideals that stem around balance and support for all."

A major part of Uruguayâ&#x20AC;&#x2122;s appeal for me personally is its unique gaucho culture, which forms the basis for much of the countryâ&#x20AC;&#x2122;s heritage. This collection of knowledge, arts, tools, food, traditions and customs have been formed over centuries creating the culture we see in Uruguay today. Palacio Salvo in the centre of the city of Montevideo, Uruguay

and prepare all types of beef exceptionally well, no matter where you may find yourself. One of the best steaks I have ever eaten was at highway petrol station just outside Montevideo, where we happened upon an elderly gentleman cooking cuts over a disused petrol barrel. Pre-cut into individual pieces with a delicate chimichurri it always comes to mind when I’m eating meat. Wine too is a big part of the lifestyle here, and tannat in particular is a popular grape in the production of Uruguay’s wines. Historically grown in South West France in the Madiran AOC, it is one of the most prominent grapes in Uruguay, where it is considered the "national grape". A very popular pastime is to visit the local wineries, with a whole host just a short journey outside the capital. Most are run by large families who welcome you with open arms and large glasses of high-quality wine and great food. With such a long history of producing wine, each vineyard has its own personal charm and approach to production. In some cases, the farming apparatus was over 100 years old.

Tannat, the national grape of Uruguay

With such a laid-back way of life and an abundance of high-quality alcohol, Uruguayans certainly know how to have a night out. Most restaurants don’t open until at least 8pm with some at the weekend not serving food until midnight. The same approach applies to Montevideo’s night club scene with places opening at around 2am and closing at around 8am. If you’re hoping for an early meal at the weekend I’d recommend having a late lunch instead. A major part of Uruguay’s appeal for me personally is its unique gaucho culture, which forms the basis for much of the country’s heritage. This collection of knowledge, arts, tools, food, traditions and customs have been formed over centuries creating the culture we see in Uruguay today. The country’s annual rodeo festival is your best opportunity to witness this history coming together. The Rural del Prado is an important agriculture fair that Uruguayans flock to every year. So, you might be thinking there must be some drawbacks to Montevideo, and indeed like anywhere there are. Once you’ve visited the beach, the winery’s and tried the local food you may find yourself running out of things to do. Just next door, Argentina offers much better shopping, a much greater variety of places to eat and a much wider array of sightseeing hotspots. Even Uruguayans would agree with this, as many will visit Argentina regularly to do those things, with Buenos Aires only a short ferry-ride away. As a by-product of the laidback culture, cities in Uruguay are far from clean with rubbish collectors often on strike or taking long breaks during the summer months. Rubbish would often pile up with one having to dodge rubbish pyramids in even some of Montevideo’s most popular spots. Adding to this, stray dogs are a constant problem with their waste and control proving a popular topic of displeasure. Language too can be an issue as a form of Spanish influenced by Portuguese, Guaraní and Italian is the only language spoken. You can get by with a basic understanding, but learning these little nuances makes integrating easier. You can also forget any ideas of trying to force a response in English as the language has little to no presence here. For me though, these complaints are very minor, and I feel they stand as little deterrence to the appeal of Montevideo. This is a country isolated from much of the western world, and its absence is what gives it a real individual character. Its way of life may appeal more to individuals that prefer a beach holiday rather than a city break, but I think its ideals run deeper than that. Too often I find myself not making enough time for the things that truly matter. We spend so much time working and trying to earn a good living to buy bigger houses and obtain more possessions, when in actual fact our friends and family should be the priority. The people of Uruguay understand this, and this attitude flows all the way to the top of government. If you aspire to a life that focuses on time spent rather than time earned, then I think you should make Montevideo you next port of call.

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GREAT CENTRAL SHEFFIELD --FROM: £110,000

> 131 modern apartments > Next big UK market > Short walk to city centre > Great transport links > Lettings and management company in place

Great Central is the latest new development from Knight Knox in Sheffield, one of the UK’s fastest-growing cities which is set to be the next big national property market. Comprised of 131 stunning apartments spread over eight storeys, Great Central is set to be an extremely popular addition to the busy Sheffield residential market. With both rents and house prices in the city predicted to rise significantly over the next five years, this is the perfect time to get ahead of the game and invest in Sheffield.

IN CONSTRUCTION

X1 SOUTH BANK LEEDS --ÂŁ144,995

> Local rental market is booming > Lettings and management company in place > Walking distance to Leeds city centre > Built by an experienced developer > Great transport links

X1 South Bank comprises of 928 new homes alongside commercial units, cafes, gymnasiums, secure bicycle storage, extensive parking facilities and an on-site management office to ensure that both landlords and residents are taken care of. The apartments themselves are generously sized and designed to make the best use of natural light to provide a bright and airy living environment. The specification is exceptional, including the modern fixtures and furnishings which come with each apartment.

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X1 CHATHAM WATERS KENT --ÂŁ190,000

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Following the huge success of MediaCityUK, Manchester, Peel is delivering a ÂŁ650m destination waterfront in Kent. Already well underway with retail, leisure, and education phases delivered, and more to come including offices, and an events building, this will be a world class destination. Award-winning developer X1 is proud to be working in partnership with Peel on this exciting new masterplan at Chatham Waters. Commanding a prime waterfront location within the larger development, the high specification apartments at X1 Chatham Waters will boast outstanding views across both the marina and the Thames estuary.

