What would you like first? A gloomy prediction? Or a vision of impending apocalypse?
OK, gloomy prediction: estate agency, Knight Frank, says Spanish house prices have hit bottom, but will stay there for another two years. What's more, only home-owners selling properties in the most des res areas of Spain's biggest cities can hope to make a sale. In the countryside, small towns and coastal resorts the market will be “stalled for years” the agency says.
Now for that vision of apocalypse, but first, take note, Spanish property prices are already 35 per cent below their 2007 peak. Consultancy, Capital Economics, forecasts prices will crash another 30 per cent, because the house-price-to- earnings-ratio is way out from its historical average.
Making things worse, earnings look set to fall and developers must sell at “rock bottom prices” to shift newly built stock over the next couple of years. Ay caramba!
http://globalpropertynews.blogspot.com
Friday, 30 October 2009
IRELAND'S NEGATIVE EQUITY PROBLEM GROWS
One in four Irish households will be in negative equity by the end of 2010 if property prices continue to slide. Irish homes have lost 30 per cent of their value over the past two years and some commentators speculate this could become minus 50 per cent in twelve months time.
Today, stockbroker, Goodbody, estimates the average household has debts Euro43,000 greater than the value of their home.
Unfazed by Ireland's debt burden, some investors believe profits can be made, because falling prices have improved yields. British property company, Assetz, says “Ireland is now in a prime position for a carefully selected property investment.”
It is marketing Knocktopher Abbey which has been converted into holiday apartments. There are also cottages for sale in its 17 acre grounds. Here, investors are promised rental returns of 6 per cent net for the next ten years by its operator, Seasons. They can use their property for four weeks each year. Prices from euro209,000.
http://globalpropertynews.blogspot.com
Thursday, 29 October 2009
RECORD SALES PRICE IN HONG KONG
It's a chain reaction. In Hong Kong, a gentleman from mainland China has paid a world record breaking price for a duplex flat of HKD439 million (GBP34.2 million). Estate agents are delighted, but Hong Kong residents blame incoming billionaires for inflating property prices beyond their reach.
A skewed solution to Hong Kong's home ownership problem is found in London. British developers are offering London projects to Hong Kong buyers before marketing them in Britain, even though there is a housing shortage in the British capital.
London property prices have partly recovered from their 2008 lows, but the weakness of Sterling makes them cheap by international standards, so Hong Kong and Singapore investors are keen to buy.
But what about Londoners struggling to find a home of their own? The last time developers put Londoners last in the queue, earlier this decade, they bought as far afield as Normandy. Eurostar passenger numbers are likely to rise shortly.
(All The World's a Home : Global Property News)
A skewed solution to Hong Kong's home ownership problem is found in London. British developers are offering London projects to Hong Kong buyers before marketing them in Britain, even though there is a housing shortage in the British capital.
London property prices have partly recovered from their 2008 lows, but the weakness of Sterling makes them cheap by international standards, so Hong Kong and Singapore investors are keen to buy.
But what about Londoners struggling to find a home of their own? The last time developers put Londoners last in the queue, earlier this decade, they bought as far afield as Normandy. Eurostar passenger numbers are likely to rise shortly.
(All The World's a Home : Global Property News)
Thursday, 15 October 2009
USEFUL WEBSITES FOR BRITISH HOME BUYERS
Once upon a time you had to make endless phone calls and wait several days for bulky brochures to arrive by post when searching for homes in Britain. Now, you can find most information, including what the street looks like, what the house next door sold for and what mortgages are available with just a click of a mouse.
Websites providing extensive property listings include FindaProperty.com, Rightmove.com and Propertyfinder.com. Some of these and other property search sites give information on mortgages, insurance, Home Information Packs (HIPs) and other homebuying services.
Property search sites like Globrix.com and zoopla.co.uk give data on prices trends. And another search site, upmystreet.com , offers advice on how to improve a property and deal with nuisance neighbours.To find out which properties have had their prices reduced go to propertysnake.co.uk
The Land Registry, landregistry.gov.uk gives official statistics on house prices although it is a couple of months delayed. If you want more recent house price data look at market monitors hometrack.co.uk, hbosplc.com and http://www.nationwide.co.uk/.
