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international

MarketInsight SPRING / SUMMER 2013


London “London’s prime property market performance is closely related to global wealth trends. The rising number of global billionaires means increased demand for exclusive homes in Europe’s hotspots.”

Recent instructions

GARY HERSHAM, DIRECTOR

Wealth in London

Cornwall Terrace

In the last decade, the number of billionaires globally has increased by 186%, from 497 to 1,426 according to the latest data from Forbes. This includes a 16% rise over the last (financial) year (2012/2013). Plotting the rise in global billionaires against sales in prime central London shows a clear correlation between increasing wealth and appetite for prime London homes. The value of property sales exceeding £5 million rose 23% in 2012/2013 to a total of £2.15 billion. Today, London is home to 41 of the billionaires on Forbes’ list, and the third city after Moscow and New York.

With this backdrop of rising global wealth, values in prime central London have increased by 11.5% in the last 12 months, and 145% over the past decade. London continues to be seen as a safe and secure base to invest. Russian and Middleeastern clients dominate the buyer profile and are likely to remain an important source of demand. Asia Pacific is similar with the number of billionnaires there increasing by 81% over the past five years. However, Penelope Court, Partner at Beauchamp Estates, suggests that “the buyer profile is expanding and recent sales come from Brazil, Lebanon, Singapore, Hong Kong, India and increasingly the UK”.

8.3% annual growth

26% growth in Rolls Royce sales

in business aviation in BRIC (Brazil, Russia, India, China) countries DECEMBER 2012, WINGX-ADVANCE GMBH

in the Middle East

€470 million

A newly refurbished pied-a-terre offering 3 bedrooms in one of the finest residential squares in Knightsbridge. 1,461 SQ FT

A clear correlation between global wealth and prime London property sales £2,500 M

1,750

Value of transactions over £5M

1,500

No. of billionaires

£2,000 M

1,250

500 £500 M

250

£0

Source: Lonres, Forbes

2011-12

2012-13

2010-11

2009-10

2007-08

0 2008-09

2011 – 2012, FORBES CLEWI

750

2006-07

Russian sable coat

£1,000 M

2005-06

10% rise in the cost of a

1,000

2003-04

globally in 2012 1,035 MILLION INTERNATIONAL ARRIVALS, 2012, UNWTO

£1,500 M

2004-05

1 billion tourists

DECEMBER 2012, SHOWBOATS INTERNATIONAL

Cadogan Square £3.15 million

2002-03

MARCH 2013 ,COMITÉ CHAMPAGNE

under construction globally

11,797 SQ FT

2012, ROLLS ROYCE

total value of Champagne exported to the UK in the last year

692 superyachts

Price on application

Magnificent restored grade I listed villa in Regent’s Park.


France “French Riviera property buyers are able to combine a safe investment with luxury lifestyle factors.”

Recent instructions

JONATHAN GRAY, BEAUCHAMP ESTATES, CANNES

The Riviera The French Riviera’s property market continues to attract a wealthy clientele and commands exceptional values. The revival in transactions seen by Beauchamp Estates since the last quarter of 2012 demonstrates ever-increasing confidence in the market. Global demand has kept prices both elevated and stable in prime areas of Cannes, Cap d’Antibes, St Jean Cap Ferrat, St Tropez and, of course, Monaco. Demand continues to come from second home buyers in the Middle East, UK, and northern Europe with an increasing number of Russian-speaking clientele (around 60% of Beauchamp Estates’ clients). Monaco commands some of the highest property prices in the world with homeowners attracted to its privacy, vibrant social life and favourable tax regime.

Cannes, with its famous Croisette, attracts around two million visitors a year. Along La Croisette, prices vary according to location, views, floor level and the standing of the residence, with the most exceptional homes generating substantial premiums. This is mirrored in La Californie which has some of the Riviera’s most spectacular sea views.

Villa Alang Alang Price on application Stupendous villa with sea and mountain views in the prestigious La Californie area. 1,605 SQ M

JOINT SOLE AGENTS

The Var and the Provence areas, offering charming properties hidden away amongst hundreds of hectares of land, magnificent vineyards, old converted barns and farms to renovate are also attracting more of our clientele.

