EMERGING MARKETS - URGING BUYERS

In 2005 Irish buyers spent over €5 billion on property overseas and by the end of the year the figure for 2006 is expected to be even higher. However as every investor knows it is finding the latest emerging market and buying early that is the key, reports Shane McGinley.

Showcasing some of the world's hottest foreign property investment opportunities

Turkey

The Emerlad Complex in the Turkish resort of Altinkum

The Turkish property market has benefited from a dramatic increase in direct foreign investment. Prior to 2005 it averaged more than €1.2 billion annually, while it is now currently approaching €26 billion. The U.S. Department of Commerce has named Turkey among "the World's 10 big emerging markets."

"During the course of 2006 we expect capital appreciation in Turkish property to rise anywhere between 20 and 35 per cent. Investors are being attracted to hotspots along the Aegean coast because they are still at early stages in their development, compared with others on the Mediterranean coast, which is a more mature market," says Dorcas Pye, Property Advisor with The Turkish Property Centre, who have this year set up an office in Dublin. Some of the most popular areas where many Irish investors have bought include Bodrum, Altinkum, Kusadasi and Alanya.

"300 + days of sunshine per annum, easy access year round, 8000 kilometres of beaches taking in three different seas and a cost of living that is equal to or less than half of what Irish people are accustomed to," reports David Fitzsimons, Sales and Marketing Manager of Keyshead International, on the advantages of buying in Turkey.

Croatia

Split in Croatia, which is quickly becoming a magnet for Irish buyers

The world famous oceanographer Jacques Cousteau described the sea around Croatia as, "the cleanest sea in the world." In recent years sailors are not the only ones flocking to the former Yugoslavian country and according to official figures the tourism industry is even stronger now than it was before the 1991 conflict. With Aer Lingus now flying direct to Dubrovnik the area has also become more accessible to Irish holidaymakers and buyers.

With tourist numbers increasing the construction industry in Croatia is booming. The Croatian Central Bureau of Statistics reports that in 2005 the number of building permits issued rose by 17.2% and 78% were for new constructions.

Property prices have risen by 20% in recent years and the most popular areas are in coastal areas around Split, the Dalmatian Islands and in Dubrovnik. The cost of living in the capital Zagreb is also 15% lower than Dublin. "Croatia is like the New Tuscany, Greece before the crowds, Spain before the high-rise apartments and the place to buy before it is really discovered," say Irish agents Adriatic Riviera Limited.

Panama

Donald Trump's $220 million Trump Ocean Club tower block in Panama

When it came to venturing outside his home soil one of the first places international entrepreneur Donald Trump chose was the Latin American country of Panama where he has launched the $220 million Trump Ocean Club tower block.

"The biggest thing about Panama is the US dollar, the stability of its economy and a ready supply of end users for the product," says Tom Byrne who, along with his brother, saw the potential of Panama and set up the First Panama Investment Corp over a year ago.

Thinking Of Retiring?

The main target audience for Panama is the retirement market and Byrne looks to the fact that 78 million Americans are due to retire in the next 10 years. "The average successful baby boomer will have assets of $800,000 to a $1m and the Panamanian government is actively targeting them," says Byrne.

This model has already been tested in Costa Rica, which targeted US retirees 12 years ago. Its market is now on a par with Florida and Byrne reports that the Panama government has put into place a number of incentives to attract the retiree market, such as discounts on everything from entertainment, to transport, to medical bills and home loans. "Panama is the next great property investment, Donald Trump can't be wrong," locals are saying!

Bulgaria

The ski resort of Bansko, one of Bulgaria's prime property investment hotspots

Almost a decade ago it was a country most people would have never heard of, let alone have had any knowledge of. Fast forward to the new millennium and Assetz.co.uk reported that a review of internet search entries showed that searches for properties in Spain are in a slight decline while those for Bulgaria were increasing quickly year on year.

With the capital city, Sofia, hoping to stage the 2012 Winter Olympics and the country set for EU accession in January 2007 the hype around Bulgaria only appears to be increasing.