The BBC provides a mortgage calculator on its website which shows how much you can expect to pay at different rates of interest,
bbc.co.uk/homes/property/mortgagecalculator.shtm.
Google has added several features in the last couple of years which are useful to property buyers: by typing in a property's address, Google Street View and Google Earth give street level and bird's eye views of it and the surrounding area respectively. Meanwhile, Google Maps shows where the property is located.
Information about a neighbourhood's facilities is available from nestoria.com and ukvillages.co.uk, although both can be several months out of date.
Websites providing extensive property listings include FindaProperty.com, Rightmove.com and Propertyfinder.com. Some of these and other property search sites give information on mortgages, insurance, Home Information Packs (HIPs) and other homebuying services.
Property search sites like Globrix.com and zoopla.co.uk give data on prices trends. And another search site, upmystreet.com , offers advice on how to improve a property and deal with nuisance neighbours.To find out which properties have had their prices reduced go to propertysnake.co.uk
The Land Registry, landregistry.gov.uk gives official statistics on house prices although it is a couple of months delayed. If you want more recent house price data look at market monitors hometrack.co.uk, hbosplc.com and http://www.nationwide.co.uk/.
The BBC provides a mortgage calculator on its website which shows how much you can expect to pay at different rates of interest,
bbc.co.uk/homes/property/mortgagecalculator.shtm.
Google has added several features in the last couple of years which are useful to property buyers: by typing in a property's address, Google Street View and Google Earth give street level and bird's eye views of it and the surrounding area respectively. Meanwhile, Google Maps shows where the property is located.
Information about a neighbourhood's facilities is available from nestoria.com and ukvillages.co.uk, although both can be several months out of date.
To ask residents and local property experts questions about an area go to godirect.co.uk.
Both the National Association of Landlords, landlords.org.uk. ,and Association of Residential Letting Agents, arla.co.uk., provide advice to investors. The ARLA site also lists letting agents.
For buyers seeking help from a buying agent, The Association of Property Finders and Buyers Agents (APFBA) has 50 members listed on its website, apfba.org.
The Royal Institution of Chartered Surveyors (RICS) provides advice, including how to buy at auction on its website rics.org, plus market comment and a list of members for buyers who want a property surveyed.
Thousands of repossessed homes for sale can be found at repossessedhousesforsale.co.uk and property auction news is available at propertyauctions.com
For more information about HIPs, property information that a home seller must give a buyer, go to homeinformationpacks.gov.uk.
(All The World's a Home : Global Property News)
Thursday, 8 October 2009
SPAIN'S MARKET HOTS UP
Spain offers home buyers the best value for money for ten years says British property company, Assetz. With property prices down by as much as 40 per cent in key tourist hotspots, like the Costa del Sol, overseas buyers were trawling the market for holiday homes at “rock bottom prices” the company reports. It has received a 150 per cent increase in enquiries in the past three months.
Today, a three-bedroom villa with pool on the Costas can be bought for around Euro400,000, compared to Euro650,000 at the peak of the market the company says.
Buying agents, like The Property Finders, consider the bottom of the cycle may have been reached for upmarket homes on the Costas.
However, buyers are advised to avoid homes valued at less than Euro150,000 which are in huge oversupply. Spain has one million empty homes, many of them unwanted holiday apartments.
(All The World's a Home : Global Property News)
Today, a three-bedroom villa with pool on the Costas can be bought for around Euro400,000, compared to Euro650,000 at the peak of the market the company says.
Buying agents, like The Property Finders, consider the bottom of the cycle may have been reached for upmarket homes on the Costas.
However, buyers are advised to avoid homes valued at less than Euro150,000 which are in huge oversupply. Spain has one million empty homes, many of them unwanted holiday apartments.
(All The World's a Home : Global Property News)
NEW YORK'S PROPERTY MARKET GETS BUSY AGAIN
New York's property market is beginning to resemble the hustle and bustle of Fifth Avenue again. Some big deals are being made. Seventy per cent of apartments at District, an Art Deco conversion in Manhattan's Financial District, have been sold. Prices for the 163 apartments start at $500,000 for a studio.
