Year after year, France remains a popular option for Qatari nationals to buy real estate. Whether it be Paris or the endearing allure of the Riviera there is something for everyone. However, buying a property as a non-resident foreign national in France can be tough to navigate.
Are you looking to buy in France, but don’t know where to start? We have created a comprehensive international buyers handbook covering every aspect of the French property market and the buying process.
Download your FREE copy by clicking on the link below.
The initiative follows a previous collaboration with Qatari artist Bouthayna Al Muftah whose prominent works include the official poster for the FIFA World Cup Qatar 2022 to support the launch of the Global Investor Guide.
Alford Hughes, Qatar’s most exclusive network for international real estate invest and asset management has announced a special art initiative that aims to support Qatari artists.
Mohammed Al-Baker
This Summer will see the launch of Alford Hughes’s ‘Invest Internationally, Locally’ campaign where the company has collaborated with two local artists to create digital artistic interpretations of Qatari culture across famous landmarks from Alford Hughes’ key markets. The initiative will promote and support the local artists, providing them with a challenge and an outlet to exhibit their creativity and bolster their growth, while also showcasing the company’s property portfolio in key cities around the world.
Mohammed Al Baker, CEO of Alford Hughes commented on the initiative saying: “As an art investor myself and an active advocate for the local art community, I have taken great pride in sponsoring local artists through my private businesses. The assets that Alford Hughes promotes to its investor network are architecturally brilliant, financially enticing and situated in prime real estate markets that are famous for their cultural aesthetics”.
This ongoing support to local artists comes on back of the resounding success of a previous similar initiative in which the company collaborated with Qatari artist Bothayna al Muftah in the design and production of the Global Investor Guide which was gifted exclusively to 250 local investors.
Al Baker continued, “Alford Hughes is a unique premium service unlike anything else in Qatar Real Estate Industry, and I have found that partnering with local artists complements what we do brilliantly and provides a refined touch to our exclusive services and property portfolio”.
Since its inception, Alford Hughes has kept the welfare of Qatari investors and Qatari society at the top of its priorities. The company strives to create initiatives that will support local talent and drive development in the market whilst also making the troublesome process of investing overseas as a Qatari national as seamless as possible
Since its establishment in 2020, Alford Hughes has grown its asset portfolio offering to over 27 billion riyals across the world. The appetite for International Prime Real Estate has never been stronger in Doha and being an exclusive office to simply investing Internationally, Locally – Alford Hughes has positioned itself as the go-to company in Qatar.
Following the momentum set in motion by the first waves of the pandemic, 28 out of 30 cities are expected to experience price increase for prime residential properties in 2022. It is expected to show an average prime capital growth of 4.3%, the second highest in 5 years just behind 2021.
Low stock levels, the desire for bigger spaces ideal for permanent or long-term hybrid working conditions and relatively low interest rates resulting in affordable mortgages were some reasons behind the value increase in 2021. However, openness of the borders for cities that rely on international demand, and the market cooling measures, prevalent especially in Asia, could be the determining factors of the prime residential outlook in 2022.
Building on the 21% growth in 2021, Miami is forecasted to be the best performing US city, anticipating a growth of 10% due to Florida’s low-taxes, Miami’s competitive prices and the added the appeal of coastal living. New York, on the other hand, is expected to grow between 4 and 5.9%.
City
Forecast 2022 Growth
Berlin
10% or higher
Miami
10% or higher
Moscow
+8 to 9.9%
Seoul
+8 to 9.9%
London
+6 to 7.9%
Singapore
+6 to 7.9%
Amsterdam
+4 to 5.9%
Geneva
+4 to 5.9%
Los Angeles
+4 to 5.9%
Madrid
+4 to 5.9%
Milan
+4 to 5.9%
New York
+4 to 5.9%
San Francisco
+4 to 5.9%
Sydney
+4 to 5.9%
Prime Capital Growth Forecast of Top 15 Cities in 2022
Berlin is forecasted to the be the standout among the European cities and are expected to grow by at least 10% in 2022. New, prime developments are bringing quality stock to the market, supported by strong domestic and international purchaser demand.
