Author: Buy2Greece

Think back to the days of the commodity boom.  Real early. Like 1999. Investment gurus like Jim Rogers spoke about what will happen to raw materials prices — from iron ore to soybeans — when half the population of China goes from eating a pound of chicken a week, to two pounds. Or when China goes from building one building a week, to the equivalent of about one city every year.

Something similar is happening in China today. It’s a slow pace for some, and too quick for others. But the opening of China’s capital account means billions of dollars will now be able to high-tail it out of China, legally, and invest in everything from New York penthouses to American mutual funds.

The qualified domestic institutional investor (QDII) scheme is getting an upgrade.  It’s not just about Hong Kong and institutional investors anymore. QDII2 takes money global. And better yet, it brings in rich Chinese, not just investment firms.

QDII2 will have direct impacts on American and Canadian real estate. One of the most visible ways individual, wealthy Chinese are investing in North America is via housing. In world class cities, Asian demand is particularly felt in the high-end housing market. If you’re looking to buy a gorgeous condo overlooking the Pacific Ocean, you’re new competition is more likely to come from the Pudong district of Shanghai as they are from Beverly Hills. QDII2 makes it all possible.

In Canada, Vancouver is building five new luxury residential towers.  When it comes to foreigners, including Canadians of foreign descent, it’s the Asian buyer that rivals rich Americans looking to buy, according to the Conference Board of Canada. Although the Board does not single out China, Chinese-based real estate firm Juwai spells it out in a recently published report.

In the U.S., Chinese living in China, Hong Kong and Macau, account for 33% of U.S. foreign sales transactions. Australia is second at 22.9%. Canada is a distant third at 7.5%, though many of the Chinese buyers in Canada are local immigrants or were born in Canada and still have money at work in China.

Juwai estimates that the QDII2 scheme could equate to as much as $2.3 trillion in residential real estate sales over time. But the likely amount is probably closer to $661 billion. The figure is derived from Juwai estimates that show Chinese millionaires allocate approximately 10% of their total assets to foreign real estate, including commercial.

China has just laid the groundwork for potentially even greater Chinese investment overseas, as news of the Chinese government’s latest decision to further loosen capital controls went viral.

Following previous policy relaxations, including unprecedented overseas investment reforms by the NDRC, China has unleashed yet another strategic move to globalise the yuan and bolster China’s bid to officially make it into the IMF basket of reserve currencies (SDRs).¹

Last Friday, Assistant Minister of Commerce Zhang Xiangchen announced that China will soon allow companies and individuals to seek direct investments abroad soon via the QDII2 plan.²

What is QDII2?

Once officially passed, the QDII2 (Qualified Domestic Individual Investor Programme) will allow direct investment, acquisitions, and mergers overseas for both eligible and approved corporates and individuals.³

This includes real estate, stocks, bonds, mutual funds, insurance, and financial derivatives.³

Expected to kick off in six cities – Shanghai, Shenzhen, Tianjin, Wuhan, Chongqing, and Wenzhou⁴ – the QDII2 would be open for application to eligible individual investors bearing financial assets worth at least RMB1 million. However, qualified individuals will only be able to invest up to half of their total assets abroad.

Meanwhile, corporate investors would see their investment limits increased from their current limit of $300 million to $1 billion.

Nevertheless, it is expected that the Chinese government will be taking baby steps and proceed with QDII2 very carefully – even as they edge one step closer to attaining their objective of becoming the fifth reserve currency in the world.

What does this mean for the world?

Previously, we wrote about how China’s shrewd move powered a global outbound investment boom, charting a record $102.9 billion last year – of which $18 billion came from real estate investment overseas alone.

Within the first four months of 2015, China’s outbound non-financial direct investment (ODI) hit $34.97 billion – a healthy 36.1% increase that bodes well for the remaining eight months to come.⁵

Hang on, though…it gets even better.

According to China’s Ministry of Commerce, Europe is hot with Chinese – Chinese ODI into the European Union skyrocketed 487%, while Chinese ODI in Germany spiked by as much as 246% y-o-y within Q1 of 2015.⁶

And this is all BEFORE this latest stunner from China.

