Expat investors turn back to the UK, tempted by its buoyant buy-to-let market

by Charlotte Ashton United Kingdom

The UK buy-to-let market has been attracting an increasing amount of attention from investors both within the UK and overseas of late. Now, new data released by Lloyds Bank has revealed that even those Brits who’ve left the UK for a new life overseas have a strong appetite for investing in their former home’s buoyant buy-to-let sector.

Huge demand
Britain’s well-documented accommodation shortage has led to rapidly rising house prices and the substantial growth of the private rented sector, which accounts for some 3.9 million households across England and Wales, according to the CBRE Regional Letting Outlook.

Combined with the latest figures from the Move with Us rental index which show rental rises in nine of 11 regions in the UK in the third quarter of 2012, the buy-to-let market in Britain has rarely seemed more attractive – a fact which has not been lost on British expats.

Expat excitement

Although happy to remain overseas themselves, the newly released Lloyds Bank data shows that 38% of British expats who plan to buy a property within the next two years will be looking to rent it out as a means of income generation.

The research also showed that Britain topped the list of favoured countries when it came to where British expats are buying, with 25.8% choosing the UK. Richard Musty, Director, Lloyds Bank International Banking, explains,

“Confidence in the UK property market is very strong. Our recent Investor Sentiment Index in March showed that consumer sentiment for UK property had grown by 50 percentage points since March 2013, so it´s not a surprise that Brits abroad are looking back home.”

City focus
Within the UK, it is the cities that are attracting the most attention from buy-to-let investors, with urban areas such as Birmingham, Liverpool and Bradford leading the charge. Ray Withers, sector expert and Chief Executive of award-winning property investment company Property Frontiers, comments,

“There’s a huge amount of regeneration activity underway in some of Britain’s leading cities currently, which is having a significant increase on property prices and which will continue to do so over the coming years. Thus we are seeing cities such as Birmingham and Liverpool attracting buy-to-let investors – including a high number of expat investors – due to their strong rental potential and the longer-term attractions of capital growth.”

Investors’ choice
From off-plan buy-to-let opportunities such as Property Frontiers’ prime waterfront apartments in Liverpool (from £82,500 with 8.5% gross rental yield guaranteed in year one), to city centre dwellings such as their apartments in Birmingham (£104,500 with 7% NET annual return guaranteed), the range of buy-to-let investments available in the UK is impressive.

Since the Barker Review of Housing Supply report was issued over a decade ago, Britain has been building houses at an average rate of 95,000 homes per year fewer than projected need demanded. The result is that many young professionals and families have been priced out of the market, turning instead to the private rented sector to fulfil their accommodation requirements. With supply seemingly set to lag behind demand for years to come, it looks like the strength of the UK buy-to-let property asset class is unlikely to fade anytime soon.

Investors wishing to take advantage of a range of buy-to-let opportunities in the UK’s leading cities are invited to contact Property Frontiers or call +44 1865 202 700 for further details.

Landlords and property investors bullish about Britain’s second city

Landlords and property investors bullish about Britain’s second city

by Charlotte Ashton United Kingdom

Famous for being the second most populous city in the UK and for its commitment to leading architectural design, such as the iconic Bull Ring commercial centre, Birmingham is now making headlines for a new reason, having recently been identified as one of the highest yielding buy-to-let destinations in the UK.

  • UK house prices rise 2.1% in last 3 months to Feb 2014 (Halifax)
  • Population of Birmingham set to rise by 150,000 people by 2031
  • Over 80,000 new homes in the city required to meet demand

A huge market

Buy-to-let is increasingly being seen as one of the most exciting and dynamic investment markets available within the UK. With house prices rising by 2.1% (last 3 months to Feb 2014, Halifax) and a construction sector that is lagging hugely behind demand, many families are seeking rental properties rather than purchasing their own home.

