Global Property Scene edition 18 by Knight Knox

GLOBAL

PROPERTY SCENE ISSUE NO. 018

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: Architectural trends we could see in the next 10 years | A guide to offsetting carbon emissions AI & advanced robotics, how can it affect the economy? | Should I move to Lapland?

FOCUS ON : NORWAY

TOP MARQUES MONACO EVENT REVIEW

THE LAND OF THE MORNING CALM

UK £4.99 USA $8.99 Europe €7.99 Hong Kong $67.00 Malaysia 31.00 MYR UAE 36.00 AED Singapore $11.00 SGD

02811 61879

*Where Sold

The Tower at X1 The Quarter - internal cgi image - Liverpool UK

The Tower at X1 The Quarter - External cgi image - Liverpool UK

X1 is a leading UK-based development company with a global reputation for ambitious, high quality residential and student developments. Contact us today to speak to one of our experienced property consultants. +44 (0)161 772 1394 www.x1developments.com

INSIDE Features

18 Qatar and its difficult future

31 A guide to carbon offsetting

64 47 AI & advanced robotics, Architectural trends for the coming decade an economy benefit?

The Qatar crisis is a topic that has been the centre of attention over the last few months, with speculation continuing to grow over the future of Qatar becoming an isolated gulf nation. The unprecedented move marks the worst Gulf crisis in a decade with more questions being raised rather than answered as the row rages on.

Artificial intelligence (AI) and smart tech have become part of the fabric of our daily lives. We have become accustomed to living alongside machines and at ease with the colossal role they play in the function of everyday life. Firmly in the information age, we are now taking enormous steps into the uncharted territory of advanced robotics and AI.

Regular Articles

Listings (sponsored)

09 Market in Focus: Norway

90 UK

WELCOME TO SOUTH KOREA

Known as ‘Land of the Midnight Sun’, The Kingdom of Norway is a constitutional monarchy with a rich Viking heritage.

86 Should I move to Lapland?

www.globalpropertyscene.com

Lapland is Finland’s northernmost region, and has a sparsely populated area with only 2.1 people/km2 bordering Sweden, Norway, Russia and the Baltic Sea.

home of the Industrial Revolution, the UK has long been established as a major commercial centre, benefiting from strong trade links with companies on every continent. With a long history in international cooperation, the country is an attractive place for investors both foreign and domestic. Knight Knox has sold thousands of properties. We have experts on the ground that can help to find your perfect property. Why purchase with anybody else?

ISSUE 018 EDITOR’S NOTE

GLOBAL

PROPERTY SCENE ISSUE NO. 018

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: Architectural trends we could see in the next 10 years | A guide to offsetting carbon emissions AI & advanced robotics, how can it affect the economy? | Should I move to Lapland?

FOCUS ON : NORWAY

TOP MARQUES MONACO EVENT REVIEW

THE LAND OF THE MORNING CALM

When investing in property it’s important to leave emotion at the door. Often you can be caught up in the perfect property, losing sight of the bottom-line. If you invest your faith in something under the wrong circumstances the result can be costly. Someone who can testify to this mantra is UK Prime Minister Theresa May who, following advice from her closest advisors, decided to call a General Election in an attempt to capitalise on the strong polling numbers, as well as Jeremy Corbyn’s horrendous popularity scores. Proclaiming that she would resign if she lost more than six seats, the stage was set for a very red face. In the end, she lost more than double that number. In this edition, we take a look at the aftermath of this result, and see how the UK plans to deal with an increasingly difficult Brexit.

02811 61879

*Where Sold UK £4.99 USA $8.99 Europe €7.99 Hong Kong $67.00 Malaysia 31.00 MYR UAE 36.00 AED Singapore $11.00 SGD

Cover image by Nami Chwang

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

Credits Individual Samantha Jones, Alex Timperley, Will Leyland, Emma Martin, Richard Ellis, Alistair McGovern, Andrea Wong, Suzanne Todd, Callum Whiteley, John Power, Martin Copeland, Michael Vickers, Mark Williams Commercial Knight Knox, X1, Fortis Developments, Forshaw Land & Property Group, INTUS Lettings, Gold Key Media, Shutterstock, Unsplash, Property Investor, Crossbow Investments CODA Studios Ltd, Tatton Investment Management, Fletcher Priest Architects, Princess Yacht, Embraer, Top Marques

Qatar, future host of the World Cup, is another country facing real uncertainty. A set of very tight sanctions have been applied to Qatar, following allegations of supporting extremist groups and heightening tensions in the region. According to Saudi Arabia, Qatar has been threatening regional security by funding al-Qaeda linked groups and the Muslim Brotherhood. Land and air routes have been cut-off, stadium construction is likely to fall behind and the country has a large population reliant in food imports. In these difficult times, how can an excommunicated country survive? Famous for its spectacular rise from one of the poorest in the world to one of the most technology advanced countries in just one generation, modern day South Korea has become one of the most fascinating places to visit today, with contemporary culture deriving from early nomadic tribes and western influences. With such a diverse culture, and current tensions in the region threatening further development, it seemed fitting to make South Korea our main section. And finally, we discuss what architectural trends the future could hold. Frank Gehry, one of the world’s most influential contemporary architects, argues that “architecture should speak of its time and place”. With growing tensions across the world, and environmental concerns on the rise, could now be the inception of real change? That’s it for now, we hope you enjoy edition 18.

Editor-in-chief Michael Smith

www.globalpropertyscene.com

PARIS CLIMATE AGREEMENT ... Will Leyland

Donald Trump once again made headlines this summer by announcing the unilateral withdrawal of the USA from the Paris Climate Change Agreement. It was met by condemnation from governments around the world who expressed concern about one of the world’s most pressing problems.

The message from those who have studied the claims is to take them with a pinch of salt. The claims were based solely on a report released by NERA Economic Consulting, that estimates the potential impact of hypothetical regulatory actions necessary to meet the goals of the Paris Agreement.

Trump made a series of claims that the agreement unfairly affected the competitiveness of American workers and manufacturers whilst his previous comments about the reliability of climate change evidence are well known.

What fact checking sites have told us is that these predictions are made on the basis of some fairly extreme assumptions, giving an extreme outcome. The report assumes:

Here we’ll take a look at what exactly the agreement is and consists of, what its purpose is, and whether Trump’s claims are true. According to the European Commission’s official website, the Paris climate conference (COP21), held in December 2015, meant that 195 countries adopted the first-ever universal, legally binding global climate deal. The agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C. The aim being to ensure climate-neutrality, or carbon neutrality, before the end of the century. Governments agreed > to a long-term goal of keeping the increase in global average temperature to well below 2°C, above pre-industrial levels; > to aim to limit the increase to 1.5°C, since this would significantly reduce risks and the impacts of climate change; > on the need for global emissions to peak as soon as possible, recognising that this will take longer for developing countries; > to undertake rapid reductions thereafter in accordance with the best available science. The agreement was signed by former President Obama just 18 months ago, but already President Trump has released a string of statements casting doubt over its effectiveness. In order to investigate the facts, we went to a number of fact checking websites in order to see whether these claims were true. First up: The Paris Agreement would result in “lost jobs, lower wages, shuttered factories and vastly diminished economic production.” Trump made a number of claims about economic impacts from the agreement, such as a US$3tr drop in gross domestic product, 6.5 million industrial sector jobs lost and 86% reduction in coal production, all by 2040.

> that other countries don’t make emission reductions in line with the Paris Agreement, therefore leading American companies to relocate; > that industries are static and don’t change to adapt to the regulations, and; > that there would be no increase in clean electricity generation compared to the baseline scenario. Essentially, these assertions are hardly set in concrete. “Even if the Paris Agreement were implemented in full, with total compliance from all nations, it is estimated it would only produce a two-tenths of one degree -- think of that; this much -- Celsius reduction in global temperature by the year 2100. Tiny, tiny amount.” Ignoring the poor grammar and construction of his sentence, Trump is broadly correct on the targets that the agreement has set but has either accidentally or wilfully emitted quite a bit of context to this. We should bear in mind that the overall target of the agreement is to stop the raising of temperatures as they currently stand, and “a long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels”. These targets are consistent with the aims of the agreement, whilst it may seem a tiny reduction; this brings the overall temperature rises since pre-industrial times to below 2%. The Paris deal was expected to reduce global temperatures by building on the earlier 2009 Copenhagen Accord, imposing deeper carbon emission cuts on signatories and bringing new countries like China into an international climate pact. Whilst it’s certainly true that the agreement could, and probably should, have been much more ambitious, for Trump to suggest that a higher target would have meant the US complying with the treaty seems disingenuous given his other statements. Trump’s other statements regarding the hindrance of US competitiveness globally are more or less totally untrue given that the treaty nowhere makes specific provisions for individual actions, rather that each country should submit their own suggestions and make their own plans to hit the overall target. How each country does that is, essentially, up to them.

BESPOKE LUXURY PRINCESS 40M With a reputation for building high-quality production boats, Princess has managed to establish a devoted customer base, loyal to the brandsâ&#x20AC;&#x2122; strong track record and understated yet exquisite design. The 40 metre was developed around the same time as the 32 metre, but shares little with the smaller craft. To increase the size, many of the systems and construction methods had to be adapted to pass regulations. Strength can be felt throughout, with extra work going into sound and vibration insulation, giving the 40m a real sense of quality. The hull benefits from a fully vacuum infused production process, the largest hull ever to be produced this way. As you would expect, the accommodation is sumptuous throughout, with a five-cabin layout for up to 12 guests, a gym and heated floors. There is also space for seven crew to live comfortably and in complete privacy. To the rear of the vessel is a garage housing a single jet ski with space for an additional unit. Across every deck is a world thatâ&#x20AC;&#x2122;s shaped by your personal tastes and lifestyle. This remarkable place of bespoke refinement is sure to impress any guest.

CRAFTED IN PLYMOUTH ENGLAND

MARKET IN FOCUS Norway

Words : Emma Martin | View : Vadim Petrakov

Known as ‘Land of the Midnight Sun’, The Kingdom of Norway is a constitutional monarchy with a rich Viking heritage. Part of the Scandinavian Peninsula the country is famous for its natural beauty and sprawling landscapes, defined by glaciers and striking fjords carved by ice. Safe to say it’s a ‘bucket list’ destination for many. Besides its natural beauty, Norway is also well known for its advanced welfare state, egalitarian approach to social issues, and the way that they have successfully sustained independence from the European Union, all while remaining a member of the European Economic Area as well as securing membership in the European Free Trade Association. Norway benefits from one of the world’s most progressive and supportive public states. Boosted by the Government Pension Fund Global (otherwise known as The Oil Fund), which is worth US$958bn and is a significant player in the global equity market. Norway features at number nine on Forbes’ list of ‘best countries for business’ – namely for the recognition given toward its steady economy, state investment sector and national financial value. It has not always been smooth sailing for the country though. Norway has seen political, economic and social strife including a repressive union with Denmark for many years. Prior to the discovery of the North Sea Oil, times were tough for many Norwegians. Issues surrounded rising populations and the attempted industrialisation of a predominantly farming country, something which left many deprived and struggling for work in the cities. In fact, the standard of living was so poor that between 1825 and 1925,

over 800,000 Norwegians found themselves emigrating to the United States in search of a better life. In the 19th century a wave of National Romanticism spread throughout the country. Norwegian natives felt a deep need for an independent culture and unique voice inspired by the unique rural history of the country. This resulted in the development of Norwegian art, music and literature and a wish to preserve a strong sense of identity separate from Denmark in particular, with whom they had previously shared an unhappy union. It was during this time that linguist Ivar Aasen collected samples of dialect from around Norway, creating what is known now as nynorsk, New Norwegian language. The National Romanticism movement in Norway has meant that the country today enjoys a distinct style and culture. The landscape of Norway has been a main contributor to the nation it is today. Elongated in shape with an extensive rugged coastline, it has a particularly challenging terrain. The government recognises the importance of protecting agricultural expanses, heritage sites and areas of natural diversity, and so 16% of the total land area is protected by law. Norwegians make the most of their location and the natural resources at their disposal. The country has historically focused on traditional exports like fishing, agriculture, shipbuilding, mining and lumbering. With these labour-centric industries very much a part of the country’s identity, the old Nordic spirit continues to arouse and inspire today.

www.globalpropertyscene.com

The discovery of North Sea Oil In the mid-twentieth century Norwegian officials were fairly confident that there were no oil or gas deposits hidden within the Norwegian continental shelf (NCS). The idea that there were undiscovered petroleum deposits in the North Sea was simply not considered. However this all changed in 1959 with the unearthing of gas at Groningen in the Netherlands. This discovery of gas raised expectations around the possibility of more deposits being found, and resulted in Phillips Petroleum applying for a licence to explore the North Sea - including the NCS. The offer of US$160,000 per month to be paid to the Norwegian government for rights to explore the NCS was rejected – potentially one of the most significant choices made by the government. In 1963 Norway’s Prime Minister Einar Gerhardsen passed a law giving sovereignty over the NCS. This meant the state became the sole owner of the resources, a move which transformed the fortunes of the country. From humble beginnings as a predominantly agricultural trade country, to one of the world’s biggest and most influential exporters of oil, the last 50 years have been kind to the country. In 2016 the export value of natural resources drilled from the NCS was approximately NOK 350bn which equates to approximately US$41.7bn (making up around 36% of all total exports). National estimates show that petroleum accounts for 9% of jobs, 39% of exports, and 15% of GDP highlighting just how critical the oil market, and subsequently the buoyancy of oil prices, is to the Norwegian economy. Government Pension Fund Global In 1996, recognising the benefit of the natural resources endowed to Norway, the government created the Norwegian Oil Fund (or the Government Pension Fund Global). This is a unique model that gives all citizens a stake in the nation’s Pension Fund, and boasts being the largest sovereign wealth fund in the world, ahead of the China Investment Corporation. The Norwegian Oil Fund works on the premise that all of the money procured from the oil industry in Norway is invested back into other, carefully chosen, investment opportunities in order to safeguard the fund for future generations. Currently the Government Pension Fund Global invests in just fewer than 9,000 companies across 77 countries including real estate investments, fixed income investments and equity investment. The largest of the equity holdings for the fund are in Apple, Nestle and the Microsoft Corporation, among others. It is important for Norway to properly manage the massive fund, and that the wealth is preserved and spent correctly. Prime Minister Erna Solberg commented on the Oil Fund: “The government’s proposals will support a continued, responsible management of the considerable oil and gas resources. Norway has been fortunate, but the petroleum wealth has also been managed well,” giving real insight into how the government understands the significance of the resources, and the need for professional management. A unique culture – The Nordic Model Ranked number one for the thirteenth year in a row in the United Nations (UN) annual Human Development Report, and also picking up the prize for the UN World Happiness Report 2017, Norway is officially the happiest country in the world to live in. The country has built up a strong reputation and allows its citizens to experience an exceptional standard of living through the development of an egalitarian welfare state. As a sparsely inhabited country with just over five million residents, it boasts a low density population. The majority of people live in urban areas, particularly the capital Oslo and average life expectancy is 82 years. There are many reasons why life in Norway is rated so highly. For the last seven years Norway has been categorised as the world’s most democratic country by the Democracy Index. It enjoys particularly stable political governance with Prime Minister Erna Solberg leading a right-wing coalition government, one which has the support of both the Liberals and Christian Democrats. The coalition leads the way on issues surrounding social mobility, paternity leave, equal rights and health care. These approaches are shared in what’s known as The Nordic Model, which covers Denmark, Finland, Iceland and Sweden, as well as Norway. It focuses on delivering free health care, education and pension schemes for the people, as funded by the taxpayer. Their chosen economic and political market redistributive taxing supports a capitalist society whilst also aiding those with complex social needs.

Fishing huts (rorbu) in the Hamnoy and Lilandstinden mountain peak, Reine, Lofoten islands, Norway

www.globalpropertyscene.com

The Nordic Model may be challenged in future years by changing demographics, for example an ageing population that will see fewer young taxpayers which could potentially result in lower state handouts – but as a whole other nations can look at the Nordic Model as an exemplar of strong economic structure and egalitarianism. A bucket-list destination The last few years have seen the tourism sector in Norway grow impressively, with more people planning visits than ever before. One of the most popular ‘bucket list’ activities is witnessing the Northern Lights, with the aurora borealis drawing huge crowds between September and April, the best time to witness the ethereal natural light show. Trolltunga, a rock formation approximately 1,100 metres above sea level is another popular tourist destination, offering hikers an exceptional photo opportunity. Hiking in Norway has become a popular lure for sightseers. One example of extreme tourist fluctuation can be seen in the number

www.globalpropertyscene.com

who turned up to hike at Preikestolen, otherwise known as Pulpit Rock, skyrocketing from just 60,000 visitors in 2009 to 300,000 in 2016. However, whilst the growing number of tourists choosing Norway as an alternative escape is positively impacting the economy, there have been issues in accommodating the sheer volume of people. Local infrastructure in areas of particular prominence has struggled somewhat, with problems born from overcrowding such as lack of parking, shortage of hotel rooms and even erosion of paths on popular coastline routes. The spike in tourism has naturally increased as photo sharing apps help us to share the wonders of the natural landscape. Along with the capital Oslo having the draw of a city on the fringes of countryside, there has been an unconventional origin for the damaging numbers of holidaymakers – the blockbuster Disney hit Frozen. Frozen is set in a magical, otherworldly place filled with great icy fjords, just like those found in Norway. These similarities in landscape have been

She Lies, a sculpture constructed of stainless steel and glass panels by Monica Vonvicini, Oslo, Norway

NORWAY FACT --Area: 385,178 km2 Population: 5,267,146 (estimate) Per capita: $70,665 Figure correct July 2017

credited as the reason why villages such as Geiranger and Flåm have seen remarkable upsurges in tourism. Located within the UNESCO World Heritage area filled with fjords, these unlikely hotspots are being forced to welcome vast crowds of keen travellers. Geiranger, which has a permanent population of 215 is an example of a village where infrastructure is suffering in direct result of increased tourist numbers, with Ove Skylstad, general manager for Tourism Geiranger commenting that the small village sees an annual turnover of 700,000 tourists, swamping the small numbers of locals. What’s next for Norway? The ‘rags to riches’ tale of Norway is certainly inspiring. It’s one that leaves many wondering if life could be better for countless people if only other administrations took on some of the philosophies and measures employed by the Norwegian government.