We leave you to put your imagination to good use on visualising how this latest development from China would significantly impact and shape the global economy – especially in the roaring property industry that has already been propelled to new heights by Chinese money.

Αύξηση κατά 21,9%, σε σχέση με τον Ιούνιο του 2014, παρουσίασε η επιβατική κίνηση στο αεροδρόμιο “Ελευθέριος Βενιζέλος”, φθάνοντας το 1,88 εκατ.

Johnny Depp has reportedly purchased an island in the Aegean and he’ll soon be on his way to Greece to check out his new property, according to the Athens Macedonian News Agency in a statement.

Depp, the American actor who is currently filming in Australia is expected in Greece in late July.

The report claims the actor spent 4 million euros for a small islet in the Dodecanese region.

The news was made public, according to the Athens News Agency, by Proto Organization Ltd., a UK agency that handles property acquisitions. Steven Taylor of Proto referred to an island called “Stroggino” although he was probably referring to Strongyli, a tiny islet near Kastelorizo in the Eastern Aegean. The report claimed that he was the same agent that represented Angelina Jolie and Brad Pitt in their transaction for an island purchase in the Ionian Sea.

Travizon Inc., a globally recognized travel management company, has released the full results of its 2015 Business Travel Survey. Interestingly, the survey found that nearly 80 percent of business travelers don’t have (or aren’t aware of) any employer guidance surrounding mobile travel booking.

“Mobile now represents more than 25 percent of online business travel bookings in the U.S.,” said Anita Salvatore, EVP, Global Account Services at Travizon. “Yet corporate policy continues to lag when it comes to acknowledging mobile behaviors, defining acceptable mobile apps and usage, and communicating these provisions in order to drive compliance.”

The 2015 Business Travel Survey was designed to address growing mobile issues and other evolving travel topics–including traveler tracking, meetings management, and business travel in the sharing economy. The survey analyzed responses from over 200 U.S. business travelers, who were segmented by job title, age group, and travel frequency.

After separating the data across demographics, the survey revealed little disparity between Baby Boomers and Millennials concerning mobile policy awareness, as well as several other topics where larger gaps may be expected, including anxiety-provoking incidents and issues with accommodations.

While 37% of respondents reported experiencing fear while traveling, only 7% of the whole group reported that terrorism is the primary reason – rendering it the least significant cause among seven possible choices. In fact, lost luggage (26%) was the number one anxiety-raising occurrence across all age groups. Most notably, not a single person traveling 1-5 times per week listed terrorism as a primary source of stress; most were more concerned with road and flight accidents. In addition, of all common hotel complaints, 46% of respondents – regardless of age – reported an unclean room would most negatively affect their performance on a business trip.

The Travizon survey uncovered other interesting trends, illuminating prominent business traveler pain points stemming from the traveling experience itself, as opposed to planning processes and corporate policy. As this trillion dollar industry continues to grow, businesses and agencies alike must place further emphasis on creating a seamless, high-touch experience in order to foster and maintain business traveler engagement and satisfaction.

Aeroflot has been named as one of the world’s 20 leading airlines by passenger traffic by Air Transport World (ATW).

Russia’s flag carrier has significantly strengthened its international position year-on-year, climbing five places and ranking ahead of peers including Qantas, Thai Airways and Iberia with 20.2 bln RPKs in the first five months of the year.

The results underscore Aeroflot’s continued ability to deliver high performance in a challenging economic environment driven mainly by external factors.

Aeroflot is the only Russian airline included in ATW’s authoritative international ranking, continuing the carrier’s track record of success in 2015. In June Russia’s leading airline was named best airline in Eastern Europe for the third consecutive year at the Skytrax World Airline Awards at the Paris Air Show.

International tourism demand continued to be robust between January and April 2015 with tourist arrivals increasing 4% worldwide according to the latest UNWTO World Tourism Barometer. Almost all regions enjoyed strong growth. Prospects for the May-August period remain upbeat, with close to 500 million tourists expected to travel abroad during these four months.

Destinations worldwide received some 332 million international tourists (overnight visitors) between January and April 2015, 16 million more than the same period last year, corresponding to an increase of 4%.