"This booming market has had a year on year increase of 22% for 2001 - 2003, culminating in over 4 million visitors in 2004 thus making Bulgaria the fourth most popular holiday destination worldwide!" reports Jayne Walsh of MGM Properties International. Walsh also reports that prices are 30%-50% less than in Spain and over the past 12 months capital appreciation has been approximately 25%.

In Bulgaria the capital Sofia is still the main draw, however there are still also the big Black Sea resorts of Sunny Beach and Golden Sands and the mountain ski resorts of Bansko and Pamporovo. Rental returns in Bulgaria have been reported as on average 12% and 6% in the ski and sun resorts respectively.

Morocco

Morocco, a property mecca for the futire thanks to increased flies by airlines such as Ryanair

With the recent announcement by Ryanair of the completion of a five year agreement with the Moroccan Government to develop low cost air access and tourism to the country from its bases throughout Europe Morocco has attracted a lot of attention from property investors.

Morocco's tourism and property market is expanding thanks to the Government's ambitious ‘Vision 2010' plan. Already there has been an 18% rise in tourism over the last 12 months and they plan to attract 10 million visitors annually by the year 2010, build new roads, develop regional airports, increase direct flights, create six new costal resorts and create 600,000 new jobs in the tourist sector.

Demand for holiday home property has increased and according to the website Holiday-Rentals.co.uk the number of properties in Morocco listed on its website has shot up 164% compared to 2005. The majority of these they report are on the Atlantic Coastal Plain, and in this area demand for rental property has increased by 39% since last year.

"With its miles of golden sandy beaches, property prices at 50% less than other European resorts and a thriving tourist industry, this is the ideal time to invest here," says Karl Morris, Managing Director of Simple Overseas Properties.

Poland

One of the emerging Eastern European markets where local rental demand is strong

In the 2005 Foreign Direct Investment Confidence Index the top five ranking countries were China, India, USA, UK and then Poland. The report, compiled by AT Kearney, quizzed the key decision makers of the world's biggest 1,000 firms about their views and investment intentions in the 68 countries that receive around 90% of all global foreign direct investment [FDI]. These companies themselves control $27 trillion in yearly revenue, which accounts for 70% of global FDI. Poland jumped seven places in the rankings and as comparison Ireland doesn't even rank among the top 25.

This indicates that Poland can expect to see continuing increases in the investment it attracts and in the coming years will emerge as one of the main economic players in the eastern European block.

"The increase in consumer spending and consumer confidence in Poland combined with low mortgage rates and an established mortgage market, have led to confidence in the Polish property market" reports Irish company Aquarius Properties.

A member of the EU since May 2004 Poland has enjoyed steady and sustainable capital appreciation of 10-12% per annum and in some parts of the capital Warsaw growth of up to 30% was witnessed in 2005.

Romania

Caucesceau's lavish Palace in the centre of the Romanian capital of Bucharest

Earlier this year a poll done by the British TV show "A Place in the Sun" placed Romania number one in its league of the top 20 European locations that would secure the highest capital gain. The results, compiled by Pricewaterhouse Coopers, predicted that over the next ten years Romania would have projected growth of 414%. Ireland, by comparison, was 14th with projections of 222%.

Irish Lawyer David Howe, who set up Investment Romania and has lived in Bucharest for nearly two years, compares Romania, and especially the capital Bucharest, to Dublin 10 to 15 years. He believes that property can be bought at a very low rate and once Romania enters the EU, money flows into the country and regeneration begins they can be sold at a much higher price.

Arcadia Villas, in Akbuk, Turkey as built by The Turkish Property Centre Turkish Property Centre offers advice for would be investors. The Turkish Property Centre is located in the resorts of Altinkum, Bodrum, Gumbet and Kusadasi in Turkey, and we also have offices in the UK and in Ireland. The Turkish Property Centre are developers and estate agents. "We are a team of dedicated professionals with English-Turkish management, who specialise in helping our clients make the entire purchasing experience as easy as possible." Getting The Job Done "We pride ourselves on helping our clients purchase their ideal property whether for investment purposes, or to use as a holiday or permanent residence. We guide our clients through the entire purchase process, and are able to offer continuous after-sales service once the purchase process has been completed." High Standards The Turkish Property Centre are members of FOPDAC (Federation of Overseas Property Developers, Agents and Consultants), our registration number is: 1264F. "We are also members of the Turkish-British Chamber of Commerce and Industry registration number: 111259). Our company is registered in Turkey company registration number: 1487), and in the UK (company registration number: 1562846192)." The Turkish Property Centre has won the prestigious Bentley International Property Award for being the best estate agent in Turkey for 2005. Don't miss us at the Invest in Property Show, in the RDS, September 15th to 17th. (Stand 12). Visit our interactive website at www.theturkishpropertycentre.com