The economy may have looked a little rocky after the falling oil prices in 2014, but Norway is maintaining positive growth, and only looks to be going from strength to strength. The housing market in particular is currently booming. House prices have increased dramatically as people are drawn to the unique style of living and natural beauty the country has to offer, particularly in the capital of Oslo. The buoyant property market alongside a growing tourism sector means that Norway looks to remain stable, and the Government Pension Fund Global is still increasing. We can all look to Norway as a mesmerising country in terms of natural beauty, but it has also established an enviable way of life, a solid economy, and a future safeguarded with the endowment of natural resources. One thing looks certain – people will continue to flock to Norway to get a coveted taste of authentic Norwegian life as for once it really does look like the grass is greener on the other side.

www.globalpropertyscene.com

THE ULTIMATE IN LUXURY TRAVEL Embraer Lineage 1000E Manhattan & Hollywood Designs

The decision to design these two fully custom Lineage 1000E was personal to Embraer’s Vice President of Interior Design, Jay Beever. With the vision of bringing the glamour, elegance and excitement back to the flying experience, Jay teamed up with former Disney Imagineer and renowned designer, Eddie Sotto. Jay and Eddie bonded over the thrill of resurrecting the art deco designs found in the buildings, furniture, jewelry, cars and ocean liners of the 1920’s and 1930’s, with the Normandie cruise liner providing specific inspiration to the project. Intensive research generated specific interest in famous art deco destinations, including Manhattan and Hollywood, leading the way for captivating storylines pertinent to the private aviation experience. With that, the team breathed life into a concept that would bring the thrill back to flying and give passengers a reason to dress up - namely a chic air shuttle, capable of connecting the art deco cities that inspired the concept in the first place. The effort includes two designs. The Manhattan, featuring deep, rich woods, is the embodiment of the Empire State Building crossed with the Rainbow Room, whereas the Hollywood has a bright, silver screen appeal. This balance of dark and light materials characterizes the relationship between East Coast and West Coast styles. While the aircraft have similar configurations and design aesthetics, the designs are polarizing but with a playful balance. The Lineage 1000E is the ideal canvas for this shuttle aircraft, with roots in commercial aviation accounting for superior reliability, operating costs and space. The aircraft’s five cabin zones have been configured to create the ultimate adult playground. Unlike most business jets, you don’t board the plane at the galley. In fact, all crew resources have cleverly been

moved to the back of the plane, out of sight. Guests entering the plane are greeted in a plush lounge, complete with art and architecture that set the mood for the journey. The first cabin zone, the Cloud Bar, features striking fold-up bar stools and an Embraer-exclusive portrait view window. The living space is ripe for a party with a variety of club seating options. Only the most exclusive guests are invited back to the private Crystal Room, capable of hosting a refined dining experience for up to six passengers. In true Embraer fashion, the Manhattan and the Hollywood feature a unique blend of form and function. The Lineage 1000E exceeds every expectation in terms of utility, demonstrating Embraer’s unique expertise, via a bespoke experience on a traditionally commercial route. Simply put, these aircraft are intended to make the journey fun again. First class is a gross understatement. For more information visit: www.embraerexecutivejets.com

OFF THE SITE Did you know that Global Property Scene produces daily updates on our website? Here is a collection of our favourite pieces produced over the last two months.

Want to read more? www.globalpropertyscene.com

June 29th 2017 The death of cash

As the ATM celebrates its golden anniversary this week, questions about the future of cash as a payment method are being raised as figures show that traditional methods are being abandoned in favour of new modern ways to manage our finances. Research by the Co-operative Bank has highlighted that the habit of carrying cash is becoming extinct, and they predict that with contactless payments trebling in a year it is realistic to think that 65% of all transactions will be made by mobile phone by 2025. The demise of physical currency has been anticipated by experts for some time with the introduction of contactless cards and Apple Pay threatening coins and notes. However, whilst there is a general mood shift towards using contactless, there are conflicting statistics from the Bank of England which state that 94% of UK adults use cash machines – showing that the appetite for cash is alive and well. The head of customer experience at Barclays, Raheel Ahmed, commented on the matter: “Even though recent years have seen a huge uptake of digital banking and card payments, cash remains a crucial part of most people’s day-to-day lives whether it is paying for groceries or doing the office coffee run”. But as consumer needs change along with the rapid rate of technological evolvement the banking industry is having to look at newer forms of payment. Near field communication technology (NFC) is a new kind of contactless technology being employed at ATMs in the USA and UK by some banks which allows for a withdrawal of money without a card. NFC uses wireless connectivity and allows the user to request a cash withdrawal that translates this to ATM when they come in close contact. The chief executive of the ATM Industry Association notes that this kind of digital transaction is not only faster for customers but also adds better security: “Cardless

www.globalpropertyscene.com

transactions take just 10 seconds for customers to get their cash, compared to around 30 seconds for traditional card withdrawals,” he states. “Speed is a very important part of consumer experience.” There is however an assemblage of cash aficionados who favour the traditional way of payment and harbour a distrust of contactless payment – and this way of thinking is far more popular than we might think. Whilst the younger generation in particular are keen to ditch coins in support of what many argue is a speedier and more convenient payment method, others are horrified by the thought of a completely digital banking future. One of the key arguments against digital payment is the ease at which we can make payments, and with little mental thought. By turning money into an abstract concept that only exists behind a screen we find that customers spend more and consume more spontaneously. Another concept that doesn’t sit comfortably with many is that of our digital footprints. A future that is entirely digital means that there is constant unavoidable tracking of our spending habits, locations of shopping and other such sensitive data which, in the wrong hands, could be put to use in a negative way. Those with a particularly dystopian view may be concerned about the idea of their daily behaviours being read by a national government, hackers or any other group. That being said, some statistics do speak for themselves. Data collected by the BBC shows that between April 2015 and April 2016 some 600 bank branches closed in Britain, with the banks citing a move to online banking as the chief reason. So is the ATM due for elimination only 50 years after its invention? Maybe not immediately, but one thing is certain: it seems cash has had its heyday and banks are making way for new shiner ways to pay.

July 7th India looks towards a green future Solar energy is gaining momentum in India as Prime Minister Narendra Modi looks to make huge steps towards improving the country’s green footprint. Solar energy prices have plummeted to a record low, and for the first time ever it is available at a cheaper cost than fossil fuel generated power. With the United States leaving the Paris Climate Agreement India is hoping to establish itself as a new global leader on climate change.

June 27th Can Airbnb conquer the Chinese market?

June 13th Smart buses – Public transport transformed

March 9th Is private air travel becoming affordable?

Whilst transport companies such as Uber and Lyft are already revamping private taxi services, there has been little work to develop public services which could offer Facilitated by a new range of travel apps, Many large tech companies have tried passengers and pilots are becoming a cheaper and more sustainable way to to crack the market in China for many increasingly connected. With just a simple years. However, fierce competition in the get around - until now. search you can find out if any light aircraft world’s most populous country has been are flying in your local area with available UK based start-up Citymapper is looking the cause of failure each time. Airbnb is India is now dedicated to the rules in now looking at innovative ways to appeal to transform the way we travel by making seating. It can be an increasingly cheap the Paris Agreement which proposes mode of transport, and more people are it simpler to navigate existing systems to the Chinese market, whilst looking to that the country should generate at least looking at it as an interesting alternative. including trains, buses, tubes, and trams double its investment in China. 40% of its electricity from other sources in key cities around the world. Its other than fossil fuels by 2030. Earlier this Which app should you use? founder and CEO, Azmat Yusuf, As one of the fastest-growing start-ups, year, the Indian government planned for emphasised the lagging progress in 270 new coal plants to be built, however tech giants Uber has achieved Wingly stands as the most popular the sector: “All these other things are these plans have since been scrapped as domincance in many markets, but it has getting smarter and better, but why aren’t application. Established in France, the been unable to shake off the intense they conflicted with the rules in the Paris app became available to UK passengers competition from rival Didi in the Chinese buses?” Agreement. back in July 2016. To date, it says more market, a company now active in 400 Last month Citymapper took a significant than 400 passengers have used it to Chinese cities and worth US$35bn. Following the ever-growing influence of join cost-shared flights from UK airports. step by launching its very own free bus solar energy, Coal India, the largest coal system in London which was trialled over There are some other alternative sites In March this year, Airbnb introduced its mining firm in the country, has revealed a two day period, conducting journeys on such as Skyuber or Coavmi, but they home-sharing service to the Chinese the closure of 37 of its mines due to it are yet to take much of Wingly’s market one key route. market as ‘’Aibiying’’, which translates as becoming no longer financially viable. share. The mines are set to be decommissioned ‘’welcome each other with love’’, as the The ‘CMX1’ route based around the river in March next year and will help save the firm attempts to bring people together Just how safe is this process? Thames in Central London stops at from all communities around the world. firm approximately £98 million. The rebranding is an attempt to win over current bus stops and is connected to Any pilot looking to register with any of the market in China, a hurdle which many the Citymapper app which helps Coal India currently produces around these services will need to submit their commuters and tourists navigate public other foreign tech companies have 82% of India’s coal, but if the cost of pilot’s licence, medical certificate, details city travel routes in a simplified way, struggled with previously. There has renewable energy continues to fall at of their experience and the aircraft they allowing users to find the simplest and already been a backlash amongst such a pace India could be entirely free will be flying. Once verified, they can quickest route to their destination. Chinese consumers who have claimed of coal mining by 2050. By 2022, the publish their planned flights. that the new name given to Airbnb in government is looking to put a stop to The 30 seater buses, nicknamed China is difficult to pronounce in any more coal plants being built with the Are there many restrictions? “Sprinters”, will be trackable in real time aim for renewables to be generating 57% Mandarin. on the app and will be kitted out with of India’s energy by 2027, highlighted in Private pilots can carry up to six India’s draft electricity plan. This exceeds Currently there are approximately 80,000 on board screens to show passengers passengers if the costs are shared where they are, current travel updates, Airbnb listings in China compared to the the target set in the Paris Agreement, amongst both the pilot and the USB chargers and more. The buses, wider market, in which there are around showing that India is willing to go above passengers. The Civil Aviation Authority smaller than the traditional model, are three million listings in 191 countries. and beyond in the fight against climate (CAA) states costs do not have to be quicker and more agile, allowing for Despite this, Airbnb is determined to change. shared equally, but if the pilot were to speedier journeys. grow in popularity in the Far East by make any profit the journey would fall significantly increasing staff and doubling According to analyst Mr Buckley: under regulations stipulated for its investment. Many analysts believe that Citymapper highlights the importance of “Measures taken by the Indian commercial airlines. Each flight would government to improve energy efficiency the home-rental site does not necessarily bringing the bus service up-to-date in require an Air Operator Certificate, and if coupled with ambitious renewable energy need to be the main player in China to be order to “solve urgent problems of one wasn’t obtained the flight would be congestion and infrastructure”. successful. targets and the plummeting cost of solar considered illegal. Citymapper has benefited hugely by have had an impact on existing as well as using their own data to analyse new Another competitor for Airbnb is Tujia, a proposed coal fired power plants, Is it reliable? routes that may work better than those company offering a wider range of rendering an increasing number as already in use, and uses real-time services than Airbnb and already financially unviable.’’ It’s important to be aware that light aircraft traffic updates to make alterations to boasting more than 400,000 listings in won’t deliver a regular mode of transport routes, improving overall efficiency. over 300 towns and cities across China. India is currently overtaking China as the anytime soon. Most users are quick to Many believe that Tujia has the home nation with the most deaths created by point out that most light aircraft can be With Citymapper looking to roll out its air pollution largely caused by coal plants, advantage as it understands the local grounded by even the gentlest of concept (along with other companies with around 1.1 million citizens dying each market and its consumers, as well as weather. From a business point of view, it considering the positive change that being more aware of the regulations. year. It is hoped that solar power will could be a while before it delivers viable can be made in improving public travel transform the global energy market and travel, as cancellations can crop up services), we can hope that soon we will Can Airbnb compete against the local tackle the issue of air pollution looming all be able to access reliable, cheap, and regularly. However, for the private market and capitalise on the wave of over the nation, creating a healthier and passenger there is no better way to eco-friendly services in our cities in the Chinese people desiring to travel? Only more energy efficient environment for its travel. form of the smart bus. Watch this space. time will tell. citizens.

www.globalpropertyscene.com

QATAR’S DIFFICULT FUTURE How will an excommunicated country survive?

Words : Andrea Wong | View : Sophie James

The rift follows a visit to Saudi Arabia by US president Donald Trump, where he reportedly spoke to King Salman of Saudi Arabia about the significance of having a united Gulf Cooperation Council. With allegations about Doha funding armed groups, Trump has spoken out about his support for the blockade, claiming that Qatar is destabilising the region.

Since severing diplomatic ties with Qatar, Saudi Arabia came up with a 10-day ultimatum to lift the blockade. However, the kingdom of Qatar remained defiant and with the deadline now passed it is difficult to say whether Qatar will continue as an isolated nation or if the Gulf Cooperation Council (GCC) can come to a resolution. Will Saudi Arabia increase sanctions? Will anything ever be resolved? It all remains to be seen.

These claims stem from a significant event which took place in April this year where Qatar paid over US$1bn for the release of a falconry party on a hunting trip in Iraq which involved members of Qatar’s royal family. This raised concerns among Qatar’s gulf neighbours about Qatar’s role in funding extremist groups, with Saudi Arabia claiming that this hostage deal was a prime example of how Qatar funds jihadis. The Iraqi Government has continuously rejected the claims of this hefty ransom payment going to fund terrorism calling the allegations ‘’baseless’’.

What has happened? On 5th of June, Saudi Arabia, the United Arab Emirates (UAE), Egypt and Bahrain cut diplomatic ties with the gas rich nation, Qatar, closing its only land border with Saudi Arabia and halting all land, sea and air contact. The decision of the Arab nations to close their airspace to Qatari aircraft has led to its main carrier, Qatar Airways to reroute its flights over Turkey, Oman and Iran. This comes after allegations that Qatar has been supporting extremist groups with the growing tension amongst the gulf nations erupting. According to Saudi Arabia, Qatar has been threatening regional security by funding al-Qaeda linked groups and the Muslim Brotherhood.

www.globalpropertyscene.com

Since, Saudi Arabia gave Qatar an extra 48 hours to review the set of demands which include ending support for the Muslim Brotherhood and closing the global broadcaster, Al-Jazeera, to lift the blockade. However, the stand-off is being prolonged after a ‘’negative response’’ from Qatar in a meeting in Cairo where the demands were discussed further. The nation is showing no signs of abating, deepening the rift within the GCC nations, whilst other countries are getting involved in an attempt to resolve the dispute. Despite local authorities in Saudi Arabia attempting to stop terrorism, over 4,000 Saudis have joined IS in the last few years, whilst the majority of attackers that took part in the 9/11 attacks were Saudis. Does Saudi Arabia have a case to answer?

Doha, Qatar

The effect of the blockade At the wake of the diplomatic crisis, Qatar’s stock market tumbled, falling by nearly 8% due to the concern over food shortages as the single land border shared with Saudi Arabia was closed off. It led to complete panic in Qatar as many citizens rushed to the supermarkets to stock up on food and basic products. Qatar is home to a population of 2.7 million people and is dependent on imported products in order to meet the basic needs of its people. 80% of its food imports came from larger Arab neighbours, however, with these imports no longer available, Qatar had to turn to others for help. In response to the crisis, Iran began sending cargo planes packed with food over to Qatar, supplying the nation with 100 tonnes of fruit and vegetable every day. Turkey has also played a major part in importing goods over to Qatar, giving the impression that Qatar’s relations with these two middle eastern countries will strengthen. Of the two million people from the Philippines who work in the Middle East, there are around 140,000 Filipinos in Qatar. Following the drastic movements by Saudi Arabia and the other gulf states, the Filipino government acted quickly by halting deployment of its workers to Qatar until the situation became clearer. There were initial fears over how Filipino workers would be affected, particularly in the event of a food shortage crisis. However, Doha’s

20 |

www.globalpropertyscene.com

Philippine Embassy has since advised foreign workers to remain calm, reassuring them that the situation in Qatar will remain stable in the wake of the GCC fall out. Al-Jazeera At the centre of the Gulf crisis is the Qatar-based broadcaster, Al-Jazeera, which reaches 310 million households in 100 countries. Approximately two decades ago, Al Jazeera Arabic began broadcasting, with the aim to provide accurate information to viewers, however it has since become a source of resentment. At the time, the majority of media in the region was state controlled, so when Doha broadcaster Al Jazeera was introduced it was welcomed with open arms as it had an independent voice and reported human stories. The future of the channel is now under threat with Saudi Arabia demanding that Qatar shut it down as part of the 13-point ultimatum. Al Jazeera has since commented on the demand, describing it as ‘’nothing but an attempt to end freedom of expression in the region, and suppress the right to information.’’ It has caused outrage amongst journalist organisations around the world with the National Union of Journalists calling the move ‘’shameful’’. Despite decades of controversy and criticism from fellow Arab countries, Al-Jazeera has not faced the threat of being shut down until now. In the past, stories have been exposed of Al-Jazeera journalists being

Doha marina, Qatar

imprisoned however, there is very little coverage of this from any other media sources. In a region where very little freedom exists, the Gulf countries are doing everything possible to keep the media at bay.