The private rented sector has been growing steadily over the past decade, but has accelerated significantly within the last 12 months as the UK’s housing market has picked up, with the latest Sequence index showing a 15% year on year increase in new tenancies across the UK. At the same time, home ownership is falling, dropping from 71% of households in 2003 to just 65% currently, according to the latest English Housing Survey from the Department of Communities and Local Government.

Hand in hand with the increased demand for rented accommodation, monthly rental prices have been rising over the past year, with the Sequence index showing an increase of 8% over the period. The combination of factors has made the UK buy-to-let market an extremely attractive investment option – and nowhere more so than in Birmingham.

Big plans for a big city
As befits its status as England’s second city, Birmingham has some big plans in place to ensure it retains its reputation as one of the most exciting places in the UK to live and do business. The visionary 20 year Big City Plan is set to create a host of new business facilities, transportation links and public spaces in Birmingham during the plan’s life, adding 50,000 jobs and contributing £2.1 billion to the economy every year.

The planned High Speed Two (HS2) rail link, which will propel Britain’s Victorian railways into the 21st century and cut journey times between Birmingham and London, is scheduled to begin construction in 2017 and will further enhance Birmingham’s reputation as a leading commercial and business-oriented city. Once finished, HS2 should allow passengers to travel from London to Birmingham in just 48 minutes.

Beating the crowds
The ambitious regeneration and rail plans are set to create tens of thousands of jobs in Birmingham, attracting a host of new workers to the city. By 2031 an additional 150,000 people will call Birmingham home with some 80,000 new homes required to meet this growing demand.

Ray Withers, CEO of leading property investment firm Property Frontiers and a man from Birmingham himself, explains how this is creating the perfect buy-to-let environment within Birmingham,

“House prices in Birmingham are increasing, but remain consistently below the levels we are seeing in London and the South East. Concurrently, rental yields in Birmingham are higher than one can expect in London. With lower purchase prices and higher yields, it might well be the UK’s second city but it’s not second choice with smart investors avoiding the capital in favour of buy-to-let property in Birmingham.”

The latest nationwide date from Move with Us supports Mr Withers’ expert conclusions, showing Birmingham as the highest yielding rental area in the UK when considering rental income as a percentage of the property’s purchase price.

The news is indeed well timed as Property Frontiers has just released an exciting new off-market opportunity in Birmingham to landlords and investors. The prime city centre residential development will consist of studio, 1 and 2 bedroom luxury apartments with up to 9% yields and guaranteed rental options also available.

Available today from just £95,000, prices will rise by at least 10% on 1st April 2014 so contact the team on +44 1865 202 700 or visit www.propertyfrontiers.com.

Caribbean property investment opens up as EU Parliament votes for visa-free travel

by Charlotte Ashton Grenada

The EU Parliament has just voted visa-free travel for the nationals of 19 third world countries one step closer.

In a press release issued last week on 27th February 2014, Commissioner for Home Affairs, Cecilia Malmström, revealed approval for 16 African, Caribbean and Pacific countries, as well as the United Arab Emirates (UAE), Colombia and Peru.

The decision, which includes business, tourism and family visit purposes, will also open up opportunities and advantages also for EU citizens, as any existing visa requirement for EU citizens to travel to these countries will be eliminated.

Island visa waivers set to enter into force in 2015
The move was initiated in November 2012, when the Commission proposed to add five Caribbean Island Nations (Dominica, Grenada, Saint Lucia, Saint Vincent and the Grenadines and Trinidad and Tobago), along with ten Pacific Island Nations (Kiribati, the Marshall Islands, Micronesia, Nauru, Palau, Samoa, the Solomon Islands, Tonga, Tuvalu and Vanuatu) and Timor-Leste to the list of third world countries and territories whose nationals are exempt from the visa obligation.

Following discussions with the European Parliament and the Council, it was agreed to add the UAE, Peru and Colombia to the original list. The visa waiver agreements look set to enter into force in 2015.

