Slovenia leads annual global house price growth

Property Wire | June 14, 2019

Property price in 56 key nations around the world increased by 3.9% year in year in the first quarter of 2019, led by Slovenia for the second quarter in a row with Latin America the strongest region. Prices in Slovenia increased by 18.2% with falling unemployment, low interest rates and until recently, limited supply, behind the strong price growth, according to the latest global residential index from international real estate firm Knight Frank. The next biggest growth was in Latvia at 11.9%, followed by China up by 11.6%, Malta up 10.8%, the Czech Republic up 9.9%, Luxembourg up 9.3%, Hungary up 9.2%, Mexico up 9%, Taiwan up 8.4% and Columbia up 8.3%. At the other end of the index prices fell year on year by the most in Australia with a fall of 5.1%, followed by Finland down 1.6%, Morocco down 0.8%, Israel down 0.7%, Italy down 0.6%, Sweden down 0.3% and then Switzerland down 0.1%.

Spotlight

The real estate industry is long overdue for a shakeup. Not only is one-third of the industry running on technology that was first released over 30 years ago, but it continues to put up barriers to transparency, preventing the release of locked up liquidity and eliminating standard services. Research shows that there is not only a lack of innovation but also an unwillingness to explore ways the industry can be developed. The established way of thinking has proven difficult for the industry to shake off. We are ready to break down all of these barriers. With the help of the blockchain, we know that the real estate industry can move into a new, more democratic age.


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REAL ESTATE INVESTMENT

ECI Group Acquires Channel District Site in Tampa for Development of 351-Unit Apartment Community

ECI Group | December 16, 2021

ECI Group and K.D. Keller Development have closed on a two-acre site in Tampa's vibrant Channel District in Tampa, FL, with plans to start construction in January 2022 on Parc Madison, a 351-unit, eight-story Class A apartment community with 6,571 square feet of ground floor retail. The project equity was funded through a joint venture of ECI, Tampa-based K.D. Keller Development, and Scottsdale, AZ-based Kandle Investments, with construction financing provided by Wells Fargo Bank, N.A. Construction is expected to be completed in the third quarter of 2023. Parc Madison will be located at the east end of the downtown Tampa block bounded by E. Twiggs Street, E. Madison Street, and Channelside Drive, adjacent to the new City of Tampa Madison Street Park. Constructed using efficient tunnel form concrete technology, the building will have a parking deck, skyline views from upper floors, an expansive rooftop pool and gym. The 6,571 square feet of ground floor retail is targeted towards a restaurant and/or coffee shop user. "The ECI team is excited to be underway with the Parc Madison, destined to be a signature property in downtown Tampa, featuring sleek, modern architecture and sunlit, spacious apartments, We are proud to continue to contribute to the rapid growth of the Channel District, bringing in more residents to enjoy the new retailers, grocery stores, restaurants and gathering places." -James Baugnon, President and CIO at ECI. Chip Sykes and Drew Jennewein of Jones Lang LaSalle Capital Markets assisted in the formation of the project joint venture. About ECI Group For more than 50 years, ECI Group has been one of the most highly regarded, privately owned real estate organizations in the United States. The firm is fully integrated, with development, construction, and management groups that have garnered national recognition for innovation and performance in the multifamily industry. With a portfolio of more than 7,900 units either existing or under construction located throughout the Southeast, ECI is strategically positioned to continue to be a leader in the multifamily industry. For more information, visit www.ecigroups.com. About K.D. Keller K.D. Keller's mission is to help landowners realize the full income potential of their properties while retaining full ownership. We transform obsolete or underutilized structures into the highest and best use for the property, for now and for the future.

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REAL ESTATE TECHNOLOGY

KKR to Acquire Leading Japanese Real Estate Asset Manager from Mitsubishi Corporation and UBS Asset Management in a Strategic Transaction