Mohammed who believes that the diplomatic crisis in the Gulf will not affect normal life in Qatar, with programmes in place to ensure that life will resume as usual, as well as construction which is well underway for the World Cup in 2022.

How it affects the West Qatar is the largest producer of liquefied natural gas (LNG), shipping to Asia as well as Europe. Although the UK is not directly involved in the row, the crisis has exposed how reliant the UK is on energy imports. Britain imports almost one third of its gas from Qatar and the disruption has ignited fears and increased public support for fracking and the development of shale resources. The uncertainty in the Middle East has certainly raised questions over energy imports in the long-term. The lack of supplies in the North Sea has led to Britain to become more dependent on LNG being shipped from Qatar. Although there is no immediate concern, it adds to factors such as Brexit which ‘’could cause vulnerability in future’’ according to Mr. Trimble, managing director at the Energy Contract Company. Since the Qatar stand-off, imports have resumed as normal with energy prices unaffected, but if the situation is prolonged economists predict that it could push up energy prices. World Cup 2022

The decision for Qatar to host the 2022 World Cup was already controversial with the intense heat in the desert state reaching 50 degrees during the summer months. Despite construction workers continuing on work for the World Cup, the diplomatic crisis is putting another spanner in the works. Builders have been told to continue with preparations with one man admitting: ‘’We don’t know what is going to happen further down the line’’. Some western firms who are working on World Cup projects are drawing up contingency plans in case there is no solution to the rift soon. Multiple building firms are looking to depart from the £160bn construction programme needed to finish the brand-new stadiums, metro system and thousands of hotel rooms. With fresh sanctions threatened by Saudi Arabia, the risk of companies potentially leaving the nation is becoming a larger risk. There are now expected to be delays with the World Cup infrastructure with logistics partners having to reroute to avoid the UAE ports and Saudi-Qatari land border which are both closed. This will add time to projects being completed as well as the overall cost.

Any concerns over economic hardship have been rejected by Sheikh

www.globalpropertyscene.com

What is next for Qatar? If Qatar’s economic and political sanctions become permanent and the peninsula nation is declared a pariah state, it could run the risk of driving Qatar into strengthening its relations with Iran, who are Saudi Arabia’s arch rivals. However, according to reports, UAE ambassador, Omar Ghobash has accepted that Qatar has been influenced by Iran and Sunni extremist groups for a while so, although it is a risk, it will make clearer who are friends and enemies. The likelihood of a war breaking out is unlikely with the Gulf Arab state looking for solutions other than militarising the row. However, Saudi Arabia has since warned that ‘’political, economic and legal measures’’ will be introduced as a result of Qatar’s rejection of the list of demands. On the surface, the motives of the boycott led by the four Arab states may seem simpler than they actually are. However, when you delve deeper into the rift amongst the GCC members, you have to question the real motives behind this blockade. Many reports have suggested that Saudi Arabia sees that Qatar’s sovereignty has the potential to outperform the Kingdom, a factor which could have contributed to the row. What is interesting to see is that there has been a lot of coverage that has been directed at what Qatar has done, whilst there is very little said about Saudi Arabia. Is this a way of Saudi Arabia diverting attention away from themselves and previous accusations about their funding of extremist groups? Saudi Arabia has since banned Al Jazeera channels from hotels and this could be down to fear of what the independent broadcaster may expose as the tension in the gulf heightens. Can wealth lift Qatar out of the gulf crisis? There is without doubt anxiety in Qatar about its ability to overcome the difficulties of being cut off by its neighbours. However, Qatar’s finance manager believes that the rich nation is in fact in a ‘’better position than its rivals’’ and that its sovereign wealth means that Qatar is well equipped to deal with the threats of the blockade. He continued by saying: ‘’We are the fastest-growing country in the region, 40% faster than the nearest Gulf Co-operation Council country (the UAE).’’ Qatar is now looking ahead with its latest plan for gas expansion - a bold statement to gulf neighbours who are looking to punish the nation. Gas has completely transformed Qatar, making it one of the wealthiest countries in the world today. The country is currently the leading exporter of LNG and has announced that its production will grow from 77 million tonnes to 100 million tonnes annually by 2024. There are doubts about how this will impact on the energy markets as many countries are now looking to completely decarbonise, which means the demand for gas along with coal and oil could be wiped out in the next decade or so. Although the Arab states have severed ties with Qatar, causing many issues including having to reroute flights and import supplies from other countries, Qatar remains confident in its future. The LNG expansion could be the cause of tensions to rise in the region but also can be a huge boost to Qatar’s economy if it is to be cut off from its neighbours for a long period of time. Does the emirate have enough wealth to endure the boycott? Only time will tell.

22 |

www.globalpropertyscene.com

high-rising city of Doha, Qatar

www.globalpropertyscene.com

| 23

GPS ATTENDS Global Property Scene attends some of the most exclusive events on the international calendar. To find out more visit our website. www.globalpropertyscene.com

Supercar exhibition, Grimaldi Forum Monaco

THE BEST OF THE BEST TOP MARQUES MONACO 2017 Words : Michael Smith | View : Olivia Marocco

Standing as a well-established date on the luxury calendar, Top Marques continues to deliver some of the world’s most exclusive product launches. Its location only adds to the prestige of the event, and 2017’s edition again delivered some truly unique offerings. The event to me often feels like the real beginning of the build-up to the Monaco Grand Prix. The grandstands are almost complete, the streets are lined with armco’s and the road around the harbour is awash with supercars from across the continent. Top Marques has become something of a performance car mecca for Europe, with people of all backgrounds making the journey through France to drive the streets of Monaco. A swath of intrepid car potters easily distinguished by their shorts, sunglasses and SLR cameras waive any common sense towards safety as they stumble over one another in a desperate attempt to capture their most coveted car spots. Once the sun has set, the famous tunnel running through the heart of Monaco becomes a burnout hot spot, as cars of all kinds speed through. As more enthusiasts join the evening, it seems the police are increasingly punishing those who show little regard to the speeds posted by this small principality. Residents of Monaco are starting to grow tired of the actions exhibited by tourists, with complaints describing similar scenes to those of Sloane Street in London, which every summer endures a host of middle eastern supercars racing, screeching and double-parking. Test drives is something that has made Top Marques stand out from other motoring events. Not only can you drive some of the most desirable cars in the world, but you can test it on one of, if not the, most famous racing circuits in the world. It is often referred to as the world’s most exclusive car show, and this was backed up by the introduction of a whole host of exclusives. New Launches Donkervoort: D8 GTO-RS Founded in 1978 by Joop Donkervoort, Donkervoort are the Netherlands answer to ultimate performance. The new D8 GTO-RS is the fastest and lightest supercar ever built by the Dutch car maker. The car makes use of improved aerodynamics for even more aggressive acceleration and straight-line speed. The model will be limited to just 40 cars, with prices starting just over €150,000 excl. taxes.

Mini Remastered, David Brown Automotive

Calafiora: C10 Unveiled by the Prince of Monaco, the Calafiora C10 is a vehicle which is destined to deliver breath-taking performance. With a chassis built from lightweight carbon fibre, and a power plant capable of delivering more than 1,000 horsepower, it could prove to be one of the fastest convertibles ever built. In the search for perfection no detail is too minor, with the car’s development breaking the seven-year mark.

D8 GTO-RS, Donkervoort

26 |

www.globalpropertyscene.com

Asfané: Charlotte Edition, FV-Frangivento

Prince of Monaco unveiling the C10, Calafiora

FV-Frangivento: Asfané, Charlotte Edition Derived from the concept car unveiled by the Italian manufacturer earlier this year, the Charlotte Edition (named after the Princess of Monaco) of the Asfané is the first supercar I’ve seen offering prospective buyers an on-board fish tank. Capable of more than 300km/h, prices for this limited edition start at around €1.8m. David Brown Automotive: Mini Remastered Having delivered a modern interpretation of the Aston Martin DB5 (Speedback GT), David Brown have now applied their master craftsmanship to another British classic: the humble Mini. Working the car from top to bottom they’ve improved panel spacing, electrical systems and paint finishes. The car also benefits from new LED headlamps, a 7-inch infotainment system and the highest quality leather and aluminium interior finishes. Prices start from around €57,000. Featuring for the first time at Top Marques were two new flying vehicles. One by manufacturer AeroMobil and the other by Pal-V. Still in the early stages of development, they gave visitors an interesting insight into a potential automotive future. The event isn’t simply about cars - there is a whole host of other products on display. One of the main events was the launch of Silver Muse, the new cruise ship developed by SilverSea. Arguably the most luxury cruise ship available today, guests have unlimited access to some of the finest dining around, can experience destinations not normally offered by normal cruise liners and can even get Botox treatments on board. Booked up for the first 12 months, its popularity is only set to grow. Another standout item was SébastienBarrau Manufacturers titanium desks, constructed using material from aerospace industry. What makes the piece so original is the table’s detailing; the titanium lines and shapes branch out to create a map of Paris. This is certainly a product you need to see to fully appreciate. And finishing on a highpoint was GreubelForsey, who delivered some stunning designs. The GMT watch which takes over a year to make and incorporates a spherical globe that moves harmoniously with the Earth’s rotation in real time was a real standout item. That wraps up this year’s event. If you’d like to see a little more turn over the page to see three other amazing products from this year’s event.

www.globalpropertyscene.com

3 STANDOUT ITEMS

1 Greubel Forsey Double Tourbillon Technique

--This stunning watch comprises 385 components and features a 120- hour power reserve guaranteed by four fast-rotating coaxial mainspring barrels. The case measures 47.5 mm in diameter and features sapphire crystal on the front and back to highlight the mechanisms.

2 Say Carbon Yachts SAY29

--The number 29, not only represents the crafts length but also the exclusively small amount of this limited edition to be produced. The carbon hull glides through the water with ease, and despite a smaller 300hp engine the craft can reach serious speeds.

28 |

www.globalpropertyscene.com

Note - Figures based on exchange rates and prices from : March 2017

3 KORMARAN K7

--This 23-foot speedboat features electronically activated hydraulic-arms, and at the touch of a button can rise above the waterâ&#x20AC;&#x2122;s surface effectively becoming a trimaran. The transformation creates a smoother experience, and reduces water resistance by up to 80%, improving speed and efficiency.

www.globalpropertyscene.com

| 29

For more information and details about products contact Tel: +44 (0)161 772 1394 Web: www.forshawland.com

A BREATHABLE FUTURE A guide to carbon offsetting Words : Alex Timperley | View : Dudarev Mikhail

Climate change is the most imminent danger facing our society at the present time and is set to remain so for the foreseeable future. The earth is getting warmer and it is urgent that we do whatever we can to ameliorate the worst effects by reducing or compensating for our collective carbon footprint as far as possible. The most well-known ways of helping the environment include recycling and switching our lives over to sustainable or renewable energy sources such as solar power, wind power, tidal power and biomass energy. Overall the world is doing a fairly good job of building more renewable infrastructure. Even countries like China and India which have previously put sustainability far behind economic growth as a priority are now investing hundreds of billions of dollars into renewable technology. With the signing of the 2016 Paris Agreement, the only outlier is Donald Trump’s America. Everyone else has taken the danger on board and is fighting hard to fix the problem. The issue is that we have spent two centuries filling the atmosphere with excess carbon and our entire global economy and lifestyle is built around fossil fuel infrastructure. We can’t simply switch overnight. A process which took two centuries to bed in will take many years to replace. So, what are the alternatives in the meantime? Currently, many who are involved in the world of business and power generation seem to be very keen on carbon offsetting as a way to improve their environmental impact, with the industry growing every year. Carbon offsets are measured in metric tons of carbon dioxide or

equivalent greenhouse gases such as methane, nitrous oxide or sulphur hexafluoride, all of which contribute to the greenhouse effect that is warming the Earth’s atmosphere and oceans. One carbon offset represents the reduction of one metric ton of gas. Individuals or companies can pay someone else to reduce their own emissions to the value of however many carbon credits have been bought. There are two separate markets for carbon offsetting – the corporate compliance market and the smaller voluntary market. The corporate compliance market exists for companies, governments and other large bodies to comply with legal limits on the amount of carbon they are allowed to emit as part of their business. This market is worth billions of dollars a year and offsets billions of metric tons of carbon. The voluntary market is aimed at allowing people to reduce their emissions from sources such as transportation and electricity use. These sources are not restricted by law, but they are still very significant carbon emitters and it is important that we address our reliance on petroleum cars and dirty electricity production, even if the law does not have day-to-day provisions for them. For instance, a family may wish to offset a year’s worth of carbon emissions or pay to make the flights on their family holiday ‘carbon neutral’. To do this, they log into an offsetting website, calculate the emissions they would like to offset and then pay the required fee. The process is extremely simple and can be done instantly, making it easy to enter the voluntary market and improve your footprint. To make it even easier, this cost is often included in the price of products now in order to streamline the process even further. For instance, if you buy a new Land

www.globalpropertyscene.com

Coal power stations at dusk

TOP 5 CARBON OFFENDERS (Country CO2 emissions in 2015)

Traditional English terraced houses, UK

Rover you will also be paying for the carbon used in production and that emitted by the first 45,000 miles or so. Examples of common uses for carbon offsetting money include renewable energy projects and energy efficiency work. Preferred projects tend to be those which will reduce the global carbon footprint in the medium and long-term so as to extend the benefits out as far as possible. Most projects funded by carbon offsetting take place in parts of the world which are developing rapidly as opposed to rich Western countries. The theory is that carbon is the same no matter where in the world it comes from, and that it is cheaper to put the money into countries like China, India and Brazil. Getting the most for your money is important, because hopefully the more that is spent, the more we all benefit. Probably the most efficient use of the money in developing nations is the investment into renewable energy sources. Countries like China and India are growing at a prodigious rate and anything which keeps them away from building hundreds of new coal plants in the future is a must. Once

32 |

www.globalpropertyscene.com

Global total 36,061,710 kilotons (KT)

--China: 10,641,789kt - 29.51% of overall total United States: 5,172,338kt - 14.34% of overall total European Union: 3,469,671kt - 9.62% of overall total India: 2,454,968kt - 6.81% of overall total Russia: 1,760,895kt - 4.88% of overall total

a renewable energy network is set up, it is unimaginable that a country would ever switch back to fossil fuels in 20 yearsâ&#x20AC;&#x2122; time. Tackling emissions head on in this manner is highly beneficial. The benefits of investing in energy efficiency are less clear cut. Making power grids and production lines more efficient is a good thing of course, but if we donâ&#x20AC;&#x2122;t convert fossil fuel hungry factories onto other types of fuel then we will still use up the Earthâ&#x20AC;&#x2122;s supply of oil, gas and coal eventually, just a bit more slowly than before. Energy efficiency is a worthy goal, but it should be seen as a stopgap as we push on with true renewable conversion, rather than an end in itself. Other areas which carbon offsetting money gets invested in are more experimental and invest in technology which enhances the natural ability of our planet to remove carbon from the atmosphere. Techniques such as fertilising the oceans with iron in order to encourage the growth of carbon-sucking plankton, and the development of technologies which pull carbon out of the atmosphere and store it in solid form such as filters on power stations and new biomass power facilities, are potentially very

useful. The latter in particular has many applications in areas which donâ&#x20AC;&#x2122;t have the infrastructure to important large quantities of fuel from far away. Not perfect This is not to say that carbon offsetting is perfect by any stretch of the imagination. There is a lot wrong with it and it is clearly not a long-term solution. The biggest issue is that it doesnâ&#x20AC;&#x2122;t actually encourage anybody to change their behaviour or how their business works. If you can simply throw money at the issue and get told you are doing a good thing then why would you ever change? What is the incentive for a polluting business to entirely change their whole model if they can instead pay someone else a minimal sum to deal with it for you? The tension between the demands of commerce and the needs of the planet and its inhabitants is at the core of carbon offsetting, and there are now serious, organised interests which are promoting the practice,

www.globalpropertyscene.com

meaning that it is unlikely to go away any time soon. The fact that carbon offsetting was immediately embraced by the corporate lobby at the Kyoto talks in 1997 tells its own story. History tells us that persuading a corporation to travel in a new direction is a tough sell unless there is a direct financial benefit for it, and the enthusiasm for carbon offsetting therefore raises suspicions that it might not be quite as beneficial for the planet as was originally hoped. Carbon offsetting also only addresses one part of the harm which mass production and a consumerist society visits on the environment. If a coal plant pays to offset a million tonnes of carbon but then continues to spill toxic waste into the nearby rivers, how much is that actually helping? The mining industry is a massive polluter around the world, exacting a toll of misery on both the planet and the people employed by it, but the problems it presents cannot be solved purely through carbon reduction. Mining waste still gets poured into rivers, and mercury and lead get into the food supply and poison fish in the sea. Similarly, the worldwide chemical industry needs to do more than reduce its carbon footprint if we are to truly solve our environmental problems. Firms like Dow Chemical Company can perpetrate disasters like the Bhopal gas tragedy which killed more than 2,200 people and no amount of carbon offsetting can stop that. Overall, the idea that you can reduce your carbon footprint by paying someone else to reduce theirs comes across as rather naïve and simplistic. It is not without potential if correctly implemented, but it is clearly an idea which needs updating now that we have more data on climate change and more evidence of how well offsetting carbon works in the real world. There is a full range of measures available to us and polluters should no longer be able to get away with doing some minimal carbon offsetting and then washing their hands of environmental issues. The future As always when it comes to the environment, the only way any of this works is if the big polluters get on board. It is possible for everyone to do their bit – being carbon efficient, recycling everything, offsetting their holidays – and the problem would still get no closer to being solved. Carbon offsetting is a good start but we can do much more. Businesses should not be allowed to relocate to the developing world to take advantage of virtually non-existent environmental regulations and then pay a relative pittance to an offsetting company in order to feel better about it. The 2016 Paris Agreement was a good first step in the direction of global regulations which will aim to keep the planet at a temperature which will not ruin everything, but it needs to be enforced. The United States of America’s planned secession from the deal is discouraging, but there have been positive moves from China and India to counter it. Encouragingly, the hundreds of billions of dollars invested in sustainability in the Far East and India are aimed firmly at creating renewable energy to replace fossil fuels in the long term rather than simply aiming to offset carbon emissions through payments. It is this change in behaviour which is the necessary step. Carbon offsetting has its advantages, but overall it is not much more than a temporary measure which must only be in place to help the world transition into a sustainable, renewable future. It cannot be the end goal or we will face disaster eventually. For now, it is a good way for individuals and businesses to contribute, but it needs to be tied to further action. Whether that is switching your own business onto a renewable power grid or using carbon offsetting as a jumping off point to change your own personal carbon footprint permanently, it very much has its place and will play an important part in the future.