“Real estate is a very psychological animal. Now that we’ve seen the worst of the storm, deal activity has increased dramatically,” says Stephen McArdle, principal of Urban Marketing, the project's promoter, “Pricing has become more realistic and true to today’s market.”
Meanwhile, sensing an upturn in the market for big property purchases, the Maharishi Mahesh Yogi's spiritual movement is attempting to sell a Wall Street centre for transcendental meditation, for $45 million, eight times more than followers of this non-proft organisation paid for it in 2004. The five storey, neo-classical building has been “completely renovated” its broker says.
(All The World's a Home : global property news)
INDIA'S PROPERTY MARKET RECOVERY MAY STALL
A recovery in India's property market might stall analysts warn. Prices dropped like a stone after the credit crunch, by 50 per cent. Developers of high end schemes were hardest hit as the nouveau riche became the nouveau not-so-rich. Speculators who hoped to “flip” new build apartments were caught out too.
Now, prices are 20 per cent up from their lows of last year, but some commentators say this recovery has over-reached itself and that values in smaller cities could drop again. Big cities like Mumbai, New Delhi and Bangalore are where it's at they say, because their populations just keep getting bigger, pushing up the demand for housing. Investors are buying land ear-marked for high end schemes from cash-strapped funds, to build mass market housing for which there is firm demand.
However, other investors consider India yesterday's success story and are heading to Europe and the United States where returns are higher.
(All The World's a Home : Global Property News)
Now, prices are 20 per cent up from their lows of last year, but some commentators say this recovery has over-reached itself and that values in smaller cities could drop again. Big cities like Mumbai, New Delhi and Bangalore are where it's at they say, because their populations just keep getting bigger, pushing up the demand for housing. Investors are buying land ear-marked for high end schemes from cash-strapped funds, to build mass market housing for which there is firm demand.
However, other investors consider India yesterday's success story and are heading to Europe and the United States where returns are higher.
(All The World's a Home : Global Property News)
LONDON'S SMALL FLATS LETTINGS REVIVAL
While the recovery in London's residential sales market has centred on strong demand for large houses, small flats are the star performers in the lettings sector. Overall, rents have stopped falling in prime central London, letting agents say.
According to estate agency Savills, rents have risen 10 per cent for one-bedroom flats let to corporate tenants in east London's Docklands and Wapping districts over the past 12 months.
This meant they had recovered from last year's lettings slump, said Jane Ingram, national head of lettings at Savills.
"At the bottom of the market, typically they [one-bedroom flats in Docklands and Wapping] were letting at £320 per week, but now they are letting at £370 per week," she said.
"In some cases, they are nearly the same price as a corporate two-bedroom flat. We believe these one-bedroom flats are back to 2007 prices."
Rents are rising for small flats let for between £450 and £550 per week in Islington, she added.
Rents have risen for small flats because cuts in corporate accommodation budgets mean staff are looking for one-bedroom or two-bedroom homes instead of the larger properties they sought before the credit crunch.
In addition, many potential first-time buyers have opted to rent during the sales slump, pushing up demand for rental accommodation further, Ingram said.
Strong demand for small rental properties in areas close to the City of London and Canary Wharf financial districts means rents have stopped falling in prime central London overall.
However, the lettings slump continues for large homes in prime central London areas such as Mayfair, Knightsbridge and Kensington. Ingram said rents for family homes in these areas were 15 per cent below market peak levels of 2007 and were continuing to fall, though more slowly.
A four-bedroom town house in Chelsea, a typical type of rental house in that part of London, now lets for £2,000 to £4,000 per week, she said.
Savills forecasts that prime central London rents will fall 3 per cent to 4 per cent overall next year because of ongoing economic uncertainties, with the market for smaller homes continuing to do better than that for larger properties.
While a small number of British landlords are selling homes during the sales market upturn, particularly those who had let out their own homes reluctantly during the slump, Hong Kong landlords are holding on to their properties, Ingram said.
