New York's first micro-units apartment building will be launched in March. Smaller apartments are getting more popular as a living alternative because of the lower cost. New York City ranked second in a list of cities with the highest rents.
Real Estate
Shivshahi Punarvasan Prakalp Ltd to offer monetary assistance for Indian construction sector
The gloomy atmosphere prevailing in the construction sector of India has led the government to take monetary steps to aid the ailing sector. Shivshahi Punarvasan Prakalp will provide monetary assistance for the construction activities in India.
Chinese industrial overcapacity posing a major threat to global economy
Industrial overcapacity in China may have adverse impact on the domestic market and global economy. A number of new units came up owing to easily available loans and government subsidies in the world's second largest economy. A latest report calls for more radical measures including greater privatization to streamline the Chinese domestic industry.
India's Ajay Piramal sees value in VC investing
Indian businessman Ajay Piramal has entered into venture capital (VC) space by establishing a new VC funding entity 'Montane Ventures.' The new VC fund focuses on early-stage funding requirements. Piramal has infused $50 million into Montane Ventures will mobiles $150 million additionally from external resources.
Lower Inventory, Higher Demand: Phoenix Real Estate Eyeing A Boom In 2016
Prices usually fall amid plenty of inventories. But 2016 appears as a booming year for Phoenix Real Estate due to increased demands from the buyers. Lack of new construction during the last seven years and soaring up house rents are the contributing factors for the rise in demand. Reduction of inventory in 2015 by 5.5% coupled with increased sells in recent days, accelerate the booming for Phoenix.
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The UK house prices rose for the consecutive second month in January 2016. The UK property market demand is growing in the wake of lower interest rates and encouraging job growth rate. The average cost of a house in the UK was up 1.7 percent in January.
The US economy encouragingly created more jobs for the past two years and now is set for a slowdown, as economists predict. The prevailing credit conditions the US market indicate tightening of economy. The US private sector added 205,000 jobs in January as against 267,000 in December.
UK mortgage approvals grew to a four-month high in December, signifying that the housing market is ready to harvest heavy gains in 2016.
The US housing market was boosted at the end of the year 2015 that marked the best year for existing and fresh home sales since 2007. Nearly 501,000 fresh homes were sold the previous year, an increase of 14.5% from 2014.
The major factors such as oil price fall, economy growth concerns and uncertainty in stock markets are keeping more pressure on mortgage rates in the US market. The average US rate on long-term mortgage dropped for three weeks in a row to 3.81 percent. The average rate on 15-year mortgages dropped to 3.10 percent from 3.19 percent.
The US economy is witnessing surge in job market and attractive mortgage rates. These positive factors are expected to boost the new home market. The US economy is forecast to grow at 2.7 percent in 2016 from 2.1 percent in 2015. Economists predict that the GDP growth rate may slowdown to 2.2 percent in 2017. The market for new homes grew 15 percent during the first 11 months of 2015.
The authorities expect more easing measures to help reducing home inventory excess. Developers are also encouraged to change marketing rules and reduce home prices as China's property investment growth hit the lowest rate since 2009.
In the face of declining home prices, as evident from the last quarter, the chairman of Hang Lung Group, Hong Kong's leading developer, expressed that the city property market is now more robust than it has ever been in the last 25 years.
South African retail bank said the country's house price will decline in this year. Fitch Ratings also remarked South African residential property and mortgage markets outlook to weaken further facing microeconomic challenge.