34 |

www.globalpropertyscene.com

Pollution from battle tank factory, Nizhny Tagil

Manchester, UK

www.globalpropertyscene.com

| 35

INVESTOR SEMINARS 2 0 1 7 - EV ENTS

TICKET AVAILABILITY LONDON, 23RD SEPT

SOUTH AFRICA, 6TH OCT

Radisson Blu Edwardian, Folio Suites 2 & 3

JSE 2 & 3, Radisson Blu Sandton

23 September 2017 12:00pm - 23 September 2017 5:00pm

6 October 2017 1:00pm - 8 October 2017 7:00pm

FINAL PLACES LEFT

LIMITED TICKETS

WHAT TO EXPECT AT THE SEMINARS

NETWORKING

PEOPLE

LAUNCHES

Attendees can socialise and network to share their experience of buy-to-let investment over drinks and canapes.

Over 700 guests have attended our seminars and had oneto-one consultations with our expert property consultants.

Attendees receive exclusive access to new product launches and development opportunities.

SHANGHAI, 1ST DEC

HONG KONG, 8TH DEC

Four Seasons Hotel Shanghai, VIP Room II

Kowloon Shangri-La, Harbour Room I & II

1 December 2017 10:00am - 3 December 2017 6:00pm

8 December 2017 10:00am - 10 December 2017 6:00pm

TICKETS AVAILABLE FROM 1ST AUGUST 2017

ADVANCED BOOKINGS BEING TAKEN

Request your FREE tickets today! Email: exhibitions@knightknox.com Web: www.knightknox.com/events

LAND OF MORNING CALM A guide to South Korea Words : Andrea Wong | View : Nami Chwang

South Korea is a sovereign state located in East Asia which was referred to as the “Land of Morning Calm” in the past due to its breathtaking mountainous landscape and its tranquility. Famous for its spectacular rise from one of the poorest nations in the world to one of the most technology advanced countries in just one generation, modern day South Korea has become one of the most fascinating places to visit today with contemporary culture deriving from early nomadic tribes and western influences. Whilst the northern part of the Korean peninsula has slipped into totalitarianism and poverty, South Korea has been climbing the league table in terms of economic growth and currently has the fourth largest economy in Asia and the eleventh largest economy in the world. However, South Korea’s success has come at a huge cost, with South Koreans experiencing decades of suffering under several military dictatorships, where autocratic rulers eliminated any opposition and censored the media. Japanese occupation of Korea It is interesting to begin with the annexation of Korea by the Japanese which at first glance, saw Korea improve its infrastructure, agriculture and other sectors, allowing the nation to evolve into a modern country. But beneath the economic growth, was the suffering that South Koreans endured during this period worth it? In 1910, Korea became a colony of the Japanese Empire for 35 years,

38 |

www.globalpropertyscene.com

going through a period of industrialisation and urban growth. During the first decade, Koreans were ruled directly through the military with the threat of opposition immediately removed. However, after mass protests which took place in 1919, the Japanese rule became much tamer, allowing Koreans to have freedom of expression to a certain extent. Whilst it is true that South Korea made huge strides towards modernisation and experienced impressive economic growth under colonial rule, it was an era where Koreans faced continuous discrimination and sufferings. Following the Japanese occupation the country divided into two parts following the 1945 Allied victory in World War II. It caused devastation as families were torn apart and many more were feared dead. The Miracle on the Han River The recovery period after the three years of the Korean War was marked by incredibly rapid economic growth in South Korea, which is today referred to as The Miracle on the Han River. In the aftermath of the Korean War, both North Korea and South Korea devastated their cities and economies through relentless bombing over the war. At this point, South Korea was seen as one of the poorest countries in Asia, an incredible situation when you think about how much the small country has grown since. In the past, agriculture was the main sector in the economy, but a shift in focus in recent decades has been key to its huge economic growth, catapulting the underdeveloped country into one of the wealthiest countries on the planet.

Twilight Seoul Tower in Spring at south korea www.globalpropertyscene.com

| 39

Bongeunsa temple in Seoul City, South Korea

Korean soldiers watching border between South and North Korea in the Joint Security Area (DMZ), Panmunjom, South Korea

42 |

www.globalpropertyscene.com

Helping South Korea to cement its place amongst the elitist countries, the 1988 Olympics in Seoul was a great opportunity for the South Korean government to showcase the economic growth that South Korea was experiencing to an international audience. From this key event, South Korea gained traction and was later established as one of the four Asian tigers. Relations with North Korea Separating North and South Korea in the Korean Peninsula is a heavily guarded, 250km long boundary called the Demilitarised Zone (DMZ) which acts as a buffer zone between the two countries and is one of the most dangerous places on earth. North Korea has been a constant threat to South Korea in the last decades and even more so now, with the young leader, Kim Jong Un, continuing to increase his nuclear arsenal. Despite the signing of the armistice agreement after the Korean War, tensions between the two have reached new heights with nuclear and missile tests in the last two years carrying an ongoing threat to the South. Relations between the two have been turbulent due to constant conflict in regime and, although there have been a handful of discussions about a reunion as one country, these have often failed to materialise with disagreements on both sides. A BBC World Service Poll in 2014 reported that only 3% of South Koreans saw North Korea as a positive influence. Chaebol Chaebol is a term which is translated as “wealth clan” in Korean, however it means much more than this. It refers to the South Korea’s family-run conglomerates who were instrumental in dragging South Korea out of a poverty-stricken state after the Korean War, leading the country to rapid economic growth. After the Korean War, government schemes were introduced to provide businessmen with relief funds and loans to help recover the economy. These huge family-run business empires have been at the centre of South Korea’s industrial development and are now worth over half of the country’s entire economic value. This tactic by the government played a key role in rebuilding the severely damaged country, however, it caused resentment and a distinct divide between the wealthy and the poor which is still evident in society today. It has been the cause of mass protests taking place in Seoul amongst younger South Koreans, who have raised their concerns over chaebols and the strong position that these wealthy family businesses hold in South Korea. The close relations between businessmen and politics have led to a huge corruption scandal which has dominated the country’s headlines in the last year, with the former president Park Geun-hye and Samsung bosses recently being prosecuted for bribery. Large corporations such as Samsung and Hyundai were largely responsible for South Korea’s recovery post-Korean War. Many young people in South Korea are angered by the current system as it favours the businessmen, who monopolise the majority of the wealth in the country. Those who are employed by chaebols are offered much better salaries and better benefits, whilst many people in ordinary jobs continue to struggle with the soaring prices in South Korea. In support of distributing the wealth more evenly across the population is the new President, Moon Jae-in, who is looking to put reform of chaebol groups at the top of his agenda. Analysts have said that despite the impressive impact that conglomerates have had since the Korean War, their close relations with the government is pushing out smaller firms who are finding it very difficult to compete with the conglomerates. Moon has promised to clamp down on limitations of where large shopping centres can be built to protect the smaller companies. Politics South Korea’s government has recently been at the centre of controversy with the former president, Park Geun-hye, accused of abusing her power by pressurising large companies such as Samsung into paying millions of dollars for business gains. A constitutional court ruling took place in March this year and removed her from her position as President, following allegations of her corrupt relationship with her friend, Choi Soon-sil. The former President could spend the rest of her life in prison for

corruption and allegedly leaking state secrets, again raising concerns over the close ties between large businesses and the government in South Korea. For the next few months, she must persuade judges that she did not bribe companies into giving millions of dollars to her lifelong friend via a foundation which she established. During the publicised corruption scandal, tens of thousands of South Koreans took to the street of Seoul and urged for Park to be removed from the presidential office. Many people hoped that the next in line would be much more receptive to the public. Since, a snap election was prompted which Moon Jae-un claimed victory. Moon Jae-in was previously imprisoned whilst at university for protesting against the dictatorship which was under military ruler, Park Chung-hee. Despite the political difficulties that took place at the beginning of 2017, there is now renewed hope in South Korea with the new president-elect, Moon Jae-in, who is looking to bring about much needed change in South Korea. Moon has promised to strengthen relations between South Korea and the North, amid the escalating tensions over the North’s nuclear programme. The new president is willing to meet with the North Korean leader under the right circumstances, to try to bring peace to the Korean Peninsula. The past two conservative governments have looked to punish North Korea by working closely with Washington. Some South Koreans have been sceptical of this new liberal government and Moon’s interest in working with North Korea to improve diplomatic and economic engagement, in the fear that it will cause issues with the United States. However, Moon has reassured President Trump that “the alliance with the United States is and will always be the foundation of our diplomacy and national security”. In terms of demographic, Moon has gained more support amongst the younger generation as older Koreans tend to be more conservative. Young people want the change that he has promised, and for South Korea to sever ties between politicians and the wealthy business empires. Although Moon will attempt to bring forward chaebol reforms, only very tame measures are likely to be passed with many politicians likely to favour the chaebols’ powerful position in the country, given the significant gains which came solely from these businesses. With the conglomerates being such a large part of the economic miracle, there is no doubt that their power will tough to curb. Samsung, Hyundai Motor, SK and LG make up half of South Korea’s stock market value. Employment A challenge for the newly-elected president is employment. Moon has pledged for an additional 810,000 public sector jobs and 12,000 jobs to be created in government. The latter is very popular amongst younger people who will benefit from the stability of the job as well as an excellent pension scheme. At the end of 2016, the unemployment rate amongst people aged between 25-29 was at a record high at 8.2%. The overall unemployment rate fell to 3.6% in November last year. Young South Koreans in Seoul are struggling to deal with the stress of living in a thriving, over populated city as well as the difficulty of finding a job. Han Jung-min, a worker at a small coffee shop and only one of the thousand young people who are looking for a career job, referred to the situation as “very depressing”. Although overall unemployment in South Korea is at a relatively low rate, it masks the issues amongst the younger generation where employment is a bigger concern. Despite continuous efforts from the government to implement structural reforms, they have not been as successful as hoped so far. Another concern that South Korea is faced with is the gender inequality that is preventing many women from going to work. Moon Jae-in is already looking to extend his budget towards investing in training for women who are returning to work after maternity leave as well as funding women with start-up companies. However, with many South Korean working women in temporary and part-time roles, the incentive to participate in the workforce is less appealing. Women in their thirties are leaving the labour market in even greater numbers as Chung Hyun-back, a candidate for the Gender

www.globalpropertyscene.com

Seoul at night, South Korea

Equality Minister position says that the real issue is “the difficulty of maintaining work-family balance”. Analysts believe that the government must implement measures to increase the amount of childcare options, whilst men must play a key role in encouraging gender equality.

diversify their portfolios. On the other hand, South Korean investors may be deterred from the property market with longer void periods due to housing supply increasing. Economy

Property market Seoul has become one of the top property hotspots in the region with foreign investors responsible for over half of South Korea’s commercial property transactions last year. Director at Savills Korea, Callum Young, said: “The yields on offer here are some of the highest in any stable economy and appeal to both institutional and private investors alike’’. Compared to the likes of Tokyo and Singapore which have average investment yields of 3.2% and 3.3% respectively, prime office buildings in Seoul have reached average yields of 5%. Interest from overseas investors has increased transaction volume significantly reaching an unprecedented level last year of US$12bn, a rise of 15% from the year before. After two years of continuous house price growth, it was reported that South Korea experienced a slowdown due to an oversupply of housing and revised mortgage rules. Chinese investors have shown plenty of interest in the South Korean property market despite recent negative South Korean sentiments in the country. Enquiries on major China based portal Juwai.com grew by 350% in the first quarter of 2017. However, diplomatic tensions between China and South Korea have heightened in the last few years, causing 44% of Chinese buyers to be more cautious about investing in South Korean property. Property analysts are predicting that appetite for the South Korean market will continue with investors keen to look for alternative investments to

44 |

www.globalpropertyscene.com

Since the economic miracle, South Korea has continued its progress in major sectors. Today, its largest sector is the service industry which equates to approximately 55% of the country’s GDP. The Asian country is mostly recognised for its manufacturing sector with car manufacturing and electronics in South Korea amongst the most famous in the world. This sector is now worth approximately 40% of South Korean’s total GDP. In contrast, agriculture, a sector which in the past was the dominant sector, now only contributes a very small proportion at 4%. Earlier this year, it was reported that the manufacturing sector again saw the largest growth with 1.8% increase per quarter, whilst services industry remained the same from the previous months. As a result of the corruption scandal which involves President Park Guen-hye, the central bank predicted that private investment would be weaker, along with high interest rates impacting on consumer sentiment. However, hope has been regained with Moon Jae-in as the new President, which means that that consumer sentiment is likely to pick up once again. As South Korea’s economy has been dominated by the high-profile conglomerates such as LG, talk of the tourist industry has been limited. Tourists who originated from China are amongst the most common in South Korea making up 46.8% of visitors, however, the relations between the two nations have recently suffered a blow with China opposing the THAAD anti-missile system, claiming that it is ineffective in stopping North Korea from developing its nuclear weapons, whilst it could increase tension in the region.

The situation has had a devastating impact on South Korea’s tourism industry where the number of annual visitors is decreasing. According to The Korea Tourism Organisation, the number of Chinese tourists could drop by approximately 27% from 2016, with a significant 4.7 million less visiting South Korea this year. Earlier on in the year, the number of tourists grew substantially but have fell each month since, with May this year experiencing the largest drop at 34.5%. Speculation of South Korea’s tourist industry being hit by long-term depression is becoming more realistic. The outlook for the sector is bleak, however, the overall economy is still growing in other large sectors. In the first three months of 2017, the South Korean economy has grown 1.1%, faster than the 0.9% predicted. GDP growth rate was on average 7.52% per year, which shows that South Korea is still gaining ground and rising up in the ranks. The Korean Wave South Korean contemporary culture has stemmed from a mixture of age old traditions, as well as westernisation and urbanisation and this is most noticeable in the capital, Seoul. Over the years, South Korea’s pop culture has exploded onto the scene, reaching unlikely corners of the world, not just in the East but now also in the West. The popularisation of Korean pop culture which is also known as K-pop has mainly come from Youtube and other streaming sources. Strong online presence in the country goes some way to explain how the Korean Wave has become such a global sensation. Approximately 98% of people in South Korea own a mobile phone, with the majority using them to stream videos and watch films every day. In addition to this, the influx of South Korean people moving to study at American universities

has allowed the Korean Wave to carry the momentum over to the western world. Unfortunately, there is a dark side to K-pop that must be addressed. K-pop performers are taught how to act as an idol after years of training from a very early age. If they are caught taking drugs or act in a way which is deemed unacceptable, they can be immediately dropped by their label. Scandals in the music industry in the last few years have even had an impact on the performance of the South Korean stock market. The future of South Korea Will South Korea continue to grow economically? Will Moon strengthen relations with the North? Moon is an interesting appointment for South Korea as he has shown a commitment to ensuring the economy continues in the right direction and relations with North Korea are improved to keep the peace in the region. However, with North Korea’s dedication to its nuclear programme, Moon’s policies will certainly be put to test in the next few years. Tension in the region is increasing and the reintroduction of the Sunshine policy - a policy of giving an enemy gifts to keep them docile named for one of Aesop’s Fables - may not be as effective in maintaining peace as originally hoped, with North Korea’s missile launches deemed unpredictable and reckless. Despite having to gain the support of the older generation, Moon is showing good intention in improving South Korea’s economy, which is in need of change along with institutional reforms. For now, the outlook of the future is somewhat uncertain as we wait to find out how Moon performs in the next year...

www.globalpropertyscene.com

| 45

Currently servicing clients across North America, Europe, Middle East & Asia resale site We hand select the best buy-to-let properties and portfolios to ensure a sale

Enjoy a simple and hassle-free service Release the built up equity in your buy-to-let property Your property will be marketed directly to other investors

+44 (0) 161 772 1395

www.intusresidential.com

info@intusresidential.com

NEW IMPROVED EFFICIENCY AI & advanced robotics, how can it affect the economy?