(All The World's a Home : Global Property News)
According to estate agency Savills, rents have risen 10 per cent for one-bedroom flats let to corporate tenants in east London's Docklands and Wapping districts over the past 12 months.
This meant they had recovered from last year's lettings slump, said Jane Ingram, national head of lettings at Savills.
"At the bottom of the market, typically they [one-bedroom flats in Docklands and Wapping] were letting at £320 per week, but now they are letting at £370 per week," she said.
"In some cases, they are nearly the same price as a corporate two-bedroom flat. We believe these one-bedroom flats are back to 2007 prices."
Rents are rising for small flats let for between £450 and £550 per week in Islington, she added.
Rents have risen for small flats because cuts in corporate accommodation budgets mean staff are looking for one-bedroom or two-bedroom homes instead of the larger properties they sought before the credit crunch.
In addition, many potential first-time buyers have opted to rent during the sales slump, pushing up demand for rental accommodation further, Ingram said.
Strong demand for small rental properties in areas close to the City of London and Canary Wharf financial districts means rents have stopped falling in prime central London overall.
However, the lettings slump continues for large homes in prime central London areas such as Mayfair, Knightsbridge and Kensington. Ingram said rents for family homes in these areas were 15 per cent below market peak levels of 2007 and were continuing to fall, though more slowly.
A four-bedroom town house in Chelsea, a typical type of rental house in that part of London, now lets for £2,000 to £4,000 per week, she said.
Savills forecasts that prime central London rents will fall 3 per cent to 4 per cent overall next year because of ongoing economic uncertainties, with the market for smaller homes continuing to do better than that for larger properties.
While a small number of British landlords are selling homes during the sales market upturn, particularly those who had let out their own homes reluctantly during the slump, Hong Kong landlords are holding on to their properties, Ingram said.
(All The World's a Home : Global Property News)
DESIGN ADDS VALUE TO LONDON HOMES
In London, intense competition between landlords for tenants has driven rent levels down for most properties. However, if a property is refurbished to a high standard, a landlord can increase its rental value by as much as 50 per cent. Resale values can be lifted by a similar amount.
"Based on examples of works that we have undertaken to completely refurbish properties, the rents achieved can increase anywhere from 25 per cent to 50 per cent depending on the level of specification," said Jane Ingram, national head of lettings at estate agency Savills.
Alan Waxman, managing director of developer Landmass London, advised landlords to create a smart, modern look.
"For rental properties, the trick is to furnish it as if it's a hotel," he said. "It's best to keep the decor neutral to attract tenants. With resale properties, you also need to offer a bit of a wow factor, so you make the property stand out from others and encourage a transition from a practical purchase to an emotional one. This can be done by introducing some colour, but don't go over the top - a signature wall is a safer bet than painting a room one colour, as you may otherwise run the risk of putting buyers off."
Deciding on the target market for resale is important. To attract bachelors, the property ought to include ultra-modern furniture and some black in the colour scheme. But Waxman warned that this combination would put off families.
"Creating atmospheric rooms can help to encourage an emotional purchase, but the decor must reflect the intended use of the room." he said. "You can create cosy rooms with darker colours and relevant lighting, whilst you can make the more practical rooms light and airy, using light colours and mirrors."
Homes for sale ought to be furnished even if being sold unfurnished, he advised. Furniture packages can be bought or hired from companies such as Landlord Furniture, which sell packs from £499.
"Artwork is really important, as otherwise the empty walls will make a property feel unfinished and stark," he said. "The same applies to curtains."
Prints and other artwork can be bought from £5 from http://www.art.co.uk/.
Interior designer Katharine Pooley said walls in rental properties ought to be painted with emulsion paint, which was easy to clean, and that a property needed to be maintained carefully, with cleaning materials used that would not damage surfaces. Furniture ought to be made from hard wood which is longer-wearing.
Whether refurbishing for sale or rent, investors should also consider structural issues, she said.
