Luxury Real Estate

Courtesy of: LuxuryRealEstate.com

LuxuryRealEstate.com is proud to introduce our new member in St. Maarten.

Antilles Realty is known in St. Maarten as a market leader for luxury real estate and investments. Ms. Maayke Martina, Owner and Broker, has been on St. Maarten since 1991. Prior to Antilles Realty, she also worked as a successful realtor at Re/Max. Ms. Martina is originally Dutch. She was born and raised in Belgium. She studied in both Holland and in the USA. Her multicultural background and professional knowledge is further supported by her foreign language competencies as she speaks Dutch, English, French, and some German and Spanish. She and her team have over ten years of experience in real estate for property sales and rentals in the Caribbean. Her frequent travels and meetings throughout the Caribbean give her access to not only all luxury villas and investment properties on St. Maarten, but just about every Caribbean island.

For more information regarding Antilles Realty’s portfolio of luxury properties, please feel free to visit http://www.antillesrealty.com and/or contact Ms. Maayke Martina (Broker/Owner) at mmartina@antillesrealty.com.

About Who’s Who in Luxury Real Estate:

Who’s Who in Luxury Real Estate is an invitation only network representing the best luxury real estate firms and professionals from around the world. Each affiliated member is carefully selected to represent his/her market area. Who’s Who in Luxury Real Estate also hosts the industry leading Website www.LuxuryRealEstate.com (a 2009 Webby Award Honoree).

Courtesy of: Heidi Warth with Warth & Properties

Son Vida is located in the hills above Palma, the capital of the Balearic Islands and main city on the island of Mallorca, Spain. A private resort, Son Vida has become a home for some of the most reputable and wealthy Europeans and beyond.

It offers a unique combination in the Mediterranean:

Natural Mediterranean beauty – Son Vida is set in the unspoilt hills surrounding Palma, around three lush green golf courses abundant with Mediterranean plants, such as bougainvilleas, old pine trees and olive trees.

Exclusivity, privacy and tranquility – The entire area of Son Vida is private and was developed in a controlled, organic fashion over the course of more than twenty years. The result is a collection of highly sophisticated, large estates spread out across park-like gardens that is ‚alive’ throughout the year and has the appeal of a ‚grown’ neighbourhood. The resort is only accessible via one, guarded access road, offering a high degree of security.

Excellent accessibility – the airport of Palma, within 20 min. driving distance, is one of the most well-connected in the Mediterranean, offering frequent travel connections to all major cities in Europe.

Superior recreational facilities – two international five-star hotels, three top-rated 18-hole golf courses, and an abundance of other sports and leisure activities are located in Son Vida, leaving little to be desired: Indoor and outdoor swimming pools, tennis courts, a fitness club with sauna, a beauty centre, refined restaurants and elegant bars. Besides, all cultural and gastronomical attractions of Palma are within 15 minutes driving distance.

Infrastructure standard at international top-level – Health, education und utility standards are at the performance level otherwise only found in international metropoles. For example, Palma is home to several international, multilingual schools.

The combination of these factors has meant that, in the last 45 years, people from around the globe have felt right at home in Son Vida, making their dream of living in the south a reality. Demand for luxury living space in Son Vida is thriving, and will continue to do so. As constructible space, however, is limited, prices are soaring, providing Son Vida property investments with a high potential for value appreciation.

Courtesy of: Carl Peralta of 77 Great Estates

BUSINESSES IN MALTA DO NOT TRADITIONALLY TURN TO THE STOCK EXCHANGE TO RAISE CAPITAL, BUT THE TIDE HAS CERTAINLY TURNED IN 2009 WITH A RECORD €290 MILLION WORTH OF BONDS ISSUED THROUGHOUT THE YEAR. CLAIRE AZZOPARDI DIGS DEEPER AND FINDS OUT WHAT LED TO THE BOOM ON THE BONDS MARKET AND WHAT IS EXPECTED TO HAPPEN NEXT.

For anyone who follows the local business news, the developments at the Malta Stock Exchange throughout 2009 must have certainly made for an interesting read. Despite the fact that the local business community does not usually turn towards the stock exchange as its primary means of raising capital, the last year seems to have brought a sharp turnaround in this trend with a record €290 million new corporate bonds being issued.

