REAL ESTATE

Real Estate analysis of UK and Cyprus

Real Estate analysis of UK and Cyprus

Introduction

Property investing can be explained as the purchase, management, ownership and sale of property in order to gain profit. It is a cash flow dependent, which is capital intensive. Property investment gets associated with the investment of funds and property. Property gets associated to fixed property, which includes land and other things which gets attached to it such as buildings. With the acquisition of property, there are some formalities attached to it such as rights including transfer rights (Myer & Webb, 1993, pp.87-106).

Property market analysis is the “location, location, location” of property. Property market analysis is essentially “information arbitrage,” that is, the generation of small but important advantages in useful information about property opportunities and transacting on that knowledge (Liang & McIntosh, 1998, p. 69-78). Geographic information systems technology, geospatial analysis, and geospatial data are core to the acquisition and utilization of information in the property market. Property investment involves long term investing, and it is important to understand it because the conditions are continuously changing. The market of the property cannot be predicted so it is important to first important to understand and then take steps (Li & Wang, 1995, pp. 471-82).

Background of UK

In 80's, the prices of real estate in UK had risen. However, in the late 80s and early 90s, the British property prices had slid down and the reason behind that was the global financial crisis. The period from the late 90's to about 2003 got characterized by another price spike upward (Karouzis, 2006, pp: 5-9). Apparently, in the history of the property market in England during this period named as "Russian." Many of the Russian from elite classes got interested in the real estates in the central London. That resulted in the price bubble of the real estate. High Property Prices In general, over the past 30 years, the cost of apartments and houses in prime areas of London has been raised (Stevenson, 2001, pp.251-66.). The elite class wants to live in the most expensive areas like in Belgravia, Mayfair, Knightsbridge, Chelsea, and Kensington (Myer & Webb, 1993, pp.87-106). In these areas, single bedroom apartment starts from at least 900, 000 pounds. According to London-based partner Knight Frank Nick Tomlinson, the average price offers good two bedroom apartments (by Moscow standards-bedroom apartment of about 120 square meters). These areas range today at around $ 2.5 million cost of a small house in the famous Victorian style from $ 15 million, townhouses, depending on the area, gets offered at prices ranging from $ 5 million (Karouzis, 2006, pp: 5-9).

According to the experts, the international buyers have activated the property market of London and other main cities; the outlook of the market is strong enough. From 2000 to 2010, the activities of the UK real estate have been grown at the average growth rate 6%. This increasing trend is because of the increasing demand of the real estate services and ...