"There are so many elements to designing," she said. "You have to look at layout, putting sockets in the right place, lighting, the kitchen. It is not just a matter of `let's get that sofa and put it in the corner'. It may not fit through the front door."
In London's most desired locations, Pooley said it was important to focus on detail so that the landlord could offer a tenant a lifestyle.
"Landlords in Mayfair and Knightsbridge want to put in nicer finishings because they want to get better returns," she said.
This meant plug sockets made from chrome, not white plastic, even though they were more expensive, and completely kitting out the home with high-quality accessories, from cushions to bed sheets, she said.
Pooley advised investors to hire an interior designer. "Interior designers know where to get the right things, we know what goes with what, we know where it fits," she said.
Even though it could cost between £250,000 and £500,000 to have an interior designer refurbish a home in prime central London to a high standard, the investor would recoup these costs and make money on the resale, Pooley said.
For example, a three-bedroom Knightsbridge flat refurbished by her company is now worth 30 per cent more than two years ago, even though the market had dropped 30 per cent over that period. "We ripped out every bathroom and put in beautiful floor-to-ceiling marble tiles, a brand-new kitchen, an antique parquet floor and a brand-new terrace, and we've opened up walls so that there is one big living room rather than two little areas. We have also made the bedrooms en suite," Pooley said.
"We've brought it up to a different spec for the rental market. The quality of the furniture is second to none. It's clean and neat, so someone will just walk in and say `this is somewhere I want to rent'."
To decorate and furnish a two-bedroom flat in central London to a high standard, but without structural changes, new bathrooms or kitchen, would cost between £100,000 and £200,000, she said.
"Based on examples of works that we have undertaken to completely refurbish properties, the rents achieved can increase anywhere from 25 per cent to 50 per cent depending on the level of specification," said Jane Ingram, national head of lettings at estate agency Savills.
Alan Waxman, managing director of developer Landmass London, advised landlords to create a smart, modern look.
"For rental properties, the trick is to furnish it as if it's a hotel," he said. "It's best to keep the decor neutral to attract tenants. With resale properties, you also need to offer a bit of a wow factor, so you make the property stand out from others and encourage a transition from a practical purchase to an emotional one. This can be done by introducing some colour, but don't go over the top - a signature wall is a safer bet than painting a room one colour, as you may otherwise run the risk of putting buyers off."
Deciding on the target market for resale is important. To attract bachelors, the property ought to include ultra-modern furniture and some black in the colour scheme. But Waxman warned that this combination would put off families.
"Creating atmospheric rooms can help to encourage an emotional purchase, but the decor must reflect the intended use of the room." he said. "You can create cosy rooms with darker colours and relevant lighting, whilst you can make the more practical rooms light and airy, using light colours and mirrors."
Homes for sale ought to be furnished even if being sold unfurnished, he advised. Furniture packages can be bought or hired from companies such as Landlord Furniture, which sell packs from £499.
"Artwork is really important, as otherwise the empty walls will make a property feel unfinished and stark," he said. "The same applies to curtains."
Prints and other artwork can be bought from £5 from http://www.art.co.uk/.
Interior designer Katharine Pooley said walls in rental properties ought to be painted with emulsion paint, which was easy to clean, and that a property needed to be maintained carefully, with cleaning materials used that would not damage surfaces. Furniture ought to be made from hard wood which is longer-wearing.
Whether refurbishing for sale or rent, investors should also consider structural issues, she said.
"There are so many elements to designing," she said. "You have to look at layout, putting sockets in the right place, lighting, the kitchen. It is not just a matter of `let's get that sofa and put it in the corner'. It may not fit through the front door."
In London's most desired locations, Pooley said it was important to focus on detail so that the landlord could offer a tenant a lifestyle.
"Landlords in Mayfair and Knightsbridge want to put in nicer finishings because they want to get better returns," she said.
This meant plug sockets made from chrome, not white plastic, even though they were more expensive, and completely kitting out the home with high-quality accessories, from cushions to bed sheets, she said.
Pooley advised investors to hire an interior designer. "Interior designers know where to get the right things, we know what goes with what, we know where it fits," she said.