IN CONSTRUCTION

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BRIDGEWATER WHARF GREATER MANCHESTER --FROM: ÂŁ139,995

> Local rental market is growing strongly > Superb public transport links > Lettings and management company in place > Within walking distance of MediaCityUK > Perfectly placed between Manchester and Salford

Bridgewater Wharf is the new development from Fortis Developments and Knight Knox in Greater Manchester, close to both Manchester and Salford city centres. Comprising 376 apartments spread over eight storeys, the development is a premium opportunity for investors looking for their next property. The studio, one bedroom, two bedroom and three bedroom residential apartments at Bridgewater Wharf are sure to prove popular in Salford which is suffering from a ongoing shortage of high quality rental accommodation.

IN CONSTRUCTION

102

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NORTHILL APARTMENTS SALFORD QUAYS --FROM: ÂŁ242,495

> 269 luxury apartments > Excellent transport links > Within walking distance of MediaCityUK > High rental demand in the area > Easy access to Manchester city centre

Northill Apartments is the latest addition to the flagship development, Fortis Quay and is sure to be popular amongst the thousands of young professionals looking to live and work in Salford Quays. There will be a range of luxury apartments from studios to three beds, which will raise the bar in modern living. All apartments will be designed to the highest possible standard with state-of-the-art fixtures and fittings, making it the perfect addition to any property portfolio.

IN CONSTRUCTION

104

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X1 MANCHESTER WATERS MANCHESTER --FROM: £119,995

> Five minutes to Manchester city centre > Waterfront location > Good local transport and amenities > Private tenant amenities > Managed by award-winning X1 Lettings

X1 Manchester Waters is the 28th joint venture development from Knight Knox and X1 and will deliver luxury waterfront apartments to the thriving buy-to-let market. Located just five minutes away from Manchester City centre the location of this development is unrivalled, giving tenants the tranquillity of waterside living as well as everything that the UK’s ‘second city’ has to offer on the doorstep.

IN CONSTRUCTION

106

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X1 MEDIA CITY TOWER 4 SALFORD QUAYS --FROM: £139,995

> Studios, one and two-bedroom apartments > Lettings and management company in place > Private communal facilities > Great transport links and shopping > All three previous phases sold out

The fourth and final tower in X1 Media City will follow in the footsteps of its predecessors, offering high-end residential living in a highly sought-after area. This development’s stunning exterior perfectly epitomises the luxury within, and is just a stone’s throw away from the iconic MediaCityUK site on the picturesque Salford Quays waterfront.

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X1 THE LANDMARK SALFORD --FROM: £236,000

> Private communal facilities > Beautiful balconies with dynamic city views > Prime city centre location > Within walking distance of local amenities > Experienced management company in place

The newest addition to the Greater Manchester skyline, X1 The Landmark will provide 191 stunning apartments to the thriving Salford rental market. Situated in a prime location between two thriving cities, X1 The Landmark will offer residents the best of both worlds—able to enjoy the picturesque waterfront destination found in Salford’s MediaCityUK, yet just a stone’s throw away from Manchester’s dynamic city centre.

IN CONSTRUCTION

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THE TOWER AT X1 THE QUARTER LIVERPOOL --FROM: ÂŁ279,995

> Highly sought-after location > Lettings and management company in place > Private communal facilities > Great transport links and close to shopping > Built by experienced developer

The Tower is the fifth and final phase of X1 The Quarter, X1â&#x20AC;&#x2122;s award-winning development near the beautiful Liverpool waterfront, with all previous phases sold out and fully occupied. The success of the previous phases demonstrates the huge demand for prime residential accommodation in Liverpool, and The Tower at X1 The Quarter is sure to prove popular with both investors and future tenants.

IN CONSTRUCTION

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X1 THE CAMPUS SALFORD --SOLD OUT > Built by experienced developer X1 > Close to excellent public transport links > Close to local shops, bars and restaurants > On-site gymnasium > Private student accommodation is a booming investment class

X1 The Campus is the latest student development from the award-winning X1. This newly-built development is well located on the university campus, and will offer students great on-site ammenities and facilities. Salford plays host to everything which a modern student could possibly want from a university city â&#x20AC;&#x201C; not just a fantastic university which is a leader in its field, but also a range of pubs, restaurants and shops in the local area.

IN CONSTRUCTION

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BRIDGEWATER GATE SALFORD --SOLD OUT

> Local rental market is booming > Private rooftop terrace > Great transport links > Built by an experienced developer > On-site lettings and management company

Bridgewater Gate is enviably located on the edge of Manchester city centre in the thriving area of Castlefield. This luxurious development will have all the advantages of being a short walk away from the local parks and independent shops of suburbia, but also the vibrant bars and restaurants of the city. It also sits within walking distance of MediaCityUK, home of the BBC and ITV.

COMPLETED & OCCUPIED

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BELLS COURT SHEFFIELD --SOLD OUT

> Assured 7% rental income for one year > Fully-furnished > Excellent city centre location > Luxury studio apartments > High rental demand in Sheffield

Located in the heart of the city centre Bells Court is a high-end residential conversion, bringing 29 luxury studio apartments to the ever growing rental market in Sheffield. Ideal for both students and young professionals Bells Court answers the growing need for premium rental accommodation, and is perfectly located for tenants to enjoy all that the city has to offer.

COMPLETED & OCCUPIED

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yieldit / For Sale

Studio apartment for sale: £85,000

How this property performs Purchase price

£85,000

Gross rent

£6,300

Ground rent

£250

Service charge

£723

Lettings fees

£504

Net income*

£4,823

Gross yield*

7.41%

Net yield*

5.67%

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*All financial information is provided as a guideline only, is subject to change and does not constitiute a contract. As with any investment, please be aware that your capital may go up or down. © 2018 yieldit yieldit is a trading name of Knight Knox Ltd, a company registered in England and Wales. Registered number: 5236745