5 Economy y
sectors and in specific areas , as an example of that is a four rooms house at Brook Green , west London , which costs up to 1.5 million pounds . Consequently , London shows that its immune to the fluctuation of the national and the global real estate market .
The most attractive aspect is the rental yield to capital value ; it will be quite stable and favorable
The upheaval that the UK economy has gone through remarkably never affected the stock value of the UK Banks in the long term , despite all the scandals from the manipulation of the libor market to the miss-selling of financial products and consequently all the large fines that the banks had incurred if anything the British banks reputation has flourished due to its ability to come through this crisis almost unscathed , moreover new proposed legislation that will put more stringent rules in place will enhance the durability and reputation of these banks .
The Cyprus Crisis ( A Greek Tragedy )
Another Eurozone economy crisis explodes in our faces . But this was a disaster waiting to happen .
Cypriot private banks were hugely exposed to the Greek debt crisis , which in turn resulted in the downgrading of the Cypriot economy to junk status , by international rating agencies combined with the global economic crisis and a sharp downturn in tourism receipts resulted in the Cypriot government not able to finance its activities from the international markets . So the European Union steps in the save another one of its members .
The positive side of this is that with time the Cypriot economy will be rebuilt on a much sounder basis . One of the conditions of the bailout was fiscal consolidation to bring down the budget deficit , which in time with the help of its European brethren will get Cyprus back to full health .
Europe represents an opportunity for a Real Estate investment especially in countries like Germany and France
As a conclusion , we believe that Europe represents an opportunity for a Real Estate investment especially in countries like Germany and France , the most attractive being near the metropolises in the office and logistics sectors especially modern warehouses where there is a shortage of good locations .
The investment strategy should be made for a medium to a long term . Do not expect
a quick turnaround . The most attractive aspect is the rental yield to capital value ; it will be quite stable and favourable . As economic conditions improve as expected , the capital value will increase in parallel . All in all , the assessment is for a quite a safe and profitable returns over the medium term .
• London - Dean Ismail
16 DORCHESTER April - 2013