Fiscal incentives for business and investment
This is excellent news for the growing number of companies doing business and investment in the Caribbean. Grenada, in particular, is currently enjoying a business boom, with investors attracted by a number of fiscal incentives granted to qualifying business enterprises. These include: exemption from custom duties on plant, equipment and raw materials; no restrictions on foreign ownership; no restrictions on foreign currency transactions; no restrictions on the repatriation of profits, capital and dividends; and double taxation relief.

A Grenada Citizenship by Investment program also came out at the end of 2013. Unlike some similar residency and citizenship programs which are invitation only, this option is open to those investing in Grenadian government supported developments.

Hotel investments get 5 star treatment
Hotel and resort investments look set to remain top on the list for the next couple of years, with additional sector support from CARICOM Development Fund’s $5.83 million pact to Grenada to develop lines of credit for the tourism and hotel sector, along with SMEs and energy efficiency.

Ray Withers, CEO of Property Frontiers, comments: “We’ve been involved with Grenada hotel investments since 2005 and have sold more property here than any other agent. Hotel room investment is a perfect win-win investment in an emerging market such as Grenada, which is also experiencing a boom in tourism.”

He continues: “Now the EU Parliament has voted in favour of visa-free travel, we can see a whole new level of investment opportunity opening up. Bacolet Bay Beach Resort is selling like hot cakes right now and we’re already investigating more easily accessible, high yielding options in this gorgeous Isle of Spice.”

With investment from £248,500 for a luxury hotel suite including a 3 year rental guarantee and 4 weeks´ personal usage, get in touch on +44 1865 202 700 or visit www.propertyfrontiers.com for more information.

Higher prices and faster sales show the UK’s property market has truly bounced back

Higher prices and faster sales show the UK’s property market has truly bounced back

by Charlotte Ashton United Kingdom

The resurgence of the UK property market is something that has been welcomed by sellers and purchasers alike, as prices rise and transaction numbers increase. Now, the time taken to sell properties is falling too – a further sign of buoyancy in the UK’s recovering market.

Rising prices
Data from the December 2013 edition of the Land Registry’s House Price Index shows an average monthly rise in house prices across England and Wales of 1.1%. The positive figure means the annual price change has now reached 4.4%, as the market recovers across the UK.

The report also demonstrates the resurgence in terms of transaction numbers. July to October 2013 saw a total of 72,507 transactions, up from 59,065 for the same period in 2012.

Reducing timescales
In addition to rising prices and the increased number of transactions, new research from Hamptons International has also shown that the time between advertising a home for sale to agreeing a price has fallen by nearly two weeks since 2012. The data shows that during the last quarter of 2013, the process took less than 8.5 weeks on average.

The figure is backed by the latest data released by Home.co.uk, which found that the average property is now on the market for three days fewer than it was in February 2013.

In practice
Property investment specialists Property Frontiers have certainly noticed the market picking up for their northern England buy-to-let investment opportunities. Their luxury city centre apartments in Bradford and prime waterfront apartments in Liverpool are now taking an average of just 13 days per sale, while their stunning completed apartments in Manchester are taking just 5 days on average. Chief Executive Ray Withers comments,

“We’ve seen a trend of the market picking up for some time in terms of transaction volumes increasing and sale times reducing. The north of England is the place for buy-to-let property investment at the moment and a growing number of investors are awakening t the potential of cities such as Liverpool, Manchester and Bradford.”

A market leader
With their thorough, investor-led approach to property investment, Property Frontiers has pledged to continue innovating in terms of the opportunities they offer as the UK market continues to recover. Their Bradford apartments, for example, which are offered through the company’s established partnership with Aspire Citygate, include a bond that is used to insure investors’ deposits.

The bond means that for the one bedroom apartments, which are priced at just £50,000 (25% below market value), a deposit of just £10,000 is required until completion, which is fully protected by the deposit bond. It is through such touches that Property Frontiers has ensured that it has remained a market leader throughout the UK’s recession and into its recovery.

If you would like to know more about Property Frontiers’ fantastic UK buy-to-let opportunities, get in touch today.