Prime Central London is another standout, with growth of 8% forecast. Paris is the only European city where there is no growth forecast. Prices are expected to stabilize this year after several years of catch up.
Seoul may see the strongest growth of any Asian city in 2022 with an anticipated growth between 8 and 9.9% over the 12% recorded in 2021. A government scheme to curb speculative buying by imposing higher taxes on owners of multiple properties has pushed purchasers to spend more on individual homes and resulted in boosting the prime markets. Other strong performers expected in 2022 are Singapore (6% to 7.9%) and Sydney (4% to 5.9%), though growing at slower rates than in 2021, with additional lending restrictions for foreign buyers.
Over the last six weeks, a tenant’s market has become a landlord’s market in prime London as supply has fallen and demand has hit record highs.
Supply has been curtailed as would-be landlords have sold to capitalise on surging demand in the sales market and as staycation rules have been relaxed a number of investors have returned their properties to the short-term rental market.
In addition, the return of overseas students and the re-opening of offices has driven the demand side of the equation.
These factors have contributed to upward pressure on prices, with average rents in prime central London rising by 1.2% in the three months to August, the biggest such increase since July 2018. In prime outer London, the quarterly gain of 0.9% was the largest since June 2018.
As shown in the below chart, of the properties rented, the areas around London’s two main financial districts (the City and Canary Wharf) showed the greater activity with 28% of listings rented in August in comparison to 22.5% for Greater London, a figure that was at 13% at the start of the year for both groups. This divergence shows the clear trend that the re-opening of offices has been driving lettings activity.
Sydney leads in 2021 with the city expected to see growth of 10%.
Next year, Sydney is also expected to outperform and will share the top spot with London, both cities are expected to see an increase of 7% in 2022.
Miami is predicted to have the second-highest increase this year at 6%, with a further 4% in 2022.
New York should see prices rise by 4% this year, which would be its strongest performance since 2015, followed by a further 3% rise in 2022
What is driving the increase in values?
Government measures have helped protect economies, and cities are now on the rebound.
In addition, the pandemic has inspired many buyers to relocate or expand their holdings. Households accrued a total of over US$5 trillion globally in savings during lockdown, enabling some homeowners to undertake home improvements. Others have opted to relocate, upsize, downsize, or buy a second home/investment property.
The lack of supply in several key cities has been exacerbated as construction rates slowed due to lockdowns and social distancing, putting upward pressure on prices
What lies ahead?
The outlook for prime residential markets will be closely tied to the ease with which cross-border transactions can start to normalise, and whilst virtual viewings and improved technology have assisted in this area, the reality is the resumption of commercial air travel will be key.
New York City rental markets showed strong performance in June, driven in part by a flurry of luxury activity, an indication that as Covid-19 infection rates continue to dwindle, the city’s wealthy residents are returning in droves.
While prices were largely flat—Manhattan’s luxury rental market saw median prices decline by 2.9% year over year, according to Douglas Elliman’s June rental report
The Manhattan luxury rental market’s strength has been transformed during the pandemic era into one of the stronger segments.
Heavy leasing volume combined with a sharp decline in luxury inventory suggests potential upward price pressure in the near future.
Areas like the West Village in Manhattan, are particularly hot, with demand so high for some units that landlords are asking prospective renters to submit their best and final offers above the advertised rent price—akin to what would be expected in a competitive market for home buyers. Still, the median rental price in Manhattan is down 18.5% compared to a year ago, while Brooklyn is down 16.2% and Queens 13.1%.
Evidence of prime stock shortages in European residential markets is growing, owing to an increase in pandemic-induced sales.
In Europe, the resort, coastal, rural, and alpine markets are feeling the pinch, and this is expected to worsen in the coming months.
The strong sales rates we’ve seen in the last 12 months have been driven almost entirely by domestic buyers, once borders reopen and cross border transactions normalise, it is expected that stock levels will reduce further.