Cannes Croisette Port Canto €2,380,000

Location is key. A property located in a secure and residential area, at the right size, in a great location, with a view and at market price will ensure you a safe and sound investment.

Wonderful apartment with sea view, ideally located on La Croisette in Cannes. 105 SQ M

JOINT SOLE AGENTS

Nationality of luxury second home buyers at Beauchamp Estates Cannes

French Riviera apartment price ranges minimum €/sqm

maximum €/sqm

Northern Europe

Monaco

France Other

5% La Croisette

UK

Russian speaking countries

% 3% 5

12% 60%

La Californie

Cannes Town “La Banane” €/sqm 0 - 10k 10 - 20k 20 - 30k 30 - 40k 40 - 50k 50 - 60k 60 - 70k 70 - 80k 80 - 90k Source: Beauchamp Estates

Middle East

15%

Source: Beauchamp Estates


Greece “2013 has been a very busy year so far, with increased demand for ‘VIP’ properties.”

Recent instructions

ROI DELDIMOU, BEAUCHAMP ESTATES, MYKONOS

Mykonos Although debt and austerity measures continue to affect the Greek housing market, Mykonos’ luxury sector is still thriving. Despite the economic situation, Greece is still a vibrant tourism destination, with more than 15.5 million visitors in 2012. Compared to 2011, visitors from the UK rose by 9.3%. There were also 6.2% more tourists from Asian and Middle-eastern countries, and 18.4% more Russian visitors, making Russia one of the top five markets. With more than half of all tourists visiting during the summer months, there is strong demand for rental properties in prime areas. Mykonos (which is just 35 minutes by plane from Athens), saw visitor numbers grow in 2012. There were 7% more international flight passengers in 2012 compared to 2011.

Greece is also a very popular destination for yacht owners, with 19 marinas and a further 22 under construction (including at Tourlos in Mykonos). Demand for high-end Mykonos housing has intensified in 2013. The relaxed island lifestyle, peaceful countryside, lively seafront towns, boutique shopping (Chanel, Louis Vuitton) and exclusive selection of properties make it highly attractive to wealthy overseas tourists, often from the Middle East, Russian- speaking countries, Europe and the Americas. Outstanding properties in excellent locations can command exceptional rates. Indeed, Beauchamp Estates has secured the highest rental value recorded in Mykonos at €54,000 euros per week, for one month.

Visitor numbers to Mykonos continue to rise

Villa Royal

to let

€46,700 pw

A modern villa with vast outdoor space and 7 bedrooms accommodating large groups.

Villa Ammoudi

to let

€32,800 pw

This stylish, 6 bedroom villa has private access to three sandy beaches.

Greek apartment prices have fallen by 24% since their 2008 peak

300,000 domestic air traffic

international air traffic

250,000 200,000

AL LU RB AN

150,000

AR EA S

AT HE NS

100,000

TH ES SA LO NIK I

50,000 passenger arrivals

20 0

0 2 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 201 Source: Civil Aviation Authority, Greece

Source: Bank of Greece

0– 20 08

20 08 –20 12

90%

-24%

85%

-24%

141%

-30%


Italy “Italy, and Tuscany as a region, is still one of the strongest markets for real estate investment.”

Recent instructions

LYNNE DAVIE, BEAUCHAMP ESTATES, FLORENCE

Tuscany Although locations like Florence, in Tuscany, continue to command some of the country’s highest house prices, Italy’s substantial public debt issues continue to impact on its housing market, with low levels of liquidity and contractions in the economy. Italian house prices fell by 4.6% between Q4 2012 and Q4 2011, with steep declines in the second hand market. In contrast, the new-build sector saw continued price appreciation, up 2.1% for the year. The country also experienced a 25.8% fall in sales volumes in 2012 compared to 2011. Within Tuscany, property sales in the city of Florence fell by 25.8% in 2012 compared to the previous year. In the wider Florence municipality, transactions were 23.7% below 2011 volumes. Nonetheless, prices

did not follow the same pace of decline, and have declined by just 2% over 2012. So far in 2013, local commentators have noted price stabilisation - a very positive sign given that average property prices here are among the highest in the country.