What a generous bunch you are! Over £7,000 raised at the Frontiers Foundation charity auction

What a generous bunch you are! Over £7,000 raised at the Frontiers Foundation charity auction

by Steve James United Kingdom

As they say, charity begins at home and members of the overseas property industry did not disappoint with a staggering £7,750 raised for the Frontiers Foundation at a charity auction held at the OPP Gala Dinner earlier this week.

Hosted by guest auctioneer for the evening, Paul Owen, former Chief Executive of the AIPP and now Owner of sales training company, The Clear Path Company, the charity auction was a welcome addition to the prestigious OPP Awards of Excellence presentation ceremony.

Organised by the Frontiers Foundation, the charitable organisation founded by Ray Withers, Chief Executive of property investment agency Property Frontiers and Charlotte Ashton, MD of property PR agency, AB Property Marketing, the auction successfully raised the funds required to transform the Ket Wangi orphanage in Kenya, building 3 new classrooms and a toilet block.

Trustees of the Frontiers Foundations was overwhelmed with the generosity of the lots donated which included dinner in a top London restaurant, tickets to the Cartier polo, a professional photo shoot, signed novels, a weekend break in Cornwall, supercar track day and luxury holidays in Turkey / Florida and a French chateau! Sincere thanks go to Fish Market New Street, Barton Wyatt, Peter Ross, Transworld Publishers, Property Frontiers, Club La Costa and Barrasford & Bird for their generosity.

With spirits high and the wine flowing, bidding was prolific and at some points competitive but with each lot vastly exceeding its reserve, the target of £7,000 was smashed by the end of the evening.
Commenting on the success of the auction, Frontiers Foundation Trustee, Charlotte Ashton said,

“Tonight’s charity auction showed the very best side of the overseas property industry. Thanks go to Xavier Wiggins and the OPP team for allowing us to hold the auction, to all those fabulously generous companies who donated the lots and to all those who bidded, every penny raised will go directly to bettering the lives of the children of the Ket Wangi orphanage.”

Now that the required funds have been raised, the process of building the new classrooms and toilet block can begin and the Frontiers Foundation is already in contact with Emily Odera, Mother of the Ket Wangi orphanage regards the logistics and timings. Ray and Charlotte along with fellow Trustees are hoping to once again get their hands dirty by going out to Kenya and assisting with the construction work. Updates, pictures and progress reports can be found on the Frontiers Foundation Facebook page.

For more information about the Frontiers Foundation, the Ket Wangi orphanage or to find out how you can support the project please call +44 (0) 1865 202 700 or visit http://www.propertyfrontiers.com/who-we-are/frontiers-foundation.aspx

The B to D of why investors are choosing Bradford as their angel of the north in 2014

The B to D of why investors are choosing Bradford as their angel of the north in 2014

by Charlotte Ashton United Kingdom

Welcome to Bradford. This often-overlooked city in the heart of the UK is fast becoming a boomtown for investment.

Ray Withers, Chief Executive of multi award-winning property investment agency, Property Frontiers, shares his reasons behind launching an exclusive new buy-to-let opportunity in the city in the “B to D of Bradford”.

B is for Bradford Broadway
Development of a new Westfield retail centre in the heart of the city is set to enhance the area’s popularity as a shopping destination. The city serves a catchment population of 919,391 with a weighted annual spend potential of £623 million, forecast to grow by more than an additional £250 million on completion of the Broadway development. The 555,000 sq ft retail outlet will host 70+ units, including Marks & Spencer, Debenhams and Next.

R is for regeneration
£1.5 billion is being invested in Bradford’s regeneration, with government and the private sector joining forces in the Masterplan project. The city centre is set for an extensive makeover, with new public spaces, water features, improved transport links and restored historic architecture. Luxury city living apartments such as the new Aspire Citygate available exclusively through Property Frontiers are in development to meet the growing demand from people and businesses relocating to the area. A £35 million City Centre Growth Zone is also underway, designed to attract more business, expansion and investment in the area.