Strong demand, along with sellers’ reluctance to list their home until they know what they want to do next, has resulted in fewer listings in recent months.
With listings declining, existing inventory being absorbed and construction rates lagging, stock levels are becoming increasingly constrained, and inevitably it is the best-in-class properties that are selling fastest.
“European cities are also back on the radar of second home buyers and investors.”
What Next?
Prices are expected to increase across most European markets in 2021, with Lisbon, London, Geneva, Berlin and Paris to be amongst the frontrunners.
“The big question is will prices accelerate or will sales slow as a stand-off emerges between buyer and seller”
In the short-term prices look likely to track higher. Knight Frank’s latest Prime Global Cities Index which tracks the movement in luxury prices across 56 cities confirmed that 11 recorded double-digit price growth in the year to March 2021, up from just one a year earlier.
142 property sales above £5 million were recorded in Prime Central London in the first four months of this year, with a combined value of £1.42 billion.
The top-end of London’s property market continues to recover, with more £5m+ sales recorded in the first four months of 2021 than in any year since 2014.
There were 43 sales above £5 million during April 2021, according to Savills; the highest April figure since 2014. This brings the total for the first four months of the year to 142; that’s also the highest figure since 2014 (when 159 deals were recorded), and comes in a third higher than in the same period in 2020, and 65% up on 2019.
The total spent on these deals has also increased, reaching £1.42 billion in the first four months of the year; 32% more than in 2020, and 63% more than in 2019. That puts the average deal price at just over £10 million.
The London prime property market was as busy as it’s ever been over lockdown, but prices are still finding their feet.
+27.3%
Rise in number of properties sold compared with Q1 2020, just as the first lockdown hit.
18 Days
Properties are selling 18 days more quickly than this time last year.
-4.7%
Fall in prices compared with same period last year.
Source: Coutts & Co, LonRes, April 2021
With properties spending less time on the market compared to a year ago, sellers appeared to prioritise a quick sale rather than hold out for a higher price this quarter.
Overseas buyers, an important source of demand for central London homes, have faced travel restrictions with fewer able to make the trip over to purchase or view prime property, which may also have impacted prices.
Activity in the London prime property market continued to rise in Q1, despite the conditions of lockdown.
The impending stamp duty holiday deadline on 31 March spurred on purchasers looking to take advantage of the savings. The deadline was extended in March, but by then many buyers were ready to complete.
While the number of overseas buyers has been low due to travel restrictions, the arrival of a 2% stamp duty surcharge on overseas buyers at the end of March acted as an incentive for them to transact, too.
New instructions were slow at the start of the quarter as many sellers assumed they’d left it too late to benefit from the influx of buyers hoping to meet the stamp duty holiday deadline and others were put off by lockdown. In March, the stamp duty extension and positive news on the easing of lockdown restrictions resulted in a surge in new instructions, making up for the slow months.
Prime Property Market Trends For 2021
Low Interest Rates Will Support Demand
The prospects for economic growth in 2021 have led to higher inflation expectations and rising bond yields (that is, falling prices). However, there’s no sign of any change in the Bank of England base rate in the UK. We continue to expect a very favourable low base rate regime for the next two to three years, which will continue to support demand for residential property.
Buyers And Sellers Emerge From Lockdown
As restrictions ease through the year, the previous ways of transacting are likely to re-establish themselves. We expect that this will see an increase in new listings as seller reluctance over viewings recedes. The real estate sector has done well to mitigate the barriers put up during lockdown, and some of these innovations – such as remote viewings – could stick, particularly for overseas buyers.
Return Of Overseas Buyers
We expect increased interest from overseas buyers as travel restrictions ease through 2021. Overseas interest in commercial property is already evident, reflecting an undervalued currency and attractive yields. Commercial estate agent Colliers reports that £3 billion was invested in UK commercial property in March, with overseas investors accounting for half of the assets. We expect trends in residential to follow commercial through 2021.
Prime London Area Focus – Q1 2021 Performance
Use the map and postcode selector below to see how each area performed last quarter.
