Global
Real Estate

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. But the country has suffered during the last century due to recurring economic crises, financial debt and deficits, high inflation and capital flight, the most recent challenge was the severe economic crisis in 2001-02 that led to violent public protests and the successive resignations of several presidents.

Quick Stats

	Population		40.5 million; 2010.
	Pop. Growth		1.0%; 2010 est.
	Currency		Argentinean Peso (ARS)
	Exch. Rate (US)		$1.00 USD = 3.97 ARS; Dec 2010.
	GDP per Capita		$8,663 USD; nominal, 2010.
	Unemployment		7.5%; Q3 2010.
	Language		Spanish (official), Italian and English.

Economy / Real Estate

In general, the Global financial crises did not impact many of the larger economies in South America like Argentina, Brazil and Chile as much as many European countries. The architecture defining properties in Argentina is eclectic. Older buildings in Buenos Aires that would be well at home in any European city sit alongside plain high rises built in the 60s, 70s and 80s while newer and less offensive modern structures share the landscape. Older apartments in Buenos Aires are much bigger than their European counterparts; approximately 3,000 square feet with three bedrooms, two bathrooms, a large kitchen, sitting room, dining room and maids’ quarters. The per-foot cost of these apartments is one-third to one-tenth that of a similar property in Europe. For example, a 1,000-sqft apartment will cost approximately $175,000 to $200,000 ($175 to $250 per sqft). Housing cost ranges from $65 to $93 per sqft. The real estate agency and both the buyer and seller are bound by a listing agreement and a promise to purchase. When making offers buyers are expected to make a security deposit.

Real Estate Stats

	Homeownership		74.9%; 2009.
	Households		11.6 million; 2010 est.
	Annual Transactions		40,297; 2010 est.
	Licensing Required		Yes. In Buenos Aires agents need to get a license from the Inspection Board of Justice. Elsewhere licenses are obtained from the Chamber of Commerce.
	Real Estate Bodies		The Argentina Chamber of Horizontal Properties and Real Estate Activities and the Argentine Tax Authority (AFIP). As of August 1, 2010 registered agents must report all transactions to the AFIP online within 10 days.
	Commission Structure		Freely negotiated by interested parties. Seller and buyer are usually charged 3% separately.
	Large Real Estate Firms		Beibo Propiedades, C&W Real Estate, RE/MAX, Reynolds Propiedades, Sotheby’s and Van Ditmar Propiedades.
	Financial Institutions		ABN AMRO Bank Argentina, Banco de Galicia y Buenos Aires, Banco de la Nacion Argentina, Banco Patagonia, Banque National de Paris – Argentina, Banco Rio de la Plata S.A. and BBV Banco Frances.
	Mortgage Rates		23% to 26% – After the banking crash in 2001 most properties are now purchased with cash.

Forecast

Argentina saw falling housing sales, but stable house prices in 2009; there was slight growth in 2010. The resurgence of exports and a pick up in tourism are expected to push the real estate market to continue improving through 2011/12. In 2010, 7.5 million square meters was put under building permit and that amount is expected reach 8 million in 2011; 86 million square feet. Demand for housing is expected to continue growing in 2011 with real estate developers predicting that the value of housing could grow by 20%.

Australia has taken advantage of its natural resources and has developed agriculture and mining into an internationally competitive, advanced market economy.

Quick Stats

	Population		22.5 million; 2010.
	Pop. Growth		1.8%; Q1 2010.
	Currency		Australian Dollar (AUD)
	Exch. Rate (US)		$1.00 USD = 1.01 AUD; Dec 2010.
	GDP per Capita		57,792 AUD; 2010.
	Unemployment		5.3%; Nov 2010.
	Language		English.

Economy / Real Estate

Australia has some of the least expensive cities in the world as land is abundant and most citizens are able to buy their own house in suburban neighborhoods. Renting apartments and condominiums is not the common practice even though housing in the major cities will generally cost more when compared to living out in the province and farmlands. People can choose from single room apartments to small houses with yard space to huge areas or condominiums downtown.