Words : Emma Martin | View : Xieyuliang

Artificial intelligence (AI) and smart tech has become part of the fabric of our daily lives. We have become accustomed to living alongside machines and are at ease with the colossal role they play in the function of everyday life. Firmly in the information age, we are now taking enormous steps into the uncharted territory of advanced robotics, and for the first time we have to ask ourselves how robotics and AI will impact the economy. From the challenges that AI brings to job prospects across the board to the way that robotics has revolutionised industries worldwide, there is no doubt of the scale at which AI & advanced robotics affect society and the economy. It is time for us to evaluate just how the winds of change will impact our livelihoods, and at what rate. Rise of the Machines In 2003, Terminator: Rise of the Machines hit the movie theatres and gave us a look at what the world might be like if intelligent machines took over. It’s fair to say that the film provided a frightening insight into the potential consequences of machine learning, with only Arnold Schwarzenegger able to rescue the masses from powerful robots waging war against humankind.

Whilst Terminator is an exaggerated Hollywood version of what machine learning could do, we are now closer than ever to creating the kind of technology that can turn computers into powerful machines capable of ‘outthinking’ the human brain. From driverless cars to automated assistants, drones, phones and personal trackers - smart tech is everywhere. However, as we continue to be dazzled by our new computer comrades there is potentially a quiet insurgency happening that we are heedless to: universal automation. Advances in science and industry have allowed us to build a remarkable society, but some are already starting to wonder whether we have gone too far. With concerns around the role of robots and computers in industry and commerce, some are beginning to consider whether we may be slowly making ourselves obsolete as automated programs continue to evolve. There is a very real worry that we may well end up out of jobs, replaced by robots that are able to work harder, faster and more efficiently than we can ourselves – ultimately leaving many unemployed and penniless. Mass machinery was born in the Industrial Revolution. Prior to this, jobs

www.globalpropertyscene.com

Robots assembling vehicles

were for everyone no matter their age or gender. With few mechanisms to do the hard labour for us, we depended on man power to produce and create. In the late 18th century, inventors and modernisers in cities like Manchester began to design machines that could replace human hands in factories and workhouses, ultimately improving productivity and output. This saw society and the economy evolve into the age of production which offered new challenges, but far better opportunities and standards of living. However, whilst the Industrial Revolution offered enormous progress, it was not met with entirely open arms. The concerns of some in today’s society reflect early 18th century grievances. In fact, one group of Victorian textile workers, the Luddites, famously destroyed new textile machines in a revolt against the use of machinery in place of the common man. There is arguably a much more real threat for people today as we see far more complex AI being employed in posts beyond simple repetitive tasks. Instead modern AI is far more sophisticated and able to learn, meaning computers now have the ability to do jobs like data entry, accounting, telephone operation and even middle management.

48 |

www.globalpropertyscene.com

Job Prospects – who’s the best candidate? Currently AI is quietly being rolled out in the place of many customer service jobs, including airport check-in desks, customer service ‘chatbots’, receptionists and librarians. We’ve become so used to interacting with computers that intelligent personal assistants such as Siri, Alexa and Cortana are now taking up posts in our homes. However this may only contribute to our ignorance when it come to this technology making its way into customer facing roles in the place of humans. You only have to look at a few of the prime examples that have swept through global business to see the introduction of robots taking over human jobs. Take McDonald’s, our most popular fast food chain, which has recently introduced automated ordering stations in many of their restaurants. This eliminates the need for much of their traditional task force, who are now facing the stark realisation that their jobs may be changing for good, or, in the worst case scenario being eradicated entirely. Dr Carl Benedikt Frey and Professor Michael A. Osborne from The University of Oxford estimate that 47% of US jobs are at risk due to

“computerisation”, emphasising just how advanced computer science may impact the employment market in the future. Media and data company Bloomberg L.P. already employs AI to compose company reports, and in Dubai the police force have unveiled a new member of staff, the aptly named ‘Robocop’ – an automated robot with an eight hour battery life that will patrol the streets to improve security in the city. Both examples demonstrate to us that no industry is completely safe from the automation revolution. Frey and Osborne’s study The Future of Employment cites that the jobs at most risk are telemarketers, loan officers, cashiers, paralegal assistants and taxi drivers – with fast food chefs also in one of the top spots showing that the industry’s frontline is potentially one of the most at threat of elimination. The Future of Employment puts burger flippers at an 81% chance of automation, and this can already be seen happening in the USA, with burger chain CaliBurger employing an AI kitchen assistant known as ‘Flippy’ meaning that for some, the threat of being out manoeuvred in the hiring process by a robot is already a possibility. It’s not all doom and gloom though. Despite new technology continuing to astound us, there have been instances of AI being withdrawn as some

companies jump (potentially a little too eagerly) into the automated world. Last year three restaurants in the city of Guangzhou in China had to fire an entire fleet of robotic waiters after they failed to make the mark. Showing difficulties in handling simple tasks like taking orders to tables and making drinks, it’s clear that we still have a little way to go yet. Shanghai news site Shanghaiist spoke to one of the managers who commented: “Their skills are somewhat limited. They couldn’t pour water for customers, nor could they take orders.” The overall experience showed that the robots were proficient in some repetitive tasks but still struggled to communicate with humans which, along with continuous breaking down, was ultimately their downfall. Efficiency and Productivity With all of the scaremongering and employment Armageddon statistics promising us that soon we’ll all be out of work, it’s logical that some might be adverse to the new age of automation. However, there are clear positives, especially when we look at the economy. Bringing automation into the workplace is cost effective for businesses,

www.globalpropertyscene.com

| 49

Modern Super Computer

TOP 5 SUPER COMPUTERS (as of June 2017) Souce: Wikipedia --Note: Petaflop is a unit of computing speed equal to one thousand million million (1015) floating-point operations per second. ---

5. IBM Sequoia: 17.1 petaflops 4. Oak Ridge Titan: 17.5 petaflops 3. Piz Daint: 19.6 petaflops 2. Tianhe-2: 33.9 petaflops 1. Sunway Taihulight: 93 petaflops

and in turn consumers. Computers are able to function all day, without interruption which results in higher production levels, and the use of specialised algorithms means that AI is able to outperform the human brain in a multitude of tasks with marginal error. Controlling employment costs whilst also increasing output is the end goal for all large companies – and AI allows for this in ways we’ve never seen before. There is after all a good reason why the fast food industry might be one of the first lost to automation, because as the name states it relies on speed and efficiency – exactly what we all expect as consumers. A paper from London’s Centre for Economic Research analysed data from The International Federation of Robotics and looked at the use of industrial robots across 14 industries in 17 countries between 1993 and 2007. It showed that the employment of robots in manufacturing actually raised labour productivity and GDP by 0.36% and 0.37% respectively over the specified timescale. Over time this represents an extra 10% of GDP growth and 16% labour productivity growth, showcasing the way in which robotics has positively impacted the economy. The argument that AI will, in the long-term, be better for us all is a strong one. Throughout history there have been examples of man and machinery working together, complementing one another to create new opportunities. This is something Tim O’Reilly, founder and CEO of O’Reilly Media, comments on: “If you look at a combination of man and machine, and you look at some of the examples that have really kind of surprised us in just how they’ve taken off — like Uber, like the Apple store — they are actually cases where humans are made more powerful by this background. And that creates a better customer experience, which creates new demand.” Taking a more detailed look at Uber illustrates the point when we consider that the company, worth an estimated $6.3bn, employs an average of 50,000 new drivers monthly (as of 2014), and has 40 million monthly active riders. Barack Obama, the former President of the United States, discussed the role of AI in a 2016 interview with WIRED and summed up that there are two key measures of importance when we look at artificial intelligence being rolled out globally: “We’ve been seeing specialised AI in every aspect of our lives, from medicine and transportation to how electricity is distributed, and it promises to create a vastly more productive and efficient economy.” He states, “If properly harnessed, it can generate enormous prosperity and opportunity. But it also has some downsides that we’re going to have to figure out in terms of not eliminating jobs. It could increase inequality. It could suppress wages.” Obama echoes the fears of millions of workers, but also recognises that with the right balance AI and robots will work in our favour, and we need only look for new opportunities in order to create a far more advanced, creative and efficient world. So what’s next? It might sound very dystopian right now, but the unavoidable truth is that we are slowly building machines with the intelligence and capability to do some of our jobs for us and as such no one really knows what the future will hold for many industries. But the bottom line is that there will be huge alterations in the near future as AI and robots work as drivers of change. There is a strong likelihood that some jobs will be cut in the process of conversion, however many experts assure that this is simply a part of our evolution and like all things before, we will progress in more complex ways meaning new jobs are created, and society will move forward, with the greater economy profiting from our improved output. In addition, some experts have argued that society will only benefit from the many labour jobs that will, in time, be taken over by automated computer systems as this will allow humans to work towards more creative and innovative projects. With less time being spent on labour intensive work we are able to focus on something that robots can’t take away from us: human creativity. So while there are question marks surrounding a lot of the future, one thing’s for sure; AI and robotics will continue to dominate the headlines and be a hot topic conversation for years to come as we wait to see just how society will harmonise with our robotic partners.

52 |

www.globalpropertyscene.com

Robotic surgery

www.globalpropertyscene.com

| 53

NORTHIL L APARTMENTS

APARTMENTS FROM:

Â£109,995

ENQUIRE TODAY Tel: +44 (0)161 772 1394 Email: info@knightknox.com Web: www.knightknox.com

A GAMBLER’S REGRET How does Britan look post-election?

Words : Will Leyland | View : Melis

As David Cameron stood outside 10 Downing Street on 24th June 2016 looking tired and emotional, many mustered a degree of sympathy for him as his political career lay in tatters. After a long and arduous night for Britain it was announced, in the early hours, that Britain had voted to leave the European Union by a tiny margin and viewers were forced to swallow the impossibly smug expression of Nigel Farage as he rolled back on all his promises in less than four hours. The scenes that followed on from that result encouraged many to wonder whether this was one of the worst political gambles in recent history. Having seen the UKIP vote grow to concerning levels in the 2015 general election, David Cameron had won a majority that he never expected. Within his manifesto, which he’d expected to have to compromise on, he’d made a promise to the nation that a Conservative victory would mean a national referendum on European membership and, whatever the outcome, the result would be enacted by the government. It’s now widely accepted that this was a gamble that Cameron fully expected to pay off, putting the Eurosceptics in his party firmly in their place and answering the European question once and for all. What Mr Cameron and Mr Osborne had not expected was the vitriol, poison and outright anger that it unleashed from a public that were badly reeling from years of austerity and stagnation. Ultimately the toxic atmosphere was to cost MP Jo Cox her life as she was murdered in the street by a right wing terrorist. Having changed the British political landscape possibly forever, definitely for the long term, Cameron had taken and badly lost the biggest political

56 |

www.globalpropertyscene.com

gamble of a generation. Rewind back to the 24th June 2016 and his humiliation was completed. He resigned live on TV just hours after the announcement of the referendum result and left the country to bail themselves out of the overflowing toilet they’d just created. Politics has, in all its forms, been absolutely and thoroughly bonkers over the past three years and has lead Armando Iannucci, creator of The Thick of It, to decry politics as funnier than fiction. Writing in the New Statesman, he said: “I now find the political landscape so alien and awful that it’s hard to match the waves of cynicism it transmits on its own. Fiction is winning out because fact is no longer making sense... Rather than joke about it, I’d sooner urge people to change it.” The Tory party, following on from Cameron’s resignation ran an initially bizarre campaign before eventually crowning Theresa May as the new party leader. Some of the highlights of the race were Michael Gove spectacularly stabbing Boris Johnson in the front, essentially destroying his lifelong dream of being Prime Minister in one fell swoop. It was a little like watching a live broadcast of Caesar being stabbed to death. Stephen Crabb was eventually shown up to be frankly a bit of a weirdo and Andrea Leadsom staged a fantastically cringe-inducing march on parliament where her supporters (mainly posh white people) chanted “What do we want? Leadsom for leader!” “When do we want it? NOW!”. The Evening Standard posted footage of the march calling it ‘painfully embarrassing’. Leadsom went on to crash and burn after she described herself as better

Statue of Plato from the Academy of Athens, Greece

UK Prime Minister Theresa May, leader of the Conservative Party

for the job because she was a mother, seemingly forgetting that Theresa May is unable to have children. Leadsom was handed a bottle of whisky and a loaded revolver and she withdrew from the race.

MP sources telling the media that they suspected negotiations would be a car crash, the scene was set for a gambler to make hay in a fertile political field.

Following on from her crowning as Prime Minister, May was doing astonishingly well in the polls. In August she was rated as Britain’s most popular politician, beating Boris Johnson into second place with a net approval rating of +12. May went on to enjoy some of the highest approval ratings for her own leadership, and for her party, in post-war times; even beating Margaret Thatcher.

According to well-placed media journalists, Theresa May’s top advisors Nick Timothy and Fiona Hill, despised by many in Westminster, convinced the Prime Minister that now was the time to call a General Election and capitalise on the polling numbers as well as Jeremy Corbyn’s horrendous popularity scores. They couldn’t lose, they thought. At the very least they should increase their majority from a narrow 17 to around 50, at best they were looking at a 1997-style landslide.

Jeremy Corbyn, in comparison, was struggling badly as Labour Party leader. His MP’s had become desperate and disillusioned with his leadership with a majority fearing an election landslide not seen since the days of Blair and Thatcher. Labour were, according to the poll, registering anywhere between ten and twenty points behind the Conservatives with the British public. Polls were regularly being published showing Corbyn as one of the most unpopular politicians in British history. He’d been facing a long and unrelenting campaign from the British media and many within the political establishment to paint him as a terrorist sympathiser, a peacenik, an IRA supporter, a Hamas supporter and a lunatic. Some of the most bizarre insults thrown at him were evident when The Sun accused him of not bowing far enough in front of The Cenotaph on Remembrance Sunday. With Brexit negotiations on the horizon, Article 50 triggered, and many top

58 |

www.globalpropertyscene.com

It wasn’t the first and probably won’t be the last time a Prime Minister will stand in Downing Street to take a spectacularly misjudged gamble, but on 18th April 2017 Theresa May gathered the worlds media and announced to them that other parties and politicians were attempting to frustrate the Brexit process. With that in mind, May called a snap General Election for June the 8th. Following the announcement were the already scheduled local elections, across hundreds of town and county councils. Set to run on May 5th, there was little in the way of empirical evidence to show the likely outcome but despite this Labour suffered a bloodbath. A total of 4,851 seats were up for grabs in 88 councils - all 32 in Scotland, 22 in Wales and 34 country councils and unitary authorities in England. Due in part to the complete collapse of UKIP, who lost 145 seats and retained just one, the Conserva-

tives made historic gains of 563 seats, gaining control of councils such as Derbyshire, whilst Labour lost a catastrophic 382. Labour MPs and supporters went into complete meltdown fearing the worst. There were calls to replace the leader immediately to save the party from complete oblivion. Many were even predicting that Labour could face its worst parliamentary results since the 1920’s, when Ramsay MacDonald was leader. The Tories looked to capitalise and with Theresa May riding high in the leadership polls decided to concentrate their entire campaign around the Prime Minister. In stark contrast to the 2015 campaign, where Cameron concentrated on pushing the Conservative brand, Theresa May was now acting on the advice of her advisors to concentrate the campaign on her ‘strong and stable leadership’, a line which would be repeated ad nauseum throughout the campaign and would eventually become a parody of the Prime Minister. Battle buses were to be emblazoned with ‘Theresa May’s Britain’, with Conservatives in small print underneath it. The collective eggs were in one small basket, and the Tories were hoping that May’s popularity would carry them through to a stunning victory, with May visiting Labour strongholds in the belief that even previously rock solid Labour seats were in play. It has to be said that in contemporary British political history it’s hard to find an equally ironic reversal of fortunes than Theresa May’s 2017

campaign. Centred firmly around the personality of the Prime Minister she was viciously and ruthlessly exposed as being spectacularly dull. In an age of internet memes that can gather hundreds of thousands of retweets before an interview is even finished, May was exposed as fatally boring, inflexible and badly lacking in the quick thought and nimbleness that her predecessor was famous for. Highlights of a horrific campaign included Theresa May addressing hand-picked (and obviously so, some even forgot to take off their blue rosettes) crowds of tiny numbers in dull and grey surroundings. More were to come as the Prime Minister and her husband went on the BBC’s flagship prime-time evening programme ‘The One Show’ where they discussed who took out the bins. Clearly flailing and struggling with the media, May even went to Plymouth to address local reporters but fearing a poor showing had them locked in a room until she left. There was also the now infamous interview where she remarked that, when asked what the naughtiest thing she’d ever done was, she’d run through fields of wheat as a child possibly mildly perturbing the local farmer. Thus, a million internet memes were born. This wasn’t the low point for May and the Conservatives, though. Jeremy Corbyn had been having an absolutely spectacular campaign where he’d been showing genuine character and openness, addressing huge crowds and attending debates. His party and his leadership ratings were shooting through the stratosphere just as they met the Conservatives on their way to a crash landing. Having launched a widely popular Labour manifesto promising funding for public services, the abolishment of tuition fees and

www.globalpropertyscene.com

| 59

Labour Party leader Jeremy Corbyn

the end of austerity, Corbyn was riding high. When it came to the Conservatives to present their own manifesto, they presented a rancid corpse of a proposal in comparison. Whether through hubris, arrogance or just plain incompetence they had decided to take on their core vote, pensioners, by promising to axe triple-lock pensions, and had also proposed to charge people for their own care costs by taking money from the sale of their home upon their death. It was unsurprisingly and brutally dubbed ‘the dementia tax’. May faced the media to answer questions about the proposals and in an excruciating showing quickly lost her cool exclaiming “Nothing has changed!”, despite everybody being well aware that they had. They probably knew the writing was on the wall then, and as June 8th approached, the polls became worse and worse. At 10pm on the day, the veteran BBC presenter and political legend David Dimbleby announced what some had been expecting, that the exit polls had predicted a hung parliament, with the Conservatives losing their majority and Labour making gains. It was reportedly carnage in Conservative HQ, with people in tears and the PM’s top advisors well aware that they were out of a job if the exit polls were true. Perhaps the picture of the election was a broken looking Theresa May appearing on stage for the results of her Maidenhead