Even though this figure is a mere drop in the ocean when compared to capital raised through bank loans, it is the largest amount of money ever raised by companies in Malta through the stock ex-change. Edward Rizzo, Director of Rizzo Farrugia & Co Stockbrokers, observes that “this is a very positive development, although it has taken many years for the corporate bond market to register such growth and provide companies with another source of funding as opposed to customary borrowing from the bank.”

But perhaps the massive surge in the bond market should not come as a surprise. The historically low interest scenario following the sudden deterioration in global economic conditions by all major central banks, including the European Central Bank has had a remarkable negative effect on the returns earned on deposits held at banks. As a result, the demand for more rewarding investment options rose by a large number of investors, and with this increased demand, it suddenly became much more lucrative for private companies to raise the capital needed by issuing bonds on the stock exchange.

But this also begs the question ‘where is the money coming from?’ One may almost expect that during a recession, potential investors may not have a great amount of money to invest. However, the fact that the Maltese traditionally have a high propensity to save, could mean that many are still in a position to invest.

The safety offered by depositing cash at the bank may not be enough of an incentive to override the riskier, but potentially more rewarding, rates offered by the corporate bond market. Even though this may certainly be the case, Dr Cordina emphasises the fact that it is “quality companies that issue quality bonds will attract investment.”

This seems to indicate that while Maltese investors are showing a keen interest in investing in stocks bonds and shares, they display a tendency towards being risk averse and will carefully select their next investment.

Mr Rizzo explains that in 2009, ten individual private companies issued bonds on the local stock ex-change. He continues to explain that investors’ increased interest in bonds has also spilled over to the ‘secondary market’, with an increasing number of bonds being traded on a daily basis. “An increased awareness of the bond market was sparked when three new bond issues came to the market simultaneously in September – Corinthia Fi¬nance plc, Island Hotels Group Holdings plc and Melita Capital plc – which attracted a great deal of attention from potential investors,” he says.

Dr Gordon Cordina, a well known economist, explains that “in this time of economic crisis, various operators around the world are trying to sell quality bonds at a good rate which is favourable to the investor, and there is a strong demand for it. Take Microsoft for example… this is the first year that this massive global company has turned to the bond market.” “

The current trend is for companies to issue long-term bonds at a low interest rate, but the quality of these bonds is of paramount importance. This trend has also been reflected in Malta, within the limits of the domestic market. The fact that the domestic market had a high liquidity rate was also beneficial for the local bond market, but it is only quality companies and bonds that are likely to enjoy success in this regard,” he emphasises.

Yet another point that may be having a positive effect on the local bond market is linked to the negative experience that a number of local investors have had with some international bonds, including Lehman Brothers. Losses made through investments that lost substantial value during the economic crisis may even have enhanced the attractiveness of investing in local companies, as fluctuations and developments can be closely monitored and responded to in a timely manner.

Interest rate levels are often a double edged sword – while the cost of borrowing may be ‘cheaper’, investing in the bank was no longer an attractive option. This is most certainly one of the main reasons why the local bond market experienced such a surge throughout 2009. Companies and investors that were traditionally more inclined to turn to the banking system for financial support and investment options have increasingly started to turn to the stock market for investment and capital raising opportunities. The role of the stock exchange acting as an efficient intermediary, by facilitating the flow of capital and investment thorough the right channels has started to work more smoothly, and an increased flow was highly evident in recent months.

However, although the bond market has attracted a large inflow of funds in 2009, the same cannot be said for equities.

Mr Rizzo explains that share prices fell by approximately 16 per cent in the first quarter of 2009, hitting a low towards the middle of April. “This was not particularly surprising, as the economic recession has had a massive impact on investor sentiment, as well as financial performances of various companies. An encouraging recovery has been registered, and even though the rate of this recovery in Malta is still lower than that registered in other international markets, we are expecting this positive trend to continue to the end of the fourth quarter and beyond,” he says.

Mr Rizzo explains that four companies in particular have performed well. “Bank of Valletta’s performance has been remarkable – the company’s shares registered an increase of 30 per cent from the beginning of the year. HSBC was another good performer with an increase in share price of 14 per cent, while GO also registered a 10.7 per cent increase. Unfortunately, many of the other companies having shares listed on the stock exchange are still in negative territory,” he concludes.

These intriguing developments on the local and international stock markets will surely be followed closely by all economic stakeholders with government, investors, banks and even the general public using the trends registered within stock markets as an indication of future trends in the economy. Expectations for 2010 are high… perhaps 2010 will be another fruitful year for the Malta Stock Exchange?