The Australian government instituted a $9.9 billion (USD) stimulus plan in 2009 that included cash payments to pensioners and low and middle-income earners. The stimulus also included a $3.9 billion (USD) bank bailout and an increase in the first-time homebuyer grant from $6,976 USD to $20,930 USD. The economy recovered quickly during 2009 and 2010 with growth mainly driven by strong domestic demand.

Real Estate Stats

	Homeownership		70%; 2006.
	Households		8.4 million; June 2010.
	Median Home Price		$453,498 USD; Feb 2010.
	Annual Transactions		300,000; 2010 est.
	Housing Vacancy Rates		1.5% Mar 2008.
	Licensing Required		Yes, licenses are obtained from the Office of Fair Trading in each province such as The Real Estate and Business Agents Supervisory Board (REBA) in Western Australia. In most provinces agents are salaried.
	Licensed Estate Agents		75,000; 2010 est.
	Real Estate Associations		Real Estate Institute of Australia (REIA) and its equivalent in each province such as Real Estate Institute of Western Australia (REIWA).
	Commission Structure		2% to 4%, most agents are salaried.
	Large Real Estate Firms		Harcourts International, L.J. Hooker, McGrath, Professionals Real Estate Group, Raine & Horne and Ray White Group.
	Financial Institutions		Dominated by four major banks: Commonwealth Banking of Australia, Westpac Banking Corp., National Australia Bank and ANZ (Australia and New Zealand Banking Group).
	Mortgage Rates		6.6% – 8.6%; 2010. The Reserve Bank has raised rates on seven occasions since January 2010.

Forecast

Australia had the most significant increase in house prices of all the countries we tracked in 2010. The country experienced inflation-adjusted home prices increasing 9.4% year-over-year in Q3 2010; low unemployment was a key driver.
Consecutive interest rate increases by the Reserve Bank of Australia together with the expiration of the enhanced First Home Owners Grant in January 2010 are, however, slowing the market. With a growing concern that housing is overvalued, most predictions seem to indicate a softening in the market for 2011. There is, however, no indication that there will be a bust.

As an affluent, high-tech industrial society, Canada resembles the U.S. in its market-oriented economic system, pattern of production and high living standards.

The impressive growth of the manufacturing, mining and service sectors has transformed the nation into the ninth largest economy and one of the wealthiest nations in the world. Canada has vast natural resources and international trade makes up a large part of the Canadian economy.

Quick Stats

	Population		34.1 million; 2010.
	Pop. Growth		0.8%; 2010 est.
	Currency		Canadian Dollar (CAD)
	Exch. Rate (US)		$1.00 USD = 0.98 CAD; Dec 2010.
	GDP per Capita		$45,887 USD; nominal 2010.
	Unemployment		7.6%; 2010.
	Language		English and French.

Economy / Real Estate

Canada enjoyed solid economic growth from 1993 through 2007. Impacted by the global economic crisis, Canada’s economy dropped into a sharp recession in the final months of 2008. The major banks, however, emerged from the crisis as among the strongest in the world, owing to the country’s tradition of conservative lending practices and strong capitalization.

There are minor restrictions on foreign ownership of real estate for nonresident investors on Canada’s east coast and in some rural areas. Compared to the U.S., Canada’s housing market has suffered very little over the past two years; the western part of the country has been particularly strong.

Real Estate Stats

	Homeownership		68.4%; 2010.
	Households		12.4 million; 2010.
	Median Home Price		$344,268 USD; Nov 2010.
	Annual Transactions		495,001; 2009.
	Housing Vacancy Rates		2.6% Dec 2010.
	Licensing Required		Yes; specific licensing requirements in each province.
	Licensing Authorities		Each province has a licensing body such as the Real Estate Council in Alberta (RECA).
	Licensed Estate Agents		106,606 licensees and 9,593 companies.
	Real Estate Association		Canadian Real Estate Association (CREA).
	Commission Structure		7% on first $100,000 and 3% on the balance.
	Large Real Estate Firms		Century 21, Coldwell Banker, Keller Williams Realty, MacDonald Realty, RE/MAX, Royal LePage and Sutton Group.
	Financial Institutions		Canada’s Big Five banks: Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce.
	Mortgage Rates		Qualifying rate of 5.19% for 5-year variable rate of 2.25%. 7.85% for 25 – year fixed; Dec 2010.