This result follows an increase of 4.3% in 2014 and consolidates the upwards trend of international tourism in recent years (+4.5% international tourist arrivals a year on average since 2010).

By region, the Americas (+6%) led growth, followed by Europe, Asia and the Pacific and the Middle East, all recording 4% to 5% more arrivals. By subregion, Oceania and South America boasted the strongest increase (both +8%), followed by the Caribbean and Central and Eastern Europe (both +7%), the latter rebounding from last year’s decline. In Africa, demand weakened in 2014 after years of solid growth, affected mainly by the Ebola outbreak among other challenges. Limited data currently available for January-April 2015 points to a 6% decline, as African destinations struggle to recover from the misperceptions affecting the continent.

“It is encouraging to see the tourism sector consolidating its excellent results despite security concerns and unrest in many parts of our world”, said UNWTO Secretary-General, Taleb Rifai. “This underscores that tourism is a surprisingly resilient economic sector which increasingly contributes to development in many countries around the globe. For national governments, it is a reminder that tourism can be part of the solution to foster socio-economic development and job creation”, he added.

Strong results across many destinations with a rebound in Central and Eastern Europe

In the Americas (+6%) all four subregions continued to enjoy significant growth in January-April 2015, led by South America (+8%) and the Caribbean (+7%). Strong outbound demand from the United States fuelled results as 20 million US tourists travelled abroad through April, 7% more than during the same period last year.

Asia and the Pacific (+4%) consolidated its growth of recent years, with Oceania (+8%) and North-East Asia (+5%) in the lead. South-East Asia (+3%) recorded moderate results this four-month period as the rebound in Thailand (+25%) was offset by declines in other destinations.

Source:-UNWTO

Just half of holiday rentals in Spain have a licence to operate legally, according to new research by Esade business school.

The proportion of legal tourist rentals tends to be higher in places where it is regulated, such as Barcelona, where 75 per cent of holiday lets operate legally. However, it does depend on the the sanity of the regulations, with excessive regulations driving landlords into the black economy in some areas.

The proportion of legal rentals is much lower in Madrid (39 per cent), Mallorca (34 per cent) and Granada (31 per cent), despite, or perhaps because of, draconian holiday rental regulations in Madrid and theBalearics.

According to the Esade report, 14 per cent of tourists who come to Spain every year stay in holiday lets and spend €2,685 million whilst on holiday in Spain. Of this spending, €921.9 million goes on accommodation (€249 per person) while €1,763 million is spent on shopping, restaurants and leisure.

The research also finds that 32 per cent of people who stay in holiday rental homes would not come to Spain if they could not stay in this type of accommodation, so at least a third of holiday rental clients would never stay in a hotel. Hoteliers claim that holiday rentals are stealing their business thanks to unfair advantages like tax breaks, but this research suggest that is not true for at least a third of the business generated by holiday rentals.

Mar Vila, lecturer at Esade and co-author of the report, explained that the report was compiled based on interviews with holidaymakers and property owners in San Sebastián, Barcelona, Mallorca, Madrid, Granada and Calpe. The research found that just 50 per cent of the holiday rentals included in the study are regulated and registered. The proportion, Vila explained, is higher in places with holiday let legislation such as Barcelona. The exception is Mallorca where legislation is “restrictive” and only 34 per cent of holiday lets are registered. “This doesn’t mean they don’t pay taxes,” Vila pointed out.

The report, sponsored by the Spanish Federation of Holiday Let Associations (Fevitur in Spanish), also reveals that 92 per cent of owners who decide to let their home to tourists do so to “boost household finances”. For many it’s a matter of financial necessity, with 65 per cent saying they need it as a financial backup, and 58 per cent saying they wouldn’t be able to make ends meet without it. “Holiday lets contribute to the local economy, not only because guests spend in local shops or large stores but because holiday let owners employ people for maintenance, cleaning, refurbs or buy furniture,” Vila said.

He also pointed out that the study contradicts the theory that holiday rental guests are part of the “binge drinking tourism”. Clients are generally foreigners, with an average age of 47 and mostly (83 per cent) come to Spain to spend a few days with their family. These tourists’ average stay is 7.4 days, longer in coastal areas and shorter in cities.