COMPANY ISSUED VALUE OF BONDS

Bank of Valletta plc € 50 million

Corinthia Group of Companies € 25 million

Fimbank plc € 30 million

Gasan Group of Companies € 20 million

International Hotel Investments plc € 35 million

Island Hotels Group Holdings plc € 14 million

Melita plc € 25.9 million

MIDI plc € 40 million

Mizzi Organisation € 30 million

Tumas Group € 25 million

For further information, kindly contact 77 Great Estates on (00356) 2125 2455; (00356) 9944 7444; skype: info.77greatestates or info@77GreatEstates.com.

Courtesy of: Carl Peralta of 77 Great Estates

The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated.

For further information, kindly click here .

For further information, kindly contact 77 Great Estates on (00356) 2125 2455; (00356) 9944 7444; skype: info.77greatestates or info@77GreatEstates.com.

Courtesy of: Paula Maia of O & O

Property has regained its popularity with high net worth investors who plan to raise their exposure to the asset class, according to a survey by Barclays Wealth and the Economist Intelligence Unit.

The survey found 35 per cent of investors plan to hike the property allocation in their portfolios over the next two years, double the 17 per cent who planned to reduce it over the same period.

Enthusiasm for property has sunk since property values tumbled, but demand may have been revived by the massive injections of money into economies via central bank rate cuts and other fiscal measures taken by governments.

Investors in nine of the 10 biggest markets are planning to increase their property allocation over the next two years, the survey found. Internationally, nine in 10 investors planned to hike their portfolio allocation by 1-4 percentage points.

“The tumble in property values has shaken even the most seasoned investors’ confidence. Despite this, these findings suggest that investors believe we are approaching the beginning of the end of the downturn. It appears that those surveyed are prepared to not only exploit undervalued opportunities, but also to commit further to property over the next two years in the belief that they will benefit from favorable returns," said Rory Gilbert, head of UK high net worth, UK & Ireland Private Bank at Barclays Wealth.

Courtesy of: Maxine Hussey of Damianos Sotheby's International Realty

TOP PRODUCER ABACO TEAM 2009

Stan Sawyer

Estate Agent, Bahamas Damianos Sotheby's International Realty

t 242.367.5046

c 242.577.0298

Stan.Sawyer@SothebysRealty.com

Stan Sawyer has watched and participated in the growth of Abaco for almost a half a century. He spent his early years growing up in Green Turtle Cay and has been able to spend a lifetime exploring the length and breadth of the Abaco Islands. He has extensive knowledge of Abaco's real estate market. Stan is an Achiever – he is continually updating and educating himself. He has earned numerous certificates since graduating from college in 1980. Residing in Treasure Cay for more than twenty years, Stan’s clients appreciate his loyalty, integrity and professionalism. They place their trust and confidence in Stan’s ability to deliver on service. He works tirelessly around the clock until he succeeds in delivering complete satisfaction.

TOP PRODUCER NASSAU TEAM 2009

Ridley Carroll

Estate Agent, Bahamas Damianos Sotheby's International Realty

t 242.322.2305

f 242.322.2033

c 242.424.5801

Ridley.Carroll@SothebysRealty.com

Ridley has spent twenty years as a commercial pilot which has provided him with an extensive knowledge of the Bahamian islands and a profound understanding of people. He has been a licensed realtor with Damianos Sotheby's International Realty for more than 10 years and thus is one of our seasoned veterans. He believes that purchaseing a property requires a realtor who is honest and has knowledge of the local marketplace; as a result of this belief he has successfully assisted numerous families achieve their goals. We are proud of his sincere and enthusiastic approach to meeting his clients' need and how he guarantees individualized attention and a commitment to excellence in all of his business transactions.

TOP LISTING AGENT BAHAMAS 2009

Mark Hussey

Estate Agent, Bahamas Damianos Sotheby's International Realty

t 242.322.2305

f 242.322.2033

c 242.424.9193

Mark.Hussey@SothebysRealty.com

A proven leader, Mark Hussey is a committed Real Estate Professional, assisting clients with the research and marketing of properties within the Bahama Islands. Through Mark's professional and personal contacts within the Bahamian community, he is able to deliver results that often exceed his client' needs. Mark's positive attitude and personality, along with his effective business relationships tremendously aid in his ability to join both buyers and sellers together. He is attentive and multi-skilled; driven by his commitment to provide our clients with qualified information and high personal service standards.