Forecast

New mortgage policies implemented in April 2010 have made it more difficult for borrowers to qualify for mortgages with loan terms of four years or less. As a result, the housing market slowed in the second half of 2010; house price gains slowed to around 1.6% in 2010 after moving up 5.5% in 2009.
Resale prices are expected to rise 1.6% in 2011 with only moderate gains in all provinces. The anticipated federal, provincial and local stimulus for 2011 in the form of continued infrastructure spending and capital projects will be a big plus for economic stability and employment; providing consumers the confidence to move forward with real estate purchases.
Interest rates will remain at historically low levels with the Bank of Canada deferring any further rate hikes until late 2011.

China’s economy during the past 30 years has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy.

Quick Stats

	Population		1.3 billion; 2010.
	Pop. Growth		0.5%; 2010 est.
	Currency		Yuan (CNY)
	Exch. Rate (US)		$1.00 USD = 0.75 CNY; Dec 2010.
	GDP per Capita		$4,283 USD; nominal 2010.
	Unemployment		4.1%; 2010 est.
	Language		Mandarin and Cantonese with a push to use English in business.

Economy / Real Estate

China is the world’s fastest growing economy with a GDP growth rate that averaged 10.2% between 2002 and 2006, reaching a high of 13% in 2007. Inflows of foreign direct investment have risen to over $108 billion annually since 2008. In 2009 China stood as the second-largest economy in the world after the U.S., although in per capita terms the country is still lower middle-income. Economic development has been more rapid in coastal provinces than in the interior. One of the key factors underpinning China’s demand for housing has been the secular urbanization trend. Approximately 200 million rural laborers and their dependents have relocated to urban areas to find work. Between 1996 and 2005 the urban population increased by over 50% from 373 million to just over 562 million; growing by 15 million people annually.

Real Estate Stats

	Homeownership		Yes. Also long-term land leases (70 years).
	Households		525 million; 2010 est.
	Median Home Price		In 2009, the average cost of a 968 sqft flat in Beijing was $236,000 USD.
	Annual Transactions		10 million; 2010 est.
	Housing Vacancy Rates		20% to 25% – the rates are high as many properties are held as investments.
	Licensing Required		No.
	Estate Agents		25,000 real estate brokerage agencies employing approximately 1 million agents
	Real Estate Association		China Real Estate Association, the China Institute of Real Estate Appraisers and Agents (CIREA) and the Society of Hong Kong Real Estate Agents (SHKREAL).
	Commission Structure		1% to 2%.
	Large Real Estate Firms		Beijing Lianjia, Century21, RE/MAX, Shanghai Housing Exchange, and Shanghai Xingy (Coldwell Banker).
	Financial Institutions		China’s big four are: People’s Bank of China, China Construction Bank, Industrial and Commercial Bank of China and the Agricultural Bank of China (all state owned).
	Mortgage Rates		3.5% to 4.0%; Large cash-based economy.

Forecast

In 2008, the government announced a $585 billion USD stimulus package with allocations for housing and as a result residential property prices increased. Property prices in Shanghai in April 2010 were up by an average of 9.8% over the previous year and prices in 70 cities rose 12.8% during the same period. However, China’s banking regulator believes that it sees growing credit risks in the real-estate industry and has warned of increasing pressure from non-performing loans. Some economists even predict the “bubble” in China’s property market is going to burst with prices estimated to fall as much as 20% in 2011/12. Going up or down will be determined, in great part by, what China’s government does or doesn’t do.

France is one of the most modern countries in the world and as a leader among European nations. It has proven to be central to the economic integration of Europe, including the introduction of the common exchange currency, the Euro (EUR).

Quick Stats

	Population		64.7 million; 2010.
	Pop. Growth		0.5%; 2010 est.
	Currency		Euro (EUR)
	Exch. Rate (US)		$1.00 USD = 0.75 EUR; Dec 2010.
	GDP per Capita		$40,591 USD; nominal, 2010.
	Unemployment		9.8%; 2010.
	Language		French (official) and English.