Recently the tourist association Exceltur published a report on the P2P platforms that manage holiday lets, particularly Airbnb and Homeaway, and called for more restrictive legislation for the sector. The Exceltur report accused the holiday rental business of all manner of wrongdoings.

The Middle East’s largest property trade show has recorded a 30 percent increase in exhibitors since last year, its organisers claimed on Monday.

The 14 edition of Cityscape Global takes place at Dubai World Trade Centre on 8-10 September 2015.

The show is preparing to host more than 300 exhibitors in an expanded exhibition space, representing 30 percent growth since last year’s event.

Cityscape Global has been extended by two exhibition halls – four more halls since the 2013 event and covering more than 40,000 sq m of space.

Headline exhibitors returning for 2015 include Emaar, Dubai Properties, Dubai World Central, Meydan, Meraas and Nakheel, while first-time exhibitors include Kleindienst Group, DMCC, Majid Al Futtaim and Al Barari.

Organisers Cityscape Group said the show welcomed more than 47,000 participants in 2014 – a 42 percent increase year-on-year.

It attributed ongoing growth to increasing confidence in Dubai’s maturing real estate market. Property agency JLL’s market analysis for the first quarter of 2015 revealed that approximately 730 residential units were delivered across Dubai during the period, and an additional 22,000 residential units are expected to enter the market by the end of 2015.

A further 13,000 units are expected to be delivered in 2016 and an additional 10,000 in 2017, supporting reports from real estate experts that the UAE’s real estate sector is continuing to grow at a sustainable rate as demand for housing rises.

Cityscape Group director Wouter Molman said: “The demand for exhibition space has been remarkable and, as such, we have increased the floor area and adjusted the layout to ensure visitors can conveniently navigate their way around the venue.

“The need to add two additional halls this year has stemmed from both new exhibitors as well as previous exhibitors requesting larger stands to accommodate their existing and new projects.

“In 2014 we welcomed more than 47,000 participants; a 42% year-on-year increase. With Cityscape Global set to be the largest it has been for six years, we expect a very strong turnout of visitors from all over the world, as they look to maximise their investment potential in this lucrative market.”

Simon Azzam, chief executive of Majid Al Futtaim Properties’ Communities Business Unit, added: “Today’s modern families want to live in sustainable living environments designed for life-long value, where owners, residents and tenants will feel the added value.”

Cityscape Global 2015 is sponsored by Foundation Partners, Emaar Properties, Dubai Properties and Nakheel, Gold Sponsor, Arma Properties, Project Marketing Sponsor, Aqua Properties and Property Registration Trustee Partner, and Tamleek Property Transfer.

While Greece continues to sink in economic void the tourism industry of the country remains completely detached from its current crisis. The country is enjoying healthy flow in tourism as tourists remain unaffected by the country’s current economic status where hundreds of billions of Euros need to be repayed taken as loan to pay off debts. The country has suffered a complete economic collapse with fear of local banks shutting down due to the lack of funds.

The country has seen a major growth in tourism in 2013 and 2014 according to a report published by the World Travel and Tourism Council (WTTC). Despite Greece plummeting into economic deluge tourism increased in the country. Tourist spending which is desperately needed at this stage is greatly helping the country’s economy to sustain. According to a forecast of WTTC Greece has ranked 33 out of the 184 countries for visitor export growth in 2015.

Many tourists are visiting Greece just to help the country in its crisis. Overall GDP would grow to 3.2 per cent in 2015 for Greece according to WTTC which is of course below the global average growth but still ahead of several competitor destinations around the Mediterranean region. Tourists visiting cities, ports and islands rose by 17.9 million in 2013 and 22 million in 2014 and revenue from tourism grew over 10 per cent which would be nearly $15 million. In 2015 there has been an uptick in reservations in the first five months as compared to the same time in 2014.Even though tour operators feel that Greece bookings are slightly behind the rest of the globe but there is a flow.

Cruise businesses said that cruise lines will continue to stop at Greece ports as planned. But even as the flow of tourists continues to run there may be problems with its infrastructure which may face the risk of coping up with the high demand of tourism. Greece is also nearing the closure of it bailout program just when the peak tourist season is about to start. The country will have to make substantial paybacks to its creditors.