TOP PRODUCER BAHAMAS 2009

Steve Donovan

Estate Agent, Bahamas Damianos Sotheby's International Realty

t 242.322.2305

t 928.202.7765

Steve.Donovan@SothebysRealty.com

Steve specializes in the purchase and sale of Private Islands and Estate Properties in the beautiful Exuma Cays of the Bahamas. This is possibly the most beautiful part of the Bahamas, over 100 sun-drenched islets, consisting of one dazzling white sandy beach after another and endlessly changing ocean hues. Most of the islands are uninhabited and protected forever from development. Once in a while an island or property becomes available and it becomes possible for a new person to live the ultimate dream of owning their own tropical paradise. Steve has lived in the Exuma Cays for over ten years and is also the only licensed real estate agent living there.

Courtesy of: Rimontgó

Featured in Realty Sense

José Ribes Bas, CEO of Rimontgó, and José Miguel Martínez Medina, his counterpart at Valencian design firm JMM MOBISA MARTINEZ MEDINA, enjoy the view of Valencia’s iconic architecture as they meet to discuss the true meaning and value of style, comfort, luxury and excellence.

Both men form part of a proud family tradition in their respective fields, and both have taken their long-established and respected firms to new heights. Fifty years ago Inmobiliaria Rimontgó was a small pioneer property agency in Javea. Today, as the company celebrates its fiftieth anniversary, José Ribes and his brothers run a renowned estate agency with a prominent position in the regional market and an international reputation.

His long-time friend José Miguel Martínez-Medina similarly took the family furniture business, founded in 1906, to a new level, adapting with the times while proudly maintaining the values imbued by previous generations. JMM now ranks among the leading Spanish brands in luxury bespoke office furniture, high desking and interior design solutions, with both design and manufacture harmonised within the company’s Valencia base and Madrid Headquarters.

As professionals catering to a luxury market they are directly involved in issues of style, quality and luxury – terms that form a central part of their daily professional vocabulary. But how do we exactly define these concepts – not to mention their pursuit? Is the desire for luxury and beauty a wasteful frivolity or does it drive excellence in all of us? On a practical level: Where do you draw the line between form and function, and at what point does opulence become vulgarity?

Are we right to pursue luxury?

JMM: A lot depends on how you define such all-encompassing terms. The most common association is above all with items – items in term defined by cost, quality, rarity, status and beauty, though the latter can be and very often is subject to both fashionable trends and personal taste.

JRB: Beauty is in the eye of the beholder, while fashion and trends try to create manageable avenues that channel our desires in a particular direction, be it for clothes, cars or décor. But luxury is more than the sum of beautiful items alone; it all adds up to a certain lifestyle, and it is this idea of lifestyle that we associate with luxury in general.

Is luxury always associated with wealth?

JMM: In the sense that most people picture a privileged lifestyle filled in with luxury items it is mostly associated with wealth. But there are also other forms of luxury and privilege that are often neglected but not necessarily less valid. As you grow older you realise that time is one of the great luxuries in life. The pleasure of having time to yourself is especially appreciated by those who have achieved wealth and material luxury but often at the cost of personal time.

JRB: Yes, it may sound rather philosophical to say that, for some, luxury can be something as simple as spending time with your children or grandchildren, having the time to socialise with friends or indulging in a pastime like fishing, but they are often exactly the things people with money and success miss or cherish the most.

Should we therefore be pursuing less material dreams?

JMM: Of course, but that’s like saying that you should eat more sensibly, exercise and not waste your time and energy bickering or worrying unnecessarily. Most of us will arrive at these realisations at some point in our lives, yet the drive to improve ourselves is still primarily manifested through a desire to attain more wealth, comfort, status and the lifestyle and recognition that comes with it.

Is this somehow shallow?

JRB: Naturally there should be a balance, but on the whole these are essential human drivers that have been around since the earliest of times. We are social and therefore competitive creatures, so we wish to do well, reap the rewards and attain position within our society. You can take it to negative extremes, but on the whole it’s an instinct that serves mankind well because it is the force behind most of our innovation, creativity and the desire to want to improve things.

JMM: Without these impulses the world would be dreary. There would be no desire to achieve excellence, to surpass ourselves or to produce things of great beauty and art. In a totally utilitarian world there is no merit in dreaming, and without dreams we lose the ability to conceive and realise great ideas. The few social experiments in this direction are chilling examples.

By Jean-Yves Piton

LuxuryRealEstate.com is proud to introduce our new member in Switzerland.