Economy / Real Estate

France is in the midst of transition from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The government has partially or fully privatized many large companies, banks and insurers and has ceded stakes in such leading firms as Air France and France Telecom. In February 2009, Francet passed a $35 billion USD stimulus plan centered on investment in infrastructure and tax breaks for small businesses.
The residential real estate market through Q3 2010 was generally stable with the average inflation-adjusted prices up by 6.8% year-over-year. In Paris, however, the average apartment price surged in Q3 2010 by 9.7% reflecting the strong shift in housing demand from the countryside to the capital and low mortgage rates; over 80% of owner-occupied buildings are mortgaged.

Real Estate Stats

	Homeownership		58%; 2010.
	Households		24 million; 2010.
	Median Home Price		$266,485 USD; Q1 2010.
	Annual Transactions		695,000; 2009.
	Real Estate Commission		5.0% to 5.5%
	Taxes per Transaction		7%.
	Housing Vacancy Rates		6%; 2009.
	Licensing Required		Yes. Sales are also handled by Notaires (French Officials).
	Estate Agents		58,000.
	Real Estate Associations		Federation Nationale de I’Immobilier (FNAIM); Syndicat National des professionneles Immobiliers (SNPI) and Union Naitonale de la Porpriete Immobiliere.
	Large Real Estate Firms		Century 21, Engel & Völkers, ERA Real Estate, John Taylor, RE/MAX and Winkworth.
	Financial Institutions		There are three major banks in the mortgage market: Crédit Agricole, Crédit Mutuel and Credit Foncier.
	Mortgage Rates		3.6% (2009) for 15-year fixed.

Forecast

Although the effects of the debilitating strikes in response to pension reform and other belt-tightening measures are also expected to have a negative impact on property prices, the French market remains strong and resale prices should continue their recovery in 2011.
Helped by a 60-year low in interest rates, property transactions are anticipated to surge another 10% to around 750,000. On the new construction front, housing starts for 2011 are also expected to be up as much as 17% from 2010.
France, especially the coastal south, remains one of the most favored places for the European and especially, the British property-buying public. This could have a positive affect on the French housing market as the increasing retirement age throughout Northern European could spike investment into second (or retirement homes) in France. With both positive and negative views bandied about, the outlook for 2011 is cautiously optimistic..

Germany is one of the world’s most progressive countries and economic powerhouses — the fifth largest economy in the world and Europe’s largest. It is known for its efficiency, high standards and more recently, successful fiscal policies that have seen the economy steadily improve. Germany is recognized as a scientific and technological leader especially in motor vehicles, medical engineering and plant manufacturing.

Quick Stats

	Population		82.3 million; 2010.
	Pop. Growth		Zero to a slight decline.
	Currency		Euro (EUR)
	Exch. Rate (US)		$1.00 USD = 0.75 EUR; Dec 2010.
	GDP per Capita		$40,511 USD; nominal, 2010.
	Unemployment		7.5%; 2010.
	Language		German.

Economy / Real Estate

Germany has far more foreign nationals living in it that any other European country; 7.3 million compared to the next highest country, Spain, at 4 million. However, the country also has a population that has been shrinking by an average of 50,000 persons per year since 2001.
Like its western European neighbors, Germany faces significant demographic challenges to sustained long-term growth: Low fertility rates, an aging population and declining net immigration are putting increasing pressure on the country’s social welfare system, necessitating major structural reforms.
Germany started creeping out of recession towards the end of 2009 largely in response to rebounding manufacturing orders and exports — primarily outside the Euro Zone — and relatively steady consumer demand. During 2010 Germany’s housing market enjoyed continued rising house prices for nine consecutive months through September; up 4.5% over the previous year, but still lower than the three previous months.