60 |

www.globalpropertyscene.com

constituency next to a dabbing Lord Buckethead, who had promised to abolish all lords apart from himself, among other policies, whilst wearing a bucket on his head. A man in an Elmo suit was also present. The final, damning result was a Conservative party eight seats short of a majority who then had to spend two weeks negotiating with the frankly insane DUP party of Northern Ireland. The DUP, famous for involvement with paramilitary loyalist groups in Northern Ireland, rabid opposition to abortion and same sex marriage and, of course, borderline extremist Christian views. The irony of accusing Corbyn of being a terrorist sympathiser and a mere cog in a ‘coalition of chaos’ wasn’t lost on the British public. So where does this leave us then? What is likely to happen over the next 12 or 24 months? It’s hard to know really, but we can certainly take an educated guess. Evidence so far suggests that the Tory front bench and cabinet are in almost open warfare with each other over Brexit. Brexit secretary David Davis has been on TV claiming confidently that the UK will be out of the single market by march 2019 whilst the chancellor has been doing the rounds claiming it would be pushing the UK off a ‘cliff edge’. Davis has furthermore admitted that he’s not ‘100% sure’ that Britain will get a deal with the EU and parroted the Prime Minister’s absolutely ludicrous idea

that ‘no deal is better than a bad deal’. The likelihood is this; the government has been forced to promise the DUP £1.5 billion extra funding for Northern Ireland in order to prop up their minority government despite the parties of the devolved parliament in Stormont unable to agree a power-sharing agreement. Direct rule may well return to Northern Ireland and in this case the government simply cannot justify having a formal deal with one side, contrary to the principles of the Good Friday agreement. Forgetting even this messy arrangement, the government are about to enter Brexit negotiations with some of the most experienced and world renowned negotiators alive and they’re doing it without a majority or a mandate. There is little or no incentive for the EU to give this UK government a good deal when it doesn’t even have the confidence of its own people, let alone the fact it can’t even agree with itself what it wants. In all likelihood either the government’s deal with the DUP will collapse, due to disagreements in Northern Ireland or the party demanding more money, or the government will agree such a poor Brexit deal (or none at all) that it will be defeated in parliament. A new election, therefore, should be expected within 12 months, and on current evidence you should probably expect Prime Minister Jeremy Corbyn in place before next summer.

www.globalpropertyscene.com

BUY-TO-LET IN THE NORTHERN POWERHOUSE STUNNING BUY-TO-LET APARTMENTS IN THE HEART OF A THRIVING SALFORD RENTAL MARKET APARTMENTS FROM

Â£130,000

ENQUIRE TODAY

Enquire Today +44 (0)161 772 1394 | info@knightknox.com |

www.knightknox.com

WHAT TO EXPECT Architectural trends for the coming decade

Words : Alex Timperley | View : Ekkasit A Siam

What is architecture? Fundamentally it is the process of designing buildings, but in reality it is much more than that. Architecture is “the will of the epoch translated into space” according to Mies van der Rohe, a German-American architect who is known as one of the fathers of modernism. Frank Gehry, one of the world’s most influential contemporary architects, argues that “architecture should speak of its time and place”. Frank Lloyd Wright has stated that an architect must be “a great poet [,] an original interpreter of his time, his day, his age”.

When we think about the architecture of the future we are imagining the sort of places we want to live and how we want to see our society develop. Do we imagine forests of skyscrapers reaching for the heavens, or more spread out low rise developments? Do we value the proliferation of museums and galleries or will we be making more space for banks and business? Will areas be gentrified to make space for incoming young professional workers or will we invest in the traditional communities which live there now and allow them to flourish on their own?

All of this sounds very grand, but the point that these architects were trying to get across is actually very simple. To look at the architecture of a place is to take a journey through its history, and it is no coincidence that the grandest and boldest architecture can be found from times when a place was shaping history; the age of Pericles was also the age of Phideas. The rise of the Medici’s in Florence was the driving force for the Renaissance era which produced Leonardo Da Vinci. The boundless optimism and confidence of the USA in the early 20th century birthed the skyscraper, arguably the building which most accurately captures the spirit of the modern world.

Here is our selection of some of the most interesting architectural trends of the coming decade.

64 |

www.globalpropertyscene.com

Robots Much like seemingly every other area of human interest and invention, the use of robots in construction is set to become more commonplace over the next decade. In this case it all depends on how the technology advances, but there are already some strong signs that architecture could well be revolutionised by technology once again. To date, we have invented a plethora of technologies which let us build higher and faster

Robotic construction vehicle

66 |

www.globalpropertyscene.com

Sustainable building, Sydney

whilst expending less human energy than ever before. Pulleys, crane, cement mixers and pneumatic drills are all part of the same tradition which is leading to robots. The most spectacular example of robots getting involved in construction is a planned skyscraper from Cazza in the United Arab Emirates which will be entirely 3D printed using a technique called ‘crane printing’. Utilising 3D printing techniques will theoretically allow complex structures to be built at unprecedented speeds. With the population of the world’s cities growing rapidly, being able to build at speed is vital and is set to be a major challenge for the next century. Robots are also making strides in other areas. It is much easier to have a robot build dozens of apartment interiors which are exactly the same and ship them into a building than have people do it all by hand. Once efficiency like this is possible it will be hard to ignore. Robots are here to stay and are set to revolutionise construction over the next decade. Sustainable construction Perhaps the most obvious way in which architecture will reflect society over the next decade will be seen in the increasing number of major developments which will have sustainability at their heart. This is not a new trend per se, but it is set to become the number one concern for many architects, from the smallest practises to the global stars of the trade. The first emerging trend in sustainability is the growing popularity of living walls. This can be as simple as adding a skin of creeper plants to a power plant or as complex as Stefano Boeri’s Vertical Forest in Milan, a block of apartments which is designed to feature as many trees as a hectare of forest. Greening a building serves the dual purpose of increasing its aesthetic appeal and finding an ingenious way to introduce more nature into our cities. Trees make people happier and also help to clear up pollution in an urban environment. The increasing use of timber in construction is another demonstrable way in which the principles of sustainability are infiltrating the world of architecture. Timber is both a natural insulator and easy to work with, meaning that timber frame homes can be erected cheaply and quickly, and will reduce the energy bills of those who end up living in them. The timber itself also stores carbon for however long the building stands, making it very different and less emissions-intensive than concrete or steel. Indeed, cross-laminated timber has been described as the future of construction and ‘the new concrete’ by architects from across the world. Timber has of course been used to build for thousands of years, but modern technologies and production methods are helping architects to push the boundaries of their imaginations by producing new types of engineered timber which are stronger and more stable than regular wood. The late Zaha Hadid utilised laminated timber in one of her final designs, proposing a fully timber football stadium for the English football club Forest Green Rovers which will be the world’s greenest stadium. Given that three quarters of the carbon a stadium produces comes from the construction process, cutting that out is a big deal. Hopefully more similarly innovative stadiums will follow in the future. Another interesting innovation in the field of sustainable architecture is the idea of compostable buildings. These utilise organic bricks made from corn stalks and specifically engineered root structures, offering a zero carbon production process and the promise of an easy recycling process when they are no long needed. This technology has been demonstrated by an award-winning development called Hy-Fi in Brooklyn and can hopefully be brought to the mass market sooner rather than later. Skinny skyscrapers We are currently in the midst of a race to the sky on a scale which we have not seen since the first skyscraper boom kicked off in the USA in the 1920s. Building higher and higher has always fascinated architects, and as technology improves we can get closer and closer to touching to the sky. Skyscrapers appeal to developers and architects because it allows them to build housing or offices very densely in areas where there is not a lot of spare land. Cities which are home to skyscrapers tend to become defined by them in the popular imagination. It is impossible to imagine New York

www.globalpropertyscene.com

without the Empire State Building, Dubai without the Burj Khalifa or London without the Shard. There are natural limits on traditional skyscrapers. The higher a building, the wider the footings generally have to be to support them. As the world becomes increasingly urbanised, there is less prime city centre land available for skyscrapers, and so a rethink was required. The last decade has seen the emergence of the ‘skinny skyscraper’, especially in New York which is something of a pioneer in the field. Advancing technology, especially in the field of concrete and steel frame design, has allowed construction up to more than 50 storeys high with height to width ratios of up to 15:1, thereby creating these buildings which are both slender and beautiful. Rafael Viñoly’s 432 Park Avenue and Christian de Portzamparc’s One57 are both outstanding examples of the skinny skyscraper, and are admired across the world. It is not hard to see this trend spreading beyond the confines of New York. Places such as Singapore and Hong Kong which have a severe shortage of available land and a growing population are the ones to keep your eye on in this regard. The democratisation of architecture The world is becoming more and more urbanised every year, and more than three quarters of the world’s population are projected to live in cities by 2050. The human transition from being a rural society to an urban one is almost complete, and it will require that we think about building in a different way. It is not really a surprise that the first hints of the democratisation of architecture are starting to become apparent. There are two main ways in which the world of architecture is becoming more open and inclusive. The first is the blurring of the lines between architecture and other disciplines. Architecture has traditionally been quite a closed field with a very high bar for entry thanks to the general expense of it and the time it takes to achieve the required qualifications. The problem with a closed world is that a degree of uniformity will inevitably set in and innovation can be stifled. For this reason, the successful entry of designers such as Thomas Heatherwick into the world of architecture is extremely encouraging. Developments such as the Seed Cathedral, Pier55 in New York and the Teesside Power Station near Middlesbrough in the North East of England all offer a look at the future of design. That future is one which will include original thinking from outside the world of architecture. The second way in which architecture is becoming more inclusive is the growth of crowdfunded projects. The crowdfunding of public developments can help get them off the ground and ensures the public are involved at an early stage. The result of that is unusual developments which might not normally get funding from unimaginative city councillors, or aren’t to the taste of people with lots of money, can still get built. It is sometimes easy to forget, but our cities belong to everyone, not just the moneyed or political elite, and they should reflect that. The emergence of crowdfunded developments such as the Thames Deckway in London, the Lowline subterranean park in New York and the Luchtsingel Bridge in Rotterdam can only be a positive for the world of architecture and for our shared built environment. It will be very interesting to see how far this trend can go. Making dreams real The next decade will see the world respond to huge challenges such as climate change and a rapidly growing population, and the architecture we produce will play a big part in that response. Can we house everyone in a way which won’t accelerate the forces of climate change which have been unleashed? Can we wean ourselves off an addiction to concrete and replace it with new types of timber? Can we successfully involve people in creating the future of their own cities or will architecture remain the preserve of a privileged few? All of these questions and many more will need to be answered sooner rather than later. All that can be said for sure is that our cities will look very different in ten years’ time.

68 |

www.globalpropertyscene.com

432 Park Avenue, New York City

www.globalpropertyscene.com

| 69

AT FACE VALUE Is facial recognition technology safe?

Words : Alex Timperley | View : Algol

Working out how to pay for things securely is very important. Hundreds of billions of dollars are spent each year online and even more is spent physically in shops around the world. The potential for fraud is high and most places in the world have full time police departments which are dedicated solely to stopping people hacking into payment systems. The latest technology to enter the world of online payments is facial recognition technology. Its advocates claim that it could revolutionise how we pay for things and believe it represents a brave new wallet-less frontier for mankind. The technology itself is nothing new having been in use for decades around the world. Arguably facial recognition technology is the oldest there is, given that it is the way that human eyes and the brain work to recognise each other. But in terms of manmade machinery, there are many uses for it in the modern world, and it has become indispensable in a wide range of fields. It is claimed that the error-rate inherent in facial recognition technology has decreased by a factor of 272 since 1993. It is the fastest and least intrusive biometric technology – anything which identifies people based on unique biological traits such as fingerprints or DNA – and it makes use of the face, the most obviously identifiable

biological marker. Instead of requiring that people scan their fingerprints or give a blood sample, this technology instead just takes a quick picture as you enter a defined area and compares it to information stored either in its database or in cloud storage. The process of going through passport control at an airport is an obvious exception, but in most cases people are not even aware when their picture is being taken. The data measured by facial recognition technology is somewhat more complex than fingerprint scanners which are just pattern recognition systems at heart. With facial recognition, the measured characteristics include the distance between features such as the nose, eyes, mouth and ears. Each human face also has a unique ‘landscape’ made up of peaks, valleys, contours and landmarks – more than 80 ‘nodal points’ in total – which help to further refine the results to a much greater degree of accuracy than other biometric methods. Even characteristics such as the depth of your eye sockets and the length of your jaw line are taken into account. It is no real surprise that facial recognition is set to overtake fingerprint scanning and other similar methods in many different sectors across the world, despite the fact that so far it has not made that breakthrough in the world at large.

www.globalpropertyscene.com

Places where it has made the breakthrough include various different areas of law enforcement, and specifically to combat terrorism. Various police departments and spy agencies in Western countries in particular make widespread use of the technology, though there are concerns about the line between security and privacy being blurred too far. It is estimated that more than half of all adults in the United States of America have their faces included in police databases despite the vast majority having done nothing wrong. Across Europe the technology has been used in recent years to monitor peaceful protests and rallies among other things. The world of video games has also embraced facial recognition software, as have mobile phones and tablets which have begun to integrate the software into their password unlock systems. How successful this has been is up for debate. A high profile failure was Samsung Galaxy S8 which announced the technology in late March 2017 and then had it broken in early April 2017 when it was revealed that a photo of the owner could unlock the phone. Other areas where this technology is likely to become more ubiquitous include stadiums, public transport, government buildings, business of all kinds, and it is likely that it will further proliferate in airports. Australia even has plans to replace their passports fully with facial recognition technology, something they call the ‘Seamless Traveller System’. However, might the financial world be a step too far for this emergent technology? It is not hard to imagine people finding it difficult to trust a technology in which a computer charges their bank account with little to no input. A Chinese start-up called Face++ (pronounced “face plus plus”) appears to be leading the way. Its software tracks 83 points on a person’s face simultaneously and is incredibly good at getting a person’s identity right. The technology is spreading extremely quickly and perhaps the most interesting use is for the Alipay app which is stored on your mobile phone and allows you to pay for things using only facial recognition. More than 120 million people in China use this app, making it one of the most successful in the world. The Face++ technology has even solved the issue which the Samsung Galaxy S8 ran into by requiring a ‘liveness’ test. By only working properly if a person can demonstrate that they are alive through a series of head movements or spoken words, Face++ has successfully foiled anyone who might want to pretend to be someone else through the use of a photograph. The advantages of paying for things with your face are three-fold according to advocates of the technology. Firstly, using facial recognition technology is extremely convenient and would remove the need to carry a wallet, credit cards or cash. Users could theoretically pay at a terminal or ATM cash point simply by walking up to it and looking into a small camera thanks to data being stored on the cloud. Much like the people who first harnessed electricity, proponents of facial recognition technologies liken their new inventions to magic. The second argument in favour of facial recognition technology is related, but separate: speed. On average it currently takes approximately 30 seconds to make a payment using cash, cards or even services like Apple Pay or other contactless card systems. Facial recognition technology allows instant payment. In addition to making things more convenient for each individual person, paying instantly should also help society in general. Queues at supermarkets, coffee shops, petrol stations and airports should become extremely rare as people are filtered through at record speed. The third major benefit touted by facial recognition technology companies is the increased security offered by the system. Arguably this is the most important thing of all, and if the claims turn out to be true then it will be the reason why the technology is adapted by the masses. Hard as it seems to believe, companies like Uniqul claim that their facial recognition and PIN system is 100% secure. All of these three reasons certainly apply to Face++. Now that the technology is sufficiently advanced, companies like this are developing software which they are very certain is secure, and once you have a secure system you can cut out the middleman when it comes to financial transactions for everything from buying a coffee to paying for a train ticket.