As a leading luxury real estate company in Geneva, Switzerland, PRAEMIUM Immobilier specializes in brokerage (sales and rentals), property management and property renovations. PRAEMIUM Immobilier’s portfolio is constituted of residential and commercial properties, to include apartments, villas, hotels, buildings and plots.

As a market and real estate expert, PRAEMIUM Immobilier understands how to deliver personalized services to its international clients. PRAEMIUM Immobilier thoroughly handles the marketing process of its properties with the utmost discretion requested by property owners and buyers. Agreeably, PRAEMIUM Immobilier assumes the complete responsibility of locating the best market/investment opportunity to fit its clients’ short and long-term needs.

PRAEMIUM Immobilier also goes above and beyond the traditional services provided by real estate firms by handling property renovations. From start to finish, PRAEMIUM Immobilier works hand-in-hand with property owners and contacted companies (business relationships with contractors, business quotations, comparisons, control and monitoring of building works) to ensure renovation needs are successfully achieved.

For more information regarding PRAEMIUM Immobilier’s portfolio of luxury properties, please feel free to visit http://www.praemium.ch and/or contact Mr. Stephane GRIS (Director) at info@praemium.ch.

About Who’s Who in Luxury Real Estate:

Who’s Who in Luxury Real Estate is an invitation only network representing the best luxury real estate firms and professionals from around the world. Each affiliated member is carefully selected to represent his/her market area. Who’s Who in Luxury Real Estate also hosts the industry leading Website www.LuxuryRealEstate.com (a 2009 Webby Award Honoree).

Courtesy of International Property Journal

We asked an array of industry leaders: What will be the big news in international property in 2010? 

James Wyatt, partner, Barton Wyatt International
I believe that Florida sales to U.K. buyers will increase dramatically as buyers continue to shun Euroland. However I can see Euro purchases on the increase late in 2010 as U.K. interest rates start to rise, leading to a weaker Euro. Looking further afield, destinations such as Brazil, Panama, Middle East and the Far East will be all but unsalable. 

Mark Stucklin, analyst, SpanishPropertyInsight.com
Well, the big news won’t be a big rebound in the Spanish property market, because that’s not going to happen. However there will be some great deals on prime Spanish property to be had during 2010, for those who can be bothered to do their homework and have funds in place. It will go largely unnoticed but some people will do very well.

Google Real Estate might be big news in 2010. As this functionality grows in popularity it is going to create threats and opportunities in international real estate marketing. At some point it will be popular enough to shake up the business, and that might happen in 2010.

Liam Bailey, head of residential research, Knight Frank

The re-emergence of the Asian buyer will be significant factor in the prime European and North American markets. Russian, Indian and Middle Eastern buyers have been active through 2009 in locations like London and the south of France. But the next wave of money coming to take advantage of lower prices--and in the UK's case a weak currency--will be Chinese, Malaysian, Hong Kong and Singaporean buyers.

The other big trend to emerge will be the restarting of the resort development sector. It has been on hold across 2008 and 2009, but from Europe, the Caribbean and other hotspots the research and investigation stages are just beginning again and the market is beginning to move towards thinking about how to restart schemes rather than thinking how they can get out of them.

Bruce Hiatt, broker/owner, Luxury Realty Group, Las Vegas/Toronto
I believe that luxury high rise residential condo supply in Las Vegas will be much smaller than originally thought; excluding hotel condos. Once the current heavily distressed-priced residential condos are gone there will be little incentive to build new high rise luxury condos near or on the Strip for many years. Already we are experiencing buyers waiting to buy in certain high rise residential condo towers and cannot find the specific inventory identified at the price point desired. By price point we mean at current comparable levels including foreclosures, not unrealistic price points.

In the Toronto marketplace, I believe the Canadian market will continue to experience a strong loonie (dollar), high demand for luxury residential condos in the prime locations and supply challenges in the best located luxury high rise condo towers. In one example, a luxury high rise condo building of nearly 80 units only has 3 units for resale at this time with prices starting over $1.3 million and buyer traffic is strong. I’m not yet licensed in Canada so this is from conversations with my future luxury real estate brokerage. Some luxury condos continue to sell north of $1,300 a sq foot in Toronto.

Stuart Law, c.e.o., Assetz, U.K.
Severe limitations in supply of property will continue in 2010 as the house building industry struggles to increase output to any meaningful level, which will underpin prices in the face of very substantial demand.