Real Estate Stats

	Homeownership		43%; 2010.
	Households		38 million; 2010 est.
	Median Home Price		$232,100 USD; Nov 2010.
	Annual Transactions		900,000; 2010 est.
	Licensing Required		No.
	Estate Agents		40,000; 2010 est.
	Real Estate Association		Immobilienverband Deutschland (IVD).
	Commission Structure		5% to 7%.
	Large Real Estate Firms		Dahler & Company, Engel & Völkers, Knight Frank, RE/MAX and von Poll Immobilien.
	Financial Institutions		Major banks are the Deutsche Bank, Commerzbank, Postbank, Dresdnerbank, Volksbank and Sparkasse.
	Mortgage Rates		3.73% for 10 to 15-year fixed mortgage.

Forecast

With the lowest level of unemployment in Europe (7.5% compared to an average of 10% in Europe) it appears that when the final numbers are in for 2010, the German economy is expected to have recovered with 1.5% growth. Economists say that this could be the beginning of Germany’s property growth cycle. For now, however, it seems that most sellers are choosing to stay put until the situation becomes clearer.
As German home values have always been considered more-or-less assured, homebuyers are expected to continue moving toward the more affluent suburbs near larger city centers where there is good infrastructure.
The large problem of the aging and shrinking population remains. Add this to the fact that Germany already has, at 43%, one of the lowest home-ownerships rates of developed first world countries and the long-term future is not rosy.

Italy has been at the forefront of European economic and political unification, joining the Economic and Monetary Union in 1999.
However, it has been plagued with persistent problems including illegal immigration, organized crime, corruption, high unemployment, sluggish economic growth and the low incomes and technical standards of southern Italy compared with the prosperous north.

Quick Stats

	Population		60.3 million; 2010.
	Pop. Growth		Zero to a slight decline.
	Currency		Euro (EUR)
	Exch. Rate (US)		$1.00 USD = 0.75 EUR; Dec 2010.
	GDP per Capita		$33,829 USD; 2010.
	Unemployment		8.7%; May 2010.
	Language		Italian (official), German and French in certain areas.

Economy / Real Estate

Italy has a diversified industrial economy that is divided into a developed industrial north, dominated by private companies and a less developed, welfare-dependent agricultural south with high unemployment.
The economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP; most common within the agriculture, construction and service sectors.
Italy’s housing market was relatively shielded from the global credit crunch and prices did not decline that much. The global economic real estate crisis that began in mid-2007 bottomed out for Italy during the first half of 2009.
The market has remained relatively stable since the 2.8% price decline in 2010. It’s interesting that the market is experiencing more and more people moving away from buying and into renting with 96% of 20 year olds still living with their parents, the highest rate in Europe.

Real Estate Stats

	Homeownership		72%; 2007.
	Households		20 million; 2010 est.
	Annual Transactions		600,000; 2010 est.
	Licensing Required		Yes.
	Licensing Authority		Chamber of Commerce, Industry, Trade and Agriculture.
	Estate Agents		20,000; 2010 est.
	Real Estate Association		Italian Federation of Real Estate Agents (FIAP)
	Commission Structure		2% to 3%
	Large Real Estate Firms		Engel & Völkers, ERA Real Estate, Gabetti Property Solutions Agency, John Taylor, Pirelli Real Estate, RE/MAX, Sant’Andrea and Toscano.
	Financial Institutions		Five major banks in Italy: Unione di Banche Italiane SpA, UniCredit SpA, Intesa Sanpaolo SpA, Monte Paschi and Banco Popolare SC.
	Mortgage Rates		4.1% to 6.3%. 34% of homes purchased in 2009 were without a mortgage.

Forecast

Growing concerns that Italy could be the next European country to collapse – similar to Spain and Greece – is of course not good for the housing market.
Average house prices fell in Italy during 2010, but currently are holding steady. Most predictions estimate a slight uptick in 2011.
Overall demand for homes remains weak as a result of a supply that still largely exceeds demand. Lesser appealing locations have a nearly non-existent demand, while demand for quality properties is considerably higher.

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology and a comparatively small defense allocation helped the 3,000 islands that form Japan to become a technologically advanced economy.