Even though it could cost between £250,000 and £500,000 to have an interior designer refurbish a home in prime central London to a high standard, the investor would recoup these costs and make money on the resale, Pooley said.
For example, a three-bedroom Knightsbridge flat refurbished by her company is now worth 30 per cent more than two years ago, even though the market had dropped 30 per cent over that period. "We ripped out every bathroom and put in beautiful floor-to-ceiling marble tiles, a brand-new kitchen, an antique parquet floor and a brand-new terrace, and we've opened up walls so that there is one big living room rather than two little areas. We have also made the bedrooms en suite," Pooley said.
"We've brought it up to a different spec for the rental market. The quality of the furniture is second to none. It's clean and neat, so someone will just walk in and say `this is somewhere I want to rent'."
To decorate and furnish a two-bedroom flat in central London to a high standard, but without structural changes, new bathrooms or kitchen, would cost between £100,000 and £200,000, she said.
(All The World's a Home : Global Property News)
Wednesday, 7 October 2009
NEW AMENITIES A MIXED BLESSING IN BRITAIN
When a new shopping centre, major art gallery or new train station opens, estate agents chatter excitedly about how these new amenities will boost local property prices. In Wales and Scotland, expectations are mounting over how new sports facilities may add value to local homes.
In Aberdeenshire, northeast Scotland, Donald Trump received planning permission on September 1 to create two championship golf courses overlooking the sea. The Trump International Golf Links is scheduled for completion next spring.
Buying agency The County Homesearch Company expects the new golf courses to raise local property values because they will act as a magnet for golfers from around the world, some of whom will want to buy and rent homes nearby.
In Camarthenshire, west Wales, the Ffos Las Racecourse near Trimsaran opened late last month. As the first National Hunt course to be built in Britain for 80 years, this would attract new visitors to the area and boost the local economy, thereby driving up property prices, The County Homesearch Company forecast.
Property prices in Newham, east London, rose 5 per cent above the national average from 2005, when it was announced the 2012 Olympic Games would be held in the borough, to 2007, the height of the property market, said Carol Peett, director of The County Homesearch Company.
Sports facilities are not always good news for property prices, however. Many stadiums can depress values, research by estate agency Savills shows. Houses in streets surrounding Lords cricket ground in north London are worth 62 per cent less than houses further away in the same district.
The value of flats and houses close to Stamford Bridge, the home of Chelsea Football Club, are down by 14 per cent and 12 per cent respectively because of the disruption caused by thousands of fans passing through the streets, according to Savills.
Only one of the four London soccer grounds surveyed by Savills had a positive impact on local property prices - Arsenal's Emirates Stadium in north London, which added a premium of 1 per cent.
The sports stadium that helps property prices most is the All England Lawn Tennis and Croquet Club in Wimbledon, which adds a whopping 150 per cent premium to houses, according to Savills. Some residents let their houses to tennis players during the two-week tournament in June.
Lucian Cook, research director at Savills, said: "Only properties around Wimbledon show any substantial premium because disruption is confined to two weeks of the year when there may be the opportunity to let out larger properties for a tidy sum. Otherwise, on average, prices [close to a stadium] are 9 per cent to 12 per cent below those in the local area - although clearly there are exceptions. For example, a flat with a roof terrace and view over the Oval cricket ground can easily have a 10 per cent premium."
A big boost to property prices can be given by new and improved transport connections.
In London, estate agency Knight Frank said prices for newbuild homes around Kings Cross had doubled over the past five years because of expansion in the area's transport links and other facilities. Prices for new homes in the area had risen from £400 per sqft in 2005 to £800 now, Knight Frank revealed.
A new Eurostar terminus for trains running from London to Paris and Brussels was opened at the redeveloped St Pancras station, next to King's Cross station, in 2007. Trains from revamped Thameslink station nearby run to Gatwick and Luton airports.
Simon Barry, partner at Knight Frank, said these transport improvements were a catalyst for redevelopment of the area and the arrival of new employers and cultural attractions, all of which had lifted property values.