Mounting government pressure on lenders to reduce margins and increase lending, combined with continuing lender competition now the major annual house price indices are turning positive, will be the catalysts for maintaining affordability for new buyers and further reducing the costs of new borrowing. Base rates will eventually start to rise, possibly at the end of 2010, but payable mortgage rates will remain low for the next two years at the very least.

Other negative factors (not expected to outweigh positive): Repossessions will be modest again in 2010 as they were in 2009 at 50,000. Unemployment probably peaked around the end of 2009 and will have little effect on prices. Tax increases will also hold back sentiment and affordability somewhat.

Eugenia C. Foxworth, Foxworth Realty, New York
I believe that there will be risks takers who will continue to invest, but for one-third the cost. Given what I am experiencing with my European investors and customers (residential, resort & multi-use properties), which is the majority of my business, 2010 is not going to be the year for speculative dealings and financial risks. Of course, there will be some successful stories but it will be a disaster for the sellers. Hotels, resorts and commercial spaces are being offered but there are no takers. I believe that 2010 will be a very dramatic time in international real estate. Monte Carlo is feeling it now!

Martin Dell, director, Kyero.com, Spain
The differing pace of economic recovery between nations will create opportunities for buyers and sellers.

In Europe, the stronger German, French and Dutch economies will enable buyers from those nations to seek and aggressively negotiate property deals in the slower-to-recover European countries--Portugal, Italy, Ireland, Greece and Spain.

Even though there is no currency exchange advantage for these buyers, the Euro will buy a lot more property in these PIIGS countries in 2010 compared to 2009.

If the U.S. economy continues to improve and the U.S. dollar increases in strength against the Euro, we could also see opportunistic U.S. buyers sniffing out deals in those slower-to-recover countries.

This buyer activity is already happening at the top end of the market in the U.K. where foreign buyers are taking advantage of the devalued pound, a slow moving property market (tipped to get slower in 2010) and a stalled economy. Expect more of the same for the U.K. and the phenomenon to extend to more countries in 2010.

Stuart Johnson, product sourcing manager, Experience International, U.K.
Quality property, with unique luxury architecture in prime locations in the established Aegean resorts of Turkey priced £100k to £250k will be big news in 2010. U.K., Scandinavians and Middle Eastern buyers will be investing in these locations. These developments will attract established tour operators and hence provide secure incentives like long term leasebacks.

We see France as a developing market. It already has a stable and robust real estate and mortgage market, and as well being the most visited country in the world. Developers are now leveraging these credentials to provide more and more tempting deals, mainly utilizing high loan to value mortgages--only the credit worthy need apply!

Debbie Maue, NAR liaison to Costa Rica, broker associate, Jameson Real Estate, Chicago

I think we will see a slow comeback, but not until the fourth quarter. The first year from U.S. markets is going to be hectic and chaotic as the lending laws continue to change, and buyers scramble to take advantage of the tax credits and REO/short sale opportunities. 

As those markets get absorbed and the resale market in general "shifts back into place" a bit, those sellers looking to retire will now have the funds. Most of the investment in second homes will be for retirees as their funds had been locked up in their primary residences. As well as, there are great deals to be made in the second home market and investors will be taking advantage. 

Adam Blaskey, managing director, North Beach, U.K.

I believe that there will be a continued but more sustained ‘flight to quality’. The exchange rate remains extremely favourable to foreign buyers acquiring property in the UK. The recent upturn in prices signifies the bottom of the market, I expect demand from overseas buyers to support prices, particularly in Prime Central London. No one will be taking risks by either over-paying or buying in fringe areas hoping for a ‘ripple effect’, but they will continue to buy quality property, finished to a high specification located in the most desirable areas. 

Dagmar Sands, former FIABCI-USA president, broker, Real Estate International, Inc.
My 2010 Prediction is that more banks will be closed in 2010 resulting in lot more properties foreclosing and driving our pricing down even more. My German clients told me they are waiting for the dollar to even go down to 2-1 ratio and then they will be purchasing.

Paul Brewbaker, economist, TZ Economics, Hawaii
I’m going to guess that the amazing rehabilitation of private-label commercial mortgage securitization will be the big story of the year. It will occur in an environment of evolved bank capitalization—presumably with regulatory reform to mitigate tax arbitrage and other incentives for excessive CDO-based leveraging. Its renaissance will come amidst further development of ideas regarding “macro-prudential regulation,” such as variable capital requirements designed to lean against the wind of incipient asset-pricing bubbles.