Quick Stats

	Population		127.5 million; 2009.
	Pop. Growth		Zero to a slight decline.
	Currency		Japanese Yen (JPY)
	Exch. Rate (US)		$1.00 USD = 84.06 JPY; Dec 2010.
	GDP per Capita		$42,325 USD; nominal, 2010.
	Unemployment		5.1%; 2010.
	Language		Japanese.

Economy / Real Estate

Following three decades of unprecedented growth, Japan’s economy experienced a major slowdown starting in the 90s, but the country remains the third-largest economy in the world after the U.S. and China. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change.
In the face of political and economic uncertainty, Japan’s housing market continued to be very fragile throughout 2010. The performance of residential urban land prices, the benchmark for Japan’s housing market, was disappointing; falling 2.8% year-over-year in Q3 2010. Over the same period the index for six major cities was lower by 4.7%; down by 3.9% for other areas.

Real Estate Stats

	Homeownership		61.1%.
	Households		57.6 million; 2010 est.
	Annual Transactions		300,000 (est).
	Licensing Required		Yes.
	Licensing Authority		Minister of Land, Infrastructure, Transport and Tourism.
	Estate Agents		Not available.
	Real Estate Associations		All Japan Real Estate Association (AJREA), Japan Real Estate Institute (JREI), The Real Estate Companies Association of Japan (RECAJ); National Federation of Real Estate Transaction Associations (NFRETA) and The Association of Real Estate Agents of Japan (FRK).
	Commission Structure		3%
	Large Real Estate Firms		ERA Real Estate, Century 21 Sky Realty, Coldwell Banker, Maeda Real Estate, MKC Partners and Sumitomo Real Estate Sales.
	Financial Institutions		Leading mortgage lenders in Japan are: Jukeikai Co. Ltd., The Mortgage Corporation of Japan, Ltd., Daiwa Estate Company, Limited, Royal Home Center, Company, Limited and Osaka Marubira, Company, Limited.
	Mortgage Rates		2.2% to 3.2% with 5-year to 15-year fixed rate.

Forecast

Japanese banks continue to be very cautious about granting new loans and foreign buyers suffer through a long credit approval process; permanent residency and a Japanese guarantor are required to obtain a loan. Land prices are used as a measure of residential property values partly because Japan is earthquake-prone, making the value of land more significant than the houses built on it.
The real estate sector continues to struggle to rebound from its two-decade long property slump, largely driven by market excess and unwise lending practices. Focus on conservative mortgage lending, interest rate stability, landlord-friendly rental terms and the infusion of government stimulus monies could help a turnaround. At this stage there is, however, little prospect for any sustainable growth in the real estate market in 2011.

South Africa is a middle-income, emerging market with an abundant supply of natural resources and well-developed financial, legal, communications, and energy sectors. Their stock exchange is the 18th largest in the world and there are pockets of modern infrastructure supporting a wide distribution of goods to major urban centers throughout the region.

Quick Stats

	Population		50.0 million; Nov 2010.
	Pop. Growth		Between 1% and 2%
	Currency		South Africa Rand (ZAR)
	Exch. Rate (US)		$1.00 USD = 6.8 ZAR; Dec 2010.
	GDP per Capita		$7,100 USD; nominal, 2010.
	Unemployment		25.2%; May 2010.
	Language		11 official languages: Zulu (23.8%), Xhosa (17.6%) and Afrikaans (13.3%) are the most commonly spoken. English is the dominant business language.

Economy / Real Estate

Growth was robust from 2004 to 2008 as South Africa reaped the benefits of macro-economic stability and a global commodities boom. However, it began to slow in the second half of 2008 due to the global financial crisis’ impact on commodity prices and demand; GDP fell nearly 2% in 2009.
Unemployment remains high leading to a significant constrain on growth. Daunting economic problems remain, especially poverty, lack of economic empowerment among the disadvantaged groups and a shortage of public transportation. More than one-quarter of South Africa’s population currently receives social grants.
Interesting real estate licensing changes are expected in South Africa in 2011 as mandatory training (NQF 5) for estate agency principals comes into effect. This is expected to reduce the number of licenses significantly, maybe as much as 30%.