72 |

www.globalpropertyscene.com

Dollar Bill with facial recognition lines

www.globalpropertyscene.com

Biometrics used for payment

One of the factors which separates successful technology from failed technology is the convenience of it, and if there are no major hacking or fraud scandals it is easy to see how it could be adopted on a large scale. It would not even have to be consciously adopted. If it gets slipped into an increasing number of day to day activities then relying on facial recognition and accepting its presence will become just another part of daily life in the modern world. Of course, that is where biometrics traditionally run into trouble. It was mentioned briefly above, but there are serious concerns about privacy around facial recognition technology and they deserve a closer look. CCTV has been part of our lives for a long time now and the balance between privacy and security has been fairly well struck if the lack of serious protests in China, the UK and others with notoriously high concentrations of cameras are anything to go by. CCTV footage is regularly used as evidence in court cases and even appears on television news programmes when the authorities or others are appealing for information. This is generally seen as ok because the images are just to help people recognise others who might have relevant information. With the advent of super high definition cameras and reliable tracking technology this could all change. There is a big difference between

74 |

www.globalpropertyscene.com

evidence being pulled up in specific cases and cameras and computers which are capable of constantly tracking and recording your every move automatically. That sounds less like security precautions and more like a police state. If you are scanned a hundred times a day and the computer can tell exactly who you are each time, as opposed to just seeing another bystander, it would not be that hard for someone to build a detailed picture of your lifestyle, your habits and who your friends are. The idea of this data then being sold by a private security company to a sales organisation, or kept by a government for nefarious purposes, is a rather disquieting one. If we take this principle further and apply it to states with severe human rights issues then the problem becomes more worrying still. China and Russia are both great examples of this, being countries where journalists, protestors, lawyers and artists are regularly detained with no warning and for an indefinite period thanks to surveillance which incriminates them in the eyes of the all-powerful state. If we are at all concerned with human rights, including the right to protest against your own government and to exercise your own freedom of movement and freedom of speech, then the idea of the Chinese authorities being able to totally and effectively surveil someone should be worrying. People in Western nations are more secure in their freedoms currently, but the past few decades have seen serious crackdowns on trade unions and others. In addition, leaders with

authoritarian leanings such as France’s Emmanuel Macron who recently called journalists to the Sun King’s palace to inform them he wishes to run a ‘Jupiterian’ presidency – where the president rarely speaks except to issue orders to his underlings – will surely see the appeal of being able to stymie protest. It is clear that the proliferation of facial recognition has the potential to be extremely good, extremely bad, or a mixture of both. In the field of personal finance, it has the potential to be a very good thing which could make life a lot easier and remove one of the main daily frustrations which slows us down. If the technology is there then facial recognition payments will surely follow, like a train coming down the track. Trust in the technology is an issue, much like how new owners of an electric car tend to cite ‘range anxiety’ as their main concern. Will the battery really last for another 100 miles? Will this new facial recognition payment app on my phone really only charge me what it says on the screen? However, it is likely that trust will follow as it becomes more common, and it is also likely that 120 million people in China are probably right when it comes to the most convenient and frictionless payment system yet devised.

www.globalpropertyscene.com

WORLD MARKET VIEW The global financial crisis plunged property markets into a downward spiral. Nine years on, Global Property Scene takes a look at how the international markets are developing.

London, UK • Median sales price: $788,014* • Average price per sqft: $630

Note - Figures correct as of stated dates: *July 2017 --> Prices based on city centre accommodation > Global average house size currently stands at: 1,250m2 > Source: Numbeo

Los Angeles, USA • Median sales price: $611,600* • Average price per sqft: $455

New York, USA • Median sales price: $788,529* • Average price per sqft: $631

Top 5 cities with the most dangerous air: (Correct as of July 2017) Source: Guardian Inhalable particles recommended level: (18 micrograms per cubic metre compared with 10µg/m³)

PM 2.5 annual mean, micrograms per cubic metre

Zabol, Iran: 217

Sao Paulo, Brazil • Median sales price: $388,750* • Average price per sqft: $311

Gwalior, India; 176

Allahabad, India; 170

Cape Town, South Africa

Riyadh, Saudi Arabia; 156

• Median sales price: $274,000* • Average price per sqft: $219 Al Jubail, Saudi Arabia; 152 50

76 |

www.globalpropertyscene.com

100

150

200

Singapore Moscow, Russia • Median sales price: $633,750* • Average price per sqft: $531

Dubai, UAE • Median sales price: $588,375* • Average price per sqft: $470

• Median sales price: $2,216,250* • Average price per sqft: $1,773

Sydney, Australia • Median sales price: $1,342,875* • Average price per sqft: $1,074

www.globalpropertyscene.com

Is your property being under-let & under-managed?

Take advantage of our introductory offer:

6 months FREE management* You will also recieve these great benefits: Low cost lettings fees Member of ARLA & Property ombudsman Advertised on Rightmove, Zoopla & Gumtree Professional and comprehensive service Nationwide coverage

+44 (0) 161 641 4760

www.intuslettings.com

info@intuslettings.com

* WHEN ENTERING INTO A 12 MONTH MANAGEMENT AGREEMENT. NORMALLY PRICED AT 9% (INC. VAT) PER MONTH

WHAT’S THE ALTERNATIVE? Sand

Words : Will Leyland | View : Lampang Naomark

You may have read the title of this article and assumed that we’re advocating you start to stock up on sand like you might with gold, eventually ending up with a humungous sandpit in your cellar perhaps.

volleyball, Owen was told “You want to see the players buried up to their ankles. Rain or shine, hot or cold, it should be like a kid trying to ride a bicycle through marbles.”

For clarification, that’s not what we’re advocating.

Normal beach sand simply doesn’t make the grade in this respect and sand that is too firm can result in serious injuries as volleyball players fling themselves around the court, potentially meaning broken limbs and torn ligaments.

We can look at a useful definition of the word ‘economy’ in order to introduce the idea of investing in sand; “careful management of available resources”. That is to say that at its very core, good economics relies on the supply of a finite product or resource where demand either meets or outstrips the supply. Interestingly, and perhaps surprisingly, good sand falls firmly into that category. In a piece for The New Yorker, David Owen explains this situation rather well when he explains the lengths that elite volleyball tournaments must go to in order to ascertain not just sand, but the right type of sand that elite volleyball demands. The final event of last year’s beach volleyball world tour was held in Toronto, funnily enough in a car park, at the periphery of Lake Ontario. There’s a large and pretty public beach nearby, but very few beaches around the world actually meet the Fédération Internationale de Volleyball’s stringent standards for sand, so the tournament’s sponsor had built a temporary and purpose-made stadium and then imported a staggering thirteen hundred and sixty tons from a quarry two and a half hours to the north. The shipment arrived in thirty-five lorry loads.

After serious issues at the 1996 Olympic Games in Atlanta, beach volleyball now has a standard recipe for its sand that is now the measure across every country and all continents. Beach volleyball organisers are now obliged to send a one kilogram sample to Todd Knapton, who devised the recipe, for approval. The specifications govern the shape, size, and hardness of the sand grains, and they disallow silt, clay, dirt, and other fine particles, which not only stick to perspiring players but also fill voids between larger grains, making the playing surface firmer. The result is sand that drains so well that building castles with it would be impossible. Knapton also works with FIFA to set the standards for beach football too. With these extremely specific standards applicable to all beach volleyball events, it’s no wonder that some of the events will often run into logistical problems. When speaking to Owen, Knapton described a situation he found himself in recently which brings the issues with sand supply into sharp reality.

When interviewing the organiser about what type of sand is required for

www.globalpropertyscene.com

Sand mining night shift, Middle East

According to Owen’s article, the challenge involved the first European Games, which were held in Baku, Azerbaijan, in 2015. Baku has beaches - it’s on a peninsula on the western shore of the Caspian Sea - but the sand is barely suitable for sunbathing, much less for volleyball. Knapton’s crew searched the region and found a large deposit with the ideal mixture of particle sizes, in a family-owned mine in the Nur Mountains, in southern Turkey, eight hundred miles to the west. Knapton goes on to describe that the mines were within shelling distance of Syria, which at the time was in the midst of a terrible civil war in which ISIS controlled large parts of the country. The original plan was for the company to ship the sand in lorries across central Syria, through Iraq and around Armenia eventually arriving in Azerbaijan from the Northwest but sadly the reality of the political situation put paid to those ambitions. Incredibly, they didn’t give up and instead hatched a plan to bag the sand in one-and-a-half-ton fabric totes, truck it west to Iskenderun, and crane it onto ships. They loaded five vessels, five separate trips, according to Knapton. The route went across the Mediterranean, up the Aegean, through the Bosporus, across the Black Sea, and into Sochi. From there, they took the sand by rail through Russia and Georgia, around Armenia, and across Azerbaijan. In the end, the inaugural European games went ahead with top class sand

80 |

www.globalpropertyscene.com

which met the high standards of the international ruling body thanks to the commitment of Knapton and his team but this story is bound to make you wonder; Why all the effort when sand covers so much of the Earth? The answer is that sand isn’t just sand. Whilst there is an abundance of sand across the globe, it isn’t the type of sand that’s useful to anybody. Much like a thirsty sailor in a sea of salt water, most of the sand we see simply isn’t up to the task of building or sports. Sand is an ‘aggregate’, a term used within the industrial world to describe necessary natural resources such as gravel, crushed stone and other recycled materials. The sad truth is it’s running out. To put this into perspective, according to Owen, natural aggregate is the world’s second most heavily exploited natural resource, after water, and for many uses the right kind is scarce or inaccessible. In 2014, the United Nations Environment Programme published a report titled “Sand, Rarer Than One Thinks,” which concluded that the mining of sand and gravel “greatly exceeds natural renewal rates” and that “the amount being mined is increasing exponentially, mainly as a result of rapid economic growth in Asia.” As reported by the BBC recently, China has used more sand in the last four years than the US has in the last century. In India organised crime and ‘sand mafia’s’ have allegedly emerged. So rare is sand in the country

people are apparently willing to kill in order to gain a monopoly over its supply. The US aren’t guilt free themselves, using tonnes upon tonnes of sand to repair damaged coastlines which are experiencing more severe storms with each passing year. The irony of creating environmental problems in order to repair others is one factor of many in this intriguing global issue. Beach sand simply isn’t suitable for the job as the majority of these are filled with shell pieces, volcanic glass and other composites that are costly and laborious to extract. It would cost too much money and time to work the sand to a useable level in this case and, so, it then means that the available levels of workable sand are vanishing rapidly. The applications and necessity for sand in building and construction are perhaps lost on us and we take for granted the utility of the aggregate. Consider for a moment that aggregate is the main constituent of concrete (80%) and asphalt (94%), and it’s also the primary base material that concrete and asphalt are placed on during the building of roads, buildings, parking lots, runways, and many other structures. Windowpanes, wineglasses, and cell-phone screens are made from melted sand. Sand is used for filtration in water-treatment facilities, septic systems, and swimming pools.

be multiplied across the world to developing countries like China, who are undertaking enormous construction projects. All of which gives you a good idea of the scale of the issue. This brings us back to the title of the article; what’s the alternative? Once again holding sand in buckets in your loft isn’t likely to increase substantially in value and will probably just turn into a smelly mush, so avoid that. Where savvy investors can make good money on this issue is by studying and researching quarries and mining companies who have good and continued access to this type of sand. The US has plenty of quarries which have worked this out and are now producing bespoke and specialist sands to very precise specifications. These companies will increase vastly in value as this precious resource disappears as the demand rises exponentially. What will companies be able to charge for this sand in even five years? Given the scarcity and the skill required to extract and refine it, we can reasonably suggest it will not be cheap, and these companies will find their profits increasing very quickly, with their share prices set to follow. This is why we encourage our readers to take a look into sand as a viable investment strategy, given that this precious natural resource has never been more in demand whilst being so low in supply.

The sheer quantity of sand needed to build one house (100 tonnes) can

www.globalpropertyscene.com

24 STOREYS CURRENTLY IN CONSTRUCTION

FINAL PHASE OF THE AWARD WINNING DEVELOPMENT X1 THE QUARTER APARTMENTS FROM

Â£89,995

ENQUIRE TODAY AND REQUEST YOUR FREE BROCHURE

Enquire Today

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

Architecture Planning Structures Urban Design

Q&A It’s time for GPS to answer some of our readers’ most pressing questions

Words : Samantha Jones

I have several investment properties and I am looking to purchase my first off-plan buy-to-let property. When I enquired about buying it with a mortgage I was told that I would need the full cash amount in order to complete. Is this correct? I have several buy-to-let mortgages already, why is it different for off-plan properties?

How do you determine which location to buy an investment property in? All of the information that I have been sent recently focusses on cities in the North West - Manchester, Liverpool etc. advertising higher NET rental returns and lower prices than London. Surely London is the more obvious location for property investment in the UK?

All mortgage applications are assessed on an individual basis. This means that whilst you may already have an existing buy to let portfolio, it doesn’t automatically mean you will be able to get a mortgage on your new purchase. With new build properties there are often additional considerations that a lender will want satisfying that you may not have come across before and are specific to that property or development.

Ultimately, choosing the location of your buy-to-let property is a completely personal choice. However, there are certain factors that can help inform that choice including;

Furthermore, it’s possible that your personal circumstances may be different from when you purchased your other properties meaning you no longer meet some lenders criteria. Considering all of this, it’s important to gain advice from a mortgage broker who will research the lenders at their disposal and take into account all of your circumstances, giving you the best opportunity to obtain a mortgage that suits your needs.

Are you looking for a long-term investment or short-term profit? This is where you will need to do some research. You are correct when you say that London has traditionally been seen as a safe haven for property investors. However, since the market crashed in 2007/8 the London property market has never quite recovered. Yes, house prices are still growing (as of June 2017 house prices were 56% higher than pre-2007), but the growth in those prices has slowed considerably, falling way behind the rest of the country. Couple this with rising rents, and rental yields in London are some of the lowest in the country. The Manchester property market on the other hand is continuing to grow, rising 9% year-on-year in 2017 to an average of £151,800, compared with £488,700 in London. Similarly, Liverpool recorded growth of 6.8% to reach an average of £115,600. This lower price point lends itself to both a higher potential for capital growth, plus a higher NET rental yield if you decide to keep your property for a longer-term investment.

*These questions and answers are provided for general information only and may not be completely accurate in every circumstance.

84 |

www.globalpropertyscene.com

ASK THE EXPERT Ed Williams is a Partner at Fletcher Priest Architects and led the design of Angel Court, an elegant tower completed this year in the City of London. It recently broke records for achieving the highest rental income for offices in the UK. This year Fletcher Priest was awarded Office Architect of the Year 2017.

Can you briefly explain what you do?

What are the implications for architecture from Brexit and other global events such as Trump, climate change and other such challenges?

A. I lead a team of architects at an award-winning architectural practice based in London’s Fitzrovia. We’re working on projects of various scales, including masterplans for new towns, offices, education, creative spaces and housing. We’re good at solving complex design problems, and we’re interested in making simple buildings that will last a long time and be loved by their occupants.

Q. In terms of current architectural trends, where are UK’s strengths in innovation at the moment?

A. An encouraging trend is for more outdoor and public space to be created within the workplace. We’ve done a number of roof gardens on commercial buildings in London, and the designs are becoming more and more adventurous. A substantial roof garden we designed for on a spec office development near the River Thames, ended up being the feature that clinched the leasing of the building. Now the staff there have an allotment and make their own honey. Our latest roof garden at Angel Court is like a small London square on the 7th floor. High above the City streets there are mature trees, shrubs, lawns and benches for staff to enjoy the spectacular views. A particular UK strength we’ve noticed is that the office sector has really embraced mixed mode heating and natural ventilation. A few years ago I’d get laughed out of client presentations for suggesting offices without fan coils, but now they are taking this very seriously. This trend is driven by the high cost of energy and the move away from petrol-fuelled transportation, as well as by a change of attitude and awareness of climate change.

Q. In terms of the rest of the world, is there anywhere in particular that’s impressing you right now?

A. We’re impressed by the sustainable building materials and technology that’s being developed in Germany and Scandinavia, particularly engineered timber. Cross laminated timber and laminated veneer lumber, are relatively new materials to the UK but offer huge potential for innovation and sustainability. We’re working on a new research quarter north of Oxford where we hope some of the buildings will adopt this technology.

A. In general we’re busy and confident there are lots of opportunities out there, but we’ve noticed it is taking longer for projects to get going as a result of the climate of uncertainty. We’re a very international practice, with more than 20 languages spoken by our 110 staff, so Brexit is a concern, but we’re fully committed to maintaining our cosmopolitan outlook.

Q. Is there something that you can see emerging right now which is likely to become the standard in 5-10 years?

A. Prefabrication in residential and office buildings is beginning to take off in the UK, after people have been discussing it for years. Finally there is a market in the residential sector and I’m convinced modular construction is going to transform the way we think about making buildings. We’re working on some exciting concepts for affordable housing in city-centre sites which wouldn’t be feasible using traditional technology. Modular buildings are set to transform both the design and building quality of housing.

Q. Where do you see the future of architecture?

A. I’d like to see buildings get simpler rather than more complex. New technology often seems to complicate things, but the key thing is to have architecture that is beautifully thought through and simply made. Too many buildings are demolished after just 20-30 years. In the future this won’t be sustainable – we should be designing simple, flexible structures that last at least 100 years. The design of the workplace is a particular interest for us. The big change we have noticed is that workplaces are becoming more open and are incorporating public space, retail, restaurants and even art galleries. People no longer want to work in sterile, isolated environments - the experience of working in a café or at home has shifted views of what an office should be. This, combined with future growth of robotic technology, could mean that the jobs of the future will draw on the human imagination and creative thinking, and we’ll need a new type of office environment to support that type of work – or perhaps not an office at all!