Collateralized debt obligations themselves will be revived as plain-vanilla financial structures of the sort one sees in straight-up textbooks like Duffie and Singleton’s Credit Risk (chapter 11, on CDOs), parameterized to the newly populated “fat-tails” of the distribution facilitated by the financial crisis of 2007-2008, financial panic of 2008 (post-Lehman) and Great Depression of 2008-2009. Hell, even the rating agencies will have better math—indeed, maybe they will even publish default probabilities instead of letter grades (another “straight-up” reform).

In the course of the year 2010 the Federal Reserve will gradually take the training wheels off CMBS conduits and let the market ride the bicycle on its own. Pointy-headed n00bs like certain professors (well, professor, singular) will be dumbfounded that, ultimately, there was not a glut of commercial real estate in the alpha quadrant and that—ZOUNDS—financial solutions to financial problems actual did exist, which fellow finance professors could have told him, if you know who I mean (rhymes with Martini). The hordes and hordes of cash piled up in safe havens and global portfolios glutted with U.S. Treasury securities will find once again that commercial mortgage-backed securities offer compelling risk-adjusted returns under transparent design calibrated to jump-risk metrics informed by the recent crisis.

And, amidst all of this, the fear-mongering of Chicken Littles with their W-shaped alphabets and the Talking Heads on CNBC—even the dumb asses on Fox News—will have to find something new with which to terrorize viewers, since lately they’ve devolved to reporting on to the Scary Fad of the Week. One day it’s CMBS that is the “ticking time bomb.” This week it’s the threat Tiger Woods raises for global financial stability. Next week it’s Dubai that is a cancer waiting to invade the economic recovery. The week after that it will be the Las Vegas Strip that has the seismic potential to unravel the recovery. Did you hear? Nevada had to legalize prostitution and gaming, just to get people to build luxury condos in the desert! I’m shocked, shocked to find that there is gambling going on in these premises!

Lucy Russell, managing director, Quintessentially Estates, London
1.) Change of buyers: Some international countries being more impacted by recession, i.e. Western countries. Stronger from Eastern and China.

2.) If U.K. emerges from the recovery and GBP strengthens then foreign investment may drop

3.) I think Dubai will continue to need financial support and capture headlines

4.) The Caribbean will see an improvement with islands like St. Lucia seeing high sales.

5.) Brazil is expected to see an increase in international buyers with the growth in the property market.

Sam Taliaferro, director/developer, Valle Escondido, Panama
Commercial property the world over will be in the headlines as it is the next bubble to pop. But not in Panama, due to the canal expansion and not having a lot of overhang.  

Residential apartments on the other hand will not be so lucky. The bust has taken place over a year ago, but few involved in the market will even admit it. Prices have declined significantly, 15 to 25 percent, and have further to go as more product comes on the market over the next year with little demand.

Hotel occupancy rates and prices, which have been at an all time high in Panama City, will drop significantly as the economy declines and much more product comes online.

The second home market around the world and in Panama will continue to be lethargic and may get worse if the economy continues to decline. To be successful in this troubled market will require innovation in both development and marketing.

Recent bond activity for Panama sovereign debt may make plans for major infrastructure projects such as the canal expansion and metro considerably more expensive.

Courtesy of: LuxuryRealEstate.com

LuxuryRealEstate.com is proud to introduce our new member in France.

Established since 1994, Peri-Pierres Immobilier is a true market expert for luxury real estate in the Perigord region of France. While Perigord is known as the birthplace of the black truffle, the exclusive properties (ranging from small and rustic cottages to historic castles) proposed by Peri-Pierres Immobilier truly symbolize the preserved nature of this distinctive region. In addition, Ms. Marie Pedreno is systematically featured as a market expert on renowned and prestigious French publications.

For more information regarding Peri-Pierres Immobilier’s portfolio of luxury properties, please feel free to visit http://www.peri-pierres-immobilier.fr and/or contact Ms. Marie Pedreno (Owner & Broker) at peripierres@free.fr .

About Who’s Who in Luxury Real Estate:

Who’s Who in Luxury Real Estate is an invitation only network representing the best luxury real estate firms and professionals from around the world. Each affiliated member is carefully selected to represent his/her market area. Who’s Who in Luxury Real Estate also hosts the industry leading Website www.LuxuryRealEstate.com (a 2009 Webby Award Honoree).