Luna Villas, in Bodrum, Turkey as built by Keyshead International Property Keyshead International is an expert in these marketplaces. Keyshead International, the sister company to TTPC Construction Company, is an experienced international property developer and international real estate agent specialising in the areas of Bulgaria, Turkey and Portugal. It was launched so that directors Toygar Ozguler, Tolga Kesiner, Gokhan Turkdogan and Erdal Tatlici could develop in new markets beyond Turkey. Making It Easy Keyshead International professional sales department are your first point of contact, providing an extensive high quality service. Once you have made the important decision to investigate buying property abroad, they will help you through every step of the process. They will discuss with you your requirements and go through all the options that are available to you. Once you have decided which country you would like to visit our team will be able to arrange for you to go abroad on an inspection trip to view suitable properties. Keyshead International holds many exhibitions around the UK and Ireland. These exhibitions provide the ideal opportunity for you to come and meet our experienced sales-team and get answers to all your questions. Don't miss us at the Invest in Property Show, in the RDS, September 15th to 17th. For details of our next exhibition near to you please visit our interactive website at www.keyshead.com

Hagia, Sofia, Bulgaria. MGM Properties International offers guiding principles on investing in Bulgaria. MGM Properties International is an independent, English investment property company based in Bulgaria. Since 2002, they have witnessed rapid growth and are fast becoming an undisputable force within the Bulgarian property market place. The dedicated team have an enviable accumulation of 17 years experience in both the European and non-European markets and have become one of the most prominent and reputable property companies currently in Bulgaria. Unrivaled Advice Confident in the knowledge that they provide a well-sourced and detailed overview of the market place; with the added benefit of being able to offer a full range of new and ‘exclusive' programmes. Together with a comprehensive and yet, unrivalled service comprising of introductions to independent, english speaking Lawyers to guide clients on all aspects of the buying/selling process, together with introductions to english speaking, independent, Financial Advisors. Uncomplicated Process They also recommend that clients make full use of their non-obligatory, ‘inspection Trip' packages and later their free ‘After -sales' service. On the whole, MGM create an uncomplicated and stress-free portfolio acquisition, provide expert, yet, impartial advice together with a fully comprehensive and professional service. Come and meet the team at the Invest in Property Show, in the RDS, September 15th to 17th (Stand 70). T: (0035) 98999 64660 E: info@mgmpropertiesinternational.com W: www.mgmpropertiesinternational.com

Conall McGuire, Managing Director, Warsaw Properties. Warsaw Properties gives vital tips. Today's property market in Warsaw is going from strength to strength and all forecasts indicate that the growth and demand are going to remain at current levels for some time to come. A good indication of what is happening on the Warsaw property market is the situation sales agents are faced with every day, i.e. where can I find apartments to sell. There are many people looking to purchase in Warsaw and the problem is that supply is nowhere near meeting demand. Circa 80% of all apartments that are to be completed from now to the end of 2008 have already been sold. Buoyant Market Another indicator of how well the market in Warsaw is faring at the moment is the lack of agents in Ireland selling Warsaw. The simple reason for this is that developers have people fighting to buy their apartments so why pay agents to sell their apartments for them and waste money. So if people are wondering why Warsaw isn't receiving as much attention from agents as for example Bulgaria or Turkey, it's basically due to the undersupply in residential units in Warsaw, the developers don't pay the agents commissions and therefore the agents focus on markets where they get rewarded handsomely! Don't miss us at the Invest in Property Show, in the RDS, September 15th to 17th (Stand 42). Visit: www.warsawproperties.pl