SHOULD I MOVE TO LAPLAND? Words : Harriet Preston | View : Aleksei Verhovski

Lapland is Finland’s northernmost region, and has a sparsely populated area with only 2.1 people/km2 bordering Sweden, Norway, Russia and the Baltic Sea. Due to being situated in the northernmost part of Europe, Lapland is considered to be Europe’s last wilderness frontier. Lapland’s capital Rovaniemi is the largest town in Europe, spanning 8016 km2 with a population of 60,000 inhabitants, and is homeland of the Sami people who are one of the largest indigenous ethnic groups in Europe. Located at the confluence of two large rivers, it was deemed to once have the most important transport routes in the country and therefore began to adopt the role of the “gateway to Lapland”. The country’s rich culture and fresh nature are quintessential parts of the region’s enchantment, but that’s not all on offer - Lapland is also full of opportunities. In 1950, a large majority of Lappish residents lived in rural areas, and more than half of them worked in forestry and agriculture. Unsurprisingly, with Lapland’s rapid growth as a highly desired holiday destination for tourists, today an impressive 65% of the workforce are in the service industry, 22% in processing and 10% in primary production. Lapland’s location in the hub of the Arctic makes it an attractive place for establishing businesses, as well as offering investors the opportunity to become involved in the billion-euro projects in the Arctic regions of Europe and Russia. As well as offering a vast amount of employment opportunities, Rovaniemi is home to approximately 10,000 students, attending both the University of Lapland and the Rovaniemi University of Applied Sciences, which comprises institutes of business, health and

86 |

www.globalpropertyscene.com

social care, culinary studies, forestry, rural studies and sports. Many students worldwide are drawn to the University of Lapland because of Lapland itself, with its top-rate education in exotic and captivating surroundings which create a unique study environment. Like many places, Lapland has strong cultural roots, with a variety of local traditions. Although popular amongst many societies, the Finnish people are renowned for drinking a lot of coffee which has almost become a way of life – maybe a way of combating the cold winters? The average coffee consumption per year is about 12kg per capita which is almost three times more than in the United States! You would think that the locals would have had enough of the cold weather in winter, but the Finnish often enjoy exercising an old tradition of swimming in an ice hole, closely followed by warming up in a sauna, and then returning to the ice hole for round two. This activity has become part of many people’s daily routine, and is often done first thing in the morning before work. The sauna isn’t seen as just a hot room, it is an institution and an essential part of Finnish culture, which is demonstrated by the fact that there are only five million Finns and more than two million saunas in Finland. The sauna is a place of physical and spiritual relaxation that is often shared with family and friends, with many people ascribing a sacred nature to it. With the harsh temperatures, and an endless amount of snow covering the vast terrain, the Finns have had to adapt their way of travel, as a car

Santa claus village, lapland

simply wouldn’t be as efficient and as easy to use in certain conditions, and can often be difficult to start on the coldest days. A typical commute to work every day can be taken in the form of cross country skiing, allowing people to take shortcuts off road. Another popular method for travel is snowmobiles, which can significantly speed up a journey for those with longer and more complicated commutes. Snowmobiles have also proven a success for those working in the tourist industry, delivering an effective way to transport visitors around when showing them the hidden gems of Lapland. Lapland’s terrain provides a superb setting for outdoor and sporting activities, with people often taking to the slopes on a weekend to enjoy some recreational skiing. Finland’s largest ski resort is in Lapland’s Ylläs, which boasts 61 slopes, the longest of which cover a distance of over two miles. Ylläs also boasts 210 miles of cross-country tracks, 24 miles of which are lit for those dark winter days. Whether people enjoy the bustle of ski resorts or the peace and quiet of the wilderness, they will find both in Lapland. But skiing isn’t the only attraction on offer for visiting tourists – a trip wouldn’t be complete without a visit to Santa himself.

How did Santa Claus’s Village emerge? Rovaniemi was mostly demolished during World War II, initially through intense bombardment from the Russian Military, then by the Nazis, whose scorched-earth tactics destroyed what little remained. However, with funding from the United Nations Relief and Rehabilitation Administration, the town was rebuilt by Finnish architect Alvar Aalto to resemble the side of a reindeer’s head and antlers. In 1950, Eleanor Roosevelt, the wife of US President Franklin D. Roosevelt went to visit Rovaniemi to witness the rebuilding process and experience the novelty of the Arctic Circle. Rovaniemi officials rushed to construct a cabin for her stay, positioning it just eight kilometres from the city on the edge of the Arctic Circle. The cabin garnered real sentiment from the people of Rovaniemi, whom decreed it the inception of the Santa Claus Village. It still stands today next to Santa Claus Main Post Office as a reminder of how the village came about. Rovaniemi received the status of The Official Hometown of Santa Claus in 2010, and attracts approximately half a million tourists every year, including

www.globalpropertyscene.com

Reindeer in a winter forest, Lapland

pop stars, politicians, television personalities, and athletes, with 60% of travellers coming from foreign countries. The city’s most famous resident can be visited every single day in the Santa Claus Village, allowing everyone to enjoy the atmosphere of Christmas all year round. After a face-to-face meeting with the man himself, many visitors head over to the Santa Claus Main Post Office where they can meet the merry postal elves who can welcome guests in seven different languages. It’s not hard to believe that since 1985 Santa Claus has received approximately 17 million letters from almost 200 different countries. During the visit, many will post a novelty letter to loved ones containing a unique Arctic Circle postmark which is not in use anywhere else in the world. This special experience finds itself close to the top of many people’s bucket list, and will continue to be a desired trip for years to come for both adults and children. In fact, Lonely Planet ranked Rovaniemi as the best European winter destination, so it’s no wonder that there is a continuous stream of visitors all year round. After visiting Santa, surely people would be wondering where Rudolf is? Well it is said that there are infact more reindeer then people living in Lapland, with approximately 200,000 reindeer looked after by 6,500

88 |

www.globalpropertyscene.com

reindeer herders, who can recognise their reindeer from a special mark made on the animal’s ear. The reindeer are an inherent part of Lapland and are one of the North’s favourite animals. The impressive reindeer count is an essential source of livelihood for Lapland’s people, as selling their meat (a local delicacy), and fur skins (used for seat covering in sleighs/Lappish tepees, and footwear/clothing due to its ability to keep in the heat), generates a lot of business for the herders and is their main source of income. On top of providing the basics of food and clothing, reindeer play a huge part in the tourist industry, with people heading out to reindeer farms to learn more about the ‘magical creatures that fly ahead of Santa’s sleigh’, as well as going on their own sleigh rides through scenery worthy of the title “winter wonderland.” But reindeer aren’t the only lovable animals to visit - for many people, taking the reins of a husky pulled sledge ride is an experience not to be missed. Traditionally teams of huskies were used by Nordic people for hunting and travel due to their reputation for speed, strength and endurance. Their thick coat with a dense undercoat and longer topcoat gives them full protections against the arctic weather conditions. This traditional method of travel is still used in parts of Lapland, and with

visitors looking to experience the magical polar days where the forest is covered in a thick white blanket, whilst hoping to learn more about the Lappish culture, this type of trip is becoming increasing more popular with both tourists and locals. As far as natural beauty goes, Lapland has it in abundance. Millions travel every year in the hope of catching a glimpse of the spellbinding Aurora Borealis, also known as the Northern Lights. This incredible natural light display is visible for roughly 150 nights a year from mid-August until early April. Legend has it that the lights were caused by an Arctic Fox catching its bushy tail in the snowdrifts, and sending a trail of sparks into the sky. In Finnish, the Northern Lights are referred to as “revontulet” or ‘fox fires’ as its name derives from this legend. For many of the locals who are lucky enough to be living there all year round, the Northern Lights can become a regular sighting, but continue to amaze and delight all who witness the breath-taking beams dancing across the sky.

arms by the locals. This phenomenon, dubbed ‘the nightless night’, injects a new lease of life and is an opportunity for people to make the most of the extra hours, with activities such as hiking, canoeing, fishing, or playing a round of golf. It is also a time for the Lappish people to escape the daily grind, reconnect with the awakening nature in all its glory, and soak up the revitalising rays for true relaxation as Lapland is illuminated with summer light. This unique season also attracts a lot of interest internationally, with people visiting from all over the world to become inspired, get re-energized, and immerse themselves in the lively care-free environment. Lapland is a country to be proud of, with people travelling from all over the globe to get a taste of what is it like to be in one of the most magical places on earth. With so many breath-taking views full of natural beauty, accompanied by once in a lifetime experiences and 365 days of Christmas, it really would be the perfect winter paradise to live in, with the excitement of the eagerly anticipated 24-hour sunlight to lap up just around the corner.

The Northern lights aren’t the only natural wonder to capture people’s attention. Following six months of winter with temperatures plummeting as low as -40 degrees Celsius, the midnight sun is welcomed with open

www.globalpropertyscene.com

| 89

Specialists at providing buy-to-let properties to the private investor market, Knight Knox has a wide range of developments available across the UK. Working alongside a team of experienced developers, solicitors and agents allows Knight Knox to provide expert advice and guidance on a range of investments. Over the next 29 pages you will see a selection of the investment opportunities available through Knight Knox. --Contact us today to speak to one of our experienced property consultants. +44 (0)161 772 1394 info@knightknox.com www.knightknox.com

Top: Images taken from Knight Knox Investor Seminar Manchester 2017 - X1 The Landmark is the featured model and plan. Middle: Left cgi image: X1 Media City Tower 4 - available. Middle cgi image: X1 The Gateway - sold out and in construction. Right image: X1 Media City Tower 1 - sold out and in construction. Bottom: Left image: X1 The Quarter - sold out and tenanted. Middle cgi image: X1 The Gateway - sold out and in construction. Right image: Queenâ&#x20AC;&#x2122;s Brewery - sold out and tenanted.

NORTHILL APARTMENTS Salford Quays PRICES FROM :

ÂŁ109,995 269 luxury apartments Excellent transport links Within walking distance of MediaCityUK High rental demand in the area Easy access to Manchester city centre

Northill Apartments is the latest addition to the flagship development, Fortis Quay and is sure to be popular amongst the thousands of young professionals looking to live and work in Salford Quays. There will be a range of luxury apartments from studios to 3 beds, which will raise the bar in modern living. All apartments will be designed to the highest possible standard with state-of-the-art fixtures and fittings, making it the perfect addition to any property portfolio.

NEW LAUNCH 92 |

www.globalpropertyscene.com

| 93

PALATINE GARDENS PHASE 2 Sheffield PRICES FROM :

ÂŁ94,500 Phase 1 in construction Close to city centre Public transport nearby High rental demand in local area Fully let and managed by an experienced letting agent

â&#x20AC;&#x2039; alatine Gardens Phase 2 is the latest luxury residential P development to arrive on the oversubscribed Sheffield rental market. Situated in the Shalemoor area of Sheffield, Palatine Gardens Phase 2 is within walking distance of both the city centre and the trendy Kelham Island district. These large luxury apartments will provide residents with high-end fixtures and furnishings, as well as a stunning enclosed garden and secure bicycle storage.

NEW LAUNCH 94 |

www.globalpropertyscene.com

X1 MANCHESTER WATERS Manchester PRICES FROM :

£109,995 5 minutes to Manchester city centre Waterfront location Good local transport and amenities Private tenant amenities Managed by award winning X1 Lettings

X1 Manchester Waters is the 28th joint venture development from Knight Knox and X1 and will deliver luxury waterfront apartments to the thriving buy-to-let market. Located just 5 minutes away from Manchester City centre the location of this development is unrivalled, giving tenants the tranquillity of waterside living as well as everything that the UK’s ‘second city’ has to offer on the doorstep.

NEW LAUNCH 96 |

www.globalpropertyscene.com

X1 MEDIA CITY TOWER 4 Salford Quays PRICES FROM :

£124,950 Studios, 1 and 2-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and shopping All 3 previous phases sold out

98 |

www.globalpropertyscene.com

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

www.globalpropertyscene.com

| 99

X1 THE LANDMARK Salford PRICES FROM :

£130,000 Private communal facilities Beautiful balconies with dynamic city views Prime city centre location Within walking distance of local amenities Experienced management company in place

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

IN CONSTRUCTION 100 |

www.globalpropertyscene.com

| 101

X1 THE CAMPUS Salford PRICES FROM :

ÂŁ89,995 Built by experienced developer X1 Close to excellent public transport links Close to local shops, bars and restaurants On-site gymnasium Private student accommodation is a booming investment class

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

IN CONSTRUCTION 102 |

www.globalpropertyscene.com

| 103

THE TOWER AT X1 THE QUARTER Liverpool PRICES FROM :

ÂŁ89,995 Highly sought-after location Lettings and management company in place Private communal facilities Great transport links and close to shopping Built by experienced developer

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

IN CONSTRUCTION 104 |

www.globalpropertyscene.com

DE VELOPMENT

««««« BEST RESIDENTIAL DEVELOPMENT MERSEYSIDE X1 The Quarter by X1 Developments

www.globalpropertyscene.com

| 105

X1 THE GATEWAY Salford Quays PRICES FROM :

SOLD OUT Situated in a prime residential area Within easy walking distance of MediaCityUK Let and managed by X1 Lettings Great on-site facilities Waterfront views

With a sleek, modern design, a luxurious finish and a desirable location, this new residential development raises the bar when it comes to providing future tenants with a first class cosmopolitan living experience. Situated in the heart of the Quays, this prime residential development brings a mixture of 191 stunning 1, 2 and 3 bedroom apartments to market.

IN CONSTRUCTION 106 |

www.globalpropertyscene.com

| 107

BARREL YARD Manchester PRICES FROM :

SOLD OUT 1, 2, 3 & 4-bed apartments and townhouses Lettings and management company in place Short distance to Manchester city centre Built by an experienced developer Great transport links

Barrel Yard is located in South Manchester, just minutes away from the exciting city centre. The development benefits from local public transport as well as being a short drive from the city centre, where residents can enjoy all the retail, recreation and cultural amenities that Manchester has to offer. Furthermore, trendy local areas such as Chorlton and Didsbury are only a short drive away from Barrel Yard.

IN CONSTRUCTION 108 |

www.globalpropertyscene.com

| 109

BRIDGEWATER GATE Salford PRICES FROM :

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

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

COMPLETED 110 |

www.globalpropertyscene.com

NOW SOLD OUT

www.globalpropertyscene.com

111

X1 AIRE Leeds PRICES FROM :

SOLD OUT 1 and 2-bedroom apartments Lettings and management company in place Private communal facilities State-of-the-art apartments Prime location in the heart of Leeds

X1 Aire is Knight Knoxâ&#x20AC;&#x2122;s latest development in the heart of the thriving city of Leeds. This newly-built development provides state-of-the-art living for a vastly undersupplied Leeds rental market, containing a stunning array of apartments ranging from bespoke studios to 2-bed penthouses. X1 Aire will take boutique city centre living to the next level, providing state-of-the-art apartments to the private rental market.

COMPLETED & TENANTED 112 |

www.globalpropertyscene.com

| 113

COMPLETED & TENANTED

SPECTRUM Manchester PRICES FROM :

ÂŁ172,950 Completed and tenanted development Private landscaped gardens Great central location Finance options availlable High quality fixtures and fittings

114 |

www.globalpropertyscene.com

Spectrum delivers the best of both worlds, combining chic, urban living with the tranquility of private landscaped gardens. These studio, one, two and three-bed apartments are finished to the highest specification, with floor-to-ceiling windows and full-length balconies in most apartments. Light floods into the living space and views across the city are a constant reminder of how close you are to all conviniences and amenities.

COMPLETED & TENANTED

THE COURTYARD AT X1 THE QUARTER Liverpool PRICES FROM :

SOLD OUT Finance options available Experienced management company in place Proven rental demand 5 minute walk to Liverpool ONE Opposite Liverpool Marina

Built by an experienced developer in the residential buy-to-let market, The Courtyard at X1 The Quarter presents a unique concept in luxury living for the residents of Liverpool. Completed in September 2014, the development contains 77 modern 1, 2 and 3 bed apartments, in addition to 3-bed townhouses. Offered at an extremely competitive purchase price, these new-build apartments have been fully tenanted from completion.

www.globalpropertyscene.com

| 115

IN CONSTRUCTION

MULBERRY PLACE Salford PRICES FROM :

SOLD OUT Highly sought-after location Lettings and management company in place Close to Salford and Manchester City Centres Excellent local transport links Sold prices in Salford up 22% on previous year - July 2017

116 |

www.globalpropertyscene.com

Located in the heart of Salford, Mulberry Place brings 38 chic apartments to the cityâ&#x20AC;&#x2122;s thriving buy-to-let market in the form of spacious one and two bedroom apartments. Residents of Mulberry Place will also benefit from excellent on-site facilities such as a beautifully landscaped communal courtyard, bicycle storage and off-street car parking spaces provided for selected apartments. Some apartments will also enjoy the benefit of having their own balcony.

COMPLETED & TENANTED

THE TERRACE AT X1 THE QUARTER Liverpool PRICES FROM :

SOLD OUT Assured 6% rental income for 5 years Fully managed and let by X1 lettings Great central location High-end fixtures and fittings Built by experienced developer

The Terrace is the fourth phase of the highly successful X1 The Quarter development. All four phases (including The Gallery, The Courtyard and The Studios) are completed and tenanted, with the fifth phase, The Tower, currently in construction. This development is a 101-unit new-build in the vastly popular city of Liverpool, launched as a direct response to the incredible demand for prime residential apartments in the region, shown by the incredible success of the previous phases.

www.globalpropertyscene.com

| 117

COMPLETED & TENANTED

BELLS COURT Sheffield PRICES FROM :

SOLD OUT Assured 7% rental income for 1 year Fully-furnished Excellent city centre location Luxury studio apartments High rental demand in Sheffield

118 |

www.globalpropertyscene.com

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

LOOKING FOR PROPERTY TO BUY? BE SURE TO VISIT THE

The UK’s largest and longest running property investment event is presented at ExCeL London every April and October. The major names in UK and international property will be out in force with plenty of ‘off-market’ bargain deals and show exclusives to choose from.

E FREW

SHO Y ENTR

From conception to completion Knight Knox has an established portfolio of off-plan premium investment opportunities ranging in price from £89,995 - £482,495. Contact us today to speak to one of our experienced property consultants. +44 (0)161 772 1394 info@knightknox.com www.knightknox.com