690-hectare estate comprising medieval castle and 10 farms. Established development project in place.

Tuscany’s excellent tourism infrastructure, which includes international airports, 39 spas, 211 protected areas, numerous beach resorts, as well as 65 wine resorts, make it a world-renowned destination for buying and renting holiday homes. There are more than 2,000 holiday homes here making it one of Europe’s most established markets. Many of these properties are very old and retain much of their original character, with outbuildings, vineyards and olive groves, while also offering modern amenities such as pools, saunas, Jacuzzis and cinema rooms. As such, they generate strong interest from across the globe, primarily from the UK and US, as well as Russian-speaking countries.

Florence commands some of the highest property prices in Italy (second half of 2012) Median house prices

LOCATION: RADICONDOLI 7KM, SIENA 53KM

Villa Giuliano €1.95 million

Villa Giuliano is a prestigious manor villa (810 sqm) with garden and 3-hectare private park. LOCATION: 4 KM FROM PISA

Price have fallen by just 2% in Florence between January and December 2012 1%

Florence Verona Turin Naples Rome Milan Bari Venice Catania Bologna Palermo Genoa 0 0,0 €5

Montingegnoli - Siena Estate Price on application

0% -1% -2% -3%

,00 00 1 €

Source: Italian Real Estate Observatory

,00 50 1 €

,00 00 2 €

,00 50 2 €

,00 00 3 €

,00 50 3 €

Source: Italian Real Estate Observatory

Catania

Palermo

Genoa

Turin

Naples

0

Florence

0

Bologna

0

Milan

0

Bari

0

Venice

0

Rome

0

Verona

-4%


Gary Hersham

Penelope Court

BSc (Hons) ARCS AMSB FNAEA

BA (Hons) FNAEA

T +44 (0) 20 7499 7722 M +44 (0) 7785 725036 E gary@beauchamp.co.uk

T +44 (0) 20 7499 7722 M +44 (0) 7785 725034 E penny@beauchamp.co.uk

CANNES, FRANCE

MYKONOS, GREECE

T +33 (0) 4 93 94 45 45 M +33 (0) 6 20 02 15 22 E jonathan@beauchamp.com

T +30 22890 24797 M +30 6932769000 E roideldimou@beauchamp.gr

Jonathan Gray

Roi Deldimou

FLORENCE, ITALY Lynne Davie T +39 0552654089 M +39 3483157052 E lynne@beauchamp.it

ABOUT BEAUCHAMP ESTATES Beauchamp Estates is a privately owned firm with two partners, Gary Hersham and Penelope Court, who have more than thirty years of experience in acquiring and selling prime central London developments and super-prime houses and flats. The dynamic market that London has enjoyed over the last three decades has enabled the firm to create a successful and enterprising company. The two partners have worked together since the late 1970’s, giving them a sense of continuity rarely experienced by their competitors. Their enthusiasm and dedication has resulted in a client list that reads like a global ‘Who’s Who’ of buyers and developers alike. The firm is instrumental in achieving sales in the order of £1 billion pounds per annum. Beauchamp Estates operates in Mayfair and St John’s Wood in London, Cannes in the South of France, the island of Mykonos in Greece and Florence in Tuscany, Italy.

LONDON

FRANCE

GREECE

ITALY

24 Curzon Street London W1J 7TF 020 7499 7722 www.beauchamp.co.uk

19 rue des États-Unis 06400 Cannes France www.beauchamp.com

Rohari Mykonos Greece 84600 www.beauchamp.gr

Lungarno Benvenuto Cellini 25/C - Firenze 50125 Italy www.beauchamp.it

All data, analysis, editorial and design, supplied by Dataloft www.dataloft.co.uk

Disclaimer: This report is produced for general information only. Whilst every effort has been made to ensure the accuracy of this publication, Dataloft Ltd accepts no liability for any loss or damage of any nature arising from its use. At all times the content remains the property of Dataloft Ltd under copyright and reproduction of all or part of it in any form is prohibited without written permission from Dataloft Ltd. Date of publication: June 2013

SPRING / SUMMER 2013

market-insight-2013  
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