A is for affordable property.
Bradford offers a good, yet affordable standard of living and its migrating population has made the city one of the UK’s top residential property hotspots for 2014. Residents are attracted by Bradford’s cosmopolitan living, coupled with its location in the beautiful Yorkshire countryside. House prices in Bradford are, on average, one third less than London and half the price of the south east. However, the growing demand in the area is pushing up prices in the property market, making it an excellent location for capital growth investments.

D is for digital
Bradford’s Airedale Digital Corridor is home to a number of major digital, electronic and creative companies including Pace, Echostar Europe, Radio Design, Teledyne Defence and Bradford Technonogy Ltd. Bradford is also home to the National Media Museum and the world’s first UNESCO City of Film.

Digital connections are also set to speed up, as a £21.96 million contract between four West Yorkshire local authorities and BT has been agreed. The Superfast West Yorkshire project plans to extend high-speed fibre broadband to 97% of households and businesses across West Yorkshire by autumn 2015.

F is for fast connections
Another reason for Bradford’s popularity is excellent national and international travel connections. The Leeds Bradford International Airport (LBIA) is just 6 miles from the city centre and has thrice daily flights to Heathrow for London links. The airport underwent a major expansion in 2012 to include an exclusive business zone lounge to meet demand. The area is served by road links via the M1, M62 and A1 (M) motorways; with train links enabling travel to Leeds in 20 minutes, with London two hours by train and Manchester within the hour.

O is for opportunities for employment
With a variety of key business sectors, Bradford offers great opportunities for employment as well as business. The city is home to the renowned University School of Management and a number of corporate HQs, including Morrisons, Yorkshire Building Society, Santander and Hallmark Cards.

Bradford’s financial and business services generate over £13 billion pa, projected to grow circa 50% by 2022. There are over 250,000 people employed in the sector, with major employers including Provident Financial, Santander, Yorkshire Building Society, Congregational & General and Gordons LLP.

The city has the largest UK employment base in engineering and manufacturing, with 160,000 jobs in textiles, electronics, printing, medical equipment, automotive engineering, aerospace and energy components. A survey conducted by the Times Higher Education Authority revealed Bradford’s graduate employment was second only to Cambridge.

R is for rapid economic growth
A vibrant city with ambitious development plans, Bradford has the third largest economy in the Yorkshire and Humber region at £8.3 billion per year and this is projected to grow to more than £9.6 billion by 2016. Bradford is the fifth fastest growing area outside of London.

D is for diversity and contrasts
With a population over 524,000, Bradford is the fourth largest metropolitan district in England. Residents are attracted by Bradford’s cosmopolitan living and Victorian architecture, coupled with its location in the beautiful Yorkshire countryside. It is a culturally diverse city, with a flourishing arts scene, museums, galleries, traditional pubs serving locally brewed ale and Michelin star restaurants. Bradford was named England’s Curry Capital in 2011, 2012 and 2013.

Ray Withers concludes,
“As we see property prices in London even out, it is to the regions where both capital growth and significant rental income can still be achieved that savvy investors are heading in 2014. The new Aspire Citygate development, a collection of modern 1 and 2 bedroom luxury apartments available off-plan from as little as £50,000, presents one of the most attractive buy-to-let opportunities I have seen for a long time. With the below market value pricing delivering instant equity and a 9% Return on Capital available, this is one angel investment of the north not to be missed!”

For more information get in touch with Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.

Property Frontiers scores hat trick at the OPP Awards of Excellence 2013

by Charlotte Ashton United Kingdom

It was a bumper night for Oxford-based investment agency, Property Frontiers, as the team scooped not one but three 2013 OPP Gold Awards for Excellence.

Scoring a hat trick at the prestigious international property industry awards, held on Wednesday 27th November at the famous Natural History Museum in London, Property Frontiers received Gold accolades for Best Agency Europe, Best Property Investment Advisors and Best Global Agency.

Judged by industry leaders from around the world, the OPP Awards for Excellence celebrate the best developers, estate agents and associated companies working in the global cross-border residential property industry with Property Frontiers proudly retaining their 2012 accolades for Best Estate Agency Europe and Best Global Estate Agency.