KKR | March 17, 2022

KKR & Co. Inc., Mitsubishi Corporation and UBS Group and UBS AG announced the signing of a strategic transaction by a subsidiary of KKR, which is acquiring all of the outstanding shares of Mitsubishi Corp.-UBS Realty Inc. from Mitsubishi and UBS Asset Management in an all-cash transaction valued at JPY230 billion (US$2 billion). MC-UBSR is one of the largest real estate asset managers in Japan. Founded in 2000 as a joint venture between Mitsubishi and UBS-AM, MC-UBSR is a pioneer in the Japanese real estate investment trust (J-REIT) segment. Today, it is one of the largest real estate asset managers in Japan with JPY1.7 trillion (US$15 billion) in assets under management.2 The business has approximately 170 dedicated professionals managing two Tokyo Stock Exchange-listed REITs: Japan Metropolitan Fund Investment Corporation (JMF) and Industrial & Infrastructure Fund Investment Corporation (IIF). JMF, with approximately JPY1.3 trillion (US$11 billion) in assets under management as of August 31, 2021, invests in retail, offices, hotels and other assets located in urban areas. IIF, with approximately JPY 0.5 trillion (US$4 billion) in assets under management as of January 31, 2022, focuses on industrial and infrastructure properties in Japan. Both REITs have established environmental, social, governance (ESG) programs and are included in the MSCI Japan ESG Select Leaders Index. Mitsubishi and UBS-AM showed us unwavering support over the years, enabling MC-UBSR to become Japan’s outright top J-REIT manager. We are excited to welcome KKR, which brings significant resources and relationships to MC-UBSR, and is well-placed to work with our experienced team to extend our long and successful track record of delivering strong results for the unitholders of JMF and IIF and take the business to the next level.” Katsuji Okamoto, President & CEO and Representative Director of MC-UBSR “Japan is one of the most important and high-volume real estate markets in the world, and is a market we have been dedicated to investing in with a local team since 2006. MC-UBSR has an excellent track record of serving investors across its REIT offerings and a strong commitment to enhancing its investments through a strategic approach to ESG. We look forward to working with and supporting a team that has served investors so well over the last two decades, and we anticipate that our combined strengths will further enhance MC-UBSR’s ability to deliver for new and existing clients and unitholders,” said Hiro Hirano, CEO of KKR Japan and Co-Head of Asia Pacific Private Equity at KKR. Takuya Kuga, Group CEO-designate, Urban Development Group of Mitsubishi, said, “We are pleased to have supported MC-UBSR’s development and operations over these past 20 years, and are proud to have grown MC-UBSR into Japan’s leading REIT manager. Mitsubishi continuously strives to optimize and strengthen its business portfolio, and will continue to expand its real estate development and asset management businesses in Japan, led by its wholly owned subsidiaries, Mitsubishi Corporation Urban Development, Inc. and Diamond Realty Management Inc, along with accelerating its initiatives in overseas real estate and large-scale urban development/management business. Welcoming a high-caliber real estate and diversified investment firm like KKR is a major endorsement of MC-UBSR, its team and its business, and we look forward to working with KKR and MC-UBSR.” Suni Harford, President of UBS Asset Management, said, “In partnership with Mitsubishi, we are proud to have developed MC-UBSR into a leading real estate platform in Japan. We are confident that KKR is well placed to take this business forward and wish the MC-UBSR team every success for the future. The Japanese market remains a cornerstone of our Real Estate & Private Markets business in Asia Pacific, and we remain focused on serving the needs of our clients and capturing growth opportunities in this strategically important region. Through our rapidly growing real estate investment unit, UBS Japan Advisors, we will continue to advise our clients on Japanese property investments.” UBS’s asset management, wealth management, and investment banking businesses operating in Japan are unaffected by the transaction. About KKR KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. About Mitsubishi Mitsubishi Corporation is a global integrated business enterprise that develops and operates businesses together with its offices and subsidiaries in approximately 90 countries and regions worldwide, as well as a global network of around 1,700 group companies. Mitsubishi has 10 Business Groups that operate across virtually every industry: Natural Gas, Industrial Materials, Petroleum & Chemicals Solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution and Urban Development. Through these 10 Business Groups, Mitsubishi’s current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations, working in collaboration with our trusted partners around the globe. With an unwavering commitment to conducting business with integrity and fairness, Mitsubishi remains fully dedicated to growing its businesses while contributing to a prosperous society. About UBS UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook. UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE). In Japan, the firm offers corporate, institutional, and high net worth private clients a full array of financial products and services through five business entities: UBS Japan Securities Co., Ltd., UBS AG Tokyo Branch, UBS SuMi TRUST Wealth Management Co., Ltd., UBS Asset Management (Japan) Ltd., and UBS Japan Advisors Inc.