Developer Argent is redeveloping 28 hectares of surrounding redundant railway and industrial land into new shops, offices and 1,800 homes. The British Library and the Observer and Guardian newspapers have moved into the area.
"The main things which make a difference [to prices] are new transport links ... new amenities, such as the opening of a shopping centre like Westfield [in west London], and cultural attributes such as the Tate Modern on the South Bank," Barry said.
Howard Elston, director of estate agency Aylesford International, said close proximity to shops, bars and restaurants could make a property less saleable. "Many residents near the King's Road in Chelsea have easy access to its shops and facilities," he said. "But at night they have to put up with impossible parking as the area floods with people going out to dinner."
(All The World's a Home : Global Property News)
In Aberdeenshire, northeast Scotland, Donald Trump received planning permission on September 1 to create two championship golf courses overlooking the sea. The Trump International Golf Links is scheduled for completion next spring.
Buying agency The County Homesearch Company expects the new golf courses to raise local property values because they will act as a magnet for golfers from around the world, some of whom will want to buy and rent homes nearby.
In Camarthenshire, west Wales, the Ffos Las Racecourse near Trimsaran opened late last month. As the first National Hunt course to be built in Britain for 80 years, this would attract new visitors to the area and boost the local economy, thereby driving up property prices, The County Homesearch Company forecast.
Property prices in Newham, east London, rose 5 per cent above the national average from 2005, when it was announced the 2012 Olympic Games would be held in the borough, to 2007, the height of the property market, said Carol Peett, director of The County Homesearch Company.
Sports facilities are not always good news for property prices, however. Many stadiums can depress values, research by estate agency Savills shows. Houses in streets surrounding Lords cricket ground in north London are worth 62 per cent less than houses further away in the same district.
The value of flats and houses close to Stamford Bridge, the home of Chelsea Football Club, are down by 14 per cent and 12 per cent respectively because of the disruption caused by thousands of fans passing through the streets, according to Savills.
Only one of the four London soccer grounds surveyed by Savills had a positive impact on local property prices - Arsenal's Emirates Stadium in north London, which added a premium of 1 per cent.
The sports stadium that helps property prices most is the All England Lawn Tennis and Croquet Club in Wimbledon, which adds a whopping 150 per cent premium to houses, according to Savills. Some residents let their houses to tennis players during the two-week tournament in June.
Lucian Cook, research director at Savills, said: "Only properties around Wimbledon show any substantial premium because disruption is confined to two weeks of the year when there may be the opportunity to let out larger properties for a tidy sum. Otherwise, on average, prices [close to a stadium] are 9 per cent to 12 per cent below those in the local area - although clearly there are exceptions. For example, a flat with a roof terrace and view over the Oval cricket ground can easily have a 10 per cent premium."
A big boost to property prices can be given by new and improved transport connections.
In London, estate agency Knight Frank said prices for newbuild homes around Kings Cross had doubled over the past five years because of expansion in the area's transport links and other facilities. Prices for new homes in the area had risen from £400 per sqft in 2005 to £800 now, Knight Frank revealed.
A new Eurostar terminus for trains running from London to Paris and Brussels was opened at the redeveloped St Pancras station, next to King's Cross station, in 2007. Trains from revamped Thameslink station nearby run to Gatwick and Luton airports.
Simon Barry, partner at Knight Frank, said these transport improvements were a catalyst for redevelopment of the area and the arrival of new employers and cultural attractions, all of which had lifted property values.
Developer Argent is redeveloping 28 hectares of surrounding redundant railway and industrial land into new shops, offices and 1,800 homes. The British Library and the Observer and Guardian newspapers have moved into the area.
"The main things which make a difference [to prices] are new transport links ... new amenities, such as the opening of a shopping centre like Westfield [in west London], and cultural attributes such as the Tate Modern on the South Bank," Barry said.
Howard Elston, director of estate agency Aylesford International, said close proximity to shops, bars and restaurants could make a property less saleable. "Many residents near the King's Road in Chelsea have easy access to its shops and facilities," he said. "But at night they have to put up with impossible parking as the area floods with people going out to dinner."
(All The World's a Home : Global Property News)
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