Ray Withers, Property Frontiers’ Chief Executive, commented,

“I am delighted that the achievements of the Property Frontiers team have once again been acknowledged through these OPP Awards of Excellence. Now in our ninth year of trading, I am incredibly proud of the knowledge and expertise of our team and it’s satisfying to see that the first-class service which we pride ourselves on offering our clients has been recognised by those within the industry.”

Having pioneered a number of new asset classes including hotel room investments, retail space and alternative investments in 2013, Property Frontiers has broken boundaries and embraced new frontiers in keeping with the company’s ethos. Ray Withers comments,

“Once again we have worked hard to seek out new asset classes, markets and opportunities for investment over the last 12 months and are proud of the innovative products we have launched including retail units in the Mongolian capital, farmland investments in West Africa and hotel rooms in Germany. The team and I are committed to advancing and bettering this industry, as we say ‘property done properly’ and I believe this is what sets us apart from others.”

With this axiom in mind, Property Frontiers’ charity, the Frontiers Foundation, was once again welcomed back to the OPP Gala Dinner to hold its annual charity auction. Raising funds for the charity’s fourth project, A Night for Nepal, the evening saw the not-for-profit charity, of which Ray Withers is a Founder and Trustee, raise thousands of pounds for a range of school projects in the remote mountainous regions of Nepal.

Ray comments, “Thanks to organiser Xavier Wiggins and the OPPLive team, we were able to once again hold this superb charity auction for the Frontiers Foundation. A major fundraising event in our calendar, the auction did not disappoint with all donated lots selling for a high price enabling us to fulfil our promise of support to the schoolchildren of northern Nepal.”

For more information about Property Frontiers’ award-winning service, please contact them today on +44 1865 202 700 or visit www.propertyfrontiers.com. You can also Like the team on Facebook or follow them on Twitter.

Mongolia’s new investment law attracts foreign buyer interest from across the globe

by Charlotte Ashton Mongolia

One of the most significant events to happen in Mongolia in recent years is today’s introduction of the new investment law by the Mongolian parliament. As of Friday 1st November 2013, the new law will overturn two previous pieces of legislation, making the financial environment within Mongolia much more attractive to foreign investors.

In a nutshell, the new law means that the playing field has been levelled for domestic and foreign investors with the change tipped to boost investor confidence worldwide.

  • New law on investment in Mongolia takes effect today, 1st November 2013
  • Playing field levelled for domestic and foreign investors
  • International investor confidence should return to “Asian Wolf” economy

One of the most attractive features of the new investment law is that it sets stable tax periods based on the investment amount and the location within the country, with rates set for between 5 and 22.5 years. The rules are applied based on the day a contract is signed and are not subject to the changing legal environment during the lifetime of the deal.

Ray Withers, CEO of award-winning property investment experts, Property Frontiers, with a proven track record in Mongolia explains,

“Previously there have been concerns over how foreign investors are treated compared to domestic investors. Every 4 years, with a change of government, there were worries that the rules might be altered to the disadvantage of foreign investors but now, under this new piece of much-welcomed legislation, foreign investors know where they stand today and into the future.”

Indeed, as the managing director of Mongolian Investment Banking Group LLC, said “Tax stabilization measures and provisions that will help to prevent future changes to the legislation should provide investors with the confidence that they need to return to the market.”

And this investor confidence is set to spread to the Mongolian property sector. Previous foreign investors who purchased residential property in the capital Ulaanbaatar through Property Frontiers have seen average returns of 24% and up to 300% capital growth over the last 4 years with many keen to reinvest into the country’s lucrative commercial sector.

With the Mongolian capital witnessing real estate prices rise eightfold since 2001 and commercial rentals predicted to triple over the next 5 years as more international companies enter the market, now is the time to cash in on commercial property in Ulaanbaatar.

Property Frontiers’ latest offering in the Mongolian capital, The Village @ Nukht, presents a superb opportunity to purchase a luxury retail unit, on a freehold basis (rarely seen in Asia) from just USD 254,000.