Real Estate Stats

	Homeownership		56.0%; 2009.
	Households		13.4 million; 2009.
	Annual Transactions		200,000; 2010 est.
	Commission		5% to 8%; 2010.
	Licensing Required		Yes; newly reinstated. Certificate in Real Estate (obtained after one year internship at an estate agency firm) followed by passing a Professional Designation Examination.
	Estate Agents		47,000
	Licensing Authority		Estate Agency Affairs Board (EEAB)
	Real Estate Association		Institute of Estate Agents of South Africa (IEASA)
	Large Real Estate Firms		Aida, ERA Real Estate, Harcourts International, Jawitz Properties, Pam Golding Properties, RE/MAX and Seeff Properties.
	Financial Institutions		Dominated by four banks that originate 95% of all mortgages. They are: ABSA (Amalgamated Banks of South Africa), Standard Bank, First National Bank and Nedbank.
	Mortgage Rates		9.0%; Nov 2010.

Forecast

After a “mini-recovery” from 2009 to early 2010 the South African residential property market is showing signs of weakening.
With an average time on market prior to a sale approaching four months, many are predicting a decrease in house prices in 2011. This is despite mortgage rates that are at a 30-year low, and mainly as a result of the inability and unwillingness of consumers to get further into debt.
A further challenge is the exceptionally high unemployment that continues to pose a major problem for the country.

The United Kingdom (UK or Britain) is made up of England, Wales, Scotland and Northern Ireland. (Ireland, which is often called the Irish Republic, is an independent state.) Since emerging from recession in the early 1990’s, Britain’s economy enjoyed the longest period of expansion on record during which its growth outpaced most of Western Europe. Today, the UK is the sixth largest economy in the world and one of the quintet of trillion dollar economies of Western Europe (UK, France, Italy, Germany and Spain).

Quick Stats

	Population		61.8 million; 2010.
	Pop. Growth		0.5%; 2010 est.
	Currency		British Pound Sterling (GBP)
	Exch. Rate (US)		$1.00 USD = 0.64 GBP; Dec 2010.
	GDP per Capita		$36,298; USD nominal, 2010.
	Unemployment		7.7%; Nov 2010.
	Language		English.

Economy / Real Estate

Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. Services, particularly banking, insurance and business services account, by far, for the largest proportion of GDP.
In 2008, the global financial crisis hit the economy particularly hard due to the importance of its financial sector. Sharply declining home prices, high consumer debt and the global economic slowdown compounded Britain’s economic problems, pushing the economy into recession.
Since the downturn there has been a large decline in the number of new houses being built; the lowest levels since the second World War. House prices fell 20% in 2008 and 7% in 2009 but the market was steady through most of 2010 with the average price around $256,000 USD. Most property in the UK is bought with traditional loans, usually over 25 years, from banks and other lenders. Approvals in October (47,200) were 5% lower than those at the beginning of the year.
In November 2010, the NAEA introduced licensing requirements for its membership. Although not mandatory, it is expected to significantly change the industry over the next few years by raising the bar.

Real Estate Stats

	Homeownership		68%; 2010.
	Households		26.3 million; Aug 2010
	Median Home Price		$256,000 USD; Feb 2010.
	Annual Transactions		925,000; 2010 est.
	Licensing Required		No
	Estate Agents		50,000 practicing of which 10,000 are members of NAEA
	Real Estate Association		National Association of Estate Agents (NAEA).
	Large Real Estate Firms		Century 21, Foxtons, Hamptons, Knight Frank, Savills and Winkworth.
	Financial Institutions		The top three mortgage lenders control more than half of the market: Lloyds Banking Group, Santander and Nationwide BS.
	Mortgage Rates		4.3% to 4.9%. Historically low levels.

Forecast

The United Kingdom housing market faired better than most European countries in 2010. The abolition of the Home Information Packs in May increased supply and the market weakened in the latter half of 2010. The new government coalition seems to be working, but there are still some problems as the number of home sales continues to slide in light of the banks tougher mortgage requirements and poor consumer confidence.
Experts are completely divided whether house prices will fall or rise in 2011. The general opinion seems to be stable or stagnant.