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REAL ESTATE TECHNOLOGY

First-time buyers, inventory expected to rebound in 2024

Zillow | March 25, 2022

The housing market is expected to return to pre-pandemic, 2019 norms — at least in terms of inventory and the share of purchases made by first-time home buyers — by 2024 according to a panel of housing market experts polled in the latest Zillow Home Price Expectations Survey. The dwindling supply of homes for sale has been a key driver of the recent explosion in U.S. home values, which have risen 32% in the past two years. Total inventory has fallen from a monthly average of 1.6 million units in 2018 and 2019 to just over 1 million in 2021, and monthly figures in 2022 are lower still. Inventory should return to a monthly average of 1.5 million units or higher in 2024, according to the largest group (38%) of respondents to Zillow's survey. But many are more optimistic — the second-largest group (36%) believes supply will bounce back to pre-pandemic levels in 2023, while 2025 earned the third-highest share of votes with 12%. Inventory and mortgage rates will determine how far and how fast home prices will rise this year and beyond. We are seeing new listings returning to the market, slowly, as we enter the hottest selling season of the year, but this supply deficit is going to take a long time to fill." Jeff Tucker, Zillow senior economist Return of the first-time home buyer The pandemic ushered in record-breaking price growth alongside rent hikes that made saving for down payments even more difficult. As a result, the share of first-time home buyers dropped from 45% in 2019 to 37% in 2021, according to a Zillow survey of recent buyers. First-time buyers should regain their pre-pandemic share of the market in a couple of years, according to the majority of experts polled, with 26% pointing to 2024, and 25% liking 2025. Eighteen percent of the experts polled did not believe the share of first-time buyers will rise above 45% until after 2030, despite millennials — the largest U.S. generation ever — aging well into their prime home-buying years before that time. Inflation considerations Inflation has already begun eroding the bottom lines of American households, with the Bureau of Labor Statistics noting rising costs for energy, housing and food as prime factors driving it to a four-decade high. Of the six categories considered, survey participants expect energy prices to increase the most over the course of 2022, followed by house prices, residential rents and food costs. Employee wages and stock prices were ranked fifth and sixth, respectively, rounding out the list. Price growth projections Pulsenomics founder Terry Loebs said the panel's average projections for home price growth in 2022 have been revised upward, from 6.6% three months ago to 9% in this survey. "Against the backdrop of tightening Fed policy and increasing mortgage rates, this more bullish outlook for home values suggests that home inventory shortages will remain the dominant price driver this year," Loebs said. "If price increases this year for homes, rents, energy, and food each exceed wage growth – as the panel expects – home affordability challenges will intensify further, especially for low- and moderate-income renters." Zillow economists forecast a 16.3% rise in typical home values from February through December. 1 This edition of the Zillow Home Price Expectations Survey surveyed 109 housing market experts and economists between February 16 and March 2, 2022 to gather their predictions for the outlook of the housing market in 2022 and beyond. The survey was conducted by Pulsenomics, LLC on behalf of Zillow, Inc. The Zillow Home Price Expectations Survey and any related materials are available through Zillow and Pulsenomics. About Zillow Group Zillow Group, Inc. is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. Zillow Group's affiliates and subsidiaries include Zillow, Zillow Offers, Zillow Premier Agent, Zillow Home Loans, Zillow Closing Services, Zillow Homes, Inc., Trulia, Out East, ShowingTime, Bridge Interactive, dotloop, StreetEasy and HotPads. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287. About Pulsenomics Pulsenomics LLC is an independent research firm that specializes in data analytics, opinion research, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health. Pulsenomics LLC is the author of The Home Price Expectations Survey, The U.S. Housing Confidence Survey, The Housing Confidence Index, and The Transaction Sentiment Index. Pulsenomics, The Housing Confidence Index, The Transaction Sentiment Index, and The Housing Confidence Survey are trademarks of Pulsenomics LLC.

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INVESTMENTS

Home Warranty of America Joins the Choice Home Warranty Family

Choice Home Warranty | February 08, 2022

Choice Home Warranty ("Choice") announced today that it has acquired certain assets of Home Warranty of America ("HWA") from Home Warranty of America, Inc. to enhance Choice's position as a leading provider of home warranty service contracts and to accelerate Choice's mission to become the US' largest and most respected home warranty provider. Financial terms of the transaction were not disclosed. Founded in 1996 and based in Illinois, HWA is recognized as a top national provider of home warranty service contracts to real estate professionals. Choice will continue to operate HWA as a stand-alone brand; but would complement HWA's strong brand and experienced employees with modern and improved customer service utilizing Choice's advanced technology. HWA's experienced team and strong reputation with real estate professionals combined with Choice's advanced technology, is an excellent fit with Choice's overall growth strategy, The combination of HWA's real estate channel experience with Choice's direct to consumer business and high-tech administration platform will be complimentary and will improve customer service, be great for our partners, and accelerate our path to attaining our goal of become the US' largest and most respected home warranty provider." Victor Hakim, Chairman, and founder of Choice. Home Warranty of America has been a trusted and recognizable brand in the home warranty space for more than 25 years, We welcome the team and are excited to bring new technology to improve and grow HWA and Choice." Hakim.

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Spotlight

The real estate industry is long overdue for a shakeup. Not only is one-third of the industry running on technology that was first released over 30 years ago, but it continues to put up barriers to transparency, preventing the release of locked up liquidity and eliminating standard services. Research shows that there is not only a lack of innovation but also an unwillingness to explore ways the industry can be developed. The established way of thinking has proven difficult for the industry to shake off. We are ready to break down all of these barriers. With the help of the blockchain, we know that the real estate industry can move into a new, more democratic age.

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