A luxury shopping and leisure centre located in Ulaanbaatar’s “Billionaire Valley”, construction at The Village @ Nukht is well underway with completion due by the end of Q4 2013. Offering expected rental returns of 14.8% NET, an assured yield of 12% for 24 months and up to 20% capital appreciation per annum, this is one opportunity not to be missed.

For more information on The Village @ Nukht contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.

For an emerging economy with a difference, look no further than Mongolia

by Charlotte Ashton Mongolia

With a rich history and a population that remains 30% nomadic or semi-nomadic to this day, Mongolia is a country of fascinating contrasts. Despite being the 19th largest country in the world, it has a population of just 2.9 million people, making it the most sparsely populated independent country on the planet.

  • Mongolia was the fastest growing economy in the world in 2011 (The World Bank)
  • Real income of Mongolians rose 20% between 2008 and 2011
  • Demand for western-style retail experiences has led to launch of The Village @ Nukht
Mongolia shot to global attention in 2011, when Citigroup analysts flagged it as a Global Growth Generator, earmarking it as one of the most promising growth prospects for 2010-2050. At the same time, the World Bank upgraded this emerging market from a low to a middle income country, while Mongolia led the world to become the fastest growing economy that year, with a growth rate of 17.5%.
Rapid growth
Things have certainly moved fast for Mongolia. Mineral deposits estimated to be worth USD 1.4 trillion have led to rapid economic expansion, with growth for 2013 predicted to reach 14% according to the International Monetary Fund. In just three years, from 2008 to 2011, the Mongolian Stock Exchange quadrupled in size. A year later, the International Finance Corporation’s Doing Business report saw Mongolia move up from rank 88 in 2011 to position 76 in 2012 – an indication that the ease with which business could be done in Mongolia improved significantly in just 12 months.
The move from a communist regime to a more market-led existence has coincided with the economic impact of Mongolia’s mineral deposits. Real income rose 20% between 2008 and 2011, while the number of retailers in the capital of Ulaanbaatar increased by an incredible 34% in the two years to 2010.
Looking west
Demand for western brands and western-style retail experiences has experienced a massive surge in recent years. Between 2003 and 2011, annual per capita spending on clothing went up by 500% and the result has been a rising need for new retail developments that meet the demands of Mongolia’s increasingly cash-rich population.
Nowhere is this more in evidence that in the capital, Ulaanbaatar. Back in 2007, Property Frontiers’ pioneering residential developments in Ulaanbaatar earned investors an average return of 24% and 300% capital growth over four years, capitalising on the city’s residential real estate price rises, which have increased eightfold since 2001.
Ray Withers, CEO of Property Frontiers, comments,
“As one of the first property agents in the world to offer investment opportunities in Mongolia, this is one emerging market which lies close to our hearts. Home to some of our most successful projects, both in terms of capital growth and rental income, Ulaanbaatar still presents a wealth of opportunity for investors keen to cash in on the thriving commercial property market.”
From residential to commercial
Indeed as is commonly seen in the west, commercial rental prices are now following suit from residential highs, having moved upwards from a range of USD 15-35 psm in 2009, to USD 35-70 psm this year. That’s why Property Frontiers is once more working with the same award-winning developer in order to launch a brand new asset class in Ulaanbaatar.
In the city’s upmarket ‘Billionaire Valley’ area, The Village @ Nukht is a luxury, western-style shopping and leisure centre, already under construction and on track for completion by the end of Q4 2013.
The prime one hectare site will include a number of freehold high end retail units. Strong yields with expected rental returns of 14.8% NET (with an assured yield of 12% for 24 months) and anticipated capital appreciation of up to 20% per annum, are attracting keen interest from the global investment community.
With investment from USD 254,000, retail opportunities at The Village @ Nukht are expected to sell fast, which is far from surprising given the explosive growth of this dynamic country. While the wider world watches with interest, smart investors are ensuring that they are part of Mongolia’s fascinating and rapidly evolving history.
For more information about this high end retail investment in Mongolia, contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.

Oktoberfest 2013: Why beer and sausages are helping to recession-proof the German property market

by Charlotte Ashton United Kingdom
The crowds are about to flock to current ‘tourism Mecca’ Munich once again for Okboberfest 2013 (September 21 – October 6).  The renowned beer festival is just one of a growing number of reasons why Germany (and particularly Munich) took the lead in this year’s UN World Tourism Organisation rankings, with record hotel booking of over 400 million overnight stays.
•Oktoberfest is held in Munich, Germany between September 21 – October 6 2013
•Over 6 million people visit Oktoberfest each year, consuming 7 million litres of beer
•155% increase in German hotel room investment in Q1 2013 (Savills) 
Known as the largest Volkesfest (People’s Fair) in the world, Oktoberfest originated with a party to celebrate the marriage of King Ludwig I and Princess Therese of Saxe-Hildurghausen on October 17, 1810.  The citizens of Munich were invited to attend the festivities held on the fields in front of the city gate, now known as Theresienwiese (Theresa’s meadow), or Wies’n. The wedding celebrations ended with horse races and it was the decision to repeat the races the following year, which gave birth to the annual event which is now Oktoberfest.
Bratwurst booths arrived in 1881, followed by the first serving of beer in glass mugs in 1892. Today, in order to meet Oktoberfest’s strict standards, beer must conform to a minimum of 13% Stammwürze (approximately 6% alcohol by volume) and be brewed within Munich’s city limits. The date has also since been moved forward to September to catch the end of the summer weather.
Oktoberfest’s 200th anniversary in 2010 saw the special return of horseracing in historical costumes. A commemorative beer was brewed to serve exclusively in the festival beer tents and a museum tent gave visitors a feel of how the event felt a century ago. Traditional Oktoberfest visitors still wear Bavarian hats called Tirolerhüte, which contain a tuft of goat hair.
The 420,000 sqm Theresienwiese is 10 times the size of Wembley stadium and offers a selection of decorative tents selling beer, cocktails, savouries, cakes and various wares; along with fairground ride attractions and celebratory events including concerts and parades. Approximately 7 million litres of beer are consumed at Oktoberfest today.
The festival is now such a successful worldwide attraction that Lufthansa airline kicks off the party 30,000 feet in the air. From September 18, flight attendants wear traditional lederhosen and dirndl on select flights between Munich and New York, Chicago and Tokyo. ‘Oktoberfest crew’ is a popular tradition which has been running for a few years and business class passengers are also served Bavarian food and beer on the flights. And this year, even Bayern Munich football team are getting into the spirit by launching and wearing a lederhosen-inspired kit. Fodors.com also cited Munich’s Oktoberfest as one of the ‘14 Best Places to Go This Fall’.
Attracting some 6 million visitors from all over the world each year, Oktoberfest plays an important role in Germany’s tourism industry. Hotels in and around Munich are often fully booked months in advance and getting a seat in one of the tents can get very competitive. Germany’s hotel market in fact continues to go from strength to strength with Savills reporting a 155% increase in the nation’s hotel room investment in Q1 2013 compared to a year earlier and forecasts a turnover in commercial property to hit the €30billion (EURO) mark this year. Germany also currently ranks number two in the top recession-proof property markets, second only to Monaco.
Ray Withers, CEO of Property Frontiers, explains:
“German property is becoming increasingly attractive; having avoided the housing boom which occurred in many countries before the crash, the German market has remained on an even keel and values continue to rise at a gradual, yet steady pace.”
He continues: “Germany continues to win accolades for its economy and tourism trade. Now it is also offering excellent returns in the property market particularly so in commercial property such as hotel rooms, which take advantage of all these factors combined. It is easy to see why Ernst & Young, one of the ‘Big Four’ accounting firms, cite Germany as the most attractive destination for foreign investors in 2013.”
For more information about investing in a German hotel room such as those at the 4* AlpenClub just 30 